North Texas housing market acceleration is slowing

NORTH TEXAS – This spring the North Texas housing market is not shaping up like the one last year. A year ago, sales of preowned homes were up 23 percent and prices were rising at double-digit rates.

But last month, home sales in the area fell 1 percent from a year earlier. Prices rose, but by 6 percent from May 2013.

"Existing and new home price increases slowed somewhat this year as buyers are experiencing sticker shock from the higher home prices,” said David Brown of housing analyst Metrostudy Inc.

In May, the median price of single-family homes sold through real estate agents’ multiple listing service was $189,900, a record high for North Texas.

So far this year, real estate agents have sold 3 percent fewer preowned homes in North Texas than during the first five months of 2013. In May, 9,064 preowned single-family houses changed hands.

“Sales volumes will run about equal to last year. But remember, last year was the second-best year ever,” said Dr. James Gaines, an economist with the Real Estate Center.

Gaines said there is still a lot of upward pressure on home prices in North Texas because of the tight supply and the region’s booming economy. “Prices will be up between 5 percent and 10 percent for the year but with lots — and I mean lots — of variability among and between neighborhoods and subdivisions,” he said.