As previously reported by Local Profile, October home sales saw lower numbers than during the Great Recession. A report by North Texas Real Estate Information Systems (NTREIS) showed that in Dallas and Collin counties closed home sales dropped almost 32% compared to last year. Now a new report states that sales kept falling in November, reaching nearly 35% fewer closed sales year-over-year.
According to the Dallas Business Journal, November was the fourth consecutive month of declining sales — although home prices are still up when compared to 2021.
Seasonality is a factor in the drop, but the NTREIS report estimates that this slowdown in the housing market could be happening due to the combined effect of homebuyers waiting for mortgage rates to drop and sellers holding off from listing homes in view of the weakening buyer demand.
"The frenzy of the last two years could not continue, and we are seeing a softening brought on by rising rate increases,” Michael Coburn, broker/owner of RE/MAX Town & Country in Allen told the Dallas Business Journal. “Next year will be more of the same, with slower sales and steady prices.” According to Coburn we are facing a housing market reset in DFW.
This effect is not felt exclusively by DFW market participants. Nationwide, existing-home sales fell 7.7%. This has also increased the housing inventory. “With home sales down, nationwide housing inventory was at 3.3 months’ supply heading into November, up from 2.4 months from this time last year, according to the National Association of REALTORS,” stated NTREIS’ report.
But Coburn says this won’t last for too long. “Currently, sellers are paying closing costs and offering incentives, and no bidding wars exist,” he said. “When rates come down, buyers will jump in again, and bidding wars and rising prices will return. Buyers have choices right now. Get in before the next frenzy."
