Dallas and Houston Market Insights Report - September 2023
September 19, 2023
Dallas and Houston Market Insights Report - September 2023
We recently released our latest Market Insights report for Dallas, TX and Houston TX for September 2023. Here is a high level overview of our findings.
Similar to June, active listings, closings, and new listings increased in both markets. Active listings in both markets have experienced significant growth since April.
For the fourth consecutive month, purchase prices in Dallas have held steady at 336k, while in Houston, sales prices decreased by over 1%, marking the first decline since Q1 2022.
The sale-to-original-list percentage (STOL) in Dallas fell for the first time since Q4 2022, matching Houston at 97%.
In both markets, <30 DOM listings accounted for around 40% of all listings while >60 DOM listings accounted for around 33%.
The decrease in >60 DOM assets in Dallas could potentially be attributed to the drop in STOL. It's possible that sellers with listings exceeding 60 DOM have become more inclined to accept lower offers.
Even with the recent rise in mortgage rates, homes in Texas remain more affordable compared to many other parts of the country.
Similar to 2022, active listings witnessed significant growth from April to August, primarily driven by the Spring and Summer listing seasons. Throughout the year, new listings and closings have experienced some fluctuations, but overall, they have shown positive growth.
Since April, Houston has seen a notable rise in active listings and new listings, with closings remaining relatively stable.
The absorption rates in both markets experienced a significant increase at the beginning of June. However, in the past month, Dallas' absorption rate has declined, while Houston's continues to rise.
Average purchase prices in Dallas have stabilized after reaching a trough at the beginning of the year, with peak-to-trough prices changing by nearly 5%. Presently, purchase prices have returned to Q4 2022 levels.
The gap between sale and list prices had been narrowing on a month-over-month basis until August. Over the past three months, both list prices and sale prices p.s.f have increased.
While Houston saw growth from January to July, prices dropped 1.5% in the past month. Sale prices are down 3.6% from their peak to their trough.
List and sales pricing p.s.f showed steady increases from March to May, but they have since stabilized. Additionally, purchase prices p.s.f have remained virtually unchanged when compared on a year-over-year basis.
After initially declining to below 95% STOL at the end of 2022, both markets have seen a rebound to 97%. Dallas experienced its first STOL drop since Q4 2022. For offers to stay competitive, they should approximate 95% of the list price.
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