Halfway through the year, the Dallas-area housing market is starting to move in different directions.
In neighborhoods where the median sales price of homes is below $300,000, sales are booming. Home buys in the first half of the year were up by double digits in markets including Lancaster, Cedar Hill, DeSoto, Garland and Mesquite.
But in the highest-priced Dallas-area neighborhoods — where most homes are $400,000 and up — purchases are dipping this year.
In North Dallas, home sales in the first six months of 2016 were 5 percent lower than in the same period in 2015. There were modest declines in home buying activity in the Park Cities, Southlake and Colleyville, too.
But prices are still going up, even in most of the higher-priced neighborhoods.
“The Dallas-Fort Worth market remains very hot,” said Jonathan Smoke, chief economist for Realtor.com. “But there is a big difference in price points.
“The hottest part of the market is the low to mid, where list prices were up 24 percent in June,” Smoke said. “This contrasts with the luxury, or top 10 percent of homes based on price, where prices were up 10 percent on a year-over-year basis.”
Smoke said purchases of high-end homes are more discretionary and more dependent on the economy and financial markets.
“The hotness of the affordable end of the market is a combination of factors that all favor the young and first-time buyers,” he said. “While the luxury end of the market has cooled down in D-FW and is performing at half of the overall market’s strength, the price gains are still stronger than we’re seeing nationally.” Read More >