The supply of homes on the market in North Texas is down 55 percent from last year, creating a drag on an otherwise fire-hot housing market, according to a new report.
Despite the low inventory, home sales are up 4.6 percent over last year, according to the National Housing Report released by RE/MAX today.
Median home prices across Dallas-Fort Worth are up 8.8 percent over last year, according to the report, which surveys 53 metro markets throughout the United States.
The North Texas Real Estate Information Systems Multiple Listing Service reports there were 16,282 homes for sale at the end of August, but many of those listings were under contract, said Mark Wolfe, broker and owner of RE/MAX DFW Associates, which operates seven offices with 335 agents in Dallas-Fort Worth.
The 16,282 homes on the market is down from 29,405 a year ago, Wolfe said.
“The Dallas-Fort Worth real estate market is hindered by the extremely low inventory of homes for sale,” Wolfe said. “It seems that this issue has finally caught up with our market.”
The supply shortage is driving home prices up, Wolfe said. And, although home sales are up year over year, they’re down 16 percent compared to last month, he noted. Some 10,534 homes sold across DFW in August compared to 12,545 sales in July, according to NTREIS.
The DFW inventory dropped by 2,325 homes, or 12.5 percent, from the end of July to the end of August. Time on the market fell from 45 days in July to 41 days in August.
“We have a fantastic market with buyers ready to buy,” Wolfe said. “This low inventory continues to accelerate home prices. Dallas-Fort Worth is one of the best markets in the nation, but it certainly is no longer one of the most inexpensive markets.”
Nationwide, August also set new report records for lowest inventory as well as for fewest days on market and highest median sales price, according to RE/MAX.
The number of homes on the market in August plunged 29.6 percent year over year nationwide.
Year over year, August U.S. home sales rose 4.3 percent, marking the third-highest total in the report’s 13-year history. July 2020 holds the report record for most home sales, followed by June 2017.
Year to date, 2020 U.S. home sales trail 2019’s by 3 percent after being 9 percent lower through May.
The demand for housing is exceeding the available inventory in metro areas across the country, Adam Contos, CEO of RE/MAX Holdings Inc., said in the report.
“Buyers are moving forward in record numbers, unfazed by inventory challenges and consistently higher prices,” Contos said. “Homeowners in a position to sell are seizing the opportunity – and benefiting from the one-two combination of enthusiastic, competitive buyers and significantly quicker turnaround times.”
The strong demand and short supply across the country drove the median sales price to $290,000, topping the previous report record of $285,000 set just one month ago in July. Prices rose 11.5 percent from August 2019, the highest year-over-year increase in more than six years.