When will real estate prices drop?

In the first half of 2022, DFW residential real estate prices were increasing double digits month over month. Around summer time we saw demand for real estate begin to ease. Homes that were move-in ready, in desirable areas, and priced correctly could still sell in a few days with multiple offers. However, the average days on market went from 3 or 4 days to 3 or 4 weeks. Technically this was still a seller’s market, but comparatively speaking the market had “cooled”. Home prices leveled out and sellers were willing to make concessions. Well, that may be ending.

In the last few weeks due to the lower interest rates and the upcoming spring and summer sale season, demand for real estate has increased again. We saw this coming. We knew that this would happen. In Dallas/Fort Worth we are still seeing a population boom and new builds are not keeping up with demand. Rent prices are mind boggling which also turns renters into buyers. If you know someone who has been waiting for the market to crash, tell them to get comfortable. This is not inflated demand due to buyers qualifying for mortgages they can’t afford. This is real economics: supply and demand. I honestly feel sorry for buyers, and if you have been holding out waiting to buy, I’d jump in now before the spring-summer mayhem begins.