The North Texas housing market is downshifting quickly, with Dallas-Fort Worth being the only U.S. market to see a decrease in home sale prices last month, according to a report released today. DFW home prices are down 1.9% year over year in July, according to the latest Re/Max National Housing Report.
And what a difference a month makes. Last month, DFW led the U.S. for home price increases, with June prices up 29.3% over the previous year. In hard numbers, home sales prices in DFW fell to $413,900 in July from $422,000 in July 2021. Homes in DFW spend an average of 23 days on the market before selling.
Higher interest rates and inflation, as well as record home prices, triggered a sharp drop in demand for housing, said Todd Luong, a realtor with Re/Max DFW Associates: "Here at our Re/Max office in Dallas-Fort Worth, our listings are currently getting on average 2.7 showings per week," Luong said. "Last year, at this same time, our listings were earning on average 5.9 showings per week. That is a huge drop in buyer demand compared to the previous year. Record home prices and higher mortgage rates have forced many potential buyers out of the market, especially first-time homebuyers."
While the latest trends may disappoint some sellers, buyers now have more choices and better opportunities for good deals, Luong said. Luong said that the DFW housing market has been challenged with low inventory for years and reached an all-time low earlier this year, with only a two-week supply. Now, however, inventory is increasing. "Although buyers have more choices now, it is still not a balanced market as we only have about a two-month housing supply," Luong said. "In a normal market, you have about a five to six-month supply of housing."
A new report from Zillow also found falling home values, although the numbers didn't match Re/Max's precisely because of different study methods and different geographic definitions of DFW as a metro area, among other reasons. According to Zillow's findings, the Dallas-Fort Worth metro area's typical home value is $396,904, down 1.1% since June, the first month of decline. Values are up 55.4% since July 2019.
Zillow also reported that the mortgage payment on a typical home in DFW is $2,633 a month, including taxes and insurance. That's up 77.4% compared to July 2019.
According to Zillow, inventory in DFW has risen 10.2% since June, and the share of listings with a price cut in July was 22%, compared to 15.6% in June. Nationwide, after two years of unprecedented growth, home values fell for the first time since 2012 as competition for houses eased, according to Zillow's July market report.
The slowdown is being driven by decreased competition among buyers. Zillow's analysis says that affordability pressures have pushed many to the sidelines, and buyers are waiting in the wings to resume their search if and when prices relax a bit. Skylar Olsen, Zillow's chief economist, called the flattening of home values "a badly needed rebalancing. This slowdown is about discouraged buyers pulling back after the affordability shock from higher rates," Olsen said. "As prices soften, many will renew their interest, and we will continue our progress back to 'normal.'"
Luong said he sees positive signs in the market. The interest rate for a 30-year fixed mortgage dropped below 5% after peaking in June. More than 290,000 new jobs were added in Dallas-Fort Worth last year, so North Texas has one of the strongest labor markets in the country. "Reasonably priced homes that are in good condition and move-in ready are still selling very fast," he said. "However, the bidding wars have subsided considerably across the board."
Do you love baking but wish your kitchen was more functional for your culinary needs? Or, do you want to create a space that makes it easier for you to bake your favorite dishes?
By making a few simple changes to your kitchen, you can improve the functionality and efficiency of your kitchen. Our real estate agents know that many of these projects will make your home more appealing to potential buyers.
Here are some features and additions that we recommend to make your kitchen more baking-friendly.
Want a home with a larger kitchen so that you have additional space for baking? Contact us today to get started!
Today's real estate market remains hot, hot, hot, with sellers enjoying high prices, while buyers are facing a highly competitive market that has made it difficult for some to land the home they're longing for. This is especially true for those selling homes in Dallas/Fort Worth or shopping for Dallas homes for sale and Fort Worth homes for sale.
It's easy to get distracted during the buying or selling process by certain widespread real estate myths. Our real estate agents help many families in the area find their dream home and advise them to not fall for misconceptions they might hear from well-meaning friends and family members.
Read on about some common real estate myths you should not fall for.
Need more help navigating today's real estate market? Contact us today.
Love to cook? If so, you may be looking for a dream kitchen among Fort Worth homes for sale. You probably have some good ideas about what you want in a kitchen, but our real estate agents have some insightful advice that might make you reconsider what you're looking for. For instance, many homeowners think large when it comes to kitchen space, but experts say it's more important for your kitchen to be organized than to be expansive.
Make the most of your kitchen with these upgrades.
Still looking for a home complete with the perfect kitchen for all your culinary adventures? Our agents can help. Contact us today.
Our real estate agents here at RE/MAX DFW Associates know that sellers have been bouncing back in our area for weeks now. It's about time for buyers to join the excitement and check out all of the great Dallas homes for sale that are hitting the market!
And that market is right for first-time home buyers.
Many people put off the decision to buy a home because they aren't sure about their finances or worry about their credit. With historic low interest rates, however, now's the time to test the waters. If you're interested in buying a home, you can begin working on your credit and make a big difference.
Your credit score is a numerical rating that helps lenders understand your financial habits. A higher credit score represents someone who is more likely to pay debts on time, making them a safer bet.
