Writer: Jerrica DuBois
2 min read September 2022 — The conversation around the real estate market has taken an interesting turn. Sellers have enjoyed a strong market for some time as low inventory and skyrocketing prices allowed them to pick and choose from numerous offers on their home. However, the latest report from Redfin shows that trend is starting to shift.
According to the report, 45.8% of homes in the Dallas area and 44.7% in the Fort Worth area saw a price drop in July. One year ago, only 22.8% and 26.8% of buyers in Dallas and Fort Worth, respectively, found they had to lower their asking price. The number of homes for sale with price drops has also hit a record high on a national scale.
“My advice to sellers is to price their home correctly from the start, accept that the market has slowed and understand that it may take longer than 30 days to sell,” said Redfin agent Shauna Pendleton in a statement. “If someone is selling a nice home in a desirable neighborhood, they shouldn’t need to drop their price.”
Even with the changing shift in favor of the buyer, homes in North Texas are still up $100,000 or more from their price one year ago. The median sale price in the metroplex was $421,000 in July, up 15% from July 2021, according to the latest report from the Texas Real Estate Research Center at Texas A&M University and North Texas Real Estate Information Systems.
Janet Kane, CEO of MetroTex Association of Realtors, is optimistic considering the amount of economic impact the real estate industry has on the metroplex. “The real estate industry accounted for $285.3 billion, or 16.2%, of the state’s gross state product in 2020,” she told Invest:. “Every home sale averages $89,600 in economic impact to the economy.”
While multifamily construction remains strong in DFW, the region has also lost its No. 1 position as the nation’s leader in new apartment developments. In a new report from RentCafe, after four years at the top of the list, the metroplex is about to lose its standing to New York City, which has over 28,000 apartments under construction compared to 23,500 units in the DFW pipeline.
Nationally, there are 420,000 new rentals projected for completion this year. Apartment deliveries in the US have not gone over 400,000 since 1972.
Overall, Texas accounts for a sizable chunk of the country’s apartment development. Austin and Houston landed at fourth and fifth on the list, respectively. The Austin metro is on pace for 18,300 new apartments and Houston is looking to build 17,700 new units this year, the RentCafe study says.
Within North Texas, specifically, the city of Dallas leads the area in units under construction. There are 4,248 units, including 1,507 that are already built, that are expected to be delivered this year.
