How long can the residential real estate market go on like this? We are about two years into a national trend of dropping housing supply and increasing median sales prices. There are some regional variations to the story, but the shift to a predominantly seller's market is mostly complete. Multiple-offer situations over asking price are commonplace in many communities, and good homes are routinely off the market after a single day. It is evident that a favorable economy keeps hungry buyers in the chase.
According to a report recently released by North Texas Real Estate Information Systems, new Listings were up in the North Texas region 2.9 percent to 14,245. Pending Sales decreased 6.6 percent to 9,533. Inventory grew 5.2 percent to 27,969 units. Prices moved higher as Median Sales Price was up 9.2 percent to $250,000.
While the median price might seem higher than what we’re used to, it’s still very affordable compared to most places with such a desirable standard of living. For example, the average home price in Las Angeles is currently $632,000, Denver comes in at around $487,000, New York sits at over $788,000 in most places, and the suburbs of Chicago are over $300,000.
Inventory levels are rising a bit, though, which should help to level out pricing in the long run. Days on market decreased 2.8 percent to 35 days, while month’s supply of inventory was up 3.4 percent to 3.0 months., indicating that supply increased relative to demand. Homebuilders are doing their best to increase inventory, but they aren’t making a significant impact on overall inventory yet.
Although the unemployment rate remains unchanged at its favorable national 4.4 percent rate, wage growth has not been rising at the steady clip that would be expected in an improving economy. Sales activity manages to keep churning along despite looming shortages in new construction. Lower price ranges are starting to feel the effects of the supply and demand gap, as first-time buyers scramble to get offers in at an increasing pace.
The best way to arm yourself in an environment like this is to employ the help of a knowledgeable, well connected real estate professional. Realtors who have a large circle of contacts may have access to “Coming Soon” listings which are incredibly important in today’s market. Curious what those are? We explain the process here.
If you find a home that you like, it’s important to put in an offer as soon as possible to ensure that your offer is seen first. An experienced agent should have other tricks and tips for getting your offer accepted in a multiple offer situation. Either way, be prepared to act quickly and concisely in order to secure the home of your dreams!