Our North Texas housing market experienced a 30% increase in sales in April, the second largest increase since 1998. Median sales prices for pre-owned single family homes increased 14%. In April, 8288 single family homes changed hands, the largest monthly total since mid 2007. The housing rebound continues in Dallas and across the country, fueled by low interest rates and improving consumer confidence.
Each of the 14 markets I track in this report (see below) saw double digit gains in April vs a year ago, with sales in one, North Dallas, more than double last year’s April figures. Year to date, all 14 markets but one is ahead of year ago sales numbers. Park Cities and the surrounding neighborhoods (Greenway, Devonshire, Bluffview) saw a nice 29% bump in sales for the month of April, but this market still trails its 4-month total last year by 8%. The reason: tight inventory. As I described last month, there have just not been enough homes on the market to satisfy the demand there, and this has put a crimp in sales this year. It might be beginning to change, as builders in the Park Cities and in suburban markets are rushing into the market. New home starts are up 30% this year, but we are still woefully behind the number of starts needed to get back to a more balanced market. Remember, builders were essentially out of business after the ’08 financial implosion, with few buyers and no money to borrow.
It’s no surprise, then, that the months’ inventory levels continue to fall. Overall, we have just 3 1/2 months inventory across the board. In the $200K-$300K category, there is just 3.2 months of inventory, and in the $300K to $400K category, only 4.3 months inventory. These two price categories account for over 28% of all homes sold in the Dallas area, and the choices are few for those buyers out there. The numbers are similar for condos and townhomes, with just a 3.8 month supply overall.
So, what is the risk of a new “bubble” developing? Slim to none, per a leading appraisal company here in Dallas. While prices are on the ascent, there is not the inventory needed for a collapse in prices. This appraisal firm sees a continuation of the high-demand-low inventory scenario for the next 24 months, when perhaps new construction can catch up with demand.
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.
Overall Market (North Texas):
Apr 13 vs 12: Sales up 30%, med price up 14%, DOM 60, down 21%.
YTD vs 12: Sales up 22%, med price up 9%, DOM 67, down 21%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
Apr 13 vs 12: Sales up 76%, med price down 3%, DOM 70, down 29%.
YTD vs 12: Sales up 43%, med price up 17%, DOM 70, down 38%.
Highland Park and University Park, Bluffview, Devonshire and Greenway Parks:
Apr 13 vs 12: Sales up 29%, med price up 23%, DOM 61, unchanged.
YTD vs 12: Sales down 8%, med price up 5%, DOM 64, down 22%.
East Dallas (incl M’s and Lakewood):
Apr 13 vs 12: Sales up 30%, med price up 14%, DOM 47, down 36%.
YTD vs 12: Sales up 20%, med price up 9%, DOM 59, down 33%.
North Dallas (South of LBJ):
Apr 13 vs 12: Sales up 105%, med price up 21%, DOM 47, down 48%.
YTD vs 12: Sales up 49%, med price up 22%, DOM 61, down 42%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
Apr 13 vs 12: Sales up 58%, med price up 11%, DOM 49, down 26%.
YTD vs 12: Sales up 32%, med price up 17%, DOM 63, down 21%.
Northwest Dallas:
Apr 13 vs 12: Sales up 4%, med price up 16%, DOM 34, down 58%.
YTD vs 12: Sales up 11%, med price up 15%, DOM 50, down 42%.
Northeast Dallas (incl Lake Highlands):
Apr 13 vs 12: Sales up 28%, med price up 3%, DOM 47, down 22%.
YTD vs 12: Sales up 14%, med price up 3%, DOM 53, down 22%.
Plano:
Apr 13 vs 12: Sales up 46%, med price up 6%, DOM 39, down 30%.
YTD vs 12: Sales up 33%, med price up 6%, DOM 51, down 29%.
Frisco:
Apr 13 vs 12: Sales up 48%, med price up 9%, DOM 39, down 34%.
YTD vs 12: Sales up 28%, med price up 9%, DOM 49, down 32%.
Richardson:
Apr 13 vs 12: Sales up 20%, med price up 6%, DOM 34, down 43%.
YTD vs 12: Sales up 33%, med price up 5%, DOM 45, down 39%.
Southlake:
Apr 13 vs 12: Sales up 18%, med price up 7%, DOM 64, down 21%.
YTD vs 12: Sales up 24%, med price up 13%, DOM 74, down 9%.
Coppell
Apr 13 vs 12: Sales up 79%, med price up 13%, DOM 29, down 40%.
YTD vs 12: Sales up 36%, med price up 14%, DOM 45, down 36%.
Allen:
Apr 13 vs 12: Sales up 31%, med price up 29%, DOM 41, down 27%.
YTD vs 12: Sales up 20%, med price up 23%, DOM 48, down 36%.
Rockwall (incl Heath):
Apr 13 vs 12: Sales up 46%, med price up 14%, DOM 71, down 9%.
YTD vs 12: Sales up 37%, med price up 9%, DOM 74, down 20%.
Las Colinas and Kessler Park: Call Me!
Here is a look at Single Family home sales by price category for YTD 2013 vs 2012:
$200-299K (19.2% of sales): up 32%, 3 months inventory
$300-399K (8.9% of sales): up 54%, 4 months inventory
$400-499K (3.9% of sales): up 56%, 6 months inventory
$500-599K (1.9% of sales): up 45%, 7 months inventory
$600-699K (1.0% of sales): up 49%, 8 months inventory
$700-799K (0.6% of sales): up 32%, 11 months inventory
$800-899K (0.5% of sales): up 51%, 10 months inventory
$900-999K (0.3% of sales): up 27%, 12 months inventory
$1MM and up (1.0% of sales): up 32%, 14 months inventory
Here is a look at Condos and Townhomes sales by price category for YTD 2013 vs 2012.
$200-299K (18.5% of sales): 308 units vs 194 units year ago, 4 months inventory
$300-399K (7.5% of sales): 125 units vs 56 units year ago, 4 months inventory
$400-499K (3.3% of sales): 55 units vs 47 units year ago, 7 months inventory
$500-599K (1.4% of sales): 23 units vs 19 units year ago, 9 months inventory
$600-699K (0.4% of sales): 7 units vs 3 units year ago, 16 months inventory
$700-799K (0.7% of sales):11 units vs 2 units year ago, 8 months inventory
$800-899K (0.5% of sales): 8 units vs 5 units year ago, 5 months inventory
$900-999K (0.1% of sales): 2 units vs 1 unit year ago, 20 months inventory
$1MM + (0.6% of sales): 10 units vs 4 units year ago, 23 months inventory
Bob Edmonson, Allie Beth Allman & Associates, 214-563-8540