In May, home sales in Dallas-Fort Worth (D-FW) remained flat, positioning North Texas as the third-highest in the nation for total closed transactions. According to data from RE/MAX, 9,311 sales were closed in North Texas, slightly down from 9,336 the previous year. This reflects a modest 0.3% decline. This placed Dallas behind New York and Chicago in total home sales for the month. However, it’s worth noting that the number of sales represents an increase from the nearly 8,500 transactions reported in April in the D-FW area.
Inventory Growth and Market Dynamics
Despite the stagnation in year-over-year home sales in DFW, the housing supply continues to expand. In May, there were 13,741 active listings, an 18.2% increase from the same period last year. Only New York and Houston had more new listings. Furthermore, North Texas had a total active housing inventory of 24,375 in May, marking a substantial 55.8% increase over the previous year. This puts D-FW among the highest in the nation for housing inventory.
D-FW’s housing inventory reached 3.5 months at the end of May — the highest since November 2012. Typically, about six months of inventory is required for a balanced market between buyers and sellers. This figure indicates the number of months it would take to sell off current homes on the market.
Median Home Prices and Market Conditions
D-FW home sale prices saw a modest increase of 1.5%, lagging behind the national year-over-year increase of 4.8%. RE/MAX reported the median price of a home in the area to be just over $408,000.
“Compared to 2021 and early 2022, homebuyers in Dallas-Fort Worth are finding it much easier to locate homes for sale,” said Todd Luong, an agent with RE/MAX DFW Associates. “Often, they can secure a home without competing against multiple offers and occasionally even purchase below the listing price. This was unheard of just a few years ago. Additionally, the greater availability of new construction homes has slowed the growth rate of home prices.”
National Trends and Local Implications
RE/MAX’s National Housing Report, which uses MLS data from 53 larger U.S. metro areas, including D-FW, indicated a rise in inventory and new listings to their highest levels since the latter half of 2022. Nationwide, the number of homes for sale grew by 8.7% over April and 39.6% year-over-year, while home sales increased by 0.7% over last May.
As the supply of homes increases, questions about interest rates and potential cuts remain. Mortgage rates have been declining, with the average 30-year rate in the United States at 6.95% for the week ending June 13. Rates had topped 7% in April and May.
The Federal Reserve recently decided not to change its key interest rate and reduced its forecast from three rate cuts to only one due to persistent inflation. “More sellers are seeing the advantages of listing their homes now,” said Amy Lessinger, President of RE/MAX, LLC, in the report. “They’re getting their asking price and enjoying the benefits of a relatively quick sale. Growing inventory offers more options for homebuyers, too, leading to more sales activity. Mortgage rates continue to impact the rhythm of the housing market. If inventory keeps increasing and mortgage rates remain stable, prices may eventually start to soften.”
