All the discussion in the national media about how bad the housing market is doing doesn’t take into account that all real estate is local in nature. I was reviewing our local sales statistics the other day in preparation for a radio interview I was doing. Te Dallas Fort Worth market is doing very well.
Our MLS covers all of north Texas, so I looked at the numbers for the entire region and then for Collin County.
The first statistic I looked at was average sales price. The average sales price for the region is up 3.5 percent (May 2010 – May 2011) and Collin county is up 5.4 percent. These are really good numbers when you consider that 2010 spring sales were inflated by the federal first-time home buyers and move-up buyers tax credits. Those credits spurred early spring sales and drove down inventory in the early part of the year.
Next I looked at new listings. This figure tells us how much inventory is being added to the market. New listings are down 17 percent in both the regional and Collin County Markets. Less inventory is a good thing as long as the market continues to absorb what is available.
Sales closed gives us an indicator of the absorption rate of existing inventory. Regionally and locally sales are down 14 percent.
With 17 percent fewer listings and only 14 percent fewer sales, we can determine that the overall inventory is shrinking. That’s the primary factor in seeing value stability in the area.
In other good housing news, foreclosure rates continue to fall. Foreclosures have a serious impact on values as they usually sell at a discount over the traditional homes.
All indicators for the Dallas Fort Worth housing market point to a stable market despite what the national media reports. Have a question about your area? Contact a local real estate professional as all real estate is truly local.
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