Can you handle the truth? The Dallas’ real estate market is still hot. So take those articles your friends sent you with a grain of salt.
It may look like the real estate market is softening due to high interest rates and concerns about the economy. A closer look at the trends shaping the Dallas real estate market this season reveals something much more interesting.
5 Truths About the Real Estate Market
- Days on Market Indicate Strong Activity. One important metric to gauge the market’s pace is “days on market,” which measures the average number of days it takes for a property to sell after it is listed. In the Spring of ’23, houses in the Lakewood and M-Street neighborhoods sold in less than a month, with an average of 24 days on the market. While this represents an increase compared to the previous two years — when homes typically sold within two weeks — it still reflects a strong market. Accurately priced homes continue to attract buyers and sell quickly, even if it takes a slightly longer time frame.
- In this Real Estate Market, the Right Price Makes a Big Difference. The dynamics of pricing in the Dallas real estate market have evolved in comparison to even 2 years ago. While prices are actually down from the last couple of years, where we were averaging homes selling over list price, Dallas is still outpacing the traditional norms of a healthy market. Even with slightly lower figures, where sellers are seeing less offers above the asking price, it emphasizes the importance of accurate pricing in the present market. It is crucial for sellers to align their asking price with similar recent sales, as buyers are scrutinizing prices more closely. Competitive buyers with offers exceeding the asking price are not as prevalent, but properly priced homes still receive significant interest, sell quickly, and achieve their desired prices.
- Even With Higher Inventory, Quick Sales Are Still Happening. It’s just a fact. We aren’t seeing enough of an increase in inventory to impact sales trends. Smart home sellers who have priced their home appropriately find their houses under contract in a week or faster. There may not be as many buyers as in previous years, but it only takes one interested buyer to close a deal. And buyers must act decisively in this competitive environment to secure their desired properties.
- Higher Interest Rates Represent Our New Real Estate Market Normal. Despite concerns, the Dallas real estate market remains resilient. While the state of the national economy may be creating apprehension among buyers, the market always eventually adjusts. People have become accustomed to the higher interest rates over the past year. In fact, there is evidence of more cash purchases in the market, demonstrating buyer confidence and adaptability. Non-cash buyers seem to be adjusting their strategies as well, potentially putting more money down to secure their dream homes.
- More Selective Buyers Are Focusing on Property Conditions. A notable shift in buyer behavior is their increased focus on property conditions. As the market has relaxed from the frenzy of multiple offers, buyers have the opportunity to be more selective and scrutinize both sales price and property condition. They are more inclined to negotiate terms such as repairs, condition, and other aspects that were previously an afterthought to sellers. Buyers now possess increased leverage, though with some limitations. Agents play a crucial role in preparing buyers for potential disappointments and educating them about the process to find the balance between price and property.
Overall, the Dallas real estate market maintains its momentum, offering opportunities for both buyers and sellers in this competitive environment. With an experienced real estate agent on your side, the challenges of our low inventory, ever changing market should not deter you from seeing what’s available to you!
We grew up here. We live here. We’ve been buying and selling real estate in the area for two generations, immersed in the ebbs and flows of the local neighborhood markets.