The Dallas-Fort Worth housing market continued building on recent trends in April, as home prices continued to increase moving toward the summer home buying season. Despite the rise in prices, the overall Housing Affordability for the region was recorded at 160, which was a 2.6% decrease from the previous year, as well as a 2.6% decrease from March. These two metrics contributed to a strong number of closed sales throughout the month, coming in at just 3.5% less than last year. Pending sales continued on a similar course, remaining relatively steady as compared to the previous month. When all of these factors are considered, it appears that the area’s market is setting the stage for continued improvements entering the next few months.
“For the first time in months, the market’s inventory numbers registered a month-over-month increase in April, and this is an extremely promising result moving forward,” stated Keith Dunham, Chief Executive Officer of HomeCity Real Estate.
With 8,092 closed sales in April, the market is establishing a pattern of sustained improvement in recent months. Likewise, pending sales remained relatively consistent when compared to the market’s March performance, which provides promise of continued growth for the market moving forward. For months, inventory has been the limiting factor hampering the Dallas market, but April provided promising results that should assist in the transition towards a full market recovery. When compared to the same period of 2014, April featured a 17.3% decrease in available inventory, but the month recorded the first month-over-month improvement for the market in nearly eight months. If this inventory improvement continues, the market should be in a strong position to continue towards reaching its full potential entering the summer sales season.
Days on the market showed an increase of 15 days over 2015, as well as a sharp increase over the results of the previous month, marking just the second significant rise of 2015. A steep rise in median sales price, which increased by 13.9% to $205,000 throughout the market, likely played a role in the added sales time. Overall, April continued to build on the market’s sustained improvements in early 2015. As inventory woes continue to subside, the summer home buying season could drive the market to new heights in the short-term.
With one of the country’s most active job markets, the Dallas housing market has displayed numerous positive indicators in recent months. Despite slumping inventory continuing to serve as a limiting factor, all signs point towards much needed relief coming sooner rather than later. With local real estate agents pushing to meet the expanding demands of one of the country’s most desirable locales, an increase to the current 2.7 month supply of homes for sale in the region will be essential. With the promising results of recent months establishing a precedent, however, this relief is almost certainly on the way in the months to come.
“For the Dallas market, job growth will be essential in driving recovery, and the North Texas employment market is among the strongest in the nation,” continued Dunham. “With all factors taken into consideration, it’s clear that the market is on the right track to realize full recovery in the future.”
Low inventory numbers continued to benefit sellers in April, as agents were able to secure sales prices of 97.5% of original asking price, representing a 1.1% increase over 2014. Despite drops in both closed and pending sales, market conditions are favorable to continue building on the consistently improving inventory numbers throughout the early months of 2015. For prospective sellers, market conditions are favorable throughout the Dallas-Fort Worth area. Look for these conditions to allow for continued increases in inventory and, as a result, sales, as the weather continues to heat up in North Texas.
April 2015 Quick Stats Compared to 2014:
- 8,092 single-family homes sold, down 3.5%
- $205,000 was the median price for single-family homes, up 13.9%
- 68 was the average number of days on the market, up 28.2%
- 2.7 months inventory, 0.7 months less than 2014