There’s a new sign in the North Texas housing market — “Reduced Price.”
Almost 19 percent of the homes listed for sale in Dallas-Fort Worth cut price at least once, according to a new report from Zillow. That’s up from about a 14 percent reduced price rate in D-FW a year ago.
With home sales slowing and housing prices growing at a much slower rate than in recent years, sellers are sometimes overreaching with their asking prices, real estate agents say. And houses that sit on the market for too long often get a price reboot.
The rate of home price cuts in D-FW is higher than the nationwide rate of 14 percent in June, according to Zillow.
“The housing market has tilted sharply in favor of sellers over the past two years, but there are very early preliminary signs that the winds may be starting to shift ever-so-slightly,” Zillow senior economist Aaron Terrazas said in a new report. “A rising share of on-market listings are seeing price cuts, though these price cuts are concentrated at the most expensive price-points and primarily in markets that have seen outsized price gains in recent years.
“It’s far too soon to call this a buyer’s market, home values are still expected to appreciate at double their historic rate over the next 12 months, but the frenetic pace of the housing market over the past few years is starting to return toward a more normal trend.”
So far in 2018, D-FW median home sales prices are up only 6 percent — down from an almost 10 percent annual home price growth this time a year ago.
The number of preowned single-family homes listed for sale with real estate agents in North Texas has increased by about 12 percent from a year ago. But home sales in the area are up by only about 2 percent so far this year, and in many neighborhoods home purchases have declined from 2017 levels.
And unlike a couple of summers ago when homes often sold for more than the list price, real estate agents say they are having to work harder to counsel sellers on pricing.
“We are having that discussion with our sellers,” said Robert Kucharski with David Griffin & Co. Realtors. “Until recently everything depicted a hot market where sellers could get what they wanted with multiple offers.
“We have to convince them the market now is not what it was.”