It appears the run-up in Dallas area home prices, in particular Garland, Rowlett, and Rockwall might have hit their peak, at least for the time being.
The median sales price in Garland hit a 3-year high in July of $137,000 which appears for now to be it’s plateau. Since July, the median sales price has declined -$4,500 to $132,500. Rowlett and Rockwall also hit 3-year highs in May and June respectively. Wylie seems to be the exception for now. Median sales prices are at a 3-year high and are continuing at a steady climb.
So, how do things measure up for cities such as Garland, Rowlett, Rockwall, and Wylie?
Let’s compare sales trends, price trends, and months of inventory today versus a year ago.
In Garland there are only 391 homes on the market (August 2014), which is a -20.4% decline from a year ago when there were 491 homes on the market. This has been a downward trend since March 2011 when there were 1,011 homes on the market for sale. Currently there is only a 2.3 month supply of inventory, which is a -20.7 percent decline from the same month a year ago. The average days on the market for a home in Garland is only 38 days, a -26.9 percent decline compared to a year ago in August. The median list price for a home in Garland is $132,900, an 7.5 percent increase from a year ago. There were 192 single-family homes that sold in Garland as of August 2014, compared to 210 a year ago this same time.
In Rowlett there were only 189 homes on the market as of August 2014. This is a -22.9 percent decline from a year ago when there were 243 homes for sale. Sales prices for homes in Rowlett have skyrocketed over the last two years. The average sales price as of August 2014 was $205,871 compared to $161,740 in August 2012. There is only a 2.3 month supply of inventory on the market. This is a steep -20.7 percent decline from a year ago and a -52.6 percent decline from August of 2012. The average days on market for a single-family residential home in Rowlett is only 18 days compared to 16 days this time a year ago. In August 2012, the average days on market was 42. The facts point to a seller’s market. There is low inventory, steady prices, and houses selling at a fast pace.
In Rockwall there were only 253 homes for sale as of August 2014. This is a -9.3 percent decline from a year ago and a -16.9 percent decline from 2012 when there were 302 homes on the market. The average list price in Rockwall is about $279,807, which is a +5.3 percent increase from August 2013. There is only a 3.4 month supply of home inventory, which had declined 15 percent from August 2013 and -36.6 percent from 2012. There were 101 single-family homes that sold in Rockwall in August 2014 compared to 73 for the same month in 2012 and 112 in 2013.
My Observation of the Local Real Estate Market
Yes, the facts point to a continuing seller’s market. The signs are low inventory, stable prices, homes selling at a quick pace, and near all-time low mortgage rates.
If you are looking to buy in today’s real estate market make sure you do the following:
- Make sure you have a savvy real estate agent who is knowledgeable about the market and can negotiate well. Go with a pro in this type of market.
- Have your financing approved before you begin looking for homes. This will give your real estate agent a competitive advantage over other contracts.
- Know what you want in your home and be ready to pull the trigger and write a contract.
If you are looking to sell your home in today’s real estate market, be sure you do the following:
- Hire a real estate agent who is knowledgeable about the market and negotiates well on your behalf.
- Have your real estate agent present you with a Sales Comparison Analysis. This analysis should provide you with the sales and listing activity around your home over the last six to 12 months. Make sure the facts make it obvious what price you should list your home. Compare other homes that have sold in your neighborhood to your home. Be sure they are similar in size, age, condition, improvements, and garages/pools, etc.
Whether you are buying or selling a home, it is a big investment. Do due diligence to ensure you hire the best professionals to represent your interests.