Sky-high home prices in North Texas may be starting to wane as median prices across the region are dropping along with demand.
Single-family homes in Dallas have seen their median value drop $72,000 from their highs earlier in the year. Fort Worth median prices are down $40,000 from their peak, while Denton and Arlington have dropped $37,000 and $26,000, respectively.
Irving has witnessed values slip $110,000 from its 2022 highs, Plano $115,000, and Frisco single-family homes are down a monumental $152,000 from their peak.
Specifically, Frisco’s prices reached a high of $750,000 in March 2022. By October, the median prices in the city had fallen to $598,000, falling 20% in just seven months.
Plano saw a similar relative drop of more than 20%, but the fall from a high of $565,000 to $450,000 occurred in just six months, between April and October 2022.
Irving experienced an even bigger percentage decrease than both Frisco and Plano. In October, the median price was $374,700 in the city, down from $485,000 in May, a nearly 23% drop. However, October prices were an improvement from $340,000 in September.
The price reduction in Dallas has been more modest but still substantial. In October, median prices were $415,000, down from the peak of $482,500 in March, a nearly 14% descent.
During that same period, Fort Worth median prices experienced a roughly 11% drop, falling from $371,000 to $331,369.
McKinney’s value has softened from April’s $590,000 high to a more modest $499,700 in October, a roughly 15% reduction. At the same time, Arlington values slipped from $351,600 to $324,995, or less than 8%.
Richardson’s median prices were down almost 14%, from a peak of $482,000 in March to $415,000 in October.
Denton’s prices peaked earliest of all major North Texas cities, reaching $412,400 in February 2022 before falling 9% to $375,000 in October.
Looking back just one year, home costs across Dallas-Fort Worth are still up. However, prices have clearly shrunk considerably from the highs experienced earlier in 2022.
Demand, too, is softening. Annually, the volume of home sales in DFW was down a substantial 27%, the biggest recorded year-over-year drop this year, according to Re/Max. A total of 6,921 homes were sold in DFW in October 2022 compared to 9,841 sold during the same month the year prior.
It is not just prices that are slipping; transaction volume in the real estate sector in North Texas has also been contracting.
The trend is predictable, according to Jon Cardella, who is co-founder and CEO of AgentStory. “Volume is going down, as you’d expect, because of the fact that rates are so high right now relative to the last few years,” explained Cardella.
As of December 1, the average 30-year fixed mortgage rate in the United States stood at 7.32%, a world away from the roughly 3% on offer just one year ago.