DFW House Prices Dropping & Inventory Rising

For Sale Price Reduced Home House Real Estate Sign 3d Illustration.
Photo credit Photo: Iqoncept/Dreamstime.com

My late father who passed away Mother's Day 2016 was always interested in real estate. Eventhough he had only acquired a 6th grade education due to a myriad of reasons, at one time, he and my mom had 3 houses, and all were paid for.

In the 2 years before my dad's passing, we often talked about the DFW housing market and what was causing it's quickly escalating prices. Occasionally he would say to me, "son, what goes up, must come down." He said, "don't be in hurry... wait a while... watch the market... and you'll soon see improvements for buyers." He also noted that most while DFW area house prices increased around 40% in 4 years, most residents didn't receive a 40% pay increase over that time, and reality would eventually rise to the top. My father's prediction is coming true. 

Dallas Morning News reports DFW is in the Top 10 U.S. housing markets for price-cuts, with almost 17% of sellers reducing their price, according to Zillow.

So far this year Dallas, Collin and Tarrant County have experienced an approximate 40% increase in available house inventory, giving buyers far more choices than in the previous several years.

From January and February of this to last year, house sales were down 5% and the median price was up just 1%.

Barry Hoffer of Ebby Halliday told Dallas Morning News the following:

  • "Yes, sellers are taking markdowns if their homes do not sell pretty quickly"  
  • "What I am seeing in general is that sellers are taking price reductions after only 15 to 30 days on the market if they do not receive an acceptable offer" 
  • "Some fortunate sellers with homes in very desirable locations are still receiving multiple offers at or above their asking price, but not in the volume of two or three years ago"
  • "Personally, I think that the market is just returning to normalcy, which to some sellers, who have become spoiled by the news of what their neighbors were able to sell their homes for just a few years, is a little bit of a shock."
  • "Most sellers are finally realizing that the market has changed."

House price-reductions are even higher in the following cities:

  • Tampa - 23% 
  • Las Vegas - 21%
  • Houston - 17%

Bottom line for North Texas, housing inventory is growing, prices are dropping, and reality is quickly settling in.

Thanks for the good advice to wait, dad. I'm still waiting... :).