BOB EDMONSON
REAL ESTATE PROFESSIONAL

It’s late September as I write this, and today we had another (and predicted) increase in the federal funds rate.  While mortgage rates are tied more to the rate of the 10-year bond, we did see the bias toward higher mortgage rates, touching 6.29% today.  These rates are a bit volatile, and we might expect them to peel back a bit, as happened in August after a Fed like.  As is well documented, the real estate market has cooled off a bit, but not too much in price.  In August, for the first time in many months, the ratio of closed price to asking price averaged a bit below 100%, at 98%.  Historically, we see that ratio in the 94-95% range.  Higher interest rates, along with higher prices and lower investment capital will inevitably keep some potential buyers on the sidelines. This was true in almost all price points and simply points out that market conditions change as the always do.

Despite rising interest rates, demand is still strong, as prices are still well supported, selling just below list price but still higher per square foot than year ago in most cases. Inventory is still tight, less than two months supply across much of the Metroplex.  While homes are selling a bit more slowly, sellers are clearly in no rush to the exits.

While buyers are getting a little more breathing room, there is still justifiable frustration.  Lenders are getting more creative in response, so buyers need to explore some of the new loan programs with their favorite lenders.  My office has a terrific lender, Matt Pizette, who is always available to find a way to make things work.  Real estate, as with most business, is cyclical.  Those of us that have been around for a while remember some severe dips.  But it always rebounds.  And real estate might just be the best long term investment you can own.

Check out the new “area” definitions in the list below:

Overall Single Family Market (North Texas):

Aug 22 vs 21: Sales down 10%, median price up 15%, DOM 25, up 47%.

Jul 22 vs 21: Sales down 14%, median price up 15%, DOM 20, up 18%.

YTD 22 vs 21:  Sales down 6%, median price up 19%, DOM 22, down 8%

Overall Condos Market (North Texas):

Aug 22 vs 21: Sales down 24%, median price up 8%, DOM 25, down 39%

Jul 22 vs 21: Sales down 22%, median price up 2%, DOM 19, down 57%

YTD 22 vs 21: Sales down 16%, median price up 13%, DOM 32, down 38%

Overall Townhome Market (North Texas):

Aug 22 vs 21: Sales down 12%, median price up 13%, DOM 32, up 3%

Jul 22 vs 21:  Sales down 24%, median price up 17%, DOM 26, down 24%

YTD 22 vs 21:  Sales down 12%, median price up 19%, DOM 31, down 21%

Single Family Home Sales Trends:

Aug 2020: 10,382 houses, $140/sf avg, 98% sold to asking

Aug 2021: 9662 houses, $172/sf avg, 102% sold to asking

Aug 2022: 8705 houses, $201/sf avg, 98% sold to asking

Condo Sales Trends:

Aug 2020: 323 homes, $183/sf avg, 95% sold to asking

Aug 2021: 452 homes, $201/sf avg, 98% sold to asking

Aug 2022: 344 homes, $240/sf avg, 100% sold to asking

Townhomes Sales Trends: 

Aug 2020: 337 homes sold, $154/sf avg, 96% sold to asking

Aug 2021: 353 homes sold, $186/sf avg, 101% sold to asking

Aug 2022: 268 homes sold, $220/sf avg. 101% sold to asking

Here is a look at Single Family home sales by selected Cities for August YTD 2022 vs 2021:

Dallas: Sales 781 vs 877, Median Price $247/sf vs $211/sf, Sold vs Asking 98%

Richardson: Sales 105 vs 118, Median Price $222/sf vs $188/sf, Sold vs Asking 98%

Plano:  Sales 239 vs 327, Median Price $219/sf vs $185/sf, Sold to Asking 98%

Frisco:  Sales 211 vs 315, Median Price $237/sf vs $195/sf, Sold to Asking 98%

Highland Park: Sales 9 vs 19, Median Price $615 sf vs $590/sf, Sold to Asking 98%

University Park: Sales 15 vs 24, Median Price $567/sf vs $481/sf, Sold to Asking 98%

Southlake: Sales 46 vs 60, Median Price $298/sf vs $270/sf, Sold to Asking 95%

Colleyville: Sales 33 vs 46, Median Price $237/sf vs $221/sf, Sold to Asking 97%

Coppell: Sales 38 vs 44, Median Price $239/sf vs $212/sf, Sold to Asking 97%

Carrollton: Sales 94 vs 144, Median Price $216/sf vs $182/sf, Sold to Asking 99%

Farmers Branch: Sales 25 vs 20, Median Price $234/sf vs $187/sf, Sold to Asking 98%

Allen: Sales 115 vs 159, Median Price $222/sf vs $185/sf, Sold to Asking 99%

If you would like information for another city, call, email or text me!

Bob Edmonson, Allie Beth Allman & Associates, 214-563-8540