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Have you ever dreamed of living in the Lone Star State? You might feel at home in Dallas, a sprawling city with a diverse economy that includes major employers like AT&T, Texas Instruments and American Airlines, all of which are based in the Dallas–Fort Worth area. Dallas also stands out as a major city that still manages to retain a relatively low cost of living — something that works in favor of home sellers as well as buyers. Whether you’re thinking of buying or selling, here’s a closer look at the housing market in Dallas.
Dallas housing market overview
While Dallas is one of the largest cities in the U.S. by population, according to Census data, its cost of living is only 2 percent above the national average. That makes it unusually affordable for such a major metropolitan hub.
It’s no wonder so many people want to live there: Dallas–Fort Worth was in the top five large metro areas on Bankrate’s recent Housing Heat Index. This popularity means the Dallas housing market has soared in recent years, with the median sale price shooting up from $335,000 in May 2018 to $487,000 in May 2022, per Redfin data. The median price for a Dallas home in May 2023 was $418,000, with the market “very competitive” and homes receiving an average of three offers, Redfin says. However, despite the long-term increases, things have cooled a bit recently.
Dallas housing trends and stats
- Median home price: $418,000 in May 2023, per Redfin. That’s a 14.2 percent decrease from last year, but a jump from April’s $411,500 and March’s $384,990.
- Sale-to-list price: 99.1 percent, meaning most homes are selling just below their asking price. In May of last year, homes tended to sell for a bit above ask.
- Days on market: 26 days — a big 12-day jump compared to how quickly homes were selling last year.
- Homes sold: 1,119 Dallas homes were sold in May, about 14 percent less than in May 2022.
- Closing costs: 1.5 percent of the home’s sale price, according to state data from ClosingCorp. For a median-priced $418,000 Dallas home, that comes to $6,270.
Should you buy or sell in the Dallas housing market?
If you’re a home seller
Dallas’ median home price of $418,000 is a good bit higher than the national median of $388,800, so make sure you work with a local real estate agent to understand exactly how much your house is worth before you list it. Prices can vary greatly from one part of town to the next — it pays to do your research. And keep in mind that mortgage rates are high, meaning that there’s likely a smaller pool of buyers who can afford your desired price. If you think you can’t maximize your price right now, you might be better off waiting to sell until rates settle down.
If you’re a homebuyer
Many factors make Dallas an easy choice for prospective homebuyers, including the fact that Texas charges no state income tax for its residents. And while the median price here is higher than the national median, home prices are more than 14 percent lower than they were at this time last year. You also won’t have to rush into a decision, as homes are not getting snapped up quite as quickly now as they were last year.
Analyze your finances to make sure you buy a home you can afford, and evaluate more factors than just the sticker price. While the cost of living in Dallas is more affordable than many other large cities, Texas has one of the highest property tax rates in the nation, which will add to your monthly bill.
To start the homebuying process, get preapproved for a mortgage. Preapproval educates you on the maximum amount you can borrow, and in competitive markets like Dallas, your preapproval letter will be important for sellers to see.
Dallas housing market predictions
The U.S. housing market went into overdrive in the wake of the pandemic. But things have since cooled off and home prices are now on the decline in many areas, including Dallas.
That said, experts predict that current course corrections will be nowhere near the scale of a housing market crash, like we saw during the Great Recession. And Dallas’ growing population and wealth of economic opportunities mean its housing market should remain robust.
Find a Dallas real estate agent
Buying or selling a home is one of the biggest financial decisions of your life, and having an experienced real estate agent by your side can make a critical difference. Ask family and friends for referrals, and interview several candidates before making a decision. Vet them online as well. An agent who you trust, and who knows the Dallas market well, can guide you to a smooth and successful transaction.
Yes. The median home price in Dallas was down 14.2 percent this May compared to last year, according to data from Redfin. That said, the price is still much higher than it was pre-pandemic, and it’s still higher than the nationwide median price as well.
No. Sellers have had the advantage in the housing market for the past few years, and there’s a lot of competition among buyers in the popular Dallas market. However, things are looking up for Dallas buyers, as home prices have fallen more than 14 percent since last year.