Dear Lochwood neighbor,
I have so many exciting things to share with you this month! First, let’s have a little fun. Cooler temperatures have finally come to the area, which always makes me want to get outside. If you’re the same, then you’ll love the Coldwell Banker Fall Activity Guide. This is a great resource to check out for anything and everything going on around Dallas/Fort Worth. It’s electronic so you can take it with you wherever you go! Click here to access the Fall Activity Guide.
Now, on to a little bit of business that is also an amazing opportunity. I’ve spoken with so many home owners over the past six years who have said, “We really need to do some things to fix up our house before we put it on the market.” Depending on market conditions, this statement may be true. Consult with me and I will let you know. More importantly though, in order to assist home owners with this need, Coldwell Banker recently launched RealVitalize. RealVitalize is a home improvement program to help owners get their property ready for sale. This is also a great opportunity for anyone who has put their home on the market and were unsuccessful in their attempt to sell the property. Call me so that we can determine how RealVitalize can help you maximize your sale price or reduce the amount of time your home sits on the market.
Let’s compare how our neighborhood market performed last month compared to one year ago. Year-over-year, (below) the percent of original list price, median days on market, and the number of cancelled or expired listings track consistently. The median sale price was much higher in September of 2019 than September 2018 because four of the six homes that sold were some of the larger homes in the neighborhood and had sale prices ranging from $464,000 to $680,000. Months supply of inventory has dropped the past two months. At its peak, inventory was 4.0 months in May 2019. At its low, it was less than one month in April of 2016. The number of sales that closed year-over-year, dropped by about 50 percent, but that does not cause me tremendous concern because there are currently 10 homes that are pending sale. If all 10 property sales do close, October 2019 sales will be 50 percent higher than October 2018.
Individual sales from September (below) look a lot like sales from August….listings with a high count of days on market and those with significantly fewer days on market. In today’s market, knowing your pricing based on comparable sales AND active listings is key to getting your home sold. As of the writing of this letter, there were 26 Lochwood homes actively being marketed for sale with list prices that ranged from $250,000 to $549,900 and 82 median days on market. Visit robynflessnerprice.com to view the neighborhood homes that are currently for sale.
Typically, this is where I would thank you for your time and close my letter, but I do have a little more information to share with you this month. On October 4th, I attended the MetroTex 2020 Market Forecast breakfast and had the privilege of listening to several real estate economists speak on the current state of our market, and make their predictions for 2020. Here are a few of my key take-aways from their presentations:
Our market is normalizing. We’ve become so accustomed to homes selling with multiple offers, for over list price, or before even hitting the market that we’ve forgotten that it is totally and completely normal for it to take 30, 60 or 90 days to get an offer on a property.
Dallas/Fort Worth population expansion will continue but at a slower pace. Immigration reform and greater retention efforts on behalf of states that have lost businesses and residents to Texas are actively working to keep people in their states. Nonetheless, the Dallas/Fort Worth area population will likely reach 16 million residents by 2050.
The Millennial Generation is driving much of the home buying traffic in DFW and the US. There are 88 million Millennials in the US and they are the most educated cohort of our population. They have had a delayed start to life events like marriage, having children and buying a home because they’ve focused on education and building their careers but now, the oldest Millennial is 38 years old and they are driving much of the home buying traffic in DFW and the US. They need affordable housing, good schools and activities outside of the home for their children to participate in.
First-time home buyers make up 40 percent of the market. Many have spent over a year looking for a home and still cannot find what they want in their price range. Even after looking for a year, they are still optimistic that they will find and purchase their first home.
Affordability has become an issue for our local housing market. Over the past 5 to 6 years, our home prices have increased 50 to 60 percent - more than ever in any real estate cycle in Dallas/Fort Worth. Income growth has not kept pace with rising housing costs. Essentially, over the same 5 to 6 year period, incomes have only increased 15 percent. This is part of the reason we are starting to see prices level off (not drop) despite relatively low levels of inventory and low interest rates. It is also why home builders have turned their focus toward building homes in the $250,000 to $300,000 price range.
Annual property price appreciation is moving back toward normal levels. The economist from realtor.com anticipated 4 to 5 percent appreciation of DFW home values in 2019, and 2 to 3 percent appreciation in 2020. The two other economists who presented at this event agreed with that forecast.
Wow! That was a lot! As always, I hope you find this letter to be informative and useful. One of my primary objectives when working with home buyers and sellers is to make sure that they have the information they need to make the best decisions and choices when it comes to one of their greatest assets, their home. If you or anyone you know has been thinking of buying or selling, call me at 214.793.8787. I genuinely love to helping people evaluate their options and moving them in the direction of their goals and dreams.