More D-FW Homes are Selling at a Discount
With more houses on the market, fewer North Texas home sellers getting their original asking price. Home price increases in the Dallas-Fort Worth area have slowed to a trickle in recent months. And real estate agents report that more properties are seeing priced reductions to land a sale.
Now a new report from residential sales firm Knock says that almost 65% of homes sold in D-FW during the second quarter went at a discount from the original asking price. The number of properties selling at a reduced rate was up almost 9% from a year ago. "The average discount was 2.9%, and 25.4% of homes sold for a discount of 5% or more," Knock communications director Rachel Rampino Conner said. "The high tier (over $363,740) of price ranges saw the highest rate of discounts at 77.8%, however the low tier (under $270,162) saw the biggest increase year-over-year at 11.62%."
The top three North Texas counties for home price discounts were Rockwall, Collin and Kaufman.
Knock - which recently expanded into the D-FW area with its new home sales model - is predicting that more than 75% of the home listings currently on the market in this area will eventually trade below asking price. Data from local real estate agents says that in June houses sold in North Texas fetched 98% of their list price. But those numbers can be inaccurate when sellers change agents, cut prices or provide other incentives to move a property. Knock uses computer algorithms to forecast changes in home sales prices so it can acquire houses for customers and help with sales. The firm is predicting that 67% of the homes listed for sale will go for less than the original price.
Major U.S. markets with the most markdowns will include Miami (84%), Chicago (77%), Hartford, Conn. (76%) and Houston (76%).
The percentage of D-FW homes with price reductions has been steadily increasing during the last few years. While multiple offers for properties and sales at higher than list price were common in many neighborhoods a few years ago, that's much less common these days. The number of houses on the market in North Texas this year is about 20% higher than in 2018. And on average it's taking about 16% longer to sell a property, according to data from local real estate agents.
Home sales in the region were down 1% in the first six months of 2019 compared to the same period last year. And year-over-year median sales prices rose by only 2%...
