The Hottest Dallas Real Estate Market Ever

Dallas: The Hottest Real Estate Market Ever | Mortgage By Jim

Okay the title of this article is somewhat of a takeoff from the July issue of D Magazine, The Hottest Dallas Housing Market Ever. Only this article was not from issue for July 2014 but from 2013! Joseph Guinto, author of last year’s D Magazine article, The Hottest Dallas Housing Market Ever said this a year ago, “After a period of stagnation, prices have sprung back up. It’s enough to make us utter a four-letter word.”

Not that four-letter word!

But this four-letter word . . . BOOM!

If you’ve been around Texas, or in particular Dallas, you know when we’ve had boom times, like between 2000 and 2006, when Dallas’ home prices steadily climbed to a high of 24 percent. That was modest compared to what was happening in California and Florida, but we also saw what happened to those markets when everything hit the fan. It’s long been said that Texas follows the rest of the nation. If the rest of the nation is in a recession, Texas usually is last to feel the effects of a recession, and usually not endure the pain or duration that the rest of the nation experiences. If the rest of the nation is booming, say, like in California from 2000-2006, Texas usually experiences a more modest boom much later than the rest of the nation. You could say this is one of the ways Texas is unique. It’s also why many Texans prefer to keep Washington out of Texas!

So let’s explore what’s happened in the Dallas area residential real estate market over the last year and the trends it presents if you are buying or selling a home.

Before we get into the nitty gritty, I thought I’d recommend you purchase and read this month’s issue of D Magazine which ranks the Best Beer in Dallas. This is not a paid advertisement, but I would not object if D Magazine would like to pay me. I just thought it would help you relax, sit back and enjoy my analysis of Dallas area real estate and trends in the marketplace over the last year. We’ll compare sales trends, price trends, and months of inventory today versus a year ago. I’ll also throw in my two-cents of commentary for what it’s worth.

Let’s begin . . .

Allen

In Allen there are only 295 homes on the market (May 2014) which is a 25.5% decline from a year ago when there were 235 homes on the market. This has been a downward trend since August 2010 when there were 622 homes on the market for sale. Currently there is only a 2.2 month supply of inventory, which is a 27.4% decline from the same month a year ago. The average days on the market for a home in Allen is only 44 days which is is actually 8 percent higher compared to a year ago in May. The average list price is $318,341, an 11.1 percent increase from a year ago.

Addison

In Addison there are only 37 homes on the market (May 2014) which is a 24.5% decline from a year ago when there were 49 homes on the market. This has been a downward trend since October 2011 when there were 84 homes for sale. Currