Home sales in Dallas-Fort Worth were flat in May, dragging North Texas to third in the nation for total closed transactions.
In May, 9,311 sales were closed in North Texas, slightly down from the 9,336 transactions reported last year. The 0.3% drop put Dallas behind New York and Chicago for total home sales last month, according to data from real estate company RE/MAX. Still, it’s an increase from the nearly 8,500 sales reported in April in D-FW.
While sales are flat year-over-year, the housing supply continues to grow.
D-FW had 13,741 active listings last month, an 18.2% increase from May 2023. Only New York and Houston had more new listings. North Texas had an active housing inventory of 24,375 in May, a whopping 55.8% increase over last year. Only Miami, Houston and New York had higher inventories.
D-FW had 3.5 months of housing inventory at the end of May — the highest mark since November 2012, according to data from the Texas Real Estate Research Center at Texas A&M University, North Texas Real Estate Information Services and the MetroTex Association of Realtors.
Roughly six months of inventory is generally needed for the housing market to be considered balanced between buyers and sellers. That figure tracks the number of months it would take to sell off homes currently on the market.
D-FW median home prices increased 1.5% — slower than the 4.8% year-over-year increase nationally. RE/MAX reported the median price of a D-FW home was just over $408,000.
“Compared to 2021 and early 2022, homebuyers looking in Dallas-Fort Worth are now having a much easier time finding homes available for sale,” Todd Luong, an agent with RE/MAX DFW Associates, said in a statement. “Often, they are able to secure a home without competing against multiple offers, and occasionally, they can even get the property they want for below the listing price. This was unheard of just a few years ago. In addition to the increase of existing homes for sale, the greater availability of new construction homes has also slowed the growth rate of home prices.”
RE/MAX’s National Housing report relies on multiple listing service (MLS) data for 53 larger U.S. metro areas, including D-FW.
Nationwide, inventory and new listings grew to their highest levels since the second half of 2022. The number of homes for sale rose 8.7% over April and 39.6% year-over-year. Home sales increased by 0.7% over last May.
As supply increases, questions about interest rates and possible cuts loom.
Mortgage rates continue to decline. For the week ending June 13, the average 30-year rate in the United States was 6.95%. Rates topped 7% in April and May.
The Federal Reserve did not change its key interest rate last week and scaled back its forecast from three rate cuts to only one amid sticky inflation.
“More sellers are seeing the advantages of listing their homes now. They’re getting their asking price and enjoying the benefits of a relatively quick sale,” Amy Lessinger, President of RE/MAX, LLC, said in the report. “Growing inventory offers more options for homebuyers, too, and we’re seeing more sales activity as a result. Mortgage rates continue to impact the rhythm of the housing market. If inventory keeps bulking up and mortgage rates don’t change, prices may eventually start to soften.”
