The Dallas housing market is on fire as more investors, home flippers, developers and builders beat out home shoppers for houses.
According to an article in The Dallas Morning News by Steve Brown, nearly 40% of the homes sold in the Dallas area last year didn’t go to owner occupants.
From the article,
“That’s the highest share of purchases going to non-owners in Dallas since 2000,” said Daren Blomquist, economist with Attom Data. “The long-term average for the city of Dallas is about 25 percent, and this was way above that average.”
“We see the big investors not buying as much,” Blomquist said. “The mom-and-pop investors are getting more involved and getting in the market a little later in the cycle.”
The article, which cited data from ATTOM Data Solutions, however, stated that there isn’t a lot of opportunity in the Dallas market since home prices have already risen. In order to strike a deal as an investor, they would likely need to go to a neighborhood that’s a little bit lower-quality housing.
But as investors jump on the housing inventory, a recent housing report shows that the Dallas housing market may be starting to cool off. According to a recent report from the New Home Sales Index released by HomesUSA.com, new home sales prices in the Dallas-Fort Worth area increased in May, but at a slower pace than previous months.
The number of days on market for new homes sold in the Dallas area increased to 122.02 days, up from 121.62 days the month before.
Other major housing markets in Texas showed the same slowdown seen in the Dallas area. Houston and San Antonio both saw a slowdown in the pace of new home sales in May. The total days on market for new homes in Houston increased from 134.86 days in April to 135.28 days in May.
“New home sales continue to remain strong and prices continue to rise in our Dallas-Ft. Worth area,” HomesUSA.com owner Ben Caballero said. “But we’ve seen the number of days on market increase by about a week since the fall, as demand is not quite keeping up with new inventory.”