Has the Dallas Housing Market Bottomed Out? CoreLogic's Bold Prediction & Dallas TX Trends Revealed!
The Dallas housing market has been a topic of interest for many real estate enthusiasts, and recent data from CoreLogic suggests that the market may have finally bottomed out after seven consecutive months of declining home prices. In this blog post, which is a summary of our YoutTube video above, we will explore the latest trends in the Dallas housing market based on information from CoreLogic and other sources, highlighting the main points. So if you are interested in all the details, make sure to watch the video above.
So according to a recent article published by Fortune Magazine on April 11th, CoreLogic, a leading real estate data provider, has made a "gutsy call" by stating that the national home prices have officially bottomed out. The article suggests that the combination of improved buyer confidence, tight supply, and slight declines in home prices and mortgage rates have contributed to the stabilization of the housing market since the beginning of the year. CoreLogic's home price index ticked up slightly in February by 0.8 percent, and year-over-year from February 2022 to February 2023, home prices were up 4.4 percent nationally. The forecast for the year-over-year growth from February 2023 to February 2024 is around 3.7 percent, slightly below the average of 4.6 percent growth that home prices have averaged since 1987.
It's worth noting that CoreLogic did not make a blanket statement that all housing markets are in the clear. While the U.S. home price growth rose for the 133rd straight month, the 4.4 percent increase was the lowest recorded since 2019. CoreLogic identified eight states in the Western United States, including California, Idaho, Oregon, Washington, and Utah, where home prices saw annual declines due to tech layoffs and a severe lack of affordability. However, some states in the East Coast and the Southern United States, including Texas (excluding Austin), are seeing an uptick in sales as workers return to the office, indicating signs of stabilization and growth in those markets.
In the Dallas metro area, the housing market has been showing signs of strength. From January to March, the Dallas Metroplex saw a 4.3 percent increase in home prices, and from February to March, home prices were up 1.9 percent. Although not as high as the numbers in Florida, the Dallas Metro is experiencing a strong spring market, with median and average sales prices already showing month-over-month increases in April, despite a slight dip in transactions likely due to the Easter weekend festivities.
However, not everyone shares the same outlook on the housing market. Fannie Mae and Moody's Analytics still believe that prices will fall this year, with their models indicating a 4.2 percent decline in the housing market from the fourth quarter of 2022 to the fourth quarter of 2023. Their reasoning is that the pandemic boom and spiked mortgage rates have pushed affordability beyond the fundamentals.
In conclusion, based on the data from CoreLogic and other sources, the Dallas housing market is showing signs of stabilization and growth after a period of declining home prices. Improved buyer confidence, tight supply, and favorable mortgage rates have contributed to the positive trend, although challenges such as mortgage rate volatility and ongoing banking issues remain. However, not all markets are experiencing the same trend, with some states in the Western United States still facing challenges due to tech layoffs and affordability issues. It's important to keep a close eye on the market and consult with real estate professionals for up-to-date information and insights.
