The Texas real estate market, like the rest of the nation, is evolving. Recent shifts have left many homeowners wondering if now is a good time to sell their homes.
While market dynamics have indeed changed, key indicators suggest that it’s still an excellent time to sell. Join us as we navigate through the intricacies of the current landscape and provide you with an in-depth analysis to guide your decision-making process.
National Landscape: Indications of a Seller’s Market
As detailed in a recent article by Matt Carter published on June 9, 2023, a national sentiment heavily favoring sellers prevails1. Fannie Mae’s National Housing Survey in May 2023 reported that a significant 65% of Americans believed it was a good time to sell, the highest level since July of the previous year2. Meanwhile, only 19% thought it was a good time to buy2. This sentiment is supported by the expectation of a majority of Americans that home prices and mortgage rates will either increase or remain the same over the next year2.
Texas Real Estate Market: An Inside View
Similar trends are evident in the Texas real estate market. Despite slowing sales and increasing inventory, Texas remains a seller’s market, as noted by Aaron Jistel, the co-founder of ListingSpark3. This sentiment is further validated by recent data from major Texas metropolitan areas like Austin and Dallas-Fort Worth (DFW).
Let’s dive deeper into these major metropolitan areas and their unique real estate trends:
- Austin: Known for its booming tech sector, Austin’s real estate market is hot. However, the median home price has decreased 15% year-over-year to $466,750, and the average days on market spiked to 71 days3. Yet, Austin remains a seller’s market, as pointed out by Jistel: “I can tell you 3.2 months supply of inventory doesn’t feel like we’re in a seller’s market, but technically, by definition, we still are”3.
- Dallas-Fort Worth (DFW): DFW is a magnet for businesses and individuals seeking opportunities. Here, the median home price has decreased by only 4.3% year-over-year to $399,900, and the days on market have increased to 52 days, up from 30 days last year3. Nevertheless, the increase in active listings (84%) and the availability of 2.1 months of inventory clearly indicate that sellers still hold sway3.
While a decrease in prices and longer days on market may seem counterintuitive in a seller’s market, remember that a seller’s market is defined by supply and demand dynamics, not just price and transaction velocity. The limited supply of homes still gives sellers the upper hand.
How This Affects Potential Home Sellers in Texas
The complex interplay of trends in the real estate market means timing is crucial. If you’re in Texas and considering selling, the current conditions suggest that waiting may not be in your favor. Mortgage interest rates have hit 7%, their highest since August 20073. While many predict that the Federal Reserve will eventually lower rates, uncertainty lingers3.
Furthermore, the state of the commercial real estate market, particularly the high vacancy rates in cities like Houston and Dallas, could potentially impact the residential market3. If defaults in commercial loans held by smaller banks occur, this could negatively affect the commercial real estate sector and eventually trickle down to the residential market3.
In Conclusion: Seize the Opportune Moment
The Texas real estate market is not as fast-paced as it once was, but sellers still have an advantage due to limited inventory. It’s a seller’s market, albeit a more patient one. So if you’ve been contemplating selling your home, now could still be a favorable time.
As always, every homeowner’s situation is unique, and it’s recommended to consult with a real estate professional before making any significant decisions.
At ListingSpark, we’re dedicated to helping Texas homeowners navigate the intricacies of the real estate market, providing the resources and support they need to make informed decisions.
As real estate trends continue to evolve, staying informed is the key to staying ahead. Don’t hesitate to reach out to our team with any questions or for guidance on your next steps.
If you are in Texas, selling your home is easy and affordable with ListingSpark. Our flat-fee no commission model is a game-changer. Save thousands in real estate commissions and enjoy a stress-free sale.
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- Carter, M. (2023, June 09). It’s definitely a seller’s market: Buyer sentiment sags in poll. Inman. https://www.inman.com/2023/06/09/its-definitely-a-sellers-market-buyer-sentiment-sags-in-poll/.
- Fannie Mae. (2023, June 07). National Housing Survey.
- Jistel, A. (2023, June 16). Q2 2023 Texas Real Estate Market Update – Real Estate Real Fast EP21. https://www.listingspark.com/blog/q2-2023-texas-real-estate-market-update-real-estate-real-fast-ep21/
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