Dire D-FW home market expectations are probably overdone
By Steve Brown | Real Estate Editor
The Mark Twain in me would like to point out that the Dallas housing market isn’t dead. Rumors about the demise of the local home market are probably exaggerated.
As things stand right now, preowned home sales in 2018 are virtually tied with the total this time last year. And 2017 was a record high sales year.
Home prices in North Texas are up between 4 percent and 5 percent year-over-year. That’s up from a record high price in 2017.
The latest forecast calls for home purchases in the Dallas-Fort Worth area to drop about 1 percent in 2019. That would make next year the second best ever for home sales in North Texas.
Having said all that, anyone trying to sell a house knows the residential market this year has changed. Houses are taking longer to sell. And in most cases there isn’t a line of buyers fighting to overpay for your property.
That was last year and the year before.
This year, the local home market has returned to something more like normal — modest price increases and slower sales. And after the boom in housing we’ve seen over the last few years, any kind of slowdown is likely to cause some anxiety for sellers.
Just this week The Wall Street Journal postulated that the slowdown in the Dallas area’s home market is a sign of things to come for the entire nation.
“Dallas’ once-vibrant housing market is sputtering,” The Journal said.
But housing analyst Paige Shipp of Metrostudy Inc. says the sky is not falling.
“Dallas-Fort Worth, the nation’s top new home market, is slowing from a frenzied, overheated pace to a more stable, normalized market,” Shipp said. “D-FW was one of the first, if not the first, housing market to emerge from the downturn.
“Our market was hot, dare I say ‘overheated,’ since 2012,” she said.