REAL ESTATE IS LOCAL!

 

In an ever changing national real estate marketplace, it is critical that savvy home buyers and sellers not rely on "nationalized" information to gauge their local real estate market.  This is especially true here in the Dallas area where our local economy is stronger than the national economy and we were not subject to the unsustainable price increases year over year that many parts of the country experienced.  To that end, our housing appreciation rates have been modest and somewhat consistent between 0-5% annually.

On a monthly basis here on my website, I provide the latest market trends for Collin, Dallas, and Denton Counties that includes a trailing 15 month period with specific key indicators that share where our local real estate market stands today and allows us a preview of what may lie ahead.

The key indicators worthy of focus are:

  • Months of Inventory----For each month of inventory, there is a one month supply of homes for buyers based on previous trends.  For example, if we have reached 5.8 months of inventory, that indicates that without any other homes entering the marketplace, there are enough homes available for buyers over the next 5.8 months.
  • Days on Market--This tells how long it takes to sell a home from the time it first enters the market. The higher the days on market, the longer it takes to sell a home.  Shorter days on market generally indicate that homes are selling closer to their original listing price than they do at longer days on market.  When days on market are high, homes experience multiple price reductions before selling further from the original list price.
  • Average Selling Price per Square Foot--Homes within the same 300-500 square footage range share an average price per square foot.  As a general rule, the smaller the home (and square footage), the higher price per square foot.  In the luxury home market, this rule is not applicable, where the bigger the home (and square footage) typically equates to a higher price per square foot.
  • Median Selling Price--This is a much more accurate reflection of home prices as opposed to considering the average selling price since the data is not skewed as great by changes in inventory levels in various square footage ranges.

 View the latest Facts & Trends for Collin County, Dallas County, or  Denton County.  Visit  

 Melissa's Blog for an overview of Collin County's latest report and feel free to share your questions, comments, or general thoughts.