DALLAS — North Texas home sales fell for the second month in a row in July, giving pause to the run-up in property buying that began more than a year ago.

Last month, sales in the area fell by 17% year-over-year. July’s decline followed a 3% dip in June.

But even with that drop, there is no slowdown in price increases. Single-family houses sold in July for a median of $349,000 — up 20% from a year ago.

“A home that cost $300,000 last year now costs $360,000,” said Paige Shipp, vice president of market research with CDCG Asset Management. “On a monthly basis, that’s an increase of about $200 a month.”

North Texas real estate agents sold 11,299 single-family homes in July. That’s down from a year ago but is still more than in the same month of 2019, before the COVID-19 pandemic hit.

The recent decreases in single-family home purchases all but erased gains in the first five months of 2021. Year-to-date sales by real estate agents are just 2% ahead of last year’s record pace, according to data from the Texas Real Estate Research Center and the North Texas Real Estate Information Systems.

Near record-low mortgage costs and a desire for houses during the pandemic have fueled a boom in home buying in Dallas-Fort Worth and around the country.

But continued shortages of homes on the market and huge increases in prices in the last year are sending some potential buyers to the sidelines.

“The number of shoppers has declined since the spring selling season,” said Ted Wilson, principal with Dallas-based housing analysts Residential Strategies. “Much of this has to do with there simply not being a very good selection of new or existing homes to choose from.

“And, as a result, prospective buyers have become discouraged,” Wilson said. “On top of this, what offerings are out there are very expensive and we are hearing that there is sticker shock, especially at the entry-level price points.”

Shipp said it’s unclear if the North Texas home market has peaked after more than a year of huge gains. She said sales were artificially high last summer because of purchases that had been delayed early in the pandemic.

“I believe the year-over-year drop in sales is both the hot July 2020 market and significant price appreciation preventing would-be buyers from purchasing a home,” Shipp said. “But, with the lack of supply, I don’t foresee rising prices slowing anytime soon.”

The number of homes listed for sale in July was down by more than 30% from a year ago and is still near all-time lows.

Pending home sales — properties under contract but not yet closed — were off 12% year-over-year, another sign that the big sales increases in the area are slowing.

In July, there was a 1.1-month supply of houses listed for sale in North Texas, still historically low, but the greatest monthly inventory since November.

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