DALLAS — This story originally appeared in the Dallas Business Journal, a WFAA news partner.
New homes in Dallas-Fort Worth are selling significantly slower and sales prices are softening.
The three-month moving average for days on market for new homes in North Texas hit 104.4 days in February vs. 94.9 days in January. Last February, time on market in DFW averaged 52 days and the average time on market has more than doubled since then, according to the monthly HomesUSA.com New Home Sales Report.
The Dallas-based company’s New Home Sales Index slowed dramatically in North Texas for the fifth straight month, said Ben Caballero, founder and CEO of HomesUSA.com.
On the plus side for builders, the index’s three-month moving average of new home sales in Dallas-Fort Worth for February rose, with 1,670 new homes sold vs. 1,505 homes sold in January.
“While the average new home sales were higher, the days on market continued to rise as the market seeks balance in Dallas-Fort Worth,” Caballero said.
“Overall, throughout Texas, new home sales continue to be surprisingly strong,” he added.
Caballero also pointed out that the three-month moving average for prices in DFW was lower.
“Dallas area builders are working hard to avoid big price cuts by offering more buyer incentives and agent bonuses,” he said. “You are also likely to see the average size of a new home become somewhat smaller as builders look to maintain affordability.”
New home prices in DFW dropped by $8,000 last month. The three-month moving average of DFW new home sales prices in February was $493,722 compared to $501,763 in January.
Local MLS data also shows active listings of new homes in DFW were down slightly last month. The three-month average of active listings for February was 7,056 versus 7,526 in January.
Pending new home sales reported by the Multiple Listing Services in DFW jumped again last month to their highest level in the last 12 months. The three-month moving average of pending new home sales in February was 2,336 vs. 2,027 in January.
The three-month moving average indices track market seasonality, while the 12-month moving average removes the seasonality and tracks the longer trend, Caballero said.