While the housing market is getting more balanced as home inventory rises, Dallas-Fort Worth home prices are still soaring. A recent national housing report from Re/Max shows that the median home price in DFW was at $426,000 by June, an increase of 29.3% from the same period last year.
“The market is moving toward greater balance, especially with inventory gains and the slowing of price appreciation. The past few years have been one of the most competitive times ever for buyers – and we’re finally seeing conditions ease up,” said Nick Bailey, President and CEO, in an official statement, adding that it was due in part to rising interest rates. But in DFW, price appreciation continues.
Mark Wolfe, owner of Re/Max DFW Associates, called the North Texas market “absolutely unreal.” According to Wolfe (via Dallas Business Journal), “We have increased housing inventory, interest rates are up, and the market is slowing (with fewer showings per listing), yet the prices continue to increase with buyers still offering over list price.” While he says agents are seeing changes, the I-must-pay-over-list is not part of them — especially in Denton and Collin Counties offers are coming in as much as $60,000 over the list price.
What gives? Wolfe believes that this might be the result of the influx of Californians relocating to North Texas. “Especially in the northern suburbs, we have a tremendous amount of California homebuyers,” he said. “They’re flushed with cash.” The newcomers might have no issue paying $50,000 to $100,000 over the list price to secure the property is sold to them.
However, there have been price reductions in the DFW market since homes are not getting sold as quickly as agents and sellers expect, added Wolfe. He said the showings per listing at his offices went down from eight per week last year to three. “But three showings a week is really still a good market,” Wolfe said. “It’s a little bit more of a normal market than the boom we’ve had for the last two years.”