North Texas Home Sales Surged

Steve Brown, from the Dallas News, gives a good overview of the Dallas area real estate market for the beginning of 2018. In many areas of the city, the inventory of homes available is down. As quoted, there is less than a 2 month supply of housing. (6 month supply indicates a healthy market for both seller and buyer). Price range factors in this equation as well. The higher price range has a larger amount of houses for sale than the lower range as well as a longer time on market. As always, if a house is priced well for it’s condition and location it will sell in a shorter amount of time. Homes priced too high are understandably staying on the market longer.
– Mary Beth Harrison

 

North Texas home sales started 2018 with a surge – up 12 percent in January from the first month of 2017.

But price increases slowed to just 5 percent annually compared with a 15 percent sales price gain a year ago.

Preowned home sales data from last month shows that demand for homes in the area is still strong.

But the rises in median home sales prices are slowing after several years of huge gains.

Real estate agents sold 6,246 preowned single-family homes in January, according to data from the Real Estate Center at Texas A&M and the North Texas Real Estate Information Systems.

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That was the most preowned homes ever sold in January in the area.

In 2017, real estate agents in North Texas sold more than 106,000 preowned homes – a record – and total sales were up 5 percent from 2016’s total.

The increase in January sales came after a 6 percent gain in the number of houses on the market.

“We are a supply constrained market, so as soon as our supply increases, buyers rush to purchase it,” said Paige Shipp with housing analysts Metrostudy Inc. “I think 2018 is going to be another great year for our resale market.”

But 2018 may not see the rate of home price increase the Dallas-Fort Worth area has experienced in the last few years.

The median price of houses sold by real estate agents last month rose by only 5 percent from a year earlier to $235,000.

Home prices have grown by double-digit percentage rates in North Texas in the last few years, as buyers have scrambled to find properties.

Housing economists have been predicting that D-FW percentage home price increases would moderate this year because of higher home finance costs and an expected rise in home inventories.

“We still expect the D-FW housing market to be strong but it won’t be surprising if the rate of increase may slow down some,” said Dr. James Gaines, the chief economist at the Real Estate Center.

On average, it took 53 days to sell a home – up 8 percent from a year ago.

More than 17,000 preowned houses were listed for sale with agents at the end of the month.

Currently, there is a less than a 2-month supply of houses on the market in the more than 24 North Texas counties included in the survey.

Ted Wilson with Dallas-based Residential Strategies said that his clients told him they had strong buyer traffic in January.

“The prospect of higher mortgage rates is probably getting shoppers off the fence as well,” Wilson said.

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