Dallas (DFW) Real Estate Market Spotlight

Dallas Single-Unit Residential Housing

The sales volume for single-unit residential housing saw a notable 12.46% year-over-year (YoY) increase, surging from 4,744 to 5,335 transactions. This uptick in transactions translated into a rise in dollar volume, soaring from $2.17 billion to $2.51 billion.

Noteworthy is the average sales price, which experienced a 2.81% YoY escalation, climbing from $457,425 to $470,299. Concurrently, the average price per square foot also saw a commensurate rise from $198.92 to $205.02.

Examining the median metrics, the median price ascended by 2.12% YoY, from $375,000 to $382,941, with the median price per square foot following suit, escalating from $188.89 to $192.20.

The months inventory for single-unit residential housing expanded from 2.2 to 2.6 months supply, indicating a growing inventory relative to demand. Meanwhile, days to sell decreased marginally from 95 to 92 days, reflecting the sustained pace of transactions in the market.

Dallas Single-Family Homes

Similarly, the sales volume for single-family homes experienced a healthy 13.62% YoY surge, climbing from 4,392 to 4,990 transactions. This rise in transactions translated into a dollar volume escalation from $2.04 billion to $2.37 billion.

The average sales price for single-family homes rose by 2.19% YoY, ascending from $465,320 to $475,506. Similarly, the average price per square foot witnessed an uptick from $196.40 to $202.32.

Examining median figures, the median price for single-family homes increased by 1.58% YoY, rising from $379,000 to $385,000, while the median price per square foot also saw growth, escalating from $187.38 to $190.68.

The months inventory for single-family homes rose slightly from 2.2 to 2.5 months supply, indicating a gradual increase in inventory relative to demand. Conversely, days to sell decreased marginally from 95 to 92 days, underscoring the continued activity within the market.

Economic Growth and Its Impact on Housing

The Dallas-Fort Worth-Arlington area's economic growth has been a significant driver of activity within the housing market. According to data from the Texas Workforce Commission, the average monthly job count surged from 4,090,691 in 2022 to 4,268,683 in 2023, reflecting a robust 4.35% YoY increase, equating to 177,992 new jobs.

However, it's important to note that alongside this growth, the average monthly unemployment rate experienced a slight uptick, rising to 3.77% from 3.51% in 2022. While this increase warrants attention, it remains within manageable levels and hasn't significantly dampened the overall economic vitality of the region.

Competitiveness of the Market

The competitiveness of the market is underscored by several factors, including the limited inventory of available homes relative to the high demand. With months inventory hovering around the 2.5 to 2.6-month range for both single-unit residential housing and single-family homes, buyers are contending with a competitive environment where securing a desirable property requires swift action.

Meeting Buyer Demand

Despite the competitive nature of the market, there are concerns regarding whether there are enough homes for sale to meet buyer demand adequately. While the increase in inventory from previous periods is a positive sign, it may still fall short of fully satisfying the robust demand driven by population growth, economic expansion, and low-interest rates.

Is Dallas a Buyer's or Seller's Housing Market?

Assessing whether it's a buyer's or seller's housing market requires considering various factors, including inventory levels, pricing trends, and market dynamics. Currently, the market exhibits characteristics of a balanced environment, where both buyers and sellers have opportunities. Buyers benefit from favorable interest rates and a diverse inventory, while sellers enjoy strong demand and the potential for competitive offers.

However, the competitive nature of the market suggests that buyers may face challenges in securing preferred properties, necessitating quick decision-making and potentially facing multiple offer scenarios. Conversely, sellers may find favorable conditions for listing their homes, with the potential for swift sales and competitive pricing.

Is Dallas Becoming Unaffordable?

Dallas has seen a surge in economic growth and urban development, contributing to its appeal as a vibrant metropolitan area. However, this growth can also impact affordability, particularly for housing.

The demand for housing combined with limited inventory has the potential to drive prices higher, potentially affecting the affordability for some segments of the population. Addressing housing affordability requires a multi-faceted approach, involving strategies to increase housing supply, promote sustainable development, and provide solutions for diverse income levels within the city.

Dallas Rent Price Trends

As of March 2024, the median rent for all bedroom counts and property types in Dallas, TX is $1,729. This is -11% lower than the national average. Rent prices for all bedroom counts and property types in Dallas, TX have decreased by 3% in the last month and have decreased by 10% in the last year.

The monthly rent for an apartment in Dallas, TX is $1,593. A 1-bedroom apartment in Dallas, TX costs about $1,546 on average, while a 2-bedroom apartment is $2,239. Houses for rent in Dallas, TX are more expensive, with an average monthly cost of $2,600.

Key Housing Metrics:

For Sale Inventory: As of February 29, 2024, there are 21,367 properties available for sale in the Dallas area.
New Listings: In the same timeframe, 6,191 new listings entered the market, indicating ongoing activity.
Median Sale to List Ratio: The median sale to list ratio, calculated as of January 31, 2024, is 0.986, reflecting the relationship between listing prices and actual sale prices.
Median Sale Price: As of January 31, 2024, the median sale price for homes in Dallas is $370,333.
Median List Price: On February 29, 2024, the median list price is $414,333, indicating the average listing price in the market.
Percent of Sales Over/Under List Price: According to data from January 31, 2024, 18.6% of sales were over list price, while 61.0% were under list price, highlighting the variability in pricing dynamics.

It's crucial to note that the Dallas-Fort Worth-Arlington MSA comprises several counties, including Dallas, Tarrant, and Collin, among others. This metropolitan area is one of the largest in the United States, both in terms of population and economic activity. With a diverse economy spanning industries such as technology, finance, and healthcare, Dallas attracts a steady influx of residents, contributing to the robustness of its housing market.

Are Home Prices Dropping in Dallas?

As of the latest data available, home prices in Dallas have not shown a significant trend of dropping. While there may be fluctuations in specific neighborhoods or property types, overall, the market has been experiencing gradual increases in home values.rends and seek professional advice when making significant decisions.

DFW Metroplex Real Estate Market Data

Median Price: $395,000 1.3% From March 2023

Active Listings: 22,449 34.8% From March 2023

Closed Sales: 8020 -7.0% From March 2023

Days On Market: 84

Month of Inventory: 3.0

Avg RENTAL 1 BR $1412 Avg Rental 2BR $2068

COLLIN COUNTY, TX Real Estate Market Data (Plano/Mckinney)

Median Price: $492,000 -1.5% From March 2023

Active Listings: 3206 50.8% From March 2023

Closed Sales: 1347 -5.3% From March 2023

Days On Market: 76

Month of Inventory: 2.5

Avg RENTAL 1 BR $1264 Avg Rental 2BR $1582

DALLAS COUNTY, TX Real Estate Market Data (Dallas, Irving, Highland Park)

Median Price: $371,000 7.5% From March 2023

Active Listings: 4790 41.8% From March 2023

Closed Sales: 1788 -5.1% From March 2023

Days On Market: 73

Month of Inventory: 2.8

Avg RENTAL 1 BR $1363 Avg Rental 2BR $1816

Tarrant COUNTY, TX Real Estate Market Data (Fort Worth)

Median Price: $334,000 1.2% From March 2023

Active Listings: 4759 28.8% From March 2023

Closed Sales: 2006 -5.0% From March 2023

Days On Market: 79

Month of Inventory: 2.6

Avg RENTAL 1 BR $1470 Avg Rental 2BR $2035