Today we are pleased to release our latest Dallas and Houston Market Insights Report for October 2023. Here are our findings from the analysis:
Active listings increased in both markets last month as homes remain on the market for longer. Purchase prices in Dallas have stabilized at around $400k, while in Houston sale prices decreased over the past three months. The sale-to-original-list percentage (STOL) in both markets converged to 96% in September. This marks the first time this figure had dropped since 2022 in both markets. <30 DOM listings accounted for exactly 25% of all active listings while >60 DOM listings accounted for around 53%. In previous months, both markets had seen list and sales prices p.s.f. converge; however, list these figures drifted farther apart in September as sale prices on a $p.s.f. basis declined.
Active listings, after an initial decline at the start of 2023, have experienced notable growth since May. On the other hand, both new listings and closings have been trending downward since June.
Like Dallas, Houston has seen a sizeable rise in active listings since May. Since the beginning of the year, new listings have shown an upward trend despite fluctuations, while closings have consistently trended downward.
The absorption rates in both markets experienced a significant increase at the beginning of July. Recently, the absorption rate has risen higher in Houston than in Dallas.
Towards the beginning of the year, list prices and sales prices p.s.f. were converging. Over the past four months, however, sales prices p.s.f. have remained mostly flat, while list prices p.s.f. have been on the rise.
In Houston, list prices p.s.f. have remained relatively flat since the beginning of the year. Conversely, sales prices p.s.f. saw significant growth from January to August before dropping by 1.2% in September.
After initially declining to below 95% STOL at the end of 2022, both markets have seen a rebound to 96%. Dallas experienced its first STOL drop since Q4 2022. Competitive offers need to be at or near the 95% mark DFW and Houston home prices still remain higher than the median affordable range by 23% and 11%, respectively
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