Mark Johnson: Homebuyers Are Defying The Market as Inventory Drops 5 Percent 

By Mark Johnson
Special Contributor

Homebuyers are defying the real estate market in North Texas, and for real estate agents and brokers, this is a critical time to stay informed. For the week ending on Feb. 10, 2023, inventory for sale in the Dallas-Fort Worth MSA dropped nearly 5 percent while the median new list price remained flat.

There is significantly more inventory for sale than we had just a year ago, and buyers are back in the market. The average days on the market range from 56 to 78 days, depending on the price range.

My view, along with the CEO of Altos Research, Michael Simonsen, is that buyers know if they buy now and rates drop, they can refinance in the future, or if rates tick up, they are in an excellent position. On a national basis, we have record employment levels, and the North Texas area is expanding organically and with new businesses coming into the area. Thus, buyers can afford homes, and with the median rent in North Texas at nearly $2,300 per month, the rent vs. buy decision favors buying. 

Looking at the current market as a demand-only equation could be a mistake. Before the pandemic period, a drop in inventory for sale in February was unusual, as historically, many sellers would list to get ahead of the spring market. Sellers are holding onto those 3 percent mortgages unless they have a compelling reason to move. Regardless, recently-listed properties with a price decrease have dropped from nearly 50 percent a month ago to 40 percent this month, indicating a strengthened market. 

You can check out the D-FW stats or your local city and zip here and if you can, participate in the Altos monthly webinar this Thursday, Feb. 16, at noon Central Time. You can register here. Topics will include:

• First signals of what Altos is seeing for 2023
• An update on home values and where this is likely headed
• What declining inventory means for the market
• The impact of interest rates and inflation
• How to talk to buyers and sellers about the data

Source: Altos Research D-FW MSA for the week ending on Feb. 10, 2023

Mark Johnson’s passion and expertise are enabling real estate broker-owners and team leaders to create the systems, structure, and processes to support their growth. Mark Johnson has been in the real estate space for over 30 years. With deep real estate industry experience, Mark has used his understanding of economics and markets to grow significant enterprises. He is also an author, speaker, and business partner in Recruiting Insights, real estates recruiting company. The company offers three products to real estate brokers and teams: Third Pool, CoRecruit, and the Hiring Marketplace. A father of 3, lifelong learner, veteran, and an adventure athlete, Mark earned his Master’s in Business from California State University, his bachelor’s from Colorado State, and numerous other certifications. You can find his books on Amazon:  Up In Your Business;  One Helluva Move and From Willing To Eager.