Dallas-Fort Worth Metroplex Real Estate Inventory Up By Over 34% in 2022

The Dallas real estate market has suffered from an ongoing shortage of homes listed for purchase. However, a recent survey provided some encouraging news to struggling home buyers.

The Dallas-Fort Worth metropolitan area has seen an increase in housing inventory in recent months, making it easier for buyers to find and purchase a property in the next few years.

Recently, the housing market in the Dallas-area has been plagued by supply-side issue with things have becoming steadily worse over the past year or so.

The Dallas-Fort Worth real estate market saw a sharp decline in inventory levels throughout the second half of 2020 and the entire year of 2021, partly because home sales nationally have increased as a result of the pandemic.

The Dallas-Fort Worth housing market had around a month's worth of available homes as of May 2022. That's much below historical norms, which explains why home values have increased so significantly in the last year.

Home purchasers in the Dallas area have faced challenges due to the real estate market's low supply, particularly those with tight budgets. However, there might be hope at the end of the dark road. According to recent research, the quantity of real estate listings in the DFW region has significantly increased.

Increasing Inventory in the Housing Market

Realtor.com released a real estate market analysis in early June 2022 that included 50 of the largest metro regions in the country. In the form of much-needed inventory growth, this report delivered some good news for homebuyers across the United States.

It turns out that during the past year, the overall quantity of real estate listings has consistently increased.

“New data suggests the U.S. housing market hit a turning point in its supply struggle in May, as active inventory recorded the first year-over-year increase since June 2019…” as stated in the Realtor.com® Monthly Housing Trends Report of June 2022.

The number of property listings increased significantly, especially in the Dallas real estate market. The Dallas-Fort Worth-Arlington metropolitan area's total active listings increased by 34.4 percent between May 2021 and May 2022, according to the June 2022 report.

Additionally, there was a discernible rise in the quantity of "new listings," or properties that had just hit the market. In the past year or so, new property listings in the Dallas real estate market have increased by 18%, according to Realtor.com.

These statistics can reassure buyers who want to purchase a home in the DFW region later this year. In essence, the data demonstrates that there are increasingly more homes available.

However, this current housing market has a considerable gap between a market that is considered a "normal" or balanced market. Due to the persistent supply deficit, the DFW Metroplex is still mostly a seller's market. However, coming future, these current developments ought to make things more favorable for consumers.

More Price Reductions

The above-mentioned report also showed that a higher percentage of DFW sellers have been reducing their asking prices recently. The percentage of property listings with a price reduction rose to 9.4% during the month of May 2022.

A year ago, price reductions were virtually nonexistent. This suggests that sellers may be feeling more pressure these days, in response to a gradual increase in inventory.

Forecast and Outlook:

One cannot accurately predict real estate trends in the future, but "simple" predictions can be made based on existing trends.

Numerous economists and real estate experts anticipate a slowdown in home price increase in the upcoming months, which is already seen in n several major metro regions.

Zillow reports that in only the last year, the median house value in the Dallas-Fort Worth region increased by a staggering 30%. However, such increase cannot be sustained over the long run.

Demand will increase as more consumers are priced out of the market. The tendency of rising inventories that was previously highlighted may also have a cooling influence on the DFW real estate market.

Due to a less "frenzied" pace in the real estate market, we also anticipate lengthier listing periods. As we enter the second half of 2022 and closer to 2023, the typical time on market for property listings will likely rise.

Home prices in the Dallas-Fort Worth real estate market will likely continue to rise over the next months, despite a potential slowdown in the market. Although they might not rise as quickly as they did in 2021, we can expect to see continued increases.

The good news for purchasers is that the Dallas-Fort Worth property market appears to be changing for the better. However, home expenses are likely to keep rising particularly as taxes will increase in connection with increasing home values. Even though finding and buying a home in the Dallas area may become simpler, we may still see a sense of urgency in the market.

 Please feel free to reach out to the author discuss if you have any questions. ken@tribecagroupdfw.com | 202.256.9332