In Dallas, the month of May marks the end of the annual Spring Buying Frenzy. In June and forward, we slip back into a more normal negotiating environment, as Buyers, Sellers and Realtors shift into summer vacation mode. May closings, 9484 homes, set a record for any month in any year in the Greater Dallas MLS, and it will certainly be the largest volume month for sales this year. There are 18,491 active listings, down 15% from last year, which represents only a 2.6 months supply. Fortunately, permits for home construction reached an 8-year high in May (nationally), and do we ever need more homes!
The bigger story might be the 14% jump in May in median sales price, one of the largest gains on record. It is difficult for those of us long-time Dallas residents to believe that this Metroplex has the largest annual price gains in the U.S. and fully 3X our long time appreciation rate. For years, we settled with a 3-4% annualized gain in median prices. Our home prices have risen over 40% in the past five years! Despite this, Plano is the most affordable city in the U.S. when comparing median household income to the average cost of living, according to NerdWallet.com.
What do we attribute this to? Economic growth, of course! Dallas is the most business-friendly city in the U.S., according to MarketWatch.com. And, houses haven’t been the only beneficiary. Rental properties and apartment buildings have have seen rents double in many cases over these past five years. Yet there is no known macro-economic condition on the horizon to change this direction. And there is no “bubble”, as homes are not being purchased for speculation but for actual occupancy.
Here is a look at home sales by submarket that I track. DOM is “Days on Market”
Overall Market (North Texas):
May 15 vs 14: Sales up 6%, med price up 14%, DOM 42, down 11%.
YTD 15 vs 14: Sales up 4%, med price up 12%, DOM 50, down 12%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
May 15 vs 14: Sales up 6%, med price up 23%, DOM 32, down 40%.
YTD 15 vs 14: Sales up 10%, med price up 6%, DOM 47, down 27%.
Highland Park and University Park, Bluffview, Devonshire and Greenway Parks:
May 15 vs 14: Sales down 1%, med price up 10%, DOM 40, down 5%.
YTD 15 vs 14: Sales down 5%, med price up 8%, DOM 53, down 9%.
East Dallas (incl M’s and Lakewood):
May 15 vs 14: Sales up 17%, med price up 19%, DOM 29, down 9%.
YTD 15 vs 14: Sales up 7%, med price up 14%, DOM 36, down 8%.
North Dallas (South of LBJ):
May 15 vs 14: Sales down 8%, med price up 7%, DOM 59, down 19%.
YTD 15 vs 14: Sales down 6%, med price up 18%, DOM 58, down 24%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
May 15 vs 14: Sales up 10%, med price up 8%, DOM 25, down 14%
YTD 15 vs 14: Sales up 7%, med price up 8% DOM 37, down 3%.
Northwest Dallas:
May 15 vs 14: Sales up 12%, med price up 14%, DOM 32, down 11%.
YTD 15 vs 14: Sales down 2%, med price up 8%, DOM 40, down 11%.
Northeast Dallas (incl Lake Highlands):
May 15 vs 14: Sales unchanged, med price up 4%, DOM 25, down 19%.
YTD 15 vs 14: Sales down 6%, med price up 12%, DOM 37, up 6%.
Plano:
May 15 vs 14: Sales down 11%, med price up 19%, DOM 25, up 4%.
YTD 15 vs 14: Sales unchanged, med price up 10%, DOM 33, down 15%.
Frisco:
May 15 vs 14: Sales up 10%, med price up 9%, DOM 33, down 3%.
YTD 15 vs 14: Sales down 2%, med price up 9%, DOM 36, down 18%.
Richardson:
May 15 vs 14: Sales up 15%, med price up 18%, DOM 26, up 4%.
YTD 15 vs 14: Sales up 7%, med price up 16%, DOM 29, down 22%.
Southlake:
May 15 vs 14: Sales down 4%, med price down 4%, DOM 43, up 39%.
YTD 15 vs 14: Sales unchanged, med price up 3%, DOM 65, up 30%.
Coppell:
May 15 vs 14: Sales unchanged, med price up 6%, DOM 34, up 26%.
YTD 15 vs 14: Sales up 2%, med price up 7%, DOM 49, up 40%.
Allen:
May 15 vs 14: Sales down 11%, med price up 26%, DOM 42, up 40%.
YTD 15 vs 14: Sales down 3%, med price up 16%, DOM 44, up 26%.
Rockwall (incl Heath):
May 15 vs 14: Sales up 7%, med price up 13%, DOM 38, down 21%.
YTD 15 vs 14: Sales up 3%, med price up 12%, DOM 52, down 12%.
Cedar Hill:
May 15 vs 14: Sales down 4%, med price up 16%, DOM 33, down 23%.
YTD 15 vs 14: Sales up 7%, med price up 6%, 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