Sales of closed homes in October were down 37% in Dallas and Collin counties and 32% in Tarrant County compared to the same period last year, according to the latest data.
DALLAS— This story originally appeared in the Dallas Business Journala press partner of the WFAA.
The drop in home sales in Dallas-Fort Worth outpaces the sales slump experienced during the worst of the Great Recession, according to figures just released by North Texas Real Estate Information Services.
Sales of closed homes in October were down 37% in Dallas and Collin counties and 32% in Tarrant County compared to the same period last year, according to the latest NTREIS figures based on data from Multiple Listing Services.
During the worst impact of the Great Recession on the North Texas housing market, from 2008 to 2009, closed sales fell 23% in Dallas County, 26% in Tarrant County and 10% in Collin County year over year, peak to trough.
“It’s just crazy” Danny Perez, managing director of DFW-based M&D Real Estate, said in an interview this morning. “The numbers are worse than the declines of 2008-2009, where we saw the biggest drop in sales made during the Great Recession. We’ve seen a 37% drop in one year, so we’re seeing almost double what we saw during the Great Recession.”
The number of pending sales, a leading indicator for next month, predicts even slower home sales.
Pending sales due to close in November are down 44% year over year in Dallas County, 40% in Tarrant County and 39% in Collin County.
So far, average home sales prices are going against the sales spiral. Dallas County is up 18%, Tarrant is up 15%, and Collin County is up 9% on average selling price compared to the same period last year.
“It’s just because people don’t have to sell. That’s the difference (between the current downturn and the Great Recession),” Perez said. “We’re not getting the new listings. Where before we were getting a lot of inventory, new listings are down year over year. That’s what’s killing us seeing a correction in the price.”
On the positive side, the employment situation in DFW is much better than it was during the Great Recession, with 298,000 new jobs added since this time last year, Perez said. This will help the housing market, he said.
“It’s a huge difference maker,” he said.
While prices remain up year on year in DFW, they are slipping month on month, according to the latest Re/Max National Housing Report. The median DFW home price in September was $399,000, down $6,000 from the median of $405,000 in August, according to the Re/Max report. This compares to a median of $350,000 in September 2021.
Sellers need to be realistic about pricing their homes, said Michael Coburnbroker and owner of Re/Max Town & Country, based in Allen.
“The days of bidding wars and buyers offering more than asking price are behind us,” he said. “This type of market was not sustainable in the long term.”
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