Plano, Texas – In spite of persistent interest rate hikes over the past year, the Collin County real estate market has remained robust, a development largely attributed to the county’s enduring allure for prospective buyers, juxtaposed with the paucity of new property listings. This intriguing confluence of factors has engendered a market environment teeming with both challenges and opportunities.
Huge decline in new property listings in Collin County, but number of homes going under contract rose
According to recent data from the Collin County Association of Realtors (CCAR), July saw a precipitous 19.5% decline in new property listings in the county. Remarkably, however, this drop was offset by an equally notable 20.1% surge in the number of homes going under contract, highlighting the potent demand that continues to characterize the market.
In the midst of these fluctuations, the months’ supply of homes available for sale, a crucial metric for gauging market equilibrium, held steady at 2.3 months – the same level as the previous year. Traditionally, a balanced market is said to exist when there is a six-month supply of homes on offer.
“Homeowners who locked in a 2.3% interest rate are less than motivated to list their home, while demand for our area remains strong despite a year of interest rates hikes. This resulted in a unique housing market for sellers and buyers alike,” said CCAR President Shana Acquisto.
Collin County real estate sellers ready to discuss and negotiate prices with buyers
Despite the supply constraints, sellers have demonstrated a willingness to negotiate, with homes taking an average of 32 days to go under contract, and typically selling for 98.0% of their original listing price. Consequently, the median sales price for a home in Collin County during July was $519,000 – a modest 2.1% decrease in comparison to the same month in the previous year.
As the Collin County real estate market continues to deviate from broader national trends, numerous homeowners are left pondering their next move. Those seeking expert guidance tailored to this unique market landscape are encouraged to reach out to a knowledgeable Collin County Realtor.
Real estate market in North Texas region
The City of Dallas is in dire need of at least 34,000 affordable housing units and a local coalition wants to change that
In Dallas, the Dallas Housing Coalition, comprised of influential city leaders, is advocating for the allocation of $200 million from a planned $1 billion public improvement bond referendum scheduled for 2024 to address the city’s acute affordable housing crisis. Amid soaring home prices and rent, the coalition believes the funding would substantially alleviate the housing dilemma impacting working families and the overall community. A report from the non-profit Child Poverty Action Lab reveals a staggering shortfall of 33,660 affordable units in Dallas, highlighting the need for urgent action. The proposed allocation would support neighborhood preservation, racial equity, and housing policies, but the coalition faces competition for the bond money as multiple Dallas needs contend for the funds. Previously, a Dallas City Council committee considered earmarking $150 million for affordable housing as part of a strategic 4-year plan, but the coalition’s higher request underscores the magnitude and urgency of the issue.
Dallas-Fort Worth is still a hotspot for out-of-state Americans who are looking for affordable housing
The movement of people between states in America has undergone a significant change, shifting from primarily job-related reasons to the search for more affordable housing. Since 2021, many Americans have been leaving expensive tech hubs on the West Coast, such as the Bay Area and Seattle, for more affordable areas like mountain states and Texas. Fort Worth and Dallas, in particular, have seen a notable influx of newcomers. Data shows that locals in the Dallas-Fort Worth area make up 75% of Zillow page views, with out-of-state interest mainly coming from Houston, Los Angeles, New York, and Chicago. Despite the high interest in Dallas and Fort Worth, high housing costs are still a deterrent for some potential movers, with an 18% decrease in local Redfin users looking for homes and a 7% drop in interest for listings in new areas. Moving forward, affordable housing is expected to remain a key motivator for people’s migration decisions, but environmental sustainability concerns will also become increasingly important, reflecting a mix of economic, social, and environmental considerations.
Fort Worth’s innovative strategy to solve the housing affordability puzzle
In Fort Worth, the issue of affordable housing has become a critical concern as a median-income family can no longer afford a median-priced home in the city. To address this, city officials have unveiled a five-year plan to improve housing affordability, driven by the Neighborhood Services department under Director Victor Turner. The plan was motivated by a report that shows the city is adding jobs at a faster rate than housing, causing a rise in housing costs and a 22.8% surge in citywide rent since March 2020. The plan includes initiatives such as a land bank to facilitate the construction of affordable housing and expanding programs to help residents afford their current homes. Additionally, the proposal calls for the establishment of community land trusts to ensure long-term affordability. These measures aim to create a more equitable and sustainable housing environment in Fort Worth.
Affordable housing crisis hits DFW families hard, no quick and easy solution on the horizon
The Dallas-Fort Worth (DFW) area is experiencing a surge in housing costs, making homeownership increasingly unattainable for many families. While economic authorities claim that inflationary pressures are beginning to decline, housing prices in the region remain stubbornly high. Donna Van Ness, president and CEO of Housing Channel Fort Worth, notes that the median sales price for a home in DFW has risen from $150,000 ten years ago to over $350,000 today. The nonprofit organization offers services including free housing counseling, financial education classes, and down payment assistance programs to support lower-income and working families in the area. Despite these efforts, the organization is seeing a drop in class enrollment due to rising interest rates and constricted pathways to homeownership. The shortage of available housing and competition from cash-paying investors are also contributing to the problem. In response, Van Ness encourages prospective homeowners to consider entering the market with smaller, more affordable homes and gradually trading up over time.