New-home market in Dallas-Fort Worth cools off, new data shows
It may be hot as you-know-what outside, but the new-home market in Dallas-Fort Worth is cooling off just a tad, according to data compiled by HomesUSA.com.
New-home sales in DFW totaled 1,270 in July, down 6.9 percent from 1,364 in June and down 2.8 percent from 1,306 in July 2018, HomesUSA.com says in an August 19 release.
Meanwhile, the average price of a new home in DFW has held fairly steady over the past year. The average price in July was $375,694, compared with $373,960 in June and $376,596 last July, according to Addison-based HomesUSA.com, whose technology platform helps builders sell homes.
The state’s three other major metro areas saw similar trends in new-home sales, the HomesUSA.com data shows.
Ben Caballero, founder and CEO of HomesUSA.com, says all four of Texas’ major new-home markets remain healthy.
“After a good 2018, the market is steady, but as last fall proved, it is very sensitive to interest rates,” Caballero says. “At the moment, I expect a good market and expect prices to be in check due to builder competition. With current interest rates, this is a good time to buy.”
In the HomesUSA.com data, the most dramatic change outside DFW happened in San Antonio. There, the average number of new-home sales dropped 13.1 percent from June to July (going from 534 to 491). The decline from July 2018 (519 sales) to July 2019 was 5.4 percent, HomesUSA.com says.
At the other end of the spectrum, Austin experienced the smallest year-over-year decline in average new-home sales — from 667 in July 2018 to 653 in July 2019, a decrease of 2.1 percent. The month-to-month fall-off was bigger, however, with the number shrinking 6.7 percent from June 2019 (700 sales) to July 2019.
Houston’s numbers were much like Austin’s. From June 2019 to July 2019, the average number of home sales went from 1,388 to 1,297, a difference of 6.6 percent. From July 2018 (1,256 sales) to July 2019, the decrease was 3.3 percent.
The waning number of new-home sales in Austin, Houston, and San Antonio coincided with a slight overall uptick in new-home prices, according to HomesUSA.com.
Austin witnessed the biggest jump in average new-home prices, the HomesUSA.com data indicates. The average price in July 2019 was $372,365, up 1.9 percent from July 2018 ($365,495) and up 1.5 percent from June 2019 ($367,041).
San Antonio saw less movement in prices than Austin did. The average new-home sale price in San Antonio stood at $299,151 in July 2019, up from 1.8 percent in July 2018 ($293,842) and up 0.6 percent from June 2019 ($297,387), HomesUSA.com says.
In Houston, new-home prices barely budged. The average price in July 2019 was $357,118, up 0.4 percent from July 2018 ($355,842) but down 0.5 percent from June 2019 ($358,810), according to HomesUSA.com.
HomesUSA.com relied on Multiple Listing Service data from Realtors groups in DFW, Austin, Houston, and San Antonio to produce its analysis.