After a bit of a slow start at the beginning of the year, pre-owned home sales in North Texas jumped 7 percent in June, representing the biggest year-over-year gain so far in 2014.
According to a recent article on DallasNews.com, real estate agents are having no problem finding eager buyers in the North Texas market. In fact, real estate agents in that area sold 9,481 homes last month, which is significant because it’s the largest single monthly sales total on record, according to data from the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems.
Not only were sales on fire, prices were higher in June as well. According to the DallasNews article, median sales prices were 10 percent higher than they were a year ago, bringing the June 2014 median to a record $199,900. The increase in sales prices likely has to do with the strong buyer demand and tightened inventory. According to the article, finding buyers is the easy part, but locating property to sell them remains a challenge.
“The lack of inventory is amazing,” said Mark Dotzour, top economist with the Real Estate Center. “The only answer is going to be more new construction. It’s coming, but it’s not coming fast enough.”
Despite the slim inventory, North Texas’ boom comes as no surprise to most economists and real estate pros who are familiar with the market.
“I’ve been surprised home sales volume hasn’t been higher all year long,” said Dotzour. “This is more in line with what I expected to be seeing this year.”
Furthermore, housing analysts expect to see even bigger home price increases in the Dallas-Fort Worth area as we approach the second half of 2014.
“Although prices are not moving as fast as in the first half of 2013, appreciation is still well ahead of our long-term average, ” said David Brown, who heads the Dallas office of housing consultant Metrostudy, Inc. “Prices jumped in the 10 percent to 12 percent range in 2013 in the market, depending upon which source you look at. We expect prices to increase 8 percent to 10 percent this year.”
So what does this mean for North Texas home buyers and sellers?
If you’re a home buyer in the North Texas region, expect to see property prices continue to edge upward. The good news is mortgage closing costs are likely to be much lower than in years past. If you’re seriously considering buying a home in the area, now is the time to enlist the help of an experienced North Texas real estate agent and begin the pre-approval process with a trusted Texas mortgage lender. Getting pre-approved will help you stand out as a buyer and it will help sellers know you’re serious.
If you are a homeowner who is about to put your home on the market in North Texas, prepare for a lot of traffic! Give your home a thorough cleaning, de-clutter as best you can, boost its curb appeal, and price it competitively to really help gain buyer attention. You might even get an offer within the first week!
“This is the peak season in the greatest job economy in the United States,” said Jim Fite, CEO of Century 21 Judge Fite Co. “Multiple offers within 72 hours are commonplace on properties that are prices right and in good condition.”
Naturally, not all homes for sale in the area will get that level of attention; however, even if your home is older, in need of updating, could use some repair, etc., it could still bring in offers! With inventory as tight as it is, first time buyers – who often go for fixer uppers and older, smaller homes – may be glad to see homes like this pop up. After all, not everyone can afford large luxury homes, sprawling estates and McMansions, so don’t let a few minor flaws in your home intimidate you from putting it on the market.
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