Homebuyers and sellers in the Dallas area will need to understand typical home values and trends in home prices throughout the Dallas housing market. The median price of homes for sale is important, but so is the affordability of new houses. Have rising interest rates led to a slowdown in the real estate market?
The number of home sales around the country has dropped by 7.4 percent from May 2021 to May 2022. As such, rising mortgage rates are potentially leading various housing markets to decline. Is the Dallas housing market also facing dropping home sales?
Keep reading to find out the answer. Now, let’s get started!
Average Home Price in Dallas
Here, you will learn about Dallas housing market statistics, including the number of days on market and the median home prices.
The average home prices in the Dallas-Fort Worth (DFW) area are around $400,000. According to Redfin, the median home sale prices are $405,000 as of August 2022. Compared to last year, the real estate cost in Dallas increased by 6.2 percent.
In June 2022, the median home sale price rose 29.3 percent in the city compared to the value in June 2021.
The number of days on the market also saw a slight drop in the Dallas, Texas, housing market. Houses in Dallas sell in 22 days on the market, on average. That’s a one-day decline from the 23 days on average in 2021. However, the housing supply seems to have started dwindling in the Texas housing market.
In Dallas, buyers purchased only 1,042 houses in August 2022 compared to 1,243 homes sold last year. That’s a 16.2 percent drop year-over-year.
The Zillow home value index for Dallas houses reached $334,170, a 21.5 percent increase compared to the prior year. That cost is currently the middle price point for homes in the city. However, over the last decade, that price point has increased significantly by more than $200,000 across Dallas.
The Redfin Compete Score for the Dallas real estate market reached 74 as of late. As such, it is a very competitive market despite growing mortgage rates for every new home in need of a loan. Sellers with active listings right now may see home buyers, even first-time buyers, put down bids above the asking price.
Currently, 38.6 percent of homes are sold above the listing price in Dallas. However, 44 percent of real estate properties saw price drops in August 2022. The sale-to-list price is 99.8 percent for the Dallas real estate market.
Many houses throughout the city get multiple offers when put on the housing market. Essentially, the market is truly competitive in DFW.
High and Low Home Prices in Dallas
Certain cities in Texas have seen the biggest real estate price increases from May 2021 to May 2022, including:
- Waco, Texas
- Allen, Texas
- College Station, Texas
- Longview, Texas
- Temple, Texas
Dallas home prices also have high values. As a result, the city has seen one of the largest housing inventory declines throughout Texas over the last year. In May 2021, the housing inventory reached 2,121 houses. That number declined to 1,374 homes by May 2022. Therefore, the housing supply dropped by 35.2 percent.
Despite the drop in inventory in North Texas, housing prices continue to grow. The reason may relate to the strong housing demand with fewer options available. That leads to more desperate home buyers putting up bids higher than the asking price.
The most expensive home sales in TX include luxury homes selling for nearly $16 million, $10 million, $9.5 million, and $6.6 million.
Some sellers listed their luxury houses for $5.5 million and less than $5 million. These properties have four to seven bedrooms and five to 10 bathrooms.
Home prices have grown alongside rising population levels in the Dallas Fort Worth area and Houston, which both gained 1.2 million new residents since 2010.
However, you can still find low home sale prices in Dallas. For instance, you can find apartment-style condos for only $95,000 or as low as $75,000 to $85,000. These properties are usually one-bedroom and one-bathroom apartments under 600 square feet.
Nonetheless, the thriving economy in Dallas has led to a competitive real estate market. Once the quarantine due to the pandemic ended, the economy began thriving again. The job market added about 276,000 new positions from February 2021 to February 2022. Also, over the last decade, the population in the city increased by 9 percent.
With more new jobs, employment has grown by 5.6 percent year-over-year in the Dallas Fort Worth area. Over the last year, the real estate market has skyrocketed by 30.3 percent.
Further, the average value of single-family homes grew by more than 73 percent in the Texas metro area. Essentially, despite some low home sale prices, the majority of real estate properties are high in the region.
Best Areas To Live in Dallas
The strong seller’s market in Dallas has led homeowners in the best areas of the large city to dip their toes into selling their real estate property. The best metropolitan areas include:
- Oak Lawn
- University Park
- Lakewood
- Preston Hollow
- Bishop Arts District
- Timberbrook
- Lower Greenville
- Deep Ellum
- Campbell Green
- Canyon Creek South
Oak Lawn has a great nightlife scene and is perfect for young singles in their mid-20s through their 30s. You will find plenty of dance clubs, bars, and restaurants, along with historic architecture like gorgeous brownstones.
University Park has excellent schools for its residents. It also holds a community center with plenty of shops and entertainment options. Here, you can find a fishing pond and the Holmes Aquatic Center to enjoy.
