New home sales in Dallas-Fort Worth dropped last month as inventory continued to increase, but new home prices kept rising to hit another new high.
The three-month moving average of new home sales for Dallas-Fort Worth fell in July to 1,180 homes from 1,285 in June. Active listings in the local Multiple Listing Service in DFW jumped to 4,595 homes vs. 2,915 in June – an increase of over 57% in the last 30 days.
The new home sales pace in North Texas quickened last month with a three-month moving average for Days on Market of 50.3 days, down from 51.4 days in June, according to the July 2022 HomesUSA.com New Home Sales Index.
“Dallas area home builders are experiencing a significant market shift,” said Ben Caballero, CEO of HomesUSA.com. “Total new home sales are down, while prices and inventory continue to increase.”
New home prices in the DFW market increased last month – a continuing trend. The three-month moving average of new home sale prices in July was a record $513,727 vs. the prior record of $501,327 in June. The average new home price is up over $99,000 since July 2021, an increase of 24 percent year-over-year.
Higher mortgage rates, inflationary pressure and the sticker shock of higher home prices have stopped or delayed some buyers from entering the new home and resale markets. Builders report that other would-be new home buyers are backing out of their contracts.
Caballero noted DFW pending new home sales also dropped slightly, impacted by buyer cancellations. In July, the three-month average of pending new home sales in North Texas was 1,569, down from 1,593 in June.
Record home prices in Houston and San Antonio; prices also up in Austin
The average new home price also set record highs in Houston ($424,398 vs. $419,573) and San Antonio ($407,028 vs. $391,577). The average new home price also was higher in Austin ($546,978 vs. $541,079) but short of the Feb. 2022 record of $561,134.
The HomesUSA.com New Home Sales Index showed the three-month moving average of Days on Market declined statewide and in all four major new home markets in July. In DFW, the DOM decreased to 50.3 days from 51.4 days in June. Houston’s DOM was 60.1 days vs. 64.8 days in June. In Austin, the DOM decreased to 25.8 days from 26.7 days in June. In San Antonio, the DOM was 56.5 days, down from 57.1 days in June.
Based on all available local MLS data, total new home sales in Texas were lower statewide and in all four major new home markets last month, according to the three-month moving average.
The data show that new home sales statewide and in DFW, Houston, Austin and San Antonio still hover near 100 percent of the asking price.
Prices for existing homes are up 15% from a year ago
In the existing home market, the median sale price of a home in the Dallas-Fort Worth area was $421,000 in July, up 15% from July 2021 but down 3% from June, according to the most recent report from the Texas Real Estate Research Center at Texas A&M University and North Texas Real Estate Information Systems.
This is the largest month-to-month decrease in price for existing homes since at least 2020, even though homes still cost $100,000-plus more than they did two years ago.
Article by Bill Hethcock at the Dallas Business Journal
