real estate report

Texas new home sales slowed in September, prices on the rise in Dallas

3315 Gibsondell, Dallas Oak Cliff home for sale

Average new home prices across Dallas-Fort Worth increased in September.

Photo courtesy of Realtor.com

A new analysis of the statewide real estate market has revealed new home sales in Texas have slowed since September, despite a drop in average prices, and inventory is on the rise.

The September edition of the New Home Sales Report by Dallas-based platform HomesUSA.com examined MLS data across Dallas-Fort Worth, Houston, Austin, and San Antonio to determine the status of the overall real estate market.

The report found that the three-month average number of new home sales fell across all four major metros in September. Dallas experienced a decline by 14 homes for sale.

“The September three-month moving average of new home sales in Dallas-Ft. Worth was 1,848 versus 1,862 in August,” the report said.

San Antonio saw the most dramatic decline in sales with 1,067 new homes sold in September, versus 1,100 in August. Houston’s total new home sales fell by 27 units to 1,943 in September. Austin saw the smallest decline, down just seven sales from August to 864 in September.

Home prices increased in DFW
Three-month average prices for new homes across Texas have fallen from $432,749 in August to $429,898 in September, the report found. In a year-over-year comparison from September 2023, new home prices have plummeted almost $29,000.

But that was not the case in Dallas-Fort Worth.

Here’s how home prices changed across all four major metros from August to September:

Dallas-Fort Worth: Increased from $489,762 to $492,129
Austin: Decreased from $494,920 to $483,408
San Antonio: Decreased from $340,755 to $338,620
Houston: Decreased from $402,741 to $397,318

How long on the market
The trends also show the three-month average Days on Market (DOM) – also known as the average time homes sit on the market before being sold – across all four real estate markets came out to 97.76 days in September. New homes are remaining on the market slightly longer than they were in August, when the three-month average DOM was 97.05 days.

Specifically in Dallas-Fort Worth, new homes sat on the market for 122 days before selling in September, in a slight uptick from August’s DOM of 121.14 days.

New home inventory
New home inventory (the number of active listings on the market) in Texas is also on the rise. The three-month average inventory in September came out to 32,337 new listings, versus 31,893 in August. Active new home listings rose in Dallas-Fort Worth, Houston, and Austin, but decreased in San Antonio.

“Dallas-Ft. Worth's active listings in September increased to 7,939 versus 7,686 in August,” the report said.

There were 12,994 active listings in Houston, 6,019 active listings in Austin, and 5,384 in San Antonio in September.

HomesUSA.com founder Ben Caballero cited fluctuating mortgage rates as one of the main reasons why Texas’ real estate market is “showing mixed signals.”

“...But the silver lining is that sales compared to the same time last year are up 12 percent,” said Caballero.

The monthly Texas New Home Sales Report combined the four largest new home markets – Houston, Dallas-Fort Worth, Austin, and San Antonio – to determine its overall statewide data, which comprise the vast majority of new home sales in Texas.

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REAL ESTATE NEWS

Nearly half of Dallas home sellers are slashing prices amid buyer’s market

Photo by Dillon Kydd on Unsplash

Nearly 58 percent of San Antonio home sellers dropped their list price in February

Prospective home buyers in Dallas may want to seal the deal this spring. According to a new Redfin report, nearly 47.3 percent of home sellers in the city dropped their list price in February.

Two other Texas cities clocked ahead of Dallas: In Austin, the number was 55.2 percent, and in San Antonio, it was an eye-popping 57.9 percent — the highest share among the 50 most populous regions in the U.S.

According to the real estate marketplace, Texas’ dominance on this list isn't coincidental. Along with Florida, the state has been building more homes than anywhere in the nation, giving prospective buyers more options and bargaining power.

Nationwide, 34.2 percent of February home sellers cut their asking price, a 31.5 percent rise from a year earlier and the highest share ever since Redfin began tracking markets in 2012. The average cut was $40,915, approximately 7 percent of the original sticker price.

Redfin attributes the discounts to a classic supply-and-demand imbalance. High mortgage rates combined with economic uncertainty have kept buyers on the fence while sellers continued to flood the market with new homes. The company speculates that the real rate of cuts may be higher since it does not account for delisted properties.

“A lot of people who couldn’t sell their homes last year opted to delist instead of reducing the price, with a plan to relist this spring because they knew that would give them a better chance of selling,” says Redfin real estate agent Aditi Jain, via a release “Some homeowners need to move immediately, but those who can afford to time the market may get a better price.”

Redfin says that spring consistently produces the lowest share of price cuts, with May having the lowest share in six of the past 10 years, and April taking the title in three others.

Sellers who closed in December faced the highest likelihood of cutting their price. Sellers who have owned their homes longest are also better protected from market fluctuations.

Owners who have lived in their homes for at least seven years cut prices at a rate of 31.8 percent, compared to 37.4 percent for those who have owned for two years or less. More recent buyers who purchased their homes at the height of the pandemic boom are now reluctant to accept what the market will actually bear.

The five U.S. cities with the highest shares of cut listing prices are:

No. 1 — San Antonio, Texas (57.9%)
No. 2 — Austin, Texas (55.2%)
No. 3 — Dallas, Texas (47.3%)
No. 4 — Tampa, Florida (45.9%)
No. 5 — Fort Lauderdale, Florida (44.9%)

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Nearly half of Dallas home sellers are slashing prices amid buyer’s market