The sales prices for homes in DFW continue to rise and, according to RE / MAX, are 19.5% above the previous year.
DALLAS – New Dallas-Fort Worth homes are selling at the fastest pace ever recorded as used home sales plummet, according to two new reports.
According to HomesUSA.com’s New Home Sales Index 3-month moving average, new homes were on the market for just 53 days last month, up from 96 days in July 2020.
Meanwhile, the RE / MAX National Housing Report, which includes mostly used homes, showed DFW home sales declined 20.8% year-over-year in July, the largest decline in the subway this year, and the second largest decline in the United States.
Only Salt Lake City saw a larger drop in home sales, down 22.5% year over year.
The sales prices for homes in DFW continue to rise and, according to RE / MAX, are 19.5% above the previous year. The current average home sale price in Dallas-Fort Worth is $ 358,418 – the highest price in the report’s 12-year history.
The housing stock in July was up 10% compared to June, but that wasn’t enough to stop the year-over-year decline in home sales, said Kendra Norwood, owner of RE / MAX Innovations in DeSoto.
“There’s just no inventory,” said Norwood. “With historically low interest rates stimulating mortgage refinancing earlier in the year, lenders have seen a surge in new loan applications. However, more and more families are choosing not to sell or sublet in the hope that the market will stabilize and prices will become more affordable. “
Traditionally, the housing market slows down in August when the kids go back to school, Norwood said. This year, however, many parents are opting for home schooling until concerns about the mask mandate are resolved, leaving the need for school and office jobs, she said. That will likely further reduce supply, she said.
“As the supply of available homes continues to decline and demand increases, we can only assume that the average selling price will rise,” said Norwood.
For the DFW new home market, demand continues to outpace supply and the time it takes to sell a new home, called days in the market, has “collapsed,” said Ben Caballero, owner of HomesUSA.com-based in Dallas.
“New homes in Dallas are flying off the shelves,” he said.
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Nationwide, new homes sold on average in just 62 days, up from nearly 100 days in July 2020, Caballero said.
HomesUSA.com’s August New Home Report – which covers Dallas-Fort Worth, Houston, Austin, and San Antonio – is based on data from North Texas Real Estate Information Systems, Houston Association of Realtors, Austin Board of Realtors Multiple Listing Services, and San Antonio Realtor Committee.
HomesUSA.com first started tracking days based on market data (DOM) with the launch of its News Home Sales Index in 2017. Historically, it takes about 100 days or more to sell new homes in a typical real estate market, Caballero said.
“Dallas builders are selling homes so fast they can’t even make it into the Multiple Listing Service (MLS),” said Caballero, which means some new home sales are not being tracked and reported in a timely manner from a central source.
“We really don’t know the total number of new home sales because we don’t have data on sales without MLS,” he said.
Based on MLS data, HomesUSA.com’s August report shows new home sales are falling as low inventory continues to drive down sales in DFW and across the state.
The three-month moving average for new sales in Dallas-Fort Worth was 1,140 last month, up from 1,257 in June. Home sales were lower in all four of the state’s major new home markets.
Surprisingly, average new home prices were mixed, with the DFW’s three-month moving average falling to $ 414,444 in July, up from $ 416,057 in June. New home prices were also lower in Austin, while San Antonio and Houston both saw significant increases in average new home prices, according to the report.
“It’s important to note that while home prices can fluctuate from month to month, the trend is for home builders in Dallas to offer new homes at the highest average prices ever in recent months,” said Caballero.
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National construction companies are trying to slow their sales pace in order to match current levels of production while at the same time building the new infrastructure necessary for more construction to begin. A report from MarketNSight finds that 70% of home builders surveyed said homes won’t be released for sale until after the framework phase, Caballero said.
A majority (58%) of home builders cite the “unpredictability of current asking prices” as the main reason for the slowdown in sales, according to the MarketNSight survey.
In fact, upcoming DFW new home sales are trending downward based on MLS data. The three-month moving average of pending new home sales for Dallas-Fort Worth was 1,198 in July, down from 1,275 in June. Outstanding sales in DFW were 2,362 in July 2020.
The three-month moving average was 2,338 active new homes for sale in Dallas-Fort Worth in July, up from 2,687 in June. A year ago there were 6,552 active entries, a 64 percent decrease from the previous year.
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