Well, the market is adjusting along with the economy. It’s funny, after 20 years in this business I almost make the mistake of thinking I’ve seen all the boom-and-bust cycles the DFW market is going to offer; it’s comforting knowing no one has experienced a market like the last 2 years and therefore no one could have predicted exactly how 2023 would pan out. It’s certainly not a bad year, and there are times I feel like my page 2 market update is a disservice to you because it only compares this year with last year, not the market over a period of multiple years.
“But John, you strapping world traveler,” I hear you ask, “pending sales are down 12% from last year and median prices have dropped 5%. Surely that’s the sign of the beginnings of a market adjustment.” Well, hypothetical person designed to help me more easily prove a point, let’s look at pending sales. Down 12% from last year, it would seem we’ve on a significant downturn in volume. Yes, while 12% is significant, it’s only relative to the hottest market DFW has ever seen. Compared to 2015 it’s and virtually all years before it, May 2023 is a good month.
Sales prices simply are what they are. Relative to a market that saw median sales prices 102% of list price, a bit of contraction is to be expected once you raise interest rates and cool a superheated economy.
DFW was always a market where, if you waited 3-5 years, you could sell your property for a tidy profit. Unless something goes horribly wrong with the global economy, expect a return to that, which isn’t so bad.