If 340,000 DFW residents are unemployed since March, why are houses still expensive?

July 1, 2020 by Ted Bauer

There are a couple of different ways to answer this question:

DFW is still a "hot" real estate market: That means that, despite the layoffs and furloughs, we still have jobs. We have an educated workforce. We have companies who want to relocate here, especially from the Bay Area. So, overall, it's still going to be a competitive housing market, even in economically-uncertain times.

Sellers pulled off the market in March and April: They mostly did this because they didn't want people in their homes during the early parts of the shutdown. Now that we're seeing a spike, you may see this happen again -- where sellers either pull off the market entirely or they go completely virtual tour-wise, which is a little bit more challenging on sales (higher price point) than apartment rentals (which can sometimes be construed month-to-month). When a certain percentage of sellers pulls off the market, that means there are less houses available, which means more bidding wars are created for the available inventory. And this is backed up by stats: DFW was the second-most competitive housing market for May, with 60.8% of prospective buyers facing competition from other buyers. (Boston was No. 1 at 64%.) In April, as the pandemic first took massive effect, only 43% of DFW buyers were facing bidding wars. You see this in home visit stats too: DFW was down 17.2% in March, down 35.2% in April, and then up 23% in May. 

So what is the median? If you go by RedFin, the DFW median for May 16-June 16 was $307,000, which is actually an increase of 2% over 2019. 

Construction has returned to pre-COVID levels already: That will also keep prices relatively on the up and up. 

It remains to be seen what's going to happen with the current spike and home prices, but if sellers do pull off the market, there will be bidding wars, and that will probably keep the numbers stable or rising 1-2%. 

Considering a home search?

We got you, fam.

Our new-ish Homes listing feature

About the Author

Ted Bauer

Ted Bauer is a writer/editor for White Rock Locators focused on as much cool content about the DFW Metroplex rental scene as he can possibly find week-to-week.