North DFW Residential Real Estate Market Summary
To ensure our clients - present and future - make the best possible decisions related to their real estate investment, we are adding this market update summary to our monthly topic series.
The most common questions we get are always: how is the market? Is it a Seller's or a Buyer's market? Is the market changing? And the universal answer to all these is, "it all depends on your perspective."
This month, as we approach the end of the summer selling season, we thought we would shed some light about specific answers to the questions above.
First of all, the MARKET IS ALWAYS CHANGING, there are multiple dynamics causing a constant state of flux.
Using data from NTREIS MLS, we have compiled three summaries showing ten year trends of four 4 basic market metrics for four cities located in what we describe as the "epicenter of economic growth" in north DFW - Carrollton, Frisco, McKinney and Plano - where we live and work. The statements about what the data means reflect our opinion and it is important to understand, decisions about buying, selling and investing in Real Estate require a deeper dive into the specific communities and neighborhoods of interest.
The three summaries are for RESALE HOMES market segments based on the living area size in SQFT: From 1000 to 1999, From 2000-2999, and From 3000 and up. The metrics (3 month rolling average) we used are: Number of Closed Sales, Median Price, Months on Inventory and Median Days on Market (DOM).
1000-1999 SQFT homes
Sales and Price appreciation post 2011, continue at similar strong pace given normal seasonal ups/downs, months of inventory hover around one month and median days on market, around 10 days. Buyers in these four cities will continue to find a very competitive market, the best (location, price, condition) homes move very quickly at appreciating prices and aging inventory eventually gets purged with a combination of buyer-seller compromise. In this case, Frisco is the clear Median Price leader.
2000-2999 SQFT homes
While the sales and price appreciation upward trends continue, there is more seasonal volatility, with an upward inventory and DOM trend. The recent inventory spike in July may be signaling that at least in this offseason, Buyers may have opportunities as Seller see DOM extending beyond their initially-expected levels.
3000 SQFT and up
Post-recovery sale levels continue (small drops in seasonal peaks), and price appreciation upward trend appears to be disrupted since 2017. Since this is the segment where inventory relief from new home construction is mostly taking place in the area, resale inventories show a clear upward trend and we think this is the market where Buyers have some great opportunities - choice, price, amenities. Both the numbers and direct market observation reflect a market shift is underway.
As you can see, whichever of these segments is of your interest, whether you are Buying or Selling requires attention so you can achieve the best possible results - Timing, Financial and Convenience This is what we can do for you. Call us and we will not only be very happy to help you, we view it as a privilege and we take getting the right things done for you very seriously.