The DFW area continues to see a strong sellers market in most areas, with multiple offer situations happening throughout the metroplex. The market does seem to be in recovery, though, with most markets falling somewhere between recovery and normalization. The North Texas Real Estate Information Systems (NTREIS) recently released their market data for last month, and it shows an overall increase in activity.
Dallas/Fort Worth area home sales actually decreased 13.4% in April 2014 from 8,832 in 2013 to 7,649 this year. According to the report though, monthly housing inventory has dropped 18.6% from 4.1 months supply of homes to 3.3 months supply of homes. Keep in mind, that the Real Estate department at Texas A&M University sites 6 months inventory as a balanced market. This means that the market is extremely competitive right now.
The average DFW-area home also continued to sell at an accelerated rate, spending 54 days on the market this past April, as opposed to 61 days this time last year. The median price for single-family homes in April was up 4.8% to $180,713. Keep in mind, also that this is a general report for all of the DFW area. Some of the more desirable areas like Plano and Allan will have had much higher price points.
April’s job growth was high, and is likely to accelerate through the year. The problem is, more low-wage jobs than high-wage jobs were produced. That’s not conductive to increasing the number of potential buyers. Even so, local markets may pause, but are unlikely to falter thanks to suppressed supply levels and an improving sales mix. Don’t confuse temporarily weak demand indicators for stagnation.