Early numbers for Q1 DFW real estate have been trickling in since last month, but only now have analysts been able to make sense of the big picture. The take-home is actually quite simple: DFW real estate is the hottest in the nation. When looking at overall demand and the average listing duration, the Metroplex beat out other markets such as Denver, San Francisco, San Diego, Boston and Houston for the amount of sheer activity taking place.
Setting the Pace for a Banner Year
The year 2015 got off to a breakneck pace, especially when comparing sales figures to the already-strong year before. The National Association of Realtors reports that home prices for the Dallas/Ft. Worth area rose 10.1 percent in the first quarter compared to 2014. This set the area apart as one of the only regions in the country with double-digit home price increases. The number of total homes sold also increased by four percent year-over-year.
Typical listings for single-family detached homes are closing at a breakneck pace. The average listing duration was between 29 and 49 days — far quicker than the majority of real estate activity in the nation.
When looking at more specific neighborhoods in North Texas, the numbers become even more shocking. Sherman/Denison was one of the highest, with median home prices increasing by a staggering 33.4 percent compared to Q1 2014. Oak Cliff was even higher, with a 42 percent increase. Other bustling areas included DeSoto and Southern Dallas.
The most surprising element in all this buzz is that the year has barely gotten started. “The first quarter of the year is typically a slow period for home buying and selling,” explains chairman of the Texas Association of Realtors Scott Kesner, “so we were thrilled to see strong home sale gains statewide in the first part of 2015.”
Homes in Short Supply and in High Demand
Another element that makes the activity quite remarkable is that home inventories are historically low. Across the entire state, the supply of homes available for sale is estimated at 3.1 months’ worth of inventory, which is 8.8 percent less than the year before.
In the Dallas area specifically, homes are at a razor-thin 1.8 month supply. The situation is even more astounding in high-demand neighborhoods like Farmers Branch, The Colony, Bedford, Carrollton, Hurst and many others where the supply of homes listed by agents stands at less than a one-month inventory.
Lawrence Yun, an economist for the Realtors Association, summed up the whole affair in terms of simple supply and demand. “Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market,” he said in a statement. “However, stronger demand without increasing supply led to faster price growth in many markets.”
A sales climate like this is the perfect chance for homeowners considering putting their house on the market. At perhaps no other point in history has there been a better time to sell your home. Let The Rhodes Team help you navigate these hectic waters with expert guidance on how to price your home and list it to attract the best buyer possible. Fill out the form on the right to get started!