Continuing on the recent trend, March saw a steep increase in home prices throughout the Dallas-Fort Worth area. Likewise, the overall Housing Affordability Index, which was rated at 164, recorded a mild dip of 0.8% from the previous year, bucking the trend that had taken hold in the first two months of 2015. Despite these two metrics, the market appears to be well on its way to a full recovery, with closed sales making an impressive rebound to 0.6% higher than last year. Promising closed sales were also met with a rise in pending sales as compared to January and February of this year, setting the stage for a strong market entering the spring and summer months.
“Inventory woes continue to hamper the market’s growth, but all expectations are for a healthy selling season moving forward in 2015,” stated Keith Dunham, Chief Executive Officer of HomeCity Real Estate.
With 7,693 closed sales for the month, the market showed impressive resilience following last month’s drop. Similarly, rising pending sales, which fell well short of last year’s figures but continued the upward rise of recent months, provide a promising outlook for the market moving forward. As has been the case for months now, the lack of inventory in the Dallas market continues to limit its growth and recovery. When compared to the same period in 2014, March featured an 18.5% decrease in available inventory, which was nearly identical to last month’s results. The silver lining, however, remains the relative consistency of inventory numbers in recent months. With the first three months of the year recording nearly identical inventory figures, it appears that the worst of the inventory woes are now in the past for the area’s housing market.
Days on the market showed an increase of eight days over 2014, as well as an increase of three days over February’s numbers, marking the first significant rise of the young year. The jump in median sales price, up 10.1% from last year to $197,000 throughout the market, is likely the cause for the added sales time. Overall, March reported many continuations of the promising results of the early year. As the summer home buying season gears up for another round, an increase in inventory could be just the thing to drive the market to new heights.
As has now been the case for the better part of a year, slumping inventory has been a cause for concern for the Dallas housing market. However, an increase in new home construction sales, as well as rising employment rates in the region, is a positive indicator for one of the country’s most active job markets. With realtors throughout the area pushing to meet the expanding real estate demand, the 2.6 month supply of homes for sale in the region is proving to be an issue. The results of recent months, however, seem to indicate that relief is almost certainly on the way in the months to come.
“The fact is that employment drives home buying activity, and the North Texas employment market is among the best in the country,” Dunham continued. “Overall, economic factors are pointing towards a full recovery sooner rather than later for the area’s housing market.”
Beneficial conditions for sellers’ continued to pay dividends for those listing property, as agents were able to secure sales prices of 97% of asking price throughout March, an increase of 1.2% over 2014. Despite decreases in both closed and pending sales, strong employment rates and consistent inventory numbers throughout the early months of 2015 have analysts predicting strong growth for the market in the months to come. If there was ever a year to list or purchase a home in the Dallas-Fort Worth market, this could, indeed, be that year.
March 2015 Dallas Housing Market Statistics Compared to 2014:
- 7,693 single-family homes sold, up 0.6%
- $197,000 was the median price for single-family homes, up 10.1%
- 69 was the average number of days on the market, up 12.9%
- 2.6 months inventory, 0.7 months less than 2014