In May there was not much news to celebrate if you were a homebuyer in the Collin County real estate market. The bad news was that new listings – 6.6%, closed sales – 8.4% and listings under contract – 3.7% were all less than May last year. Even worse the inventory of homes for sale 2,147 was down – 16.0% and months supply of inventory was also down – 17.2% as compared to May 2014.
Sellers rejoiced as home prices exploded with the average sales price increasing + 13.7% to $333,488 and the median sales price increased + 15.0% to $287,500. Further proof of an incredible seller’s market is that the percent of original price received was an amazing 99.7% which is a strong + 1.3% increase from May 2014.
Year to date numbers show us that the average sales price for a home is $316,781 or an increase of exactly + 10.0% over last year and median home sales prices have increased to even a higher level. With a median sales price of $274,000, the market is up + 11.8%. With these increases, many first-time and young homebuyers may be forced out of the market as their incomes cannot grow at the same level as home prices. I mentioned the term home affordability in last month’s April Market Update and it will continue to be a concern as home prices rise! Source: North Texas Real Estate Information Service (NTREIS)
Steve Lester, REALTOR® is with Keller Williams Realty living in Allen, Texas.