Texas becomes a buyers' market as white hot real estate markets in Austin, Dallas cool down

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Zillow recently released a report on the change in home values by city from February 2022 to February 2023. The results were surprising.

On average, home values in the United States increased by 4.23% during that time.

Not surprisingly, Miami's home values increased the most during that period. The average home in that city increased in value by 10.49%.

What is the home value change in Texas markets?

The Austin market, which has been white hot for several years, finally experienced a cooling-off period. Between February 2022 and February 2023, home values in the city decreased by 4.30%.

This puts Austin near the bottom of metro markets in terms of home value shifts, alongside traditionally high-priced markets such as Los Angeles and San Francisco, the city at the bottom of the list with a value decrease of 7.73%.

While Dallas experienced a positive growth in home values of 1.62%, it's far below the United States average.

The Houston market was closer to the national average, with a 3.32% growth in home values year-over-year.

The highest growth market in Texas was San Antonio, with a 3.35% growth in home values year-over-year.

Why has the Texas housing market cooled?

These changes are indicative of what's happening across the country. With higher inflation and mortgage rates, people are looking for a more affordable place to live. Because of this, higher-priced markets are cooling down while traditionally lower-priced markets are heating up.

Some of the cities with the highest value increases year-over-year are surprising in that they're not known for their competitive real estate markets. Richmond, VA was number 2 on the list with 7.43% growth, and Oklahoma City, OK ranks third with 6.94% growth.

Buyers' market

Texas markets may well heat up again as the year rolls on, but for now, it's more of a buyers' market than it has been for years. Those considering relocating, take note.