Todd Luong knows all the usual gripes regarding the current state of residential real estate, and is quick to shrug his shoulders. Elevated mortgage rates? No big deal. Limited inventory? Whatever. High home prices? Get serious. As with so many other industry professionals, those factors can affect sales for the longtime agent with REMAX DFW Associates, in Frisco, Texas, a suburb of Dallas. But he often has more worrisome matters to overcome in his market.
How about the impacts shrinking soil, hailstorms, lightning strikes and tornadoes can have on skittish buyers?
“Here in the Dallas-Fort Worth market, severe weather definitely has a real impact on my real estate business,” he says. “Weather does not just affect how comfortable people feel. It can change how buyers shop, how sellers prepare their homes and whether a transaction closes on time. Dallas-Fort Worth has many different weather challenges. We deal with extreme heat, hailstorms, tornado risks, freezing weather and soil movement. For a real estate agent, these issues create more work because buyers often need extra education before they feel comfortable making one of the biggest purchases of their lives.”
Luong cites, for example, when in 2023 Dallas experienced one of its hottest summers in modern history. The city recorded 55 days with temperatures at or above 100 degrees. That summer the heat lasted for weeks, with temperatures reaching around 110 degrees at times.
These types of extreme temperatures are becoming more and more common across the country, driven by climate change, causing significant disruption—including potentially decreasing home values in the medium-term.
For Luong, the short-term impact is that helping clients navigate the complexities of a transaction as heat or other weather-related threats add even more variables to work through.
“I had clients who purchased homes earlier in the spring and then experienced foundation problems in the summer because the extreme dry conditions caused the soil around their homes to shrink,” he says. “North Texas has expansive clay soil, which is very different from many other parts of the country. When the soil gets wet, it expands. When it becomes dry, it shrinks. That constant movement can put pressure on a home’s foundation.
“For a real estate agent, foundation problems can make transactions much harder. A buyer may love a home, but after an inspection may discover foundation concerns. Suddenly, the transaction involves engineers, repair estimates, negotiations and questions about whether the home is still worth buying. Sometimes buyers decide the problem is too stressful or expensive and walk away.”
Weather can also create problems before a buyer even writes an offer.
“I once worked with a client from California who came to Dallas during the summer to tour homes but was also concerned about tornadoes after hearing stories about them in North Texas,” says Luong. “For a real estate agent, losing a buyer because of weather can be frustrating. Agents here who work with out-of-state buyers often spend extra time explaining what daily life is really like in Texas and helping clients understand how people here deal with these challenges.”
Hail and lightning
Two other negatives Luong must address that most other parts of the country don’t are hail and lighting.
“North Texas is known as one of the more active hail areas in the country,” he says. “Hailstorms can damage roofs, siding, windows and outdoor equipment. I have seen many transactions become complicated because of hail damage. A buyer may be under contract on a home and discover during the inspection that the roof has significant hail damage. Then the questions begin. Will insurance cover it? Will the seller replace the roof? Should the buyer ask for a credit? Will the roof replacement delay closing?
“Sometimes these issues can be solved. Other times, negotiations become too difficult and the deal falls apart. When that happens, the agent has to restart the entire process and help the buyer find another home.”
Homeowners insurance can be another big concern for buyers, who initially think it will be similar to other, more stable parts of the country weather-wise.
“Many of them are shocked when they see insurance costs in Dallas-Fort Worth,” admits Luong. “They often ask why coverage is so expensive compared with other places. One major reason is the frequency of hailstorms. Higher insurance premiums affect a buyer’s monthly payment and overall housing budget. For some first-time buyers, the insurance cost can change whether they qualify for a mortgage. Today, buyers are not just looking at the purchase price of a home. They are looking at the full cost of ownership, including insurance, taxes, maintenance and repairs.”
Singular historical weather events have also had an effect on the Texas real estate market. One of the biggest ones was Winter Storm Uri in 2021. The historic freeze caused widespread power outages and major damage across Texas.
“Many homes experienced frozen and burst pipes because houses in Texas were not designed for that type of prolonged freezing weather,” notes Luong. “During that storm, I had several investor clients who owned rental properties in Dallas. Some of their vacant properties suffered burst pipes and water damage. After that experience, some of them became more hesitant about buying additional rental properties here. I explained that the cold temperatures were very rare in North Texas, but the experience still made them hesitant to purchase more properties. They may decide to invest in other parts of the country, so for agents here who work with investors, that can mean fewer transactions.”
Luong relates that in Frisco, Texas, where his office is located, there was also a period when several homes caught on fire because of lightning strikes.
“Some buyers asked about those incidents while looking for homes in the area,” he says. “They eventually purchased homes, but wanted to understand whether lightning protection systems were necessary. Events like these show how weather stories can influence buyer emotions. Even if the actual risk is low, stories about these kinds of events can make buyers nervous. A real estate agent often has to help clients separate fear from facts.”
Luong has become used to whatever weather brings, knowing that it directly affects buying decisions, inspections, negotiations, insurance costs and whether a transaction reaches the closing table.
“The best agents here understand these concerns and prepare their clients,” he says. “The goal is not to scare the clients, but to give them accurate information so they can make smart decisions and understand what it truly means to own a home in North Texas.”
