The first month of the new year continued on many of the trends from the last quarter of 2014, as home prices throughout the Dallas Fort-Worth area were recorded at a dramatic increase from the previous year’s numbers. Affordability, on the other hand, showed a major jump from the previous month to within 1.0% of last January’s numbers at 182. This could have been a byproduct of a drop in closed sales, which were down 7.4% from a year ago. Similarly, pending sales figures dropped significantly as compared to the figures from early 2014.
“The North Texas market has been heavy with buyers for months, but it looks like the market’s inventory woes will continue to slow its recovery early in 2015,” said Keith Dunham, C.E.O. of HomeCity Real Estate. With just north of 4,750 closed sales for the month, it appears that the lack of available inventory is beginning to impact sales figures. Despite a recent wave of sustained sales increases, buyers were hesitant in the year’s first month. The dip in sales is surprising, as the previous month featured an impressive carryover of pending sales, but, with pending sales dropping to 6,026 for the month, the market’s depleted inventory figures continue to limit its growth potential. Total inventory of homes for sale was down an enormous 18.7% from the previous year, marking one of the few aspects restricting one of the country’s most in-demand markets.
Time on the market showed a mild increase from last year, as numbers edged up to the highest point recorded since early 2013 at 69 days. The added time can likely be attributed to a substantial increase in median sales price, which was up 11.1% from 2014 to $180,000 throughout the region. The Dallas Fort-Worth market has followed a similar pattern for days on the market in recent years. Expect numbers to begin to fall in the coming months, as the summer home buying frenzy gets underway. Despite a slightly slower month than normal, indicators are still largely positive for the area, particularly when the market’s inventory woes begins to subside.
As with much of 2014, a lack of inventory continued to hamper the burgeoning market’s growth in January. Despite the numbers, there is reason for optimism, as January marked the first month since August that inventory figures avoided a significant decrease from the previous month. As the North Texas job market continues to thrive, realtors are working around the clock to satisfy growing market demand. Despite just a 2.6 month supply of homes for sale in the region, a 20.3% decrease from the previous year, signs are beginning to point towards potential relief in the coming months.
With options remaining fairly limited, sellers were able to receive an impressive 95.4% of original asking price throughout the month, which was a 0.9% increase from 2014. “As we’ve been saying for months, we’re just waiting on an increase in inventory to allow this market to reach its full potential,” Dunham continued, “and if this month’s numbers are any indication, we could be rapidly approaching the boost for which we’ve been waiting.” Despite dips in closed and pending sales, the area’s market continues to appear ready for a major boom in coming months. As the growing market remains limited by available inventory, January’s slight increase over December’s numbers could have a major impact in the upcoming months.
January 2015 Dallas Housing Market Statistics Compared to 2014:
- 4,759 single-family homes sold, down 7.4%
- $180,000 was the median price for single-family homes, up 11.1%
- 69 was the average number of days on the market, up 6.0%
- 2.6 months inventory, 0.6 months less than 2014