No matter the market conditions, summer is always a busy home-buying time. More buyers head out to look for homes when the weather is nice. More sellers get out to prepare their homes for sale. Let’s look at a few things to expect in the Dallas-Fort Worth market.
Lower Prices Are Enticing Homebuyers
According to Redfin.com, Dallas home prices were down 5.3% in April 2023 compared to the same month last year. The median sale price per square foot fell 9.16% over that period. What are people paying for these Dallas homes? Redfin reports that the average home sells for about 1% below its list price. Properties that Redfin classifies as “hot homes” sell for around 2% over list prices.
Inventory is Down, Competition is Up
On the heels of a strong spring selling season in Dallas, summer is sure to see significant competition among homebuyers.
Texas A&M University’s recent Texas Housing Insight report finds that demand is trending upward in Dallas. And inventory has dropped. The Dallas Morning News calls Dallas “Texas’ tightest major housing market.” The paper notes that a “shortage of homes to buy, along with continued job growth bringing people to the region,” is driving competition. Increases in per capita income also contribute to the current sellers’ market in Dallas.
Pre-Approval Offers a Competitive Edge
With an average home-selling time of 25 days, Dallas is a very competitive market. Unless your financing is ready, you may not have enough time to get approved for a mortgage and bid on the home you find. And so, without a pre-approved mortgage, you run the risk of losing your dream home in a timely bidding war.
What are the chances that you’ll end up in a bidding war? Multiple bids on homes are the status quo, so you can likely expect to compete for your forever home. And sellers aren’t likely to wait until you get mortgage approval when they have other buyers who are ready to deal. A mortgage pre-approval shows a seller that you’re a serious bidder, giving the seller confidence in your financial abilities.
So stock up on sunblock and get yourself a comfortable pair of summer shoes to join the summer home-buying pack. We’re here to help when you need us! (972) 591-3097