Dallas Real Estate Market Trends – December 2024

As we closed out 2024, the Dallas real estate market continued to show notable shifts, reflecting both local and national trends. The December 2024 report from the North Texas Real Estate Information Systems (NTREIS) provides key insights into the changes in listings, sales, pricing, and market dynamics. Let’s break down what these numbers mean for buyers, sellers, and investors.

1. More Listings, But A Slowdown in Pending Sales

The number of new listings increased by 8.6%, reaching 9,125 in December. This suggests that more homeowners are putting their properties on the market. However, despite this increase in inventory, pending sales dropped by 10.1% to 6,284, signaling a slowdown in buyer activity. This decline may be attributed to seasonal trends or shifting affordability concerns.

2. Home Prices Continue to Rise

The median sales price in December rose by 3.6%, bringing the median price to $378,000. This steady price increase aligns with national trends, where limited supply and high demand have continued to push home values higher. While price appreciation remains moderate, it still signals a strong housing market.

3. Longer Time on Market

Homes are taking longer to sell, with the days on market rising by 19.6% to 67 days. This increase suggests that buyers are becoming more selective, and sellers may need to adjust pricing expectations or offer incentives to attract buyers.

4. Growing Inventory and Increased Supply

Inventory saw a significant 20.9% increase, reaching 36,270 homes available for sale. The months supply of homes also rose to 3.9 months, up 21.9% from last year. While this is still below the 5-6 months needed for a balanced market, it does provide more options for buyers, reducing the intensity of competition.

5. Affordability Challenges

The Housing Affordability Index dropped by 4.4%, indicating that homeownership remains a challenge for many buyers. Rising home prices and mortgage rates have continued to impact affordability, making it essential for buyers to explore financing options and incentives.

What This Means for Buyers and Sellers

• For Buyers: With rising inventory and homes staying on the market longer, there could be more room for negotiation. However, affordability remains a concern, making it essential to shop for the best mortgage rates.
• For Sellers: While home values are still increasing, the market is shifting. Sellers may need to be patient and price their homes competitively to attract buyers.
• For Investors: The increase in inventory presents opportunities, but careful analysis of demand trends will be crucial in making profitable investment decisions.

Looking Ahead

As we enter 2025, the Dallas County housing market is showing signs of stabilization. While home prices continue to rise, increasing inventory and longer days on the market suggest a less aggressive seller’s market than previous years. Keeping an eye on mortgage rates, economic conditions, and local demand will be essential for anyone looking to buy or sell in the coming months.

What are your thoughts on these trends? Are you planning to buy or sell a home in Dallas County this year? Let us know in the comments!