The latest sign in the North Texas housing market reads “New Prices.”
More home sellers in the Dallas-Fort Worth area are adjusting their prices for the winter market, when the market is traditionally slow.
According to Realtor.com, about 27% of D-FW homes listed for sale with real estate agents have had their prices reduced as of October. Nationwide, 18.9% of homes had their prices reduced in October.
Daniel Hale, chief economist at Realtor.com, said the nationwide price cuts are “more than any other year on record.” Our data dates back to 2017.
“One of the things we noted was a significant increase in discounts from September to October and actually going back to April,” Hale said. “While it is normal to see some rally in late spring and summer, it wasn’t until 2022 that we really saw the sharp rise in September and October, after which prices dropped dramatically. I’ve slowed down.”
Home sales prices in Dallas-Fort Worth have been declining in recent months, dropping about 1% in the third quarter from a year ago, according to the National Association of Realtors.
The median asking price for D-FW homes for sale on Realtor.com is $449,000, down a fraction of a year ago. This is higher than the US public offering price of $425,000 in October.
Home sales property information on the website increased by 6.6% from the October 2022 level. Also, the median time it took to sell a D-FW property was 46 days.
Local real estate agents aren't surprised by the price cuts, with marketing anticipating a cooler season heading into the holiday season. Rising mortgage rates are also lowering price limits for buyers.
D-FW home sales in October were down 7% from the same month last year.
“The drop in prices is due to lower demand due to interest rates,” said Scott Schuler, a real estate agent with Keller Williams Realty. “Sellers who are still pricing at the high end of the price war are beginning to realize that the market has already peaked.”
Real estate agent David Busch said the pending holiday was definitely a factor in the seller's thinking.
“We believe many sellers are overpricing their homes, but the upcoming holidays may prompt more owners to take their homes off the market and restart in January ahead of the spring market. “It's highly sexual,” Bush said.
