Riding these Waves of Demand! Like boats that rise with the waves, home values are being lifted by various waves of buyer demand during COVID. Every price range is being affected differently, and each county around us as well! Dive into the deep end with me and find out what is happening in your local market.
Collin County Insights
The yellowish column is the latest 10-day segment, so you can see the number of homes being put under contract is going up or at least maintaining it’s momentum of growth. Most notably, the number of homes in the 450-500k price range more than doubled! That means that either sidelined buyers in this price range decided now was the time to take advantage of low rates or that more sellers chose to put their homes on the market (and make them available to buyers). See available home data next.
The line is the number of homes available for sale over the past 12 months. Fewer homes for sale make the ones that ARE for sale more valuable. Are you willing to pay more for the products you want when you have to compete with other buyers? If it’s true for you, then it’s true for the market! See days on market chart next.
A sharp drop in Days on Market paints a clear picture of demand. When homes sit on the market without selling, this number goes up. So to see it go DOWN during COVID means that demand is exceeding inventory.
Denton County Insights
Big jumps in homes under contract! Most homes for sale are in the 250k to 350k range, and that’s where we see the largest increase in buyers quickly jumping on homes. Surprisingly, the 350k to 400k range had a strong showing as well. If you are thinking of possibly selling, the next chart is especially important.
This is a breakout session for homes in Denton county, as affordable homes with decent schools are a cheaper alternative for buyers compared to Collin county. It is a great time to be a seller now in Denton county right now, so strike while the iron is hot! Can’t handle the idea of showings? Sell with No Showings and still get top dollar. More buyer demand info below.
The drop in days on market is proof of strong buyer demand. It’s also interesting to note that the average DOM is currently about the same as Collin county. AND to note that it’s market was healthier than Collin’s at this time last year as well! If you are an investor, this is what you want to see for rentals, flips and new builds alike.
Dallas County Insights
Whoa! Need-based buyers under 250k are making quite a showing! This is also a strong indicator of just how many buyers are out there in the lower price ranges. In today’s market, a home under 200k will fly off the shelf with multiple offers even in a lackluster condition. When that happens, you know demand so FAR exceeds supply that sellers don’t have to do much to get tippy-top dollar. All homes should be carefully analyzed for return on investment for make-ready before doing any cosmetic updates. It’s surprising, but some sellers end up netting less money at closing because THEIR definition of move-in ready guides them to over-improve the property before selling. Moving on to the other price ranges, plenty of momentum continues there. Sellers here are enjoying a steady increase in the number of homes being put under contract.
The volume of homes bought and sold in Dallas county is amazing. To think, there are currently almost 3,500 homes for sale. That's pretty crazy… And that’s a low point for them! This is also what makes it hard to get actionable data at the “county-level”. If you plan on buying or selling here, let me get you some hyper-local data to dive deeper into supply vs. demand. Next up, see buyer demand specifics illustrated in the chart below.
Dallas was on lockdown. You can see that here, as well as WHEN they gained their freedom! I expect the average DOM to drop as demand normalizes around the 30-day mark.
If you love real estate like I do, it’s fun to understand the HOW and WHY of our local markets. Seeing the growing number of homes being put under contract is one thing, but understanding why certain price ranges OUTPERFORM others is how you determine the best course of action whether buying or selling. It’s a great time to buy (in some price ranges). It’s a great time to sell (in almost all price ranges)... And if you plan on finding a more stable investment vehicle for your 401k in the future, opportunity is everywhere! Thank you for taking the time to read along and enjoying this journey together.
Your Realtor for Life,