April home sales in Dallas were down 20% from year ago levels, with almost the entire “loss” concentrated in the under $250,000 price segment. Fully 78% of Dallas home sales are at or below $250,000, and this segment has been hit hard by the current economic conditions, with sales off 20-35%. The other 22% of the market, from $250,000 on up, has done reasonably well, with gains in some price points this hear as high as 29%. Million-dollar plus home sales are up 15% over year ago levels.
The anecdotal evidence supports this–first time home buyers of typically lower-priced homes have been almost shut out of the home buying arena, thanks to tougher financial requirements. No one argues that we didn’t need a return to sanity in the home mortgage lending business, but the rigid rules make coming up with the necessary 20% down payment tough for young buyers ready to settle in their first homes. Required higher credit ratings, with FICO scores for the best loan treatment at 720 and above, create a barrier to many potential buyers. A lot of buyers, perhaps hourly-wage earners or new graduates beginning their corporate lives are having a tough time qualifying to buy a house. This will keep the housing industry on its heels until the economy improves (incomes rise) or lending loosens to where it becomes more tailored to the specific individual.
So, where are these potential buyers going? Into apartments! The rental market is on fire, with buildings at 97% occupany or better. Rental rates are moving up rapidly. The good news for some home sellers is that they are finding a lot of good candidates to rent their vacant homes as well, taking the sting out of waiting for the market to improve. Maybe they will discover the joys of building a real estate portfolio :).
What about median sales prices? Case-Shiller, which tracks prices nationally, shows Dallas as the only metro area to see uninterrupted gains every month since December. Our own MLS data, shows Dallas as a whole up 1% through April. Most of the submarkets I track in this report are doing well, with gains in the median price of homes sold in the plus single digits category but as high as 10% YTD in North Dallas. A few markets are down 2-3%, nothing to be too worried about.
Here are the details for single family homes and condo/townhome sales in selected areas. For a more comprehensive look at any one market, give me a call at my Allie Beth Allman office or on my cell, 214-563-8540. Scroll down for the “Sales by Price Category” info. DOM is short for Days on Market. Median Price pertains to sales occurring in the period(s).
Overall Market (North Texas):
Apr 11 vs 10: Sales down 20%, med price down 1%, DOM 89, up 20%.
YTD 11 vs 10: Sales down 15%, med price up 1%, DOM 94, up 21%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
Apr 11 vs 10: Sales down 13%, med price up 25%, DOM 98, up 3%.
YTD 11 vs 10: Sales down 3%, med price up 2%, DOM 124, up 25%.
Highland Park and University Park, Bluffview, Devonshire and Greenway Parks:
Apr 11 vs 10: Sales up 17%, med price up 13%, DOM 92, up 8%.
YTD 11 vs 10: Sales up 7%, med price up 5%, DOM 103, down 4%.
East Dallas (incl M’s and Lakewood):
Apr 11 vs 10: Sales down 12%, med price up 14%, DOM 85, up 13%.
YTD 11 vs 10: Sales down 13%, med price up 9%, DOM 99, up 43%.
North Dallas (South of LBJ):
Apr 11 vs 10: Sales up 9%, med price up 17%, DOM 113, down 14%.
YTD 11 vs 10: Sales up 4%, med price up 10%, DOM 130, up 5%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
Apr 11 vs 10: Sales down 38%, med price up 7%, DOM 99, up 38%.
YTD 11 vs 10: Sales down 11%, med price up 3%, DOM 94, up 15%.
Northwest Dallas:
Apr 11 vs 10: Sales down 2%, med price down 14%, DOM 89, up 75%.
YTD 11 vs 10: Sales down 16%, med price down 2%, DOM 96, up 33%.
Northeast Dallas (incl Lake Highlands):
Apr 11 vs 10: Sales down 11%, med price down 7%, DOM 66, up 57%.
YTD 11 vs 10: Sales down 7%, med price down 5%, DOM 74, up 21%.
Plano:
Apr 11 vs 10: Sales down 20%, med price up 7%, DOM 80, up 51%.
YTD 11 vs 10: Sales down 10%, med price up 1%, DOM 87, up 36%.
Frisco:
Apr 11 vs 10: Sales down 12%, med price up 14%, DOM 78, up 30%.
YTD 11 vs 10: Sales down 3%, med price up 5%, DOM 86, up 23%.
Richardson:
Apr 11 vs 10: Sales down 2%, med price down 6%, DOM 81, up 93%.
YTD 11 vs 10: Sales down 8%, med price down 6%, DOM 80, up 67%.
Southlake:
Apr 11 vs 10: Sales up 5%, med price up 13%, DOM 109, up 70%.
YTD 11 vs 10: Sales down 7%, med price down 3%, DOM 100, down 7%.
Coppell:
Apr 11 vs 10: Sales down 17%, med prie up 6%, DOM 68, down 1%.
YTD 11 vs 10: Sales down 12%, med price up 4%, DOM 83, up 19%.
Allen:
Apr 11 vs 10: Sales down 17%, med price up 6%, DOM 68, down 1%.
YTD 11 vs 10: Sales down 12%, med price up 4%, DOM 83, up 19%.
Rockwall (incl Heath):
Apr 11 vs 10: Sales down 9%, med price down 7%, DOM 88, up 2%.
YTD 11 vs 10: Sales down 3%, med price down 2%, DOM 102, up 16%.
Here is a look at Single Family home sales by price category for YTD 2011 vs 2010:
$200-299K (16.2% of sales): down 15%, 9 months inventory
$300-399K (7.0% of sales): down 5%, 12 months inventory
$400-499K (3.0% of sales): down 2%, 13 months inventory
$500-599K (1.7% of sales): up 29%, 14 months inventory
$600-699K (1.0% of sales): up 21%, 17 months inventory
$700-799K (0.6% of sales): up 10%, 19 months inventory
$800-899K (0.4% of sales): down 7%, 21 months inventory
$900-999K (0.3% of sales): up 71%, 18 months inventory
$1MM and up (1.1% of sales): up 15%, 23 months inventory
Here is a look at Condos and Townhomes sales by price category for YTD 2011 vs 2010.
$200-299K (11.6% of sales): 126 units vs 160 units year ago, 18 months inventory
$300-399K (6.5% of sales): 71 units vs 62 units year ago, 15 months
$400-499K (2.5% of sales): 27 units vs 36 units year ago, 21 months
$500-599K (1.5% of sales): 16 units vs 19 units year ago, 21 months
$600-699K (0.7% of sales): 8 units vs 6 units year ago, 20 months
$700-799K (0.5% of sales): 5 units vs 3 units year ago, 20 months
$800-899K (0.5% of sales): 5 units vs 3 units year ago, 18 months
$900-999K (0.2% of sales): 2 units vs 2 units year ago, 36 months
$1MM + (1.1% of sales): 12 units vs 11 units year ago, 25 months
Bob Edmonson
Allie Beth Allman & Associates
(214)563-8540
Dallas TX Homefinder Website Dallas TX Home Values Blog — Dallas TX Homes for Sale, Condos and Real Estate Highland Park Real Estate, University Park Real Estate, Uptown Dallas Real Estate, M-Streets Real Estate