The Dallas-Fort Worth housing market is showing signs of cooling, but there is no indication that the market's "housing bubble" has burst. So what’s behind this remarkable resilience, and what does the future hold for the DFW real estate market?
Dallas-Fort Worth has remained one of the “healthiest” real estate markets The local median existing-home price has only fallen 1% from a year ago, to $415,000. This is well below the national average decline of 8.6%, even as mortgage rates have been rising, making it more expensive to buy a home.
Higher rates are likely the most responsible for the modest cooling in the Dallas-Fort Worth housing market. However, the supply of homes for sale in the region, contrary to record-low inventories elsewhere, has actually increased slightly. Yet even as some buyers are becoming more cautious about the economy and are waiting to see how things play out, the DFW housing market is still considered to be a seller's market. Homes are still selling quickly, and buyers are still facing competition.
One of the reasons why the Dallas-Fort Worth housing market is not seeing a bubble burst despite industry naysayers is there is still a lot of demand for homes. The region is growing rapidly, and there is a shortage of housing. This is driving up prices, even as mortgage rates rise, and has done much to shore up the market against the erosive quality of higher lending costs.
Another reason why the Dallas-Fort Worth housing market is not seeing a bubble burst is because the economy in the region is still strong. Unemployment is low, and wages are rising. This means that people have the income to afford to buy homes - at least for now. If mortgage rates continue to rise, it could make it more difficult for buyers to afford homes. And if the economy takes a turn for the worse, it could also cool the housing market.
The Dallas-Fort Worth housing market is a complex system, and there are many factors that can affect prices. However, the recent cooling is a positive sign for homebuyers, and it is likely to continue in the near future. Still, the Dallas-Fort Worth housing market remains strong, which has been a major relief to real estate professionals working within the region. However, it is showing some modest signs of cooling, even if it’s still too early to say whether the market will continue to do so or whether it will rebound. However, there is no indication that the market's "housing bubble" has burst.
The data backs this up; the inventory of homes for sale in the area is still low, but it has increased slightly from a year ago. The average number of days a home is on the market has increased as well, but only slightly, from 22 days to 26 days. On average homes sell for around 1.5 percent above asking price, with the most popular homes remaining to be single-family homes and townhouses in the DFW suburbs. For anyone willing to pay above asking price to win a bidding war or who can get pre-approved for a mortgage before you start your house hunt, you stand a good chance of finding your next home in the Dallas-Fort Worth area in the shorter term.