DALLAS — This story originally appeared in the Dallas Business Journal, a WFAA news partner.
Dallas-Fort Worth's new home sales climbed higher last month, bucking a national trend of declining sales as interest rates have shifted higher.
The three-month moving average of sales in October in DFW totaled 1,209 homes compared to 1,144 in September, according to the latest New Home Sales Report by Dallas-based HomesUSA.com.
Meanwhile, new home prices dropped slightly in DFW. The three-month average fell in October to $500,437 from $502,686 in September as North Texas builders offered more discounts and other buyer incentives, Caballero said.
"Homebuyers are benefiting from a more balanced market," said Ben Caballero, CEO of HomesUSA.com. “But the strength of this new home market – and our Dallas-Fort Worth builders – remains incredibly resilient considering the impact on buyers from rising interest rates.”
The three-month moving average of new home prices in North Texas fell in September, too, from $512,934 in August.
Selling pressure on DFW builders increased in October as inventory last month rose for the sixth straight month, with local Multiple Listing Services data showing active listings in October totaling 6,770 homes vs. 6,249 for September.
“As inventory goes up and the pace of new home sales continue to slow, Dallas area builders are seeing a more normal real estate market – quite a change from August 2021 when new homes were flying off the shelves,” Caballero said.
Average new home prices were lower in all four of Texas’ largest housing markets.
Austin's three-month moving average price decreased in October to $531,347 from $541,563 in September. In San Antonio, the average new home price decreased in October to $390,159 from $400,473 in September. In Houston, the average price fell minimally in October to $429,205 from $429,225 in September.
The pace of new home sales slowed in October in DFW, with the three-month moving average for time on market last month increasing to 57.7 days versus 50.3 days in September.
DFW pending new home sales reported to the MLS increased last month. In October, the three-month average of pending new home sales in Dallas-Fort Worth was 1,769 compared to 1,659 in September.
While new home sales have ticked up, single-family building permits continue to be down by double-digit percentages in many of the prior hot spots for new construction in the suburbs north of Dallas.
The rise in DFW new home sales in October came in the same month that existing home sales fell in North Texas by a record-setting 27% from the same month a year ago. October was the third straight month of declining existing home sales across DFW, and the amount of the month-to-month declines is growing.
Existing home prices in DFW are up year-over-year but down month-to-month for the third straight month.
Nationwide comparisons
Nationwide, existing home sales declined for the ninth month in a row in October as higher mortgage rates and stubbornly high prices sidelined buyers.
Sales of existing homes in the U.S. were down 28.4% in October from a year ago and down 5.9% from September, according to a National Association of Realtors report released Friday. All regions nationwide experienced month-over-month and year-over-year declines in existing home sales. That continued a slowdown that began in February.
Sales of new U.S. single-family homes dropped 10.9% from August to September, and October data on new homes is due out on Wednesday. U.S. new home sales plunged 17.6% on a year-over-year basis in September.