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
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
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,