2023 Outlook: DFW home prices ‘not going to tumble’ (or maybe they will) - Dallas Business Journal

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North Texas, which continues to benefit from strong population and job growth, will fare better than most housing markets.

Forecasts for what’s on tap for the 2023 housing market in Dallas-Fort Worth are all over the board, but there’s consensus on a few things.

The 30-year fixed mortgage rate rose above 7% this fall, but as of late December, had fallen back into 6% territory. Still, mortgage rates are“Those high-interest rates are going to make a lot of difference in what they can afford to pay,” Callicutt said. “When you're looking at a first-time homebuyer, they really look more at what the outflow is as opposed to what the price is.

"It won't be like the '80s, I can tell you that," Epps said."But we will see a different market. It will soften up ... these multiple offers that have been going on for the last two years, we're going to see a change. But that's OK.”“It's still going to be a good market,” Epps said. “Dallas is strong. We've got great infrastructure, so we're going to continue to be alright.

Dallas-Fort Worth builders face mounting sales pressure as inventory climbs, with the three-month moving average for active new home listings rising in November for the fifth straight month, Caballero said. The three-month average in November climbed to 7,253 active listings, which was more than twice what it was at the beginning of the year, according to data from HomesUSA.com.The road will be bumpy , but regardless of what happens, I expect Texas to continue leading the U.S.

“A severe housing bust from the frothy pandemic run-up isn’t inevitable,” writes Enrique Martínez-García, senior research economist at the Dallas Fed. “Although the situation is challenging, there remains a window of opportunity to deflate the housing bubble while achieving the Fed’s preferred outcome of a soft landing. This is more likely to happen if the worst-case scenario of a price-correction-induced economic downturn can be avoided.

 

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