July Newsletter

JULY NEWSLETTER

It's July and it is hot in North Texas!  Last week we escaped the heat for a quick family getaway into the mountains of Colorado as seen above.  The air was thinner but much cooler and it was the perfect vacation!  In one day we went from 720 ft elevation to 9,060 ft above sea level. That was a rapid rise and some of us had a slight case of altitude sickness right at first but we quickly adjusted. I am reminded of our real estate markets and how fast the increases have been in the past five years in North Texas.  We are starting to see a few signs that the rapid acceleration is slowing.  The inventory is increasing, days on the market are increasing and the number of sales has declined from the year before.  Have our markets peaked?  Have we reached the summit or is it just a plateau?  There are so many different factors that impact real estate markets.  North Texas has a strong economy with marked population growth keeping the demand for housing strong, however, mortgage interest rates are increasing and affordability is becoming an issue.  If the inventory continues to increase and volume decreases we may start to see a stabilization or peak in the real estate markets in North Texas.  Here are  the numbers for this month:  

JUNE 2018

Denton County
$325,000 | +6.2%

Collin County
$347,000 | +2.1%

Dallas County
$256,000 | +6.7%

Tarrant County
$240,000 | +6.7%

The median sales prices for all four counties are still increasing YoY, however, the increases are less than the double-digit increases that we had been seeing.   It is important to not look at only sale price to gauge the current status of real estate markets.

JUNE 2018

Denton County
1,526 | -6.6%

Collin County
1,686 | -7.7%

Dallas County
2,417 | -5.7%

Tarrant County
2,695 | -7.3%

The number of sales has declined in all four markets YoY.  This is an important factor that shows signs that the markets may be peaking.  

JUNE 2018

Denton County
14 | +27.3%

Collin County
16 | +23.1%

Dallas County
12 | +9.1%

Tarrant County
10 | +11.1%

The number of days on the market has increased in all four counties.  This means that homes are starting to stay on the market longer than before.  The number of days on the market are still very low but as the number of days on the market increases, sellers will begin to lower the list prices.  This certainly bares watching. 

JUNE 2018

Denton County
3.0 | +11.1%

Collin County
3.6 | +24.1%

Dallas County
2.7 | +3.8%

Tarrant County
2.2 | +4.8%

The inventory is the number of homes listed and available in the market.  Typically inventories less than three months are considered to be an under supply.   Inventories have been low for the past five years but we are seeing increases YoY in all four markets.  Inventory is still low but if the increases continue we will be on our way to a stabilization in housing supply.  

Three out of four of these market indicators are showing signs of a cool down.  It will be interesting to see what happens as the market will seasonally begin to cool off in the fall.  All of our charts show year to year data rather than month to month.  Stayed tuned for next month's newsletter and we will let you know if these cooling trends continue. 

New Blog Post

Our latest blog post is a contribution from Patrick Young, an advocate for those with disabilities.  Click below to read his post: 

Important Considerations for Home Buyers with Disabled Family Members 

Read Here >>

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