Texas Real Estate: Q3 2023 Market Review
The real estate market in Texas has been going through a patchy phase from late summer of 2022
until present. It has undergone a truly unpredictable correction in recent times, making it difficult
for homebuyers and sellers to make sense of what’s going on. With a sudden spike in interest
rates, the market became even harder for everyone to navigate. However, we want to provide you
with everything you need to know about the Texas real estate trends for Q3 2023. We will delve
into the ins and outs of the market and keep you informed with this comprehensive review.
As we previously mentioned, interest rates have been a sizable hurdle for prospective
homebuyers, causing them to step back from applying for new mortgages. Interest rates have
increased from 3% to 6% within 18 months, and now they’re hovering around 7.3%. This rise has
come as a complete shock, throwing buyers off their game. Many are watching and waiting for
home values to fall to a more affordable rate but are hesitant to jump into new mortgages.
However, if a recession hits the market, this much-anticipated day may never come.
With the rise of interest rates, the number of new listings on the market has also decreased
gradually. Sellers have started to wait patiently for the market to improve. Homes are staying on
the market for a more extended period as days on the market and months’ supply of inventory
continue to climb. This adjustment has been challenging for sellers as it has taken away the once
fast-moving nature of the Texas real estate market.
During this transition time, new construction has stepped up in the market to fill the void.
However, new-construction homes are not affordable for everyone. These new constructions are
sold at a higher price, making it much harder for first-time buyers to make their dreams of
owning a home a reality.
Dallas/Fort Worth
Median Sales Price: $340,000 (decline of 1.1% YOY)
Closed sales: $31,400 (decline of 7.2% YOY)
Average Days on Market: 47 Days (increase of 11 days compared to 2022)
Active Listings: 97,089 (increase of 16.4% YOY)
Supply of Inventory: 3.5 Months (increase of 1 month YOY)
In conclusion, the Texas real estate market is in a period of transition. It has been a trying time
for everyone involved, and we must all adapt to these changes. While the rise in interest rates has
been a significant obstacle, there is hope that we will see a soft landing. As we head into Q4 of
2023, we remain confident that the Texas real estate market will continue to undergo changes.
However, we believe that new construction may fill the gap in the market overlooked by regular
sellers. Thank you for reading this comprehensive review of Texas real estate trends. We hope
that it has provided you with a better understanding of the market’s current situation.