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Numerous articles have been published regarding the Dallas-Fort Worth housing market. For the most part, the data covers the geographic area in a broad sense. According to an article published by MetroTex Association of Realtors on August 1, 2024, DFW home prices were up 2.6% in May, yoy, compared to the national annual gain of 5.9%. It is important to remember that the slowdown in current price growth follows yoy price increases of 10%+ and 20%+ in 2021 and 2022 respectively. Annual price increases reached a record 31% in April of 2022. Continued growth at that pace was not sustainable and should not have been expected.
According to an article published by Dallas Business Journal on August 8, 2024, yoy June median sales prices dropped and inventory increased. Dallas County saw a 3.9% decrease and Collin County saw a 6.2% decrease in sales price. Tarrant County remained unchanged and Denton County saw a 1.4% decrease. Inventory across DFW was nearly 3.8 months in June. Six months of inventory is considered by some to be a balanced market. Yoy average new home prices have fallen a little more than 2% and the 3-month average of new home sales remained flat from May to June.
Not all cities within the DFW area are experiencing the same conditions. According to a Q2 report issued by Chicago Title, in Frisco, TX, yoy total sold volume stayed the same and median sale price increased by 3.3%. In comparison, Garland, TX yoy total sold volume decreased by 1.2% and median sale price decreased by 1%.
We are seeing a similar softening with new home sales. According to June MLS data, the 3 month average of new home sales in DFW was 1,954, slightly lower than 1,986 in May. The average sale price of $482,048 in June was slightly lower than $486,197 in May.
Rental demand remains strong within our portfolio. As of the end of Q2, we are at 97.6% occupied and still experiencing rent growth. Year-over-year rent growth in Q2 2024 for renewals and new leases in our portfolio averaged 6.91%. Our highest rent growth occurred in the 75060 (Irving) zip code in the amount of 8.1%, followed closely by zip code 75024 (Plano). The lowest growth was experienced in the 75088 (Rowlett) zip code with -1.89%. Please feel free to reach out for more detailed info.
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