How The Market Is Moving Near You
Our Market Movement reports provide insight into where the real estate market stands now - and some critical information that could benefit you later.
Our quarterly "Market Movement" report offers a comprehensive picture of the residential real estate markets we serve here in North Texas. These reports are an invaluable resource for consumers, real estate professionals, financial institutions, the media, and anyone interested in the current, local DFW housing market.
Sales That Stand Out
- Estate in Highland Park, Texas, price undisclosed
- Clear Branch Ranch, Coryell County, Texas, price undisclosed
- 1400 Alta Drive, Fort Worth, Texas, listed for $10,000,000
- Wildcat Mountain Ranch, Robert Lee, Texas, listed for $9,175,000
Hot-Spots in North Texas
The 2023 North Texas Housing Market Outlook
The research conducted indicates positive changes for 2023 and a good reason to look upon this new year with optimism. According to the National Association of Realtors the Dallas Fort Worth area is expected to outperform most other large metropolitan areas in 2023. They also ranked our local area of North Texas as being in the top 10 real estate markets to watch, all 10 of which are located in the south. Currently, the housing supply or the number of homes available for sale in the North Texas market remains low, so homeowners considering whether it is still a good time to sell should feel confident in entering a still strong seller's market. They could see great benefits from the unique supply-and-demand dynamics at play here in our local market.
The Dallas Market is Moving in 2023
Overall Dallas and North Texas have seen sharp rises in home prices throughout the pandemic with a 40% increase in value within the local luxury real estate market. However, while other U.S. housing markets are now at risk of a downturn following the pandemics peak, the North Texas housing market seems to be safe. When compared to other large metropolitan areas around the U.S. we find that our local market prices are not considered to be overvalued and therefore we expect the DFW market to remain strong and stable in 2023.
The biggest challenge we face in the Dallas Fort Worth real estate market is the inability for the supply of available homes to keep up with the steady demand. Out of state buyers are continuously being drawn to the North Texas area, specifically from the California Bay area and from New York, for the diversified economy and zero state income, estate, and inheritance taxes. We have also seen new construction rates start to slow which is allowing for price increases to existing homes. While it is true demand has slowed since the peak of the pandemic the average sales prices in DFW have actually continued to increase.
It seems likely that price growth in 2023 will return to pre-pandemic levels being somewhere between three and five percent. We still frequently see homes selling before they even hit the market, however, the extreme bidding wars have become a thing of the past. Buyers seem to be a bit more cautious as they enter the market now given the overall inflation and increased prices they are being faced with each day but when a home is priced the right way it isn’t available for long.
Housing Forecast For 2023
North TX Market
In the short term, evidence from previous downturns suggests buyers and sellers may wait for more economic clarity before making moves during the first half of 2023. With all that is occurring on a macroeconomic level, everyone seems to have chosen to take a bit of a pause when it comes to the real estate market. We seem to be moving back to unit sales levels similar to that of 2019 but with prices like what we have seen in 2022.
In the past we have seen downturns in similar large market areas like New York and the data suggests it will likely take at least six months before sales return to a more normal pace following the market shock. Based on what we have seen in the past following market shocks like 9/11 and the 2008 housing crises we can pretty confidently expect New York to start increasing its market activity throughout the first quarter of 2023.
Overall, the market is moving back towards a simpler time when it took a few weeks or even a few months to find a single buyer for a home on the market. As prices eventually steadily start to fall more people will inevitably start jumping back into the market.
Why Sell With Davey Goosmann?
Buyers in 2023
The rise in mortgage rates and lower volume of sales afford buyers time to do their due diligence after a period of lightning-fast transactions. As the market shifts, buyers will start to regain some control and authority within the market.
It will be the first time in nearly two-and-a-half years that buyers have a greater chance of purchasing a property and being able to negotiate lower prices without the threat of facing extreme competition for the purchase of the home. There is also a greater chance that buyers will be able to take their time and include things like a home inspection, appraisal contingency, and financing-approval contingencies in their negotiations.
Moving back towards a more normal market will allow buyers more time to make their decisions and they will be able to negotiate within the market once again. Overall, it is a bright future for buyers to look forward to in the coming year.
Why Sell With Davey Goosmann?
Sellers in 2023
The coming year will also bring with it a major shift in the way sellers interact with the market. Sellers who attempt to beat out nearby recent sales will face a harsh reality as the market shifts. Instead, sellers may need to start getting comfortable with making slight adjustments to their pricing to be more reasonable and mirror the new market's reality.
The primary takeaway for sellers is that it is crucial to price within a range that will actually sell. It won’t do sellers any good to look at distant comparables and base their pricing off of what homes sold for six months prior but rather they should be looking to more recent contracts closed within the past few weeks for a more accurate understanding of the current market. It is a time for sellers to start looking ahead and anticipating the shifts of the market rather than relying on its history to determine how to best price a home.
Why Sell With Davey Goosmann?
During the pandemic property rush people dove into home buying as an investment hoping for immediate return which we have seen repeated time and time again in past booms. However, property is an asset that appreciates with time if you once again look to the past, ignoring small moments of downturns, generally, property has always steadily appreciated within the U.S.
A market correction has the potential to lead to a great deal of fear but the key takeaway is that downturns happen every so often and on the back of every downturn is a period of appreciation.