June Newsletter

June 26, 2018

June Newsletter

This is our monthly newsletter that is mailed out to our clients and subscribers.

“Summer's lease hath all too short a date.”- William Shakespeare, Sonnets. Summer is in full swing! We hope that you are able to enjoy some fun in the sun and maybe find a few ways to cool off in our Texas heat! The picture above is from one of our recent bike rides in the Great Cycle Challenge at the beautiful Isle Du Bois State Park at Lake Ray Roberts. As we are looking the real estate markets for North Texas and in particular, Denton, Collin, Dallas & Tarrant Counties, we are seeing inventories beginning to inch up from the previous year. However, prices are still increasing in all counties with the exception of Collin County which is showing just a slight decrease of less than 1%. The Texas economy is strong. Per Texas Real Estate Center the economy was helped by oil prices of more than $60 per barrel,as it accelerated its pace of job creation in May 2018. Texas' seasonally adjusted unemployment rate in May 2018 was 4.1 percent, lower than the 4.4 percent rate in May 2017. We will continue to watch our markets each month to see what changes may be occurring. Keep in mind that typically inventories will begin to increase heading into the fall season as real estate markets have seasonal fluctuations. This is why our chart comparisons are with what happened a year ago as opposed to last month. Here are some charts for our market area:

Still going upward. The median sales price for May is up year over year for Dallas,Tarrant, and Denton Counties. Collin County which has the highest median sales price is slightly down less than 1% from the same time last year.

MAY 2018

Denton County
$315,000 | +4.4%

Collin County
$338,000 | -0.9%

Dallas County
$255,000 | +4.5%

Tarrant County
$238,000 | +7.6%

When looking at the Median Price Per Square Foot in all four counties you can really see the steady climb that has occurred within the past five years. All four counties are higher for the month of may that they were a year ago.

MAY 2018

Denton County
$138 | +5.3%

Collin County
$137 | +0.7%

Dallas County
$139 | +6.9%

Tarrant County
$120 | +8.1%

The only changes that we are currently seeing in the market is slight increases in the inventory. All four counties have shown increases in the months supply. As inventories increase it will relieve some of the demand that puts the upward pressure on prices.

MAY 2018

Denton County
2.6 | +8.3%

Collin County
3.1 | +24.0%

Dallas County
2.4 | +4.3%

Tarrant County
2.0 | +5.3%

Inventory has increased in all four counties year over year. It will be interesting to see if the increase in inventory will continue and start slowing the pace of price appreciation.

MAY 2018

Denton County
3,303 | +11.3%

Collin County
4,377 | +29.1%

Dallas County
5,039 | +2.1%

Tarrant County
4,656 | +4.2%

The number of days on the market has also increased for all four counties but is still less than one month.

MAY 2018

Denton County
14 | +27.3%

Collin County
15 | +36.4%

Dallas County
11 | +10.0%

Tarrant County
9 | +12.5%

Volume is down for both Dallas & Tarrant Counties but is up in Denton & Collin Counties. Overall there are more sales in Dallas & Tarrant Counties as the population in these two counties is much higher.

MAY 2018

Denton County
1,542 | +3.8%

Collin County
1,730 | +2.7%

Dallas County
2,468 | -4.1%

Tarrant County
2,689 | -1.8%

As stated in last month's newsletter, some of the current items that may be impacting real estate prices in the future are affordability, wage growth and mortgage interest rates increasing. Per Freddie Mac, the mortgage interest rates are currently at 4.57% for a 30 year fixed rate.

We thought it would be good to take a look at land values. Real estate value is foundationally in the land. You can see that there have been large increases in land values the past five years for all four counties. Tarrant county land values increased earlier then have somewhat leveled out. Here is a look at the median sale trends for vacant land sales in all four counties.

We hope you have found this newsletter informative. If you have a question about real estate appraising or have topics you would like for us to cover please let us know. You can contact us at dwslaterco.com.

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