Although your credit score is important, it doesn't have to be perfect!
By starting the right habits today, you can make a significant difference in your credit even if you only have a few weeks or months before you apply for a mortgage loan. Current "creditworthy" behavior is often weighed more heavily by lenders than any credit problems you had in the past.
Here's how you can get off to the right start by building your credit:
Getting a great mortgage starts with finding the right home – and there's no better ally than RE/MAX DFW Associates. Contact us to learn more.
If you're looking to move to the Dallas/Fort Worth area, house hunting can be complicated by the commute to open houses and other viewings. If you spot a particularly appealing choice among the Dallas homes for sale, you may consider making an offer before you're able to tour the house in person. This option has its risks, but with some caution, making an offer before you have a chance to see the house in real life can pay off.
While you may prefer to wait to view a property in person, making an offer before you can see a house can be a sound purchasing decision. We'd love to discuss your home viewing options with you. Please contact us today.
Dallas homes for sale are some of the most desirable around. It's no surprise many people enjoy seeing them up close – both to buy and to stay a while! Our real estate agents have noticed a trend: Newly-sold Dallas homes are becoming popular Airbnb destinations.
Airbnb equips homeowners to provide short-term lodging for travelers – from a day to a few months. It maintains an online, mobile-friendly platform where homeowners list properties and visitors view them. Once a booking is made, Airbnb notifies both parties. The company takes a portion of the proceeds; the rest goes to the homeowner.
Listing on Airbnb can be a terrific way to generate income from almost any Dallas home. If you choose, you can make hundreds or even thousands monthly, even while still living on the property. But making money with Airbnb isn't quite as easy as downloading an app. Here's how to decide whether it's the right move for you.
For the right homeowner, Airbnb can be a great way to open up a new income stream without the substantial investment and property management woes of a dedicated rental home. If you're eager to get started, remember: A beautiful, modern home will position you to achieve more on Airbnb. Contact us to learn more about the best real estate opportunities in Dallas.
Buying or selling a home can be a stressful situation, but buying and selling a home simultaneously can get downright terrifying if you're not ready for the transition. Fortunately, there are some ways to help ease the burden of buying and selling at the same time, and the primary method is by way of a bridge loan.
Just like it sounds, a bridge loan helps bridge the gap between selling your current home and buying another. Our real estate agents are familiar with the challenges you face when trying to sell your existing home and purchase a new home, so we've put together this guide on how to bridge the gap.
If you're looking to sell your current home and upgrade to a new home, no matter if you're looking to a bridge loan or not, selling your home quickly is critical. Contact us today to get in touch with an agent and let one of our agents help you search Dallas homes for sale!
Life never stands still, and the single-family home occupied by the nuclear family unit doesn't work for everyone. There's a rising demand for multi-generation homes as younger adults stay at home longer, and families come together to take care of parents and grandparents in their retirement years. Today our real estate agents are providing you with all the information you need to decide if multi-generational living is right for your family.
We're seeing a rising trend of multi-generational living spaces in our inventory of Dallas homes for sale, and it isn't surprising given the recent trends. Close to 25% of families are currently or have recently shared a multi-generational living arrangement. These are often younger couples starting families while still living at home with parents. In some cases, grandparents return to live with their children after the grandchildren have grown up and moved away. This can be in one large home or in multiple structures on the same property, such as the ever-popular "mother-in-law" suite.
There are several reasons why this living situation can be advantageous, as it allows multiple generations to pool their resources. and enjoy a standard of living that may not be available individually. It may also be an opportunity for home improvements to increase the value of the property. It also can be a boon for working adults as retired family members may help to take care of children and save the family a significant amount on childcare costs. This may seem like a recent development, but prior to the 1950s, it was common for three or more generations to share the same household.
Some consider an adult still living with their parents a mark of failure, or a retired person moving back in with their children to be an act of interference. Both of these are unfair characterizations. Multi-generational living has concrete financial benefits, but trends show that financially successful families are also adopting the lifestyle as security in an uncertain economic climate.
The cost of living is getting more expensive while wages and benefits remain stagnant, and this is putting the squeeze on families that are seeing fewer opportunities to save money, invest, or plan for retirement. Having grandparents spend their hard-earned retirement with their children may be the only way for their children to save enough money for their retirement. Recent college graduates with student debt can benefit from having an additional generation to help with household expenses.
Whether the current working generation needs help from their parents or the older generation is finding retirement income insufficient, they may find things are better together. Multi-generational living can heal old wounds and bind families closer together, allowing grandparents more precious time to spend with grandchildren. It can give young couples an opportunity to spend time with each other away from the kids on the weekends, building a stronger relationship. It can bring old-fashioned expertise and know-how into the home.
It can also build closer bonds of understanding between the generations, even as caregiving and chores become a shared responsibility. It may also be a bridge from renting to finally being able to make the leap into homeownership with older parties able to co-sign on loans as well as help to meet minimum household income requirements.
What do you think? Is multi-generational living something that might work for you? RE/MAX DFW Associates can help you find your ideal home for more than one generation. Contact us today for more information on our listings.