Denton TX home prices have leveled off during the last few months as the rampant home price inflation seen throughout the DFW area softened the last few months. Typical seasonal factors are at play as well as some general cooling of DFW’s overheated housing market. The average price for a new Denton TX home stood at $295,533 in September, down from the peak of $340, 123 seen in January this year. Prices for resale homes in Denton TX peaked in June this year with the average price hitting $274, 070 before cooling to $240,607.

The average price of new homes in the DFW area peaked at $399,035 this summer during the month of June before falling to $373,044 in September. The peak for average DFW new home prices this year is only one percent above the peak seen in May 2015. Despite a great deal of press from establishment media there is more going on behind the scenes that they aren’t telling you.

Prices for new homes in Denton County peaked at $436,631 back in May and have declined to $409,429 this September, roughly unchanged from last year. Average resale home prices in Denton County peaked $339,185 this summer in June. They have since fallen to $309,780 this September.

Mean and median prices mentioned in popular home price indices don’t always capture the ebb and flow that is actually occurring in the real estate market. While the housing market may be inflating overall, there is also a flight to quality taking place as prices push higher, distorted well beyond historical metrics of affordability. This is why you see a number of existing resale homes hitting the market at irrational prices only to sit and linger with eventual price reductions until they find that magic equilibrium point with a buyer.

While new home builders are busy touting their desires to target millennials with lower priced product offerings, what is more like taking place is a realization among home builders that they were too aggressive chasing the higher-end luxury home market. The proof is in the data. Millennials are still largely absent from this latest recovery cycle due to rampant home price inflation. The stats on household formations confirm this. Builders are not just targeting millennials; They are targeting anyone who can afford a new home!

There are millions of millennials who are living at home with mom and dad, and many have delayed getting married. The reasons are varied, but they generally revolve around excessive debt (see the $1.4 trillion in student loan debt or auto loan debt) and a general difficulty getting ahead in today’s bifurcated economy. Considering how uneven the latest economic cycle has been in terms of the skewed wealth and income gains, it is not surprising to see more Americans living alone. This is a new trend fostered in large part by the Federal Reserve’s distortion of asset prices, and particularly home prices.

The spreads between new homes and resale homes in Denton continue to be smaller than the general DFW area. I discuss this in more detail on my page for Denton TX home prices.