U.S. home sales are down 2% for the first five months of this year… but the Dallas area continues to outperform, with year-to-date sales up 4% over last years figures. In May, sales were up 9% over year ago. In fact, in May there were 11,303 homes sold in the area, the largest number ever in a single month for North Texas. Median home prices were also at a new, record level, up 5% in May to $266,500 (the national average is $264,800). Just three years ago, the median sales price was $190,000, per the Metrotex Assn of Realtors.
Our home sales activity continues to be healthy. Demand is strong but home building is not keeping up. Nationally, home starts are at their highest level since 2007 but still below the level that prevailed in the 1970s, when the U.S population was much lower. So, it seems to point towards continued upward pressure on prices.
The caveats? Borrowing costs are rising. The tax plan capping state and local tax deductions is reducing incentives to buy. Labor and material costs (especially lumber) are rising. City rules, fees and regulations are creating longer lead times and costs for builders. But, we seem to be surviving okay. It helps that, despite seven years of accelerated price growth here, we are still a moderately priced market to many who are moving from high cost states.
Here is a glimpse of the activity in the submarkets I regularly track. DOM stands for “Days on Market”…
Overall Market (North Texas):
May 18 vs 17: Sales up 9%, med price up 5%, DOM 39, up 3%.
YTD 18 vs 17: Sales up 4%, med price up 5%, DOM 47, up 7%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
May 18 vs 17: Sales up 13%, med price up 6%, DOM 42, down 31%.
YTD 18 vs 17: Sales up 12%, med price up 6%, DOM 57, up 16%.
Highland Park and University Park, Bluffview, Devonshire and Greenway Parks:
May 18 vs 17: Sales up 12%, med price up 12%, DOM 71, down 8%.
YTD 18 vs 17: Sales down 13%, med price up 5%, DOM 64, down 9%.
East Dallas (incl M’s and Lakewood):
May 18 vs 17: Sales down 7%, med price up 1%, DOM 29, down 6%.
YTD 18 vs 17: Sales down 6%, med price up 3%, DOM 36, unchanged
North Dallas (South of LBJ):
May 18 vs 17: Sales down 6%, med price up 1%, DOM 64, up 13%.
YTD 18 vs 17: Sales down 10%, med price up 9%, DOM 80, up 29%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
May 18 vs 17: Sales up 8%, med price up 6%, DOM 26, down 32%.
YTD 18 vs 17: Sales unchanged, med price up 4%, DOM 39, down 9%.
Northwest Dallas:
May 18 vs 17: Sales down 13%, med price down 12%, DOM 31, down 9%.
YTD 18 vs 17: Sales down 15%, med price up 3%, DOM 39, up 5%.
Northeast Dallas (incl Lake Highlands):
May 18 vs 17: Sales up 15%, med price up 9%, DOM 28, down 10%.
YTD 18 vs 17: Sales down 9%, med price up 8%, DOM 37, up 19%.
Plano:
May 18 vs 17: Sales up 13%, med price up 3%, DOM 25, up 4%.
YTD 18 vs 17: Sales down 2%, med price up 2%, DOM 37, up 9%.
Frisco:
May 18 vs 17: Sales down 6%, med price up 1%, DOM 45, down 6%.
YTD 18 vs 17: Sales up 1%, med price up 2%, DOM 58, up 26%.
Richardson:
May 18 vs 17: Sales up 14%, med price up 13%, DOM 19, up 27%.
YTD 18 vs 17: Sales up 4%, med price up 5%, DOM 27, up 29%.
Southlake:
May 18 vs 17: Sales up 21%, med price up 1%, DOM 26, down 46%.
YTD 18 vs 17: Sales down 4%, med price up 3%, DOM 51, down 18%.
Coppell:
May 18 vs 17: Sales unchanged, med price up 5%, DOM 24, down 33%.
YTD 18 vs 17: Sales down 7%, med price up 5%, DOM 39, down 19%
Allen:
May 18 vs 17: Sales down 14%, med price unchanged, DOM 31, up 24%.
YTD 18 vs 17: Sales down 8%, med price down 2%, DOM 38, up 12%.
Rockwall (incl Heath):
May 18 vs 17: Sales up 6%, med price up 3%, DOM 49, up 29%.
YTD 18 vs 17: Sales unchanged, med price up 3%, DOM 51, up 9%.
Cedar Hill:
May 18 vs 17: Sales down 9%, med price up 10%, DOM 23, down 18%.
YTD 18 vs 17: Sales down 2%, med price up 11%, DOM 37, unchanged.
North Oak Cliff (incl Kessler Park, Stevens Park, Winnetka Heights):
May 18 vs 17: Sales down 3%, med price up 9%, DOM 42, up 2%.
YTD 18 vs 17: Sales up 10%, med price up 19%, DOM 46, up 7%.
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 2018 vs 2017:
$200-299K (33.1% of sales): up 16%, 1.8 months inventory
$300-399K (18.1% of sales): up 13%, 3.1 months inventory
$400-499K (8.8% of sales): up 16%, 4.3 months inventory
$500-599K (4.0% of sales): up 7%, 5.4 months inventory
$600-699K (2.1% of sales): up 6%, 6.6 months inventory
$700-799K (1.2% of sales): up 2%, 7.2 months inventory
$800-899K (0.7% of sales): down 2%, 8.1 months inventory
$900-999K (0.4% of sales): up 11%, 11.0 months inventory
$1MM and up (1.6% of sales): up 3%, 11.3 months inventory
Here is a look at Condos and Townhomes sales by price category for YTD 2018 vs 2017.
$200-299K (26.0% of sales): 708 units vs 661 units year ago, 1.8 months inventory
$300-399K (18.3% of sales): 498 units vs 440 units year ago, 3.8 months inventory
$400-499K (8.4% of sales): 228 units vs 215 units year ago, 4.7 months inventory
$500-599K (3.5% of sales): 94 units vs 62 units year ago, 6.5 months inventory
$600-699K (1.5% of sales): 40 units vs 39 units year ago, 6.5 months inventory
$700-799K (0.7% of sales): 19 units vs 5 units year ago, 9.7 months inventory
$800-899K (0.4% of sales): 11 units vs 8 units year ago, 13.2 months inventory
$900-999K (0.3% of sales): 9 units vs 13 units year ago, 5.6 months inventory
$1MM + (1.2% of sales): 33 units vs 31 units year ago, 14.1 months inventory
Bob Edmonson, Allie Beth Allman & Associates, 214-563-8540