Dallas-Fort Worth home prices were down about 8% in the fourth quarter from the market’s peak in mid-2022.
According to a recently released report from the National Association of Realtors, the median home sale price in the area was set to drop to $375,000 at the end of 2022, compared to a high point of $408,200 the year before.
Home prices in North Texas and several other US metro areas have softened since last summer due to rising mortgage rates and low sales.
“The slowdown in home prices is underway and has been welcomed, especially as home prices have increased by 42% over the past three years,” Lawrence Yun, chief economist at Realtors, said in the report. “Very few metro markets experienced double-digit price gains in the latest quarter.”
North Texas prices were still up 7.1% through the end of 2021 — and that increase was nearly double the national rate, according to Realtors.
Home prices were higher on an annual basis in nearly 90% of US markets tracked quarterly by the real estate trade group.
“Despite the projected reduction in domestic sales this year, prices are expected to remain stable in most markets due to extremely limited supply,” Yun said. “Moreover, there are signs that buyers are coming back as mortgage rates decline, even with inventory levels near historic lows.”
The largest price increases in the country at the end of 2022 are Farmington, NM (20.3%) and Sarasota, Fla. (19.5%) occurred.
Home prices fell annually in the fourth quarter in 20 metro areas. The worst year-over-year declines were in San Francisco (-6.1%) and San Jose (-5.8%).
Home prices in the Austin area decreased 1.3% from fourth quarter 2021 levels.
A recent forecast from financial giant Goldman Sachs predicted home prices in Austin — the highest in the state at an average of $478,900 — could drop as much as 25%.
Austin prices have already dropped more than 20% since the second quarter of 2022, according to Realtors.
According to Realtors, home prices rose 6.6% in the fourth quarter in the Houston area and 5.5% in the San Antonio area.
The housing market has cooled as mortgage costs have more than doubled since the beginning of last year.
Home sales in North Texas were down 30% through the end of 2022.
And prices have declined for five months in a row.
A new estimate from Moody’s Analytics projects D-FW home prices to decline between 5% and 10% this year.
Source: www.dallasnews.com
