In a recent article, Steve Brown who is the Real Estate Editor for The Dallas Morning News mentioned that the North Texas area is on track to sell more than 100.000 preowned homes in 2016. According to Mr. Brown, that would be the largest number ever in this market. With that demand, average sales prices have continued to rise as well. In September , the average sales price rose + 12.8% to $344,132 as compared to September 2015. YTD in 2016 the increase is + 6.0% to $337,258. This is very important as the homes priced at $300,000 and under are in high demand and as you move up to homes priced at $350,000-$400,000 and above the activity slows down significantly. New listings are still higher than last year and average days on market has remained consistent at 35 days. Millenials have become the largest sector of the housing market as first and second-time homebuyers are preparing to enter the market. Housing prices of homes sold in September were at an average of 97.5% of the original listed price and overall are at 98.2% for 2016 YTD as compared to the same time in 2015. Buyers are still finding that the months supply of homes is still just over 2 months. The bigger issue for the younger buyers will remain home affordability as prices continue their rise in 2017.
Collin County home sales were very consistent and similar with the numbers in North Texas. However new listings for September were up dramatically at +11.5% and yet closed sales were down – 3.4%. The average sales price of $342, 349 for September was an increase of + 10.2% over September 2015 and 2016 YTD the number of $341,926 is up + 7.2% over last year. Collin County faces the same issue as North Texas as there are not enough entry level homes in the $300,000 and under range. The days on market is 33 days for the year so far and once again the months supply of homes is just over 2 months. Once again, the 2016 YTD sales prices are around 98.4% of the listed price, but in September the average for the month dropped to 97.6%
All of the articles I am reading from the housing analysts and economists, seem to be very favorable for the 2017 housing market in the North Texas and Collin County markets. It does seem that most are forecasting a slower increase for home prices in this market of somewhere between 5-6% and that interest rates will stay favorable as well.
Source: North TexasReal Estate Information Service (NTREIS), The Dallas Morning News
Steve Lester, REALTOR® is with Keller Williams Realty living in Allen, Texas.