Last month I stated that May’s single month homes sales record in Dallas would “certainly be the largest volume month of sales this year”. Well, no. June set a new record for homes sold in a single month–10,575 pre-owned homes, a 12% increase over year ago. Pending sales were up 14% (pointing to good July figures) while listings were down 12%. The reduced number of listings supports the continued trend in ever lower months’ inventory of homes for sale, which is illustrated in the schedule below. We only have 2 months inventory of homes priced in the $200’s, as those are snapped up as soon as they hit the market. Remember, 6 months is considered a healthy, normal inventory level.
High demand and fewer listings results in lower inventory, which in turn pushes prices higher. Dallas’ median sales price in June was 12% higher than year ago, the highest gain in the country. Other sources, such as Case-Shiller, reported Dallas as #3 on this list, with Denver and San Francisco coming in first and second, respectively. These higher prices are making it difficult for first-time homebuyers, many of whom are working hard to build a down payment to meet the typical 20% down requirement.
This, then, is what is fueling the amazing race to build high-rise apartment buildings. It is hard to keep count of the record number of new projects being built in Dallas–look between Downtown and Mockingbird Lane and you’ll know what I mean! Someone in the orange cone business is raking it in!
We may complain about some of this, but it’s all good. It means we have a healthy local economy and a strong job market. The next time you are stuck in traffic (today), just remember we are creating jobs and creating wealth.
Here is a look at home sales by submarket that I track. DOM is “Days on Market”. For details on Las Colinas and Kessler Park, call me at my Allie Beth Allman & Associates office, 214-563-8540.
Overall Market (North Texas):
Jun 15 vs 14: Sales up 12%, med price up 12%, DOM 39, down 13%.
YTD 15 vs 14: Sales up 4%, med price up 12%, DOM 48, down 11%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
Jun 15 vs 14: Sales down 9%, med price up 18%, DOM 33, down 34%.
YTD 15 vs 14: Sales up 5%, med price up 9%, DOM 44, down 28%.
Highland Park and University Park, Bluffview, Devonshire and Greenway Parks:
Jun 15 vs 14: Sales up 22%, med price up 21%, DOM 48, up 30%.
YTD 15 vs 14: Sales down 1%, med price up 13%, DOM 52, down 4%.
East Dallas (incl M’s and Lakewood):
Jun 15 vs 14: Sales up 10%, med price up 24%, DOM 22, down 31%.
YTD 15 vs 14: Sales up 6%, med price up 16%, DOM 33, down 13%.
North Dallas (South of LBJ):
Jun 15 vs 14: Sales up 30%, med price up 29%, DOM 47, down 29%.
YTD 15 vs 14: Sales up 1%, med price up 22%, DOM 55, down 26%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
Jun 15 vs 14: Sales up 5%, med price up 6%, DOM 23, down 21%
YTD 15 vs 14: Sales up 5%, med price up 9% DOM 34, down 6%.
Northwest Dallas:
Jun 15 vs 14: Sales down 8%, med price up 5%, DOM 19, down 34%.
YTD 15 vs 14: Sales down 4%, med price up 8%, DOM 37, down 12%.
Northeast Dallas (incl Lake Highlands):
Jun 15 vs 14: Sales up 36%, med price up 9%, DOM 28, down 15%.
YTD 15 vs 14: Sales unchanged, med price up 11%, DOM 35, unchanged.
Plano:
Jun 15 vs 14: Sales down 2%, med price up 9%, DOM 18, down 25%.
YTD 15 vs 14: Sales down 4%, med price up 11%, DOM 28, down 13%.
Frisco:
Jun 15 vs 14: Sales unchanged, med price up 11%, DOM 28, down 10%.
YTD 15 vs 14: Sales down 2%, med price up 10%, DOM 35, down 15%.
Richardson:
Jun 15 vs 14: Sales up 2%, med price up 15%, DOM 17, unchanged.
YTD 15 vs 14: Sales up 5%, med price up 16%, DOM 27, down 16%.
Southlake:
Jun 15 vs 14: Sales up 11%, med price down 3%, DOM 45, up 7%.
YTD 15 vs 14: Sales up 1%, med price down 1%, DOM 60, up 25%.
Coppell:
Jun 15 vs 14: Sales down 23%, med price down 1%, DOM 25, up 32%.
YTD 15 vs 14: Sales down 7%, med price up 5%, DOM 44, up 47%.
Allen:
Jun 15 vs 14: Sales up 27%, med price up 8%, DOM 32, up 23%.
YTD 15 vs 14: Sales up 3%, med price up 16%, DOM 41, up 24%.
Rockwall (incl Heath):
Jun 15 vs 14: Sales up 13%, med price up 7%, DOM 42, down 28%.
YTD 15 vs 14: Sales up 4%, med price up 11%, DOM 50, down 15%.
Cedar Hill:
Jun 15 vs 14: Sales up 20%, med price unchanged, DOM 39, down 13%.
YTD 15 vs 14: Sales up 10%, med price up 3%, DOM 52, down 10%.
For Las Colinas and Kessler Park: Call Me at my Allie Beth Allman & Associates office, 214-563-8540.
Here is a look at Single Family home sales by price category for YTD 2015 vs 2014:
$200-299K (24.2% of sales): up 16%, 2.0 months inventory
$300-399K (12.2% of sales): up 26%, 3.0 months inventory
$400-499K (6.1% of sales): up 31%, 4.1 months inventory
$500-599K (2.7% of sales): up 23%, 5.8 months inventory
$600-699K (1.5% of sales): up 18%, 6.0 months inventory
$700-799K (0.9% of sales): up 24%, 8.1 months inventory
$800-899K (0.6% of sales): up 24%, 8.6 months inventory
$900-999K (0.4% of sales): up 23%, 9.6 months inventory
$1MM and up (1.3% of sales): up 10%, 12.2 months inventory
Here is a look at Condos and Townhomes sales by price category for YTD 2015 vs 2014.
$200-299K (20.9% of sales): 512 units vs 475 units year ago, 2.1 months inventory
$300-399K (10.7% of sales): 263 units vs 201 units year ago, 3.3 months inventory
$400-499K (5.5% of sales): 136 units vs 106 units year ago, 3.6 months inventory
$500-599K (1.9% of sales): 47 units vs 38 units year ago, 6.0 months inventory
$600-699K (1.1% of sales): 26 units vs 17 units year ago, 5.6 months inventory
$700-799K (0.6% of sales): 15 units vs 13 units year ago, 6.3 months inventory
$800-899K (0.4% of sales): 11 units vs 15 units year ago, 9.1 months inventory
$900-999K (0.3% of sales): 7 units vs 4 units year ago, 8.6 months inventory
$1MM + (1.2% of sales): 29 units vs 20 units year ago, 13.1 months inventory
Bob Edmonson, Allie Beth Allman & Associates, 214-563-8540