Denton’s housing market reached new heights in August. A strong showing from the luxury housing segment pushed the average price of a Denton home to a record $452,411. That was 9.
6% higher than a year ago. Before you get too excited (and before the folks at the appraisal district extrapolate this outlier as gospel), a word of caution is warranted. The overall housing market continues to struggle.
Closed sales in the city of Denton collapsed 27% year-over-year, and pending sales were 18% lower. The heart of the market with homes priced between $400,000 and $500,000 saw sales collapse 40%! In short, it was more wealth and income bifurcation working through the local housing market giving us those record high prices. It’s still a savagely unhealthy housing market in many respects.
Mortgage rates are now solidly in the 5’s if you have good credit. Rates are at the lowest levels we’ve seen in roughly 20 months. That’s great news if you are a prospective buyer.
The flip side is that typical monthly costs beyond the mortgage are all more expensive than they used to be. Property taxes, hazard insurance, homeowners association fees and maintenance costs are all significantly higher than levels seen before the pandemic. While the rate of inflation may have cooled, the actual prices haven’t come back down.
This is the key driver of the economic angst so many Americans are feeling. The stimulus checks have been spent. Apartment rents are still proving to be sticky in the city.