August Newsletter-Slowing Down
As summer begins to wind down and we enjoy those few days of sun and beach, fall is just around the corner. Most schools in our area have started back and life is trying to settle into some sense of normalcy. Since we are still dealing with the pandemic and the delta variant has hit our area, the sense of normalcy is fragile at best. That said, the housing market is still very strong in North Texas. We are starting to see a few signs of slowing in our markets as the supply has increased from the prior month, although it be slight and volume has decreased. The frenzied markets have let off the gas pedal a bit, but have not yet put on the brakes. The markets typically do cool a bit this time of year so this is not surprising.
WalletHub just published their Best Real Estate Markets in 2021 report. There are five cities in Texas in the Top Ten and four of those are in North Texas. Frisco (located in both Collin & Denton County is named #1, McKinney (Collin County) is #4, Denton (Denton County) is named #5 and Allen (Collin County) is named #6. Fort Worth (Tarrant County) is also listed at #26. This report looked at both affordability and the economic environment. You can read the full report here or click on the interactive map below.
New Construction
New Construction is beginning to help with the lack of supply. Builders are definitely building in our markets and sometimes it is hard to get an accurate number of new construction numbers through the MLS. We have taken a look at the number of building permits and all four counties have increased construction. Most significantly is Denton and Collin Coutnies. Here is a look a the number of building permits for our four counties:
Here are the numbers for sales in July:
Median Sales Price
Denton County
$405,950 | +20.8%
Price Per Square Foot
Denton County
$180 | +23.3%
Day on Market
Denton County
5 | -73.7%
Months of Supply
Denton County
1.1 | -45.0%
Volume
Denton County
1,583 | -23.7%
Percentage of Original Sales Price
Denton County
104.5% | +6.1%
Takeaways
The market is still very hot in North Texas, especially when you compare the home prices with what they were a year ago. Homes are still selling at or above list price. Prices are still trending upward from last month with the exception of Dallas County. There is a slight increase in inventory from the previous month and there is a decrease in the number of sales from the previous month. Mortgage Rates are still at record low and the area is still poised for growth. The job market is strong and the demand for housing is still high. It remains to be seen what will happen when some moretoriuams on evictions and foreclosures expire or if demand for work from home continues as the virus continues to impact our markets.
We will continue to keep watch and report our local markets. As always, if you have a question or need appraisal services please do not hesitate to reach out to us at DW Slater Company
About The Author
Shannon Slater
Shannon is a Certified Residential Real Estate Appraiser and serves as the Vice President of the DW Slater Company. She joined David at the DW Slater Company in 2006. Shannon graduated Cum Laude from the University of North Texas with a BA degree. Prior to joining the DW Slater Company, she was an Elementary School Teacher for the Pilot Point Independent School District. Shannon is an FHA Certified Appraiser. Shannon is a designated member of the National Association of Appraisers and a member of the Association of Texas Appraisers. In her free time, Shannon enjoys spending time with her family, singing in a local church choir, and tandem cycling with her husband.
I love comparing notes. Your market as always is looking very similar to mine. Thanks for sharing. Hope you guys are doing really well.
Thanks, Ryan. We are staying very busy. Yes, I do find our markets having very similar trends too. There are just the slightest signs of cooling but definitely still very hot when you look at YoY or go even 2 or 3 years back. As always, thanks for the input!