Ever since reports that home sales in the Dallas-Fort Worth market (and nationally, too) slowed in June, there has been a steady flow of stories proclaiming doom for the market. But is it really a cool down?
For our July 27 Friday Question, we took to Facebook and asked our readers what they thought about the reports.
But first, a little backstory for those that may not have seen the reports. Starting in May, we began seeing reports that the market might be headed for a cool down. But in June, the area saw its first year-over-year decline when Realtors sold 3 percent fewer pre-existing single-family homes in June 2018 than they did in June 2017, according to the Texas A&M Real Estate Center.
The median home price in June was $273,000, a year-over-year increase of 7 percent, and a new record high. There was a three-month supply of homes on the market in June, an increase from the two months or less that had been in a holding pattern for several years.
Of course, that isn’t true in every neighborhood — Oak Cliff, Lakewood, and other in-demand neighborhoods are still seeing tight inventories. Homes priced less than $300,000 are also seeing a quick turnaround as well.
Nationally, 30 of the country’s largest metro areas saw housing supplies increase on an annual basis last quarter, up from 13 earlier this year.
“It could be the start of a shift in inventory,” Trulia data analyst Alexandra Lee told USA Today, adding that she felt it really is too early to say that unequivocally.
And that’s the refrain we heard from readers as well — a healthy dose of skepticism because, after all, it’s only been one month, which is seems a little hasty to worry about a full-fledged cool down. Summer can be slow business-wise, and lots of things can factor into a slight decline in home sales.
“Yes there has been some slow down in certain areas of the metroplex but also hot in the right locations,” Ryan Jacobson said. “New York has been a buyers market for over a year and that city always leads the way for real estate in this country. Inventory is finally meeting demand across the country so the sellers’ leverage is beginning to shift to the buyers.”
“Fewer (homes) on the market so prices are competitive,” Natalie Weinberger said.
“I believe it will slow down but rents will continue to rise,” Melinda Oliver said. “If at all possible much smarter to buy than rent. I go on homepath.com quite often and see the lack of affordable homes on it now compared with say five years ago.”
“Although I predict it will slow it will be because loans are harder to get now,” she added.
“What’s concerning is the public panic this fall when things slow down,” Jacobson said. “Fall is always the slowest time of the year and with the growing articles of real estate slowing down it won’t help the momentum we have seen since 2012.”
Jacobson said he definitely felt that stories like the ones that hit every single local news outlet last month are a bit alarmist.
“So yes negative media articles are reinforcing a new concern of a slowdown,” he said. “I see it more as leveling off. We have now officially hit the top of the plateau. Prices will finally stop climbing at alarming rates.”
“DFW has a very strong economy and future moving forward so nobody in development or real estate should be greatly concerned,” he continued. “The only thing going to cripple the DFW market is a global recession.”
“We will get through it like we always do,” Anne Dupree agreed.
“Everyone needs to remain calm and corrections do need to be made,” Jacobson added. “It’s become outrageously expensive recently to buy lots for new developments. But the market will be fine and there will always be more people being born needing a place to live.”
Editor’s Note: Every Friday, we’ll post a hot-button question on our Facebook page. Sometimes, they’ll be serious. Sometimes, they’ll be more light-hearted. Want to take part? Like and follow us, and be on the lookout for this Friday’s question. You have until midnight tonight to weigh in on last Friday’s question, which is about Realtor commissions!