Dallas Market Report - October 2016
Posted November 2016
As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon. New Listings were down in the North Texas region 0.3 percent to 10,610. Pending Sales decreased 10.2 percent to 7,421. Inventory shrank 8.9 percent to 24,545 units. Prices moved higher as Median Sales Price was up 12.5 percent to $225,000. Days on Market decreased 6.8 percent to 41. Months Supply of Inventory was down 12.9 percent to 2.7 months., indicating that demand increased relative to supply. Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects. As older Americans retire and downsize, single-family listings are expected to rise. The waiting is the hardest part.