Dallas vs Austin: Competitiveness?

Question

I'm trying to get an idea of how competitive the Dallas SFH
market is compared to Austin.

• On average in 2021, how many
	offers go into house purchases for SFH under 400k in Dallas?
	
		In Austin, they are around 30-50
		offers per house.
• In Austin, they are around 30-50
		offers per house.
• Also, how far above asking price
	are houses going for in Dallas?
	
		I tried looking this up on Redfin
		for Dallas, but its not showing me sold price, it just has "*"
		In Austin currently there are
		many that go %25-30 over, or around 75-100k over.
• I tried looking this up on Redfin
		for Dallas, but its not showing me sold price, it just has "*"
• In Austin currently there are
		many that go %25-30 over, or around 75-100k over.
• Are people usually waiving appraisal contingency in Dallas?

• In Austin, they are around 30-50
		offers per house.

• I tried looking this up on Redfin
		for Dallas, but its not showing me sold price, it just has "*"
• In Austin currently there are
		many that go %25-30 over, or around 75-100k over.

Rob Lee · Answer

I have heard of DFW properties under $300K getting over 20 offers and 20% over asking. I am not familiar with any that have waived appraisal but buyers can agree to pay the gap if the property does not appraise. The DFW area is a great place to live and work. The DFW real estate market has exploded over the last 5-7 years. Due to a lack of inventory our market is very competitive. Prices have continued to rise even during COVID. There are always opportunities for those who recognize them quickly and have realistic expectations.

Rob

Bryan Noth · Answer

Thank you for the mention @Lucia Rushton!  And I think your insight carries a lot of value.  Some-town, USA might be the best investment but if you don't want to move or invest there it does not much matter.

Would love to connect @Stephen James!

Lucia Rushton · Answer

@Stephen James thank you for the clarification. Honestly dig deep in Austin, it doesn't matter if people are getting better deals, less competition, or lower appraisal addendums in DFW. If you don't want to move and settle into a new place, don't put yourself through that. Some people thrive on new adventures, for others it is not their cup of tea.

@Bryan Noth hook up with Bryan and he will give you the low down on Austin and help you find a place.

Best wishes!!!

Lucia Rushton · Answer

@Stephen James. Both markets are highly competitive. Can I ask the intent of your question? What are you trying to find out ?

Wale Lawal · Answer

@Stephen James I am in the Houston, Texas market and It's a serious bidding war here.

My clients have been waiving appraisal contingecy since September 2020 and we still don't get all the properties we write offer on. This is normal in a SOLID Sellers market.

Goodluck

Rob Lee · Answer

It sounds like you have found your answer. Austin is a very popular destination for relocation and out-of-state investors. It is currently the most expensive place to live in Texas. As such, Dallas/Fort Worth is receiving a lot of spillover. First-time home buyers are competing against investors in that under $300K space. It's very competitive. Any numbers provided would be purely anecdotal. Personally, I ask the seller's agent how many offers they have before my client submits an offer. Who wants to be offer number 11?

Rob Lee · Answer

The only properties that are not receiving multiple offers in the current market are new construction.

Stephen James · Answer

Hi Lucia. Sure, I am trying to figure out whether I will have an easier time finding a home in Dallas as opposed to Austin. And more specifically, whether its drastic enough of a difference that it would be worthwhile to uproot and move to a new city (Dallas). I find a lot of drawbacks to moving to a new city where I don't know anyone, so wouldn't want to do so unless it was much easier to win a bid on a house and not have to deal with large appraisal shortfalls in the process.

Stephen James · Answer

Perhaps I should ask, how many offers and how far above asking are houses going for in Dallas on average?

OR - In the scenario you mentioned of 20 offers and 20% over, what percentage of the time does that happen?

I'm gathering that Dallas is still pretty competitive, but I'm not sure how competitive it is compared to Austin. I know what the numbers are in Austin from personal experience, but I don't know what the regular numbers are in Dallas. It sounds like its slightly less competitive than Austin. Although when I go on redfin, Austin has competitive rating around 70-80(if you look at surrounding towns as well), but Dallas has around 50... so that seems like a decently significant difference.

See Dallas: https://www.redfin.com/city/30...

Austin: https://www.redfin.com/city/30...

Houston: https://www.redfin.com/city/89...

Thanks!

Bruce Lynn · Answer

I don't know of a place where you can get accurate answers to all your questions.  As a gut feeling it sounds like the flames in Austin are burning hotter and higher than in DFW.   I guess we could pull sales in a certain area or price range to show you list to sales price.  I don't know of any sites that record or show # of offers or which or how many properties use appraisal waivers.  We are seeing these again in my market...some buyers will, and some won't use them.   I can say I will probably use them in every offer to some extent the rest of the year on any offers we make for buyers.

Dallas vs Austin: Competitiveness?

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