We are tracking the number of homes that are being put “under contract” to get some early indicators as to how buyers are behaving in real-time. Want to take the pulse of our local housing market? Look no further than right here!
[Quick Data Explanation]
The charts below are going to have two bars, one for homes being put “under contract” this year AND one to compare against for last year. To read this right, you have to know that the average home is sold about 30 days after it’s put “under contract”. So last year’s sold data was put into date ranges based on this corresponding timeframe to give us an active comparison.
|The orange bar represents how many homes went under contract in 2019 (and eventually sold 30 days later). The blue bar shows the number of homes going under contract this year.|
The hottest segment of the market SHOULD BE the 200k to 300k range, but it’s the only price range that didn’t see an increase. My best guess is that this is due to the dwindling inventory. Stay tuned to see if this changes in the next report.
Denton County is hot! Check out the OVER 40% increase in the 200k to 300k range. Take notice, because the strength of these numbers could mean it is the perfect time to sell in this price range. When inventory is low and the numbers of buyers rise, move-in ready homes sell at a premium. The only price range that dwindled was the 450k+ range.
Big jumps in the 150k to 200k range! Take this with a grain of salt but this meets our expectations for how “need-based” buyers should behave (short of an all-out apocalypse). They are an unstoppable force as long as lenders make any more changes to lending criteria (credit score requirements have been raised to make it harder to qualify). Second place is the 40%+ jump in the 300k to 350k range over the last ten days. The buyers in this price range should represent individuals with higher salaries and in more secure industries. They are definitely in a power position with rates being so low, IF they can find a home out of the limited available inventory of homes.
THE BOTTOM LINE
Looking at recent buyer activity, this recent data is very encouraging. While it’s too soon to say for sure, we can all agree that a sharp increase in buyers putting homes under contract is great news for our local housing market. The ultimate proof will be in how many of these transactions make past the closing table. Lending criteria has made it harder to qualify for a loan, and that may mean a portion of these buyers may fall out of contract. Several more good weeks like this and it just may give potential sellers enough confidence to put their homes on the market.
PS… If you are wondering how we are selling homes now, read about our Sold with No Showings program.