Dallas, Texas – In a significant stride forward, North Texas’ new home sales soared to a three-year apex in the previous month, with the average cost of new residences experiencing a notable resurgence. Meanwhile, pending sales remained fundamentally steady.
An analytical review of the Dallas-Fort Worth residential real estate market showed an encouraging surge in new home sales for May. The three-month moving average quantified 2,191 home transactions, marking a robust ascent from April’s figure of 2,078. The same methodology applied to pending sales revealed a subtle plateau at 2,706 in May, slightly down from 2,713 the preceding month. This data originates from the meticulous and reliable New Home Sales Report by Dallas-based HomesUSA.com.
Demonstrating a revitalized vigor, new homes commanded an average price of $492,762 in May, showing a commendable increase of nearly $5,000 compared to the average of $487,799 observed in April. These figures were derived from the three-month moving average.
Ben Caballero, CEO of HomesUSA.com and the insightful author of the report, attributed this upward trend to a healthy blend of seasonal factors and the robust economy of Dallas-Fort Worth (DFW). A considerable boost in supply contributed to a more equilibrated marketplace.
“New home sales set a three-year high in the Dallas-Fort Worth area last month and continue to impress, due to builders’ resilience and our robust local economy,” Caballero said. “Builders in Dallas are benefiting from continued high demand, as evidenced by rising new home prices.”
Home sales and prices north of Dallas
Suburban areas north of Dallas recorded a slight uptick in building permits for new single-family homes in May. Nevertheless, the figures have not surpassed the cumulative count for the current year compared to the previous year in most regions. This data was assembled based on a comprehensive survey carried out by Addison-based Tomlin Investments, known for their detailed tracking of new home construction.
Home sales and prices in Celina
In the city of Celina, the figures tell a slightly different tale. Building permits for new homes marked an upward trend, from 250 in April to a notable 295 in May. When comparing the yearly figures, the first five months of this year have seen a substantial 22% increase, with a total of 1,080 permits issued, outpacing the 887 permits issued over the same period last year.
Home sales and prices in Frisco
The residential construction landscape in Frisco is enduring a less favorable season, with home building permits down a considerable 39% year-to-date. From January to May, a total of 456 permits were issued, marking a decline from the corresponding period in the previous year that saw 745 permits issued. Moreover, May saw a mere 72 permits issued, representing a significant drop from 113 in April.
Home sales and prices in Prosper
The town of Prosper witnessed a surge in home permits issued, with a total of 69 issued in May compared to 52 in the preceding month. Yet, the year-to-date permits tally at 335, marking a 29% drop from the 469 permits issued during the equivalent period the previous year.
Home sales and prices in Little Elm
The town of Little Elm experienced an even steeper decline this year. Year-to-date permits are down a substantial 47%, totaling 279 compared to 529 issued in the first five months of 2022. May and April saw 56 and 52 permits issued respectively.
Home sales and prices in Princeton
In contrast, Princeton’s real estate market remained relatively steady. Year-to-date permits for the city were essentially unchanged, tallying 576 this year compared to 583 during the same period last year. Nonetheless, there was a minor dip in May, with permits declining to 122 from 131 issued in April.
Home sales and prices in McKinney
McKinney’s real estate market echoed a similar downturn. The city had a total of 523 permits issued year-to-date, marking a 15% reduction from the 614 permits issued during the same period the previous year. However, an uptick was noted in May, with 139 permits issued compared to 123 in April.
Home sales and prices in Anna
The city of Anna followed the trend of a downtick, with year-to-date permits totaling 476, a drop when compared to 404 issued in the first five months of the previous year.
Home sales and prices in Denton
Similarly, Denton has seen a downturn in new home construction permits, with 411 issued this year against 525 during the same period in 2022. The data paints a picture of a struggling housing construction market across several North Texas regions.
Time on market peaking
The recent report from HomesUSA delves into the intricacies of the Texan housing market, revealing the impact of market forces on home prices, particularly in the state’s four largest markets. Bill Caballero, the author of the report, delineates an uptick in the three-month moving average new home price in May, with a valuation of $460,850, a notable increase from the $451,868 reported in April.
Turning our attention to the Dallas-Fort Worth (DFW) market, Caballero underscores an escalation in the average duration to offload a new home, with figures leaping to 119.8 days in May from 117.5 days in April. Yet, he suggests that this protracted market exposure could be nearing a pinnacle as both builders and consumers recalibrate in response to the higher interest rates introduced in April 2022.
“The three-month moving average for Dallas-Fort Worth active listings is decreasing, Houston and San Antonio are slightly lower, and Austin appears to be topping,” Caballero said.
It’s important to clarify that the data in the HomesUSA.com monthly report stems from closed sales recorded within the Multiple Listing Services, surveyed by Caballero by the 10th of the succeeding month. Late reports from agents are not accounted for in these figures.
Existing home sales slowing
Shifting our focus to the existing home market, a slowdown in sales and a reduction in prices, when compared to the preceding year, are conspicuous.
The DFW market witnessed an increase in the time on market, landing a fourth position nationwide in May. The average home in this region required 37 days to sell, a considerable leap from the 15 days recorded the previous year. These statistics are according to the most recent report from residential real estate titan, Re/Max, and denote an annual increase of 141.8%.
Meanwhile, Tampa, Florida, recorded the steepest annual percentage hike in days on market at 219.6%, closely followed by Orlando with 193.3%, and Phoenix at 143.2%.
The Re/Max National Housing Report also details a 4.5% decline in the median home sale prices in DFW in May, compared to the previous year, with the median price standing at $402,000, down from $427,881.
The report examines the median sales prices across all 51 metro areas that Re/Max surveys, recording a 1.9% drop to $423,000 from May 2022. San Francisco, Las Vegas, and Phoenix topped the chart for the most significant year-over-year decreases in median sales price, plummeting by 10.7%, 10%, and 8.9%, respectively.
Further, the DFW area experienced a dip in sales volume year over year. A total of 9,336 homes changed hands in May 2023, marking a 4.6% decrease from the 9,789 transactions in May 2022. However, the region saw an impressive 18.7% surge in home sales in May, rising from April’s tally of 7,865 homes.