Dallas’ January home sales is pointing to another year of strong demand, higher prices and fewer choices. We have placed the blame for the rapid rise in prices to low inventory, but in many of our submarkets and the North Texas market as a whole, the number of homes sold is higher year over year. It seems like a low inventory problem, but it is really a rapid turnover situation. Homes are selling often times in a matter of days, and homes are not hitting the market fast enough to meet demand. Homes priced from $200K to $500k are on the market fewer than 30 days, and homes priced to the $900’s for fewer than 45 days.
What may rein in this pattern will likely be interest rates. Conventional mortgage rates ($645,000 loans and below) are inching upward towards 3.75%, and jumbo loans are sitting at 4.25% at this writing. Those rates are certainly low when viewed historically, but with homeowners locked into 15 or 30 year mortgages in the 2% or low 3% range, there is reduced incentive to move. With fewer homes available, higher prices and higher payments on top of this, buyers may find qualifying for a mortgage out of reach.
Britt Fair, Owner/President of Fair Texas Title shared his opinion: “January 2022 dollar volume of North Texas existing home resales was $2.94 billion, the highest ever for a January. This 21% increase over January 2021 was driven by a 17% higher average sales price this year, along with 4% more transactions this January. Inventory loosened slightly from 0.7 months’ supply to 0.8 months’ supply over the entire NTREIS region as of 1/31. Such tight supply indicates that a strong sellers’ market continues in North Texas housing”.
As we enter the Spring Market, we will have February data and anecdotal market forces to consider to see how home buyers react.
Below is a summary of sales activity for 17 sample submarkets. DOM is days on market
Overall Market (North Texas):
Jan 22 vs 21: Sales up 4%, median price up 27%, DOM 32, down 24%
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
Jan 22 vs 21: Sales up 8%, median price up 6%, DOM 44, down 49%.
Highland Park and University Park, Bluffview, Devonshire and Greenway Parks:
Jan 22 vs 21: Sales down 31%, median price down 2%, DOM 29, down 72%.
East Dallas (incl M’s and Lakewood):
Jan 22 vs 21: Sales up 1%, median price down 3%, DOM 31, down 24.
North Dallas (South of LBJ):
Jan 22 vs 21: Sales down 29%, median price down 1%, DOM 32, down 69%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
Jan 22 vs 21: Sales down 16%, median price up 30%, DOM 33, down 27%.
Northwest Dallas (incl Midway Hollow):
Jan 22 vs 21: Sales up 14%, median price up 22%, DOM 35, down 29%.
Northeast Dallas (incl Lake Highlands):
Jan 22 vs 21: Sales up 18%, median price up 13%, DOM 37, down 29%.
Plano:
Jan 22 vs 21: Sales down 5%, median price up 18%, DOM 23, down 38%.
Frisco:
Jan 22 vs 21: Sales up 1%, median price up 40%, DOM 22, down 52%.
Richardson:
Jan 22 vs 21: Sales up 17%, median price up 15%, DOM 26, down 30%.
Southlake:
Jan 22 vs 21: Sales down 14%, median price up 41%, DOM 32, down 27%.
Coppell:
Jan 22 vs 21: Sales down 8%, median price up 19%, DOM 33, down 20%.
Allen:
Jan 22 vs 21: Sales down 31%, median price up 31%, DOM 30, down 27%.
Rockwall (incl Heath):
Jan 22 vs 21: Sales up 8%, median price up 26%, DOM 41, down 14%.
Cedar Hill:
Jan 22 vs 21: Sales down 16%, median price up 35%, DOM 20, down 46%.
Carrollton/Farmers Branch:
Jan 22 vs 21: Sales down 4%, median price up 24%, DOM 28, down 18%.
For Las Colinas: 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 2022 vs 2021:
$200-299K (24.0% of sales): down 30%, 0.6 months inventory
$300-399K (28.0% of sales): up 37%, 0.6 months inventory
$400-499K (15.9% of sales): up 46%, 0.7 months inventory
$500-599K (8.2% of sales): up 68%, 0.8 months inventory
$600-699K (4.8% of sales): up 70%, 1.0 months inventory
$700-799K (2.8% of sales): up 78%, 1.0 months inventory
$800-899K (1.8% of sales): up 110%, 1.1 months inventory
$900-999K (1.0% of sales): up 114%, 1.5 months inventory
$1MM and up (2.9% of sales): up 36%, 2.5 months inventory
Here is a look at Condos and Townhomes sales by price category for YTD 2022 vs 2021:
$200-299K (28.1% of sales): 150 units vs 138 units year ago, 0.5 months inventory
$300-399K (22.5% of sales): 120 units vs 104 units year ago, 0.8 months inventory
$400-499K (13.3% of sales): 87 units vs 85 units year ago, 0.8 months inventory
$500-599K (4.7% of sales): 25 units vs 16 units year ago, 1.6 months inventory
$600-699K (3.4% of sales): 18 units vs 6 units year ago, 0.9 months inventory
$700-799K (0.9% of sales): 5 units vs 5 units year ago, 2.0 months inventory
$800-899K (0.4% of sales): 2 units vs 2 units year ago, 8.0 months inventory
$900-999K (0.6% of sales): 3 units vs 3 unit year ago, 4.0 months inventory
$1MM+ (1.7% of sales): 9 units vs 11 units year ago, 8.1 months inventory