DFW has entered buyer territory for the first time since the housing market caught fire in 2020.
DALLAS – Dallas-Fort Worth has shifted to a buyer’s market for homes.
That’s according to the latest Buyer-Seller Market Index released today by home loan provider Knock.
DFW entered buyers’ territory for the first time since the housing market caught fire in 2020, finishing October as the 10th most favorable buyers’ market in the country.
Austin is currently the only other buyer’s market in Texas, ranking as the 4th most favorable for buyers.
Phoenix ranked the nation’s top market for buyers, San Francisco ranked second and Salt Lake City, Utah, ranked third, according to the index, which analyzes key housing market metrics to assess in the extent to which the 100 largest markets in the country favor buyers or sellers of homes.
Of the 100 largest markets in the country, 51 are sellers’ markets, 39 are neutral and 10 favor buyers.
In DFW, inventory on the market in October increased by 48.2% compared to October 2021, to 15,635 units. In the relatively smaller Austin market, inventory rose 70.2% year over year in October, to 7,610 homes.
According to the index, the median time to sell a home is 25 days in DFW and 38 days in Austin.
The country’s 10 buyer’s markets tend to have longer lasting inventory and more days on market.
All 100 markets except Fayetteville, North Carolina have shifted at least slightly toward buyers over the past 12 months — a trend that will continue into next year, according to the Knock Index.
The U.S. housing market will favor buyers in 2023, with 26 of the 100 markets expected to emerge as buyers’ markets by October 2023.
Fast-forwarding a year, DFW is expected to be the sixth-best market in the nation for buyers, with inventory rising a further 56.4% to 24,461 homes on the market in October 2023.
Austin will remain the fourth-best buyer’s market a year from now, and the pendulum will swing in favor of San Antonio buyers (expected to be 16th-best in October 2023). Houston is expected to remain a seller’s market in October 2023.
DFW and Austin are expected to move from “buyer-friendly” to “strongly buyer-friendly” over the next year, according to Knock.
Rolling back a year, all four major metropolitan markets in Texas were classified as sellers’ markets.
Despite the continued move to buyers nationwide, today’s hottest seller’s markets are expected to remain resilient, with many remaining in seller’s territory, and some even gaining momentum at course of the next year.
Fayetteville, followed by Winton-Salem, North Carolina; Columbia, South Carolina; Hartford, Connecticut; and Rochester, NY, topped the list of best markets for sellers through October 2023.
The shift to buyer preference is occurring in neutral and already buyer-friendly markets, while the strongest seller’s markets are cooling at a slow pace, according to the index.
By October 2023, 26 US markets are expected to be buyers, 38 will be in seller territory and 36 will be neutral.
The shift to buyers’ markets is being driven by a number of key housing market metrics, including declining home sales.
Just 127,000 homes were sold in the 100 largest U.S. real estate markets in October, down 51.4% from 262,000 a year earlier and an all-month high since November 2016, the start of the Knock’s bid-ask market index. The median U.S. home price was $388,000 from $360,000 a year ago, while the average days on market rose to 19, up a full week from compared to October 2021.
The national average sale-to-sale ratio, which measures how well homes are selling relative to their asking price, was 99% in October, unchanged from September and down from 101% a year ago. one year old.
“The housing market has borne the brunt of the Fed’s attempt to control inflation,” Knock co-founder and CEO Sean Black said in a statement. “At the same time, he continued to demonstrate his resilience.”
Sellers still hold the advantage in most of the nation’s largest metros, and many will continue to favor sellers through 2023, Black noted.
“With interest rates stabilizing in recent weeks and less competition, buyers may begin to re-enter the market over the next few months,” he said, “which could lead to a return to a spring-like market. more normal way of buying houses”.
Across DFW, home prices rose year over year in October, but fell for the third straight month.
The median DFW home price in October was $394,900, up 12.3% from October 2021. But the median of $394,900 last month was down from the median price of $399,000 in September and at the median of $405,000 in August, according to the latest Re/Max National Housing Report.
Zooming in geographically, home prices in DFW have fallen sharply from their highs this spring in many cities – especially those where the biggest increases have occurred.
Median home prices are down $152,000 in Frisco, $115,000 in Plano and $110,000 in Irving from their spring highs, according to a city-by-city analysis by AgentStory, a tech firm that mined the data on house prices at the request of the Dallas Business Journal.
In Frisco, the median home price was $598,000 in October, down from a high of $750,000 in March. Plano’s median home price fell to $450,000 last month from a high of $565,000 in April. And in Irving, the median price was $374,700 in October — down from the peak median home price of $485,000 in May, but up from $340,000 in September.
Geographically across the country, in October, six of the top 10 selling markets were in the South, three in the Northeast and one in the Pacific Northwest, according to the Buyer-Seller Index.
The average sale-to-ask ratio declined to remain below 100% in all October buyer’s markets except San Francisco, where the average sale still exceeded the asking price by 1%.
The index includes six measures: ratio of average sale to asking price, number of homes sold, number of active listings, median days on market, median sale price and continuing supply. houses in a given month.
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