The resi party that dominated Dallas the last few years finally showed signs of mortality in 2022.
Homes stayed on the market for more than 37 percent longer than in 2021, and inventory went up nearly 161 percent, according to data from Realtor.com. Average home prices in 2022 were a rollercoaster ride as well. In January, prices averaged around $360,000 then peaked in May at nearly $500,000, but fell all the way down to $340,000 by December, according to Redfin data.
Many of those fluctuations were a symptom of record interest rate increases forcing a come-down from the market boom of 2021. But continuing demand from the flood of transplants to Dallas and the relatively affordable median sales price kept the market steady.
“Demand is stronger than supply, and we’re incredibly fortunate that we are in North Texas versus some places around the country,” said Russ Anderson, president of Briggs Freeman Sotheby’s International Realty. “It is a fragile economy right now, but our typical buyer is not nearly as interest-rate sensitive as a first-time homebuyer market. I think our typical client has more resources and more options than a lot of people, so they can navigate around interest rates changing.”
For some agents, the return to reality hit harder than others. In the fourth quarter, realtors began jumping ship or getting pushed overboard as Dallas’ active pool of agents shrank by more than 30 percent at the end of 2022, compared to the same period the previous year, according to a report by AgentStory.
“You have that fuel from ’21 left over, and the first six months of ’22 were incredible. But in Q4 it kind of came to a screeching halt,” said Keith Conlon, president of Allie Beth Allman and Associates. “We were kind of prepared for it, but at the same time, when agents have been so busy for so long, and then they slow down drastically like that, it’s a bit of a panic.”
Savvy agents who stuck around began employing tactics like mortgage rate-buy downs, cutting closing costs or offering free warranties to entice buyers. Though much of that has gone out the window after a hot start to 2023. Buyers have returned in droves, and seller optimism is high, Conlon said.
“This year is actually our second-best Q1 in the firm’s history aside from 2021. Transactions are down, but volume is up, and it’s amazing how many people are still moving to Dallas,” Conlon said.
The Dallas top ten
These rankings only account for the city of Dallas proper and do not account for the greater Metroplex. In terms of sales, Compass and Ebby Halliday were the top two firms in Dallas last year with each firm breaking the $2 billion mark, according to an analysis by The Real Deal of closed sell-side transactions for residential properties, excluding off-market deals.
Compass posted just over $2.4 billion in Dallas transactions last year with 15.2 percent of the market share to lead our list. The national firm did 2,575 deals leading to an average sales price of around $930,000, illustrating the firm’s focus on the high-end Dallas market. In its annual luxury report for all of DFW, compass cited 11 sales of over $10 million in the Metroplex.
“We forecasted fairly quickly the market change from Q3 to Q4, which allowed us to prepare our agents accordingly,” said Bryan Pacholski, senior managing director for compass in DFW. “Philosophically, we believe that our business is extraordinarily relational, so we lead from this perspective. Our strategy is based on communication around what is happening in the market, using both quantitative and qualitative to ensure that our sellers and buyers are informed.”
As the market shifts back into normalcy, Compass’ agents are its continued best asset, Pacholski said.
“I can say with confidence that the seasonal sales cycle has returned in Dallas, as we are seeing a strong spring market across our portfolio. Our agents are going back to basics in almost all areas of their business, from communication and connecting, to engaging and employing strong marketing strategies,” he said.
Ebby Halliday, which comprises Ebby Halliday Realtors, Dave Perry Miller Real Estate and Williams Trew Real Estate posted just under $2.1 billion with 13.2 percent of the market share for second place in TRD’s rankings. Ebby routinely dominates sales numbers in the North Texas market as a whole and is the largest independently owned residential firm in Texas. The firm did nearly $10 billion in sales across all of North Texas, according to the Dallas Business Journal.
Next, Allie Beth Allman and Associates nearly hit $1.6 billion in sales with over 10 percent of the Dallas market share. The firm also flexed its luxury muscles and brokered 1,275 deals for an average price of $1.2 million.
“I feel like what we’ve done really well is truly get out our office exclusives to our agents first to let them know what’s coming,” Conlon said. “That way, we can let buyers know that our agents are in tune with the market. They know exactly what’s coming up, when it’s coming up, and it just gives them that instant credibility.”
In fourth, Briggs Freeman Sotheby’s International hit $835 million in Dallas with over 5 percent market share. The firm had 776 deals with an average sale price of nearly $1.1 million.
“We did gain market share in some of the really competitive luxury markets,” Anderson said. “Competitors were facing some pretty significant headwinds at the end of last year, and we benefited from that. But it was an interesting year. The fourth quarter historically is a solid quarter for us, and it was tough last year.”
Rounding out the Dallas top 5 is eXp Realty with $409 million at a nearly 3 percent market share. The firm hit the mid-market hard and did nearly 950 deals last year with an average sales price of $432,000.
Coldwell Banker Realty, Rogers Healy and Associates, Keller Williams Realty DPR, JPAR and Fathom Realty rounded out the top 10.
For inquiries about how to obtain the underlying data set referenced in this story, email research@therealdeal.com
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