North Texas housing market has shifted downward

Homes in North Texas are spending longer on the market and more than a third of homes for sale in the area have had a price cut, according to a new report from Zillow.

• Typical home prices fell in August — the second straight month — and are now down 2.5% ($9,860) from a peak in June.

Why it matters: While a decrease in overall home value means a drop in the total net worth of homeowners, the market dip also presents an opportunity for potential buyers who couldn't compete in the insanely hot market the area has seen over the last two years.

What's happening: Real estate agents attribute the slide to a combination of price climbs since the start of the pandemic and a recent increase in interest rates, which had been at record lows until this year.

• The rate on a 30-year fixed-rate mortgage spiked last week, reaching 6.7% Friday, according to Mortgage News Daily. That's up from 3.3% at the start of the year.

By the numbers: The median price of a home in North Texas is $415,000, up 15% year over year, according to the latest report by the Texas Real Estate Research Center at Texas A&M University.

• The share of listings with a price cut in August was 36.1%, compared with 33.9% in July, per Zillow.

• Listings typically spent four days longer on the market than in July.

Yes, but: Rent is still way up. The typical rent is $1,882, up 13.5% since August 2021, according to Zillow.

Zoom in: Sales in Collin County dropped the most, but the median home price was still $540,000, the highest in North Texas, according to the Dallas Morning News.

• Sales have actually gone up in Ellis County, where the median price is $400,000.

Zoom out: Nationwide, home values fell 0.3% from July to August, the largest monthly decrease since 2011, according to the Zillow report.