Although the D-FW housing market is shifting, potential home sellers should rest assured that their houses still have plenty of sales value, according to an analysis by M&D Real Estate.
As of July 2022, the median home sales price was up an average of 17% compared to June 2021 in Rockwall, Hunt, Kaufman and Dallas counties. Days on the market has increased, which is why inventory is building and more homes are sitting longer, up an average of about 65 percent in the area year over year, according to M&D.
However, the most recent Census data points to D-FW’s population increasing by 97,300 from July 2020 to July 2021. The Metroplex saw the second highest gains in the country during that time. Despite talk of recession, the labor market remains strong with the unemployment rate falling nationally to 3.5 percent.
Although the housing market has shifted, entering a pause and turnaround, this is more due to extreme price appreciation over the past two years, and the market is now settling down to a more normal price appreciation rate, according to M&D.
For sellers, the accrued home values -- about 60 to 75% on average in the D-FW area – remains, and even for 2022, price appreciation remains positive. Also, for those selling their homes, there will be more opportunities on the market for purchasing another one.
“You will also realize that relief when you purchase your next home in the purchase price. Not to mention, there will be opportunity now for you as a buyer to get repairs, when inspections are happening, to ask for more concessions and the like,” said Danny Perez, managing director of M&D Real Estate. “This market shift is not bad news. It is only that price appreciation, and the market is moderating and coming back to normal, which everyone will reap the benefits of.”
Still, price reductions are happening, and properties are sitting longer right now than previously. The 30% in price appreciation is unsustainable, and rising interest rates are pushing buyers out of the market.
“What has to happen now is that price appreciation from 2021 is going to back up and reduce to more normal levels, such as five to 10 % price appreciation,” predicted Perez. “This still gives you a total of about 70% price appreciation in your home for the past 2.5 years — not a bad outcome at all.”
Once everything balances out and adjusts, the market will see an uptick in buyer activity over the next 60 to 90 days again, where homebuyers begin jumping back into the market and picking off the inventory that is building, according to the analysis.
This Metroplex remains a hotspot of activity and growth, with high demand for single-family homes.