Homebuying power improves as prices cool, inventory expands

"Realtor Todd Luong of REMAX DFW Associates in Frisco said his recent experience reflects meaningful improvement for buyers, even if affordability remains strained. Here in the Dallas real estate market that I serve, affordability remains a challenge, he says. However, there is a significant amount of data showing that buyer conditions have improved over the past year and that buyers are gaining affordability ground. This should eventually increase housing demand to some degree as we head into the busy spring buying season."

"Dallas mirrors the national trend of rising supply and cooling prices both of which are central to affordability gains. Expanding inventory is one of the clearest drivers of improving homebuying power. Nationwide, inventory is up nearly 10% year-over-year and similar gains are emerging in many local markets. Luong said this dynamic is already evident in his market. The increase in housing supply is one of the clearest indicators that the Dallas market has become more buyer-friendly, he said."

Affordability remains a challenge in the Dallas real estate market, though buyer conditions have improved over the past year. Rising housing supply and slowing price growth are central to these affordability gains. Nationwide inventory is up nearly 10% year-over-year, and months of inventory increased to about 2.6 months, reflecting gradual progress toward a more balanced market. Expanding inventory reduces competition per home, increasing buyers’ negotiation power and easing bidding wars. The national median list price declined 1.2% year-over-year, with nearly half of states experiencing price declines or minimal increases. These trends should raise housing demand heading into the spring buying season.

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