Lakewood is perfect for those who want to spend time in nature. The region has plenty of biking and hiking trails to check out. You will also find loads of wildlife and views of rolling hills. The lake also holds plenty of adventures for kayakers and sailboat owners.
Preston Hollow is home to many elite and wealthy individuals, such as NFL pros and business tycoons. You’ll find mansions and multi-family homes here with luxury shopping plazas. The local public schools are also the best in the Dallas-Fort Worth area.
The Bishop Arts District features loads of amazing restaurants and artisan candy shops. It’s the right area if you’re a Millennial looking for more affordable housing opportunities. Along with tasty eateries and community events, you’ll see plenty of art galleries here, too.
Timberbrook is the perfect place for larger families with children who need spacious homes and safe streets for their kids to play on. The real estate is pricey here, but it does hold several great public schools for children to attend.
Lower Greenville is home to many college students and young adults working in professional careers. It holds an impressive restaurant scene along with a wonderful theater.
Deep Ellum has a trendy and artsy feel meant for young professionals and artists. You’ll find tons of street art here, along with some of the best Texas barbecue restaurants around. You can find a happening dance club here as well.
Campbell Green is a region meant for families who need affordable housing and want a mix of a suburban and urban atmosphere. The area also has excellent public schools for families with children.
Canyon Creek South holds the best elementary and middle schools in all of Dallas. The University of Texas at Dallas is also nearby, and you’ll find plenty of restaurants and shops in the region. It also has affordable housing options for families. These ten places are the best ones to live in throughout the Dallas area.
Sale-to-List Price Ratio in Dallas
The sale-to-list price ratio is the final price a seller gets for their home divided by the last asking price listed for the house. Then, the sale-to-list price is calculated into a percentage.
If the home’s sale-to-list price ratio is above 100 percent, it was sold above its asking price. On the other hand, if it is below 100 percent, the realty received a lowball offer, and the seller took a bid below the asking price.
If you’re looking to get the average sale-to-list price ratio of several homes in a neighborhood, add up the ratios and divide that value by the number of houses. The Dallas housing market has seen the largest jump in the sale-to-list price ratio compared to the rest of the United States year-over-year.
In May 2022, the sale-to-list price ratio reached 104.7 percent, a significant rise from the 98.4 percent seen in May 2021. That’s a 6.3 percent change year-over-year. Other areas that saw significant improvements in the sale-to-list price ratios include Los Angeles, Trenton, New Jersey, and Burlington, Vermont.
The median sale price of Dallas homes rose by 18.5 percent from April to May 2022 and 8.2 percent throughout the past year. However, the number of home sales has dropped by 4.2 percent as of June 2022 from the previous year.
In recent years, the seller’s market has continued to skyrocket in Texas, with home prices constantly increasing by great numbers. The low inventory and strong demand led to an impressive outcome for the Dallas real estate market.
However, the future of the real estate market in Texas may start shifting quickly. Rising interest rates and an unstable stock market may lead the real estate market to decline in Dallas. As a result, real estate agents have already begun listing homes at more realistic values, so you may see home prices declining throughout Texas.
Average Days on Housing Market
As previously mentioned, the average number of days on the housing market in Dallas is 22 days for the typical single-family home as of August 2022. That number dropped from 23 days on the housing market on average in August 2021.
A low number of days on the market (DOM) means that the housing market is strong, while a high one shows that the market is on a decline.
As a home seller, you’ll need to ensure your home does not spend too much time on the housing market. The longer a house remains on the market, the more likely buyers will believe there is an issue with the property.
Homes also produce the greatest interest among buyers when they are first introduced on the market and showings begin. The first open houses have more buyers interested than ones that take place a month or two afterward.
However, there are ways sellers can reduce their DOM value. If you’re selling your house, try to pick the right housing price to attract the most buyers from the beginning. You may also need to consider a price reduction if your place has been on the market for a long period.
Furthermore, if your home needs repairs, make any necessary renovations to the property. For example, repair any broken doors/windows, lighting fixtures, and plumbing or electricity issues. You might also need to complete some landscaping work.
Lastly, you will need to perform a deep cleaning of your home and stage the rooms to create an eye-catching property for potential buyers. These steps will help decrease your DOM value.
Conclusion
The Dallas housing market stands separate from the rest of the nation, where rising interest rates have stalled the local markets. Instead, home prices have continued to increase in the DFW region. You can sell a house fast in Texas, especially if you live in Dallas, where homes are off the market in less than 30 days.
However, if your home needs significant renovations and you need to sell quickly, you may need to work solely with real estate investors, cash buyers, and house flippers. You won’t even need to work with a realtor. Instead, contact cash home buyers in Dallas and sell your house in only a few short weeks.
Since we buy houses Arlington locals find impressive, you should call us today.