Realtors say D-FW home prices are down 8% from peak

Dallas-Fort Worth home prices were down about 8% in the fourth quarter from the market peak in mid-2022.

Median home sales prices in the area had fallen to $375,000 at the end of 2022 compared with the high point of $408,200 earlier in the year, according to a just-released report from the National Association of Realtors.

Home prices in North Texas and many other US metro areas have softened since last summer due to rising mortgage rates and fewer sales.

“A slowdown in home prices is underway and welcome, particularly as the typical home price has risen 42% in the past three years,” Realtors chief economist Lawrence Yun said in the report. “Far fewer metro markets experienced double-digit price gains in the latest quarter.”

North Texas prices were still up 7.1% from the end of 2021 – and an increase that was almost twice the national rate, according to the Realtors.

Home prices were higher on an annual basis in almost 90% of US markets tracked quarterly by the real estate trade group.

“Even with a projected reduction in home sales this year, prices are expected to remain stable in the vast majority of the markets due to extremely limited supply,” Yun said. “Moreover, there are signs that buyers are returning as mortgage rates decline, even with inventory levels near historic lows.”

The biggest price increases in the country at the end of 2022 were in Farmington, NM (20.3%) and Sarasota, Fla. (19.5%).

Fourth quarter home prices fell annually in 20 metro areas. The worst year-over-year price declines were in San Francisco (-6.1%) and San Jose (-5.8%).

Home prices in the Austin area dipped by 1.3% from fourth quarter 2021 levels.

A recent forecast by financial giant Goldman Sachs predicted Austin home prices – the highest in the state at a median of $478,900 – could fall by 25%.

Austin prices have already plunged by more than 20% since second quarter 2022, according to the Realtors.

Home prices in the Houston area rose by 6.6% in the fourth quarter and increased 5.5% in the San Antonio area, according to the Realtors.

The housing market has cooled as mortgage costs have more than doubled since early last year.

North Texas home sales were down 30% at the end of 2022.

And prices have decreased for five months in a row.

D-FW home prices are forecast to drop this year by between 5% and 10% in a new estimate by Moody’s Analytics.