February looked a lot like January. The overall market can still be characterized as weak, but this weakness is not consistent market-to-market. Just as in January, the greater Dallas sales numbers were down, this time by 8% over year ago. Sales in the Uptown area were up 18%, though, and in North Dallas, sales were up 43% over year ago. Northwest and Northeast Dallas sales were up double digits as well. But, the East Dallas area sales were off again in February, as well as the northern suburbs, Plano, Richardson, Addison and Frisco.
When looking at the sales by price point, we can see why. These markets have high concentrations of traditional single family homes in the lower price range ($175K-$399K), which are not selling as well as homes priced at $500K and above. And, as I mentioned last month, single family home sales in the $100,000-$199,000 price range are down double digits, and this represents almost half of all homes sold in the DFW area. This is not a new phenomenon, as I have noted previously, and is very likely linked to ongoing tightening in the availability of financing to buyers with weaker balance sheets.
Park Cities continues to amaze, however. Although sales are slightly below where they were after two months last year, the average sales price is up 32%, to $1,233,000. Sales of all the new construction (replacing older, smaller, and less expensive homes) is the answer here. Now, just the opposite is happening in the Uptown-Downtown-Oak Lawn area. Sales were up a robust 18% in February, but the average sales price fell a whopping 21%. Sales of condos in the $200K-$299K range took off, while sales last year were at higher price points due to lack of lower priced inventory. These sales are not to struggling families but to young, well-paid professionals, many of whom are first time homebuyers. With interest rates not much different than a year ago, many are opting out of apartments and into ownership.
We are entering the heart of the spring market, with March a key indicator for how the year will unfold. If the direction of the last 12 months continues to hold, we will have lower sales volume but higher average sales prices in most markets. This is an interesting pattern, but one we probably prefer to the other way around!
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. Scroll down for the “Sales by Price Category” info. DOM is short for Days on Market. Avg Price pertains to sales occurring in the period(s).
Overall Market (North Texas):
Feb 07 vs 06: Sales down 8%, avg price up 5%, DOM 81, up 7%.
YTD 07 vs 06: Sales down 4%, avg price up 4%, DOM 81, up 5%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
Feb 07 vs 06: Sales up 18%, avg price down 21%, DOM 128, up 35%.
YTD 07 vs 06: Sales up 13%, avg price down 11%, DOM 110, up 16%.
Highland Park and University Park, Devonshire and Greenway Parks:
Feb 07 vs 06: Sales up 4%, avg price up 34%, DOM 78, up 44%.
YTD 07 vs 06: Sales down 1%, avg price up 32%, DOM 74, up 30%.
East Dallas (incl M’s and Lakewood):
Feb 07 vs 06: Sales down 6%, avg price up 1%, DOM 73, up 4%.
YTD 07 vs 06: Sales down 7%, avg price up 3%, DOM 75, up 1%.
North Dallas (South of LBJ):
Feb 07 vs 06: Sales up 43%, avg price up 18%, DOM 86, up 48%.
YTD 07 vs 06: Sales up 23%, avg price up 15%, DOM 81, up 23%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
Feb 07 vs 06: Sales down 9%, avg price up 6%, DOM 59, down 11%.
YTD 07 vs 06: Sales down 3%, avg price up 3%, DOM 61, down 24%.
Feb 07 vs 06: Sales up 14%, avg price up 4%, DOM 72, down 11%.
YTD 07 vs 06: Sales up 18%, avg price up 3%, DOM 75, down 9%.
Northeast Dallas (incl Lake Highlands):
Feb 07 vs 06: Sales up 10%, avg price up 2%, DOM 67, up 2%.
YTD 07 vs 06: Sales down 6%, avg price up 2%, DOM 64, down 4%.
Feb 07 vs 06: Sales down 12%, avg price up 2%, DOM 69, up 23%.
YTD 07 vs 06: Sales down 11%, avg price up 1%, DOM 65, up 7%.
Feb 07 vs 06: Sales down 18%, avg price up 4%, DOM 83, up 30%.
YTD 07 vs 06: Sales down 18%, avg price up 5%, DOM 83, up 26%.
Feb 07 vs 06: Sales down 21%, avg price down 3%, DOM 65, unchanged.
YTD 07 vs 06: Sales down 14%, avg price up 2%, DOM 70, up 8%.
Feb 07 vs 06: Sales up 3%, avg price up 18%, DOM 105, up 19%.
YTD 07 vs 06: Sales unchanged, avg price up 11%, DOM 99, up 48%.
Here is a look at Single Family home sales by price category for YTD 2007 vs 2006:
$200-299K (15.5% of sales): up 4%, 9 months inventory
$300-399K (6.0% of sales): down 2%, 11 months inventory
$400-499K (2.6% of sales): down 6%, 14 months inventory
$500-599K (1.1% of sales): down 14%, 17 months inventory
$600-699K (0.8% of sales): up 40%, 15 months inventory
$700-799K (0.7% of sales): up 49%, 16 months inventory
$800-899K (0.4% of sales): up 40%, 22 months inventory
$900-999K (0.2% of sales): up 40%, 15 months inventory
$1MM and up (1.1% of sales): up 27%, 20 months inventory
Here is a look at Condos and Townhomes sales by price category for YTD 2007 vs 2006. Some builders do not report their sales in MLS–this list represents MLS reported sales only (as does this entire report).
$200-299K (13.2% of sales): 104 units vs 65 units year ago, 11 months inventory
$300-399K (9.4% of sales): 59 units vs 52 units year ago, 12 months
$400-499K (2.6% of sales): 22 units vs 18 units year ago, 17 months
$500-599K (0.7% of sales): 5 units vs 4 year ago, 44 months
$600-699K (0.5% of sales): 4 units vs 3 year ago, 36 months
$700-799K (0.0% of sales): 2 units vs 4 year ago, 52 months
$800-899K (0.0% of sales): 0 units vs 0 year ago, n/a
$900-999K (0.2% of sales): 2 unit vs 1 year ago, 12 months
$1MM + (0.0% of sales): 1 unit vs 2 year ago, 180 months
Bob and Knoxie Edmonson
Allie Beth Allman & Associates
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