Home sales in May were up as much as 61% in Southlake and down as much as 22% in Frisco, a reminder that real estate is indeed a very local business. Of the markets I track, as many were up as were down, with most of the “Up” markets south of LBJ and most of the “Down” markets north of LBJ. North Dallas was the exception, with sales off 13% in May. Richardson and Plano were also down 13% in May. Besides Southlake, the Uptown area and Park Cities continued to sell well, up 23% and 11% respectively. The Lake Highlands area rebounded with a 16% gain in May vs last year, and Northwest Dallas, which has been on a tear, cooled just a tad, with a 5% increase vs May a year ago. For the Year to Date, East Dallas joins North Dallas, Richardson, Plano and Frisco with sales below year ago levels. Overall, the Dallas market was down 8%.
With a few exceptions, average sales price is doing just fine. Dallas overall is up 5% year to date. North Dallas is up 21% vs the first five months last year, the only market now showing double digit increases in average sales price. Even the Park Cities area is up “only” 9% through May this year. Of course, North Dallas, defined as the area between Northwest Hwy and LBJ, Central Expy to Midway Rd, has seen its share of new construction activity, tearing down the 50 year old homes and replacing them with homes three times the price. While unit sales were lower there than last year, what is selling are the new, expensive homes. We are glad to see the change in average sales price for the year in positive territory for Richardson, Plano and Frisco. This result for Frisco is a comforting indicator that the northern suburbs, where a disproportionate number of foreclosures are occurring, are not being clobbered by marked-down home inventory.
Interest rates have kicked up a half point or so in the first two weeks of June, as I write this, but this increase seems to have neither lit a fire under waffling buyers or driven hesitant buyers away. This is just the feel I have and other agents have regarding current activity. Inflation news is good, employment news in Texas is great, overall economic growth is very good and the stock market has rallied. And, as I have shown, home sales prices are doing fine. So, is there a problem you ask? Well, it might be inventory, aka over-building. A strong market is generally considered to have a 6 month’s supply of homes on the market. In most price categories for both single family homes and condos/townhomes, you will note the inventory is double this number or higher. And, if you own a $1M or higher condo, there is a 4-year supply. Oh, I forgot to mention…regarding this week’s announcement of the new Museum Tower condos project to be built in the Arts District–prices on units in this 30-story high rise will start at $1M.
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):
May 07 vs 06: Sales down 8%, avg price up 6%, DOM 68, up 3%.
YTD 07 vs 06: Sales down 5%, avg price up 5%, DOM 74, up 4%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
May 07 vs 06: Sales up 23%, avg price up 10%, DOM 92, up 10%.
YTD 07 vs 06: Sales up 20%, avg price up 8%, DOM 104, up 12%.
Highland Park and University Park, Devonshire and Greenway Parks:
May 07 vs 06: Sales up 11%, avg price up 6%, DOM 76, down 21%.
YTD 07 vs 06: Sales up 13%, avg price up 9%, DOM 68, up 8%.
East Dallas (incl M’s and Lakewood):
May 07 vs 06: Sales up 4%, avg price up 14%, DOM 51, down 4%.
YTD 07 vs 06: Sales down 2%, avg price up 8%, DOM 64, unchanged.
North Dallas (South of LBJ):
May 07 vs 06: Sales down 13%, avg price up 25%, DOM 58, down 2%.
YTD 07 vs 06: Sales down 7%, avg price up 21%, DOM 70, up 9%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
May 07 vs 06: Sales down 7%, avg price down 3%, DOM 52, up 2%.
YTD 07 vs 06: Sales up 4%, avg price down 2%, DOM 56, down 15%.
Northwest Dallas:
May 07 vs 06: Sales up 5%, avg price up 7%, DOM 57, up 6%.
YTD 07 vs 06: Sales up 13%, avg price up 5%, DOM 66, down 3%.
Northeast Dallas (incl Lake Highlands):
May 07 vs 06: Sales up 16%, avg price up 10%, DOM 48, up 20%.
YTD 07 vs 06: Sales up 5%, avg price up 7%, DOM 54, down 5%.
Plano:
May 07 vs 06: Sales down 13%, avg price up 7%, DOM 44, up 2%.
YTD 07 vs 06: Sales down 11%, avg price up 2%, DOM 53, up 2%.
Frisco:
May 07 vs 06: Sales down 22%, avg price unchanged, DOM 57, down 8%.
YTD 07 vs 06: Sales down 6%, avg price up 5%, DOM 71, up 9%.
Richardson:
May 07 vs 06: Sales down 13%, avg price up 5%, DOM 42, down 21%.
YTD 07 vs 06: Sales down 7%, avg price up 2%, DOM 55, down 10%.
Southlake:
May 07 vs 06: Sales up 61%, avg price up 9%, DOM 56, down 7%.
YTD 07 vs 06: Sales up 23%, avg price up 9%, DOM 79, up 36%.
Here is a look at Single Family home sales by price category for YTD 2007 vs 2006:
$200-299K (15.8% of sales): unchanged, 8 months inventory
$300-399K (6.6% of sales): up 8%, 9 months inventory
$400-499K (2.9% of sales): up 8%, 11 months inventory
$500-599K (1.3% of sales): up 7%, 14 months inventory
$600-699K (0.9% of sales): up 23%, 12 months inventory
$700-799K (0.7% of sales): up 53%, 12 months inventory
$800-899K (0.4% of sales): up 26%, 16 months inventory
$900-999K (0.3% of sales): up 8%, 16 months inventory
$1MM and up (1.1% of sales): up 28%, 17 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 (14.5% of sales): 347 units vs 212 units year ago, 10 months inventory
$300-399K (7.6% of sales): 182 units vs 151 units year ago, 12 months
$400-499K (3.1% of sales): 75 units vs 71 units year ago, 14 months
$500-599K (1.5% of sales): 35 units vs 21 units year ago, 18 months
$600-699K (0.8% of sales): 18 units vs 8 units year ago, 17 months
$700-799K (0.3% of sales): 7 units vs 11 units year ago, 31 months
$800-899K (0.1% of sales): 3 units vs 2 year ago, 42 months
$900-999K (0.2% of sales): 5 unit vs 3 year ago, 14 months
$1MM + (0.4% of sales): 9 unit vs 8 year ago, 52 months
Bob and Knoxie Edmonson
Allie Beth Allman & Associates
214-563-8540
Oh, by the way, if you know someone who is planning to buy or sell a home and would appreciate the service I provide, please send me their name and number, and I will gladly follow up with them!