Home prices in Dallas-Fort Worth are below $400,000 for the first time since March, shedding light on how rising mortgage rates have pushed down property values.
The median price of a single-family home in DFW fell to $398,000 in October, down from $400,000 in September, the Dallas Morning News reported, citing a study from the Texas Real Estate Research Center at Texas A&M University and North Texas Real Estate Information Systems.
October marked the fourth straight month in which home prices declined. The median price is still up more than 41 percent since March 2020, but the market has cooled considerably since peaking last summer.
Prices gradually climbed earlier this year but are on the decline as spring and summer buying seasons have come to an end.
The dip in prices comes amid a decrease in activity, with 6,161 homes sold in September, an 8.5 percent drop from the previous month. Mortgage rates reached a two-decade high of 7.8 percent for a 30-year fixed-rate mortgage at the end of October. That could be pricing families out of the housing market.
“Although higher mortgage rates have helped to lower prices somewhat, it has not been enough to make things affordable for many buyers currently in the market,” DFW Re/Max agent Todd Luong told the outlet.
Active listings have increased by 7 percent from a year ago, bringing the market to three months of available inventory. Homes are spending an average of 44 days on the market before selling.
Collin County remains the most expensive area in DFW, with a median price of about $510,000, unchanged from a year ago, the outlet reported. Though sales volume is down year-over-year in most North Texas counties, Collin County is an exception.Real estate experts anticipate a busy month ahead, noting increased scheduled closings for December. Mortgage rate buy-downs are becoming increasingly common, and some are turning to owner financing — a tactic in which sellers essentially function as a lender to the buyer.