Here are our latest Market Insights for Dallas and Houston for August 2023.
While active listings, closings, and new listings all declined last month in Dallas, active listings and new listings saw an increase in Houston.
Active listings, closings, and new listings all decreased for the first time since March.
Since April, Houston has experienced a sharp increase in active listings. Closings have experienced a decline for the first time sinceApril, while new listings have been consistently rising since that same month.
The absorption rates in both markets began to increase at the start of June. However, it remains a seller favored market.
Average sale prices for single-family homes have started to stabilize in Dallas, currently prices average 3% below last year’s peak. Conversely, Houston prices, after reaching a low in January, are now 0.7% below peak levels and have risen by 3.15% year-to-date.
Average sale prices in Dallas have stabilized after reaching a low in January. These prices have now returned to the levels observed inQ4 2022.
The gap between sale and list prices had been narrowing on a month-over-month basis until the past month. Sale prices remain flat while list prices have slightly increased.
In Houston, sale prices are down 3.6% peak-to-trough. Year-to-date Average Purchase Prices in Houston are up 3.15%.
In July, on a $p.s.f. basis, Houston’s purchasing pricing experienced a decline for the first time since March. Meanwhile, list prices remained virtually unchanged on a year-over-year basis.
In tandem with sale price movement, the sale-to-original list percentages (STOL) have decreased in both markets since June of the year prior. While STOLs exceeded 100% in both markets last June, they currently range between 97−98%.
After dropping below 95% STOL for the first time at the close of 2022, STOLs have rebounded to 98% in Dallas and 97% in Houston.To remain competitive, offers should be around 95% of the list price.
In both markets, <30 DOM listings accounted for around 40% of all listings while >60 DOM listings accounted for around 33%.
Even with the recent rise in mortgage rates, homes in Texas remain more affordable compared to many other parts of the country.
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