Texas House Prices Fall in Multiple Cities
The metropolitan areas with the largest year-over-year home price drops are all in Texas, a recent report from Redfin found.
The report shows that San Antonio, Austin, Dallas and Fort Worth all experienced significant declines in the four weeks ending on June 23 compared to a year earlier.
San Antonio and Austin saw the biggest home price drops in the entire country within that period, each down by 2.5 percent compared to a year earlier. Dallas and Fort Worth followed, down 0.9 percent and 0.8 percent, respectively.
Texas metros aren't the only areas seeing price drops. According to Redfin, the four weeks ending June 23 marked the first time since the start of the pandemic that the typical home in the U.S. sold for less than its asking price—0.3 percent less. A year ago, the typical U.S. home sold for exactly its list price, while two years ago it sold about 2 percent above it, the report said.
Apartments for lease are seen on March 19, 2024 in Austin, Texas. Brandon Bell/Getty Images
What's happening at the national level—and on a larger scale in Texas—is that new inventory is finally being added to the market. For years after the Great Recession, the U.S. chronically underbuilt, causing a spike in demand as supply remained low. The situation led to a boom in home prices during the pandemic, when mortgage rates were low and buyers engaged in bidding wars.
Now, inventory is finally growing across the country, especially in the states that built the most in the past few years: Florida and Texas. Newsweek contacted Redfin for comment by email outside usual business hours.
New listings in June were up 8.2 percent year over year nationwide, Redfin reported. May data from the real estate brokerage shows that in Texas there were 153,394 homes for sale last month, up 24.5 percent year over year. The number of newly listed homes in the same period was 46,530, up 11 percent compared to a year earlier.
"The likelihood of homes selling below asking price is rising because there's more supply than demand, at least for certain types of homes in certain parts of the country," Redfin said in the report.
"The hottest properties in this area are either move-in ready or complete fixer-uppers," Marije Kruythoff, a Redfin Premier agent in Los Angeles, said in a news release. "The homes in between, those that are pretty nice but not updated, are sitting on the market longest."
A previous study from the real estate brokerage found that in May, 61.9 percent of all homes listed for sale in the U.S. had officially become "stale"—meaning they had not gone under contract for at least 30 days.
Previous data from Redfin showed that in May, the median sale price of a home in San Antonio was $269,990, down 3.5 percent compared to a year earlier. In Austin, it was $585,000, up 3.5 percent year over year. In Dallas, it was $500,000, up 20.7 percent compared to May 2023. And in Fort Worth, it was $340,000, down 1.1 percent year over year.
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