Dallas Market Report - August 2016
Posted September 2016
Closed sales began to cool for much of the country last month, and conventional wisdom indicates that year-over-year declines are going to be present for the remainder of the year, given the low inventory situation in most markets. Demand is certainly present and has created competitive situations that have kept prices up. Rental prices are also up, which may lure more toward homeownership. New Listings were down in the North Texas region 0.8 percent to 12,614. Pending Sales decreased 9.9 percent to 8,769. Inventory shrank 8.4 percent to 25,409 units. Prices moved higher as Median Sales Price was up 10.5 percent to $229,900. Days on Market decreased 5.1 percent to 37. Months Supply of Inventory was down 12.5 percent to 2.8 months, indicating that demand increased relative to supply. As inventory continues to drop, the contradictions of today's market are evident. Sellers should feel confident enough to list homes at fair prices and receive meaningful offers in a healthy residential real estate and overall economic environment. However, there may be lingering worry over the availability of move-in ready homes to replace what was sold. On a brighter note, building permits are trending upward. That news should be weighed against the fact that the highest level of activity is in multifamily rentals.