New home sales have surged in Dallas-Fort Worth over the past few months, while existing home sales have been relatively weak.
builders in the area Sell From April to June, 14,397 new residential units were built, an increase of 4.7% over the same period last year. However, the Dallas Morning News said that 8,750 existing single-family homes sold in June, down 4% year-over-year reportciting Residential Strategies, North Texas Real Estate Information System, and Texas A&M University Texas Real Estate Research Center.
Buying activity picked up in the second quarter after interest rate hikes late last year and a gloomy economic climate kept potential buyers on the sidelines. After the post-pandemic boom, housing inventory in Dallas-Fort Worth dwindled, and sales surged once new homes were built.
“Everyone has to ramp up the startup again to replace inventory,” Ted Wilson, head of Residential Strategies, told the media.
Mortgage rates are still high, but builders are pulling out all the stops, offering discounts and incentives, including lower rates. The builder can lower the rate by paying some of the cost of the home up front, essentially discounting the property without changing the asking price.
Construction activity in Dallas-Fort Worth cooled last year, but now builders are trying to add much-needed housing supply.
Existing home sales in the DFW market remain relatively lukewarm. More than 18,000 homes were listed on the market in June, well below the balance between buyers and sellers, the outlet said.
The average days on market in June was 41 days, and the average sales price was 97.6% of the asking price. Active listings rose 16% year over year as homes stayed on the market longer, while new listings fell 22% due to low inventory and high interest rates.
However, Plano-based Compass broker Matt Haistings told the outlet that the shift to a buyer’s market can be viewed as a good thing.
“I’m happy that buyers have some level of negotiating power and that there’s more leverage in the deal in their favor again than a year ago,” he said.
— Quinn Donoghue
