Home prices in Dallas continue to rise as the months roll by. Affordability is down 3.3% from a year ago. As with other areas around the country, sales are still down from the levels of a year ago. This marks the fifth time in eight months so far this year that fell short of 2013 sales numbers throughout the Dallas-Fort Worth area. We attribute the slump to “price fatigue.” Buyers are waiting to see if prices level or decline in the near future are staying on the sidelines with possibly unrealistic expectations.
Market data for the Dallas-Fort Worth area shows a 12% decrease from 2013 in closed sales for the month of August. With 8,781 closed sales, the numbers remain slightly higher than 2012 figures. Meanwhile, the year to date has been comparable to 2013, with a modest 2.4% decrease in sales. Pending sales, on the other hand, have fallen 15.2% from a year ago. With 7,150 pending sales at the end of August, sales numbers for September could take a hit. “As the market normalizes, we will begin to see a stabilization in sales numbers,” according to Keith Dunham, C.E.O. of HomeCity Real Estate. “With employment rates and job growth continuing to grow in the Dallas area, we don’t expect anything less than a steady increase in our market.” According to the U.S. Department of Labor, Dallas ranked second in both jobs added and rate of job growth.
Contrary to sales figures, homes are being sold a full day quicker than in August of 2013. An average of 49 days on the market is a 2.5% improvement over last year, and it is an even more impressive statistic considering the 8.4% increase in median sales price to $193,000.
The inventory of homes for sale has seen a steep 10.2% decrease from a year ago, and this is a major factor in decreased sales. Agents are reporting plenty of interested homebuyers, but the lack of inventory is holding the market back at the moment. The 3.7 month supply of inventory is another area where the Dallas market has declined over 10% from 2013.
Overall, Dallas area home prices continue to rise. Currently, they are up over 40% from the worst part of the recession. A lack of inventory has hit sales numbers, but time on the market has decreased. August reports indicate that sellers receive an average of 96.4% of their original list prices, which is a modest 0.3% increase from 2013. This consistency is a result of a settling market, which is good news for the immediate future of real estate in the Dallas area. “We’d like to see an increase in inventory in order for the Dallas-Fort Worth market to continue its recovery,” said Dunham. Indeed, if housing inventory expands, figures look positive for a more balanced market in the near future.
August 2014 Dallas Housing Market Statistics Compared to 2013:
- •8,781 single-family homes sold, down 12%
- •$193,000 was the median price for single-family homes, up 8.4%
- •49 was the average number of days homes spent on the market, down 1 day
- •3.7 months inventory, 0.4 months less than 2013