The Dallas-Fort Worth housing market trounced all other markets in the nation by the Close-to-List Price Ratio (CPR) metric in a recent RE/MAX National Housing Report.
“The close-to-list price ratio,” according to the Dallas Business Journal, “is the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price.”
The DFW clocked the most significant year-over-year percentage increase for the month of May, with its CPR rising by 6.4%.
May 2021 registered a CPR of 98.4%, while May 2022 saw a CPR of 104.7%.
Burlington, Vermont, came in second, with a year-over-year increase of 6%, while Trenton, New Jersey, and Los Angeles ranked third and fourth, respectively, with gains of 3.9% and 3.8%.
The data reflects a dynamic that has been at play for years in housing markets all over the country, which has in part driven up the price of housing, especially in DFW.
April, for instance, saw an astonishing 39.5% year-over-year increase in DFW housing prices, according to RE/MAX’s April report.
The median sales price in the DFW area currently stands at $430,000. However, the rapidly changing economic landscape may be beginning to have an effect.
“Since 2020, we have been in a crazy seller’s market with home prices increasing year over year over 20%,” said Michael Coburn, housing broker and owner of RE/MAX Town & Country, speaking with Dallas Business Journal.
“This was due to very high buyer demand, low inventory of existing and new homes, low-interest rates, a good economy, low unemployment and high stock market. That’s changing very quickly. The stock market has been down since January 2022 by over 20%, interest rates are now over 6%, and the real estate market feels like someone has put on the brakes,” said Coburn.
The DFW market saw a 4.2% year-over-year decline in home sales this month.
Pricing is also starting to look more “reasonable,” according to Coburn. He claims sellers are beginning to consider larger market trends and are not pushing upward limits on listings, resulting in price reductions and properties staying on the market for more extended periods.
“This by no means is a bubble about to pop,” said Coburn. “It’s just a long-overdue correction in the market.”