February featured rising home prices throughout the Dallas-Fort Worth area, as has been the trend for the past few months. Despite the increase, housing affordability remained up following January’s steep increase. The overall Housing Affordability Index report was 1.2% higher than a year ago, with a rating of 172. This change was likely a byproduct of a substantial drop in closed sales for the month, which were down 9.1% from last February. Pending sales figures dropped in a similar fashion as compared to early in 2014, marking the second time in as many months that pending sales have failed to meet the marks of the previous year.
“As has been the case for a while now, inventory woes are hampering the recovery of the Dallas-Fort Worth market,” stated Keith Dunham, Chief Executive Officer of HomeCity Real Estate. With just over 5,500 closed sales for the month, the market showed significant progress following the slump of the previous month. Pending sales also saw a rebound from January’s slumping figures, which is a positive indicator heading into the busy spring home buying season. Despite the slight rebound in total sales, the market’s lack of inventory looks to continue as its limiting factor. When compared to the same period last year, February recorded an 18.9% drop in total inventory, marking a continuation of the limitation that’s plagued the recovering market for months. The good news, however, is that inventory numbers remained relatively consistent during the first two months of the year, which could be a sign that the worst of the inventory issues have already passed.
Days on the market showed a slight increase from last year, but a decrease of 3 days from January’s numbers to 66 days continues to point in the right direction for the area’s housing market. A rise in median sales price, which was up 9.5% from 2014 to $190,000 throughout the region, likely had an effect on the added time. After an irregular January, the Dallas-Fort Worth market appears to be gearing up for its typical summer home buying frenzy in the coming months. Numbers continue to remain largely positive, and forecasted relief of the area’s inventory issues would be just the thing to allow the market to reach its lofty potential.
As with the later months of 2014, inventory has continued to limit the burgeoning market’s growth in February. However, the numbers for the first two months of the year seem to indicate that relief could be on the way. As the North Texas job market continues to grow at a record pace, the area’s realtors are working tirelessly to satisfy an expanding real estate demand. Despite just a 2.5 month supply of homes for sale in the region, a decrease of 21.1% from the previous year, relief is almost certainly in the cards for the months to come.
The sellers’ market paid dividends for homeowners, as agents were able to secure a lofty 96.1% of original asking price throughout the month, which marked a 0.9% increase from 2014. “If inventory numbers have, indeed, bottomed out, all signs point towards a healthy housing market for the area in the immediate future,” Dunham continued. Despite drops in both closed and pending sales, consistent inventory numbers throughout the early months have analysts excited for 2015. Expect the Dallas-Fort Worth market to make major strides as the weather begins to heat up.
February 2015 Dallas Housing Market Statistics Compared to 2014:
- 5,511 single-family homes sold, down 9.1%
- $190,000 was the median price for single-family homes, up 9.5%
- 66 was the average number of days on the market, up 2.2%
- 2.5 months inventory, 0.7 months less than 2014