North Texas home sales dipped in June, as prices continued to skyrocket

After nearly a year of strong growth, home sales in North Texas declined year over year in June.

However, the 3% year-on-year decline may not signal a slowdown in the local housing market.

Home sales in the region rebounded sharply in early summer 2020 from delayed purchases at the start of the pandemic. After strong declines in April and May, home sales recovered here in June 2020.

According to data from the Texas Real Estate Research Center and North Texas Real Estate Information Systems, the 11,554 single-family home sales in June of this year were higher than the purchases in June 2019, before the COVID-19 lockdown.

And sales in June were up about 10% from the number of homes trading in the area in April.

“I definitely wouldn’t reconsider that small drop in June from last year,” said CDCG Real Estate housing analyst Paige Shipp. “I am still concerned about the rising prices.

“They praise people from the market, but I don’t think we have reached our goal yet.”

Average home sales prices in North Texas rose 23% year over year in June to a new record of $ 350,000.

In 2021, prices for single-family homes sold by real estate agents were up 18% compared to the first half of last year.

The huge increase in prices is due to the fact that the number of houses for sale in the area has decreased by 50% from the June 2020 level.

“It’s Economy 101 – supply and demand,” Shipp said. “If supply is scarce, it will keep prices down.

“And people who need a home will pay what they have to pay.”

At the end of June, there were only 8,603 single-family homes for sale with local real estate agents in the roughly two dozen North Texas counties examined – near an all-time low.

“I thought we’d put more inventory on the market once people were more comfortable putting their homes on the market,” Shipp said.

However, many potential sellers find that they have no more property to buy when they sell their current home.

“There aren’t a lot of places to go,” Shipp said.

When houses come on the market, they are sold almost immediately. Properties that changed hands in June were only on sale for an average of 20 days.

And houses were sold at an average of 103% of the asking price, according to the multiple listing service numbers from June. Many properties trade at premiums much higher than list prices.

Real estate agents sold 55,129 single-family homes in the first six months of this year – an increase of 7% over the same period last year.

The number of homes put for sale by agents last month was about a third of the population in northern Texas in mid-2019 before the pandemic.

“The limited number of listings is now acting as governor of the market in terms of monthly sales,” said Ted Wilson, director of Dallas-based housing analyst Residential Strategies. “In addition, with a price increase of over 20% year-on-year, the affordability of housing is again proving to be a challenge for many households.”

Dallas-Fort Worth property sales and prices have soared to unprecedented levels in the past year since the COVID-19 pandemic broke out.

The surge in shopping in North Texas was fueled by the exodus of tens of thousands of new residents from other states. And the persistently low mortgage rates have softened the effects of the price hikes somewhat.

Still, some analysts predict that the pace of home buying will slow later this year as rising prices keep more first-time buyers away.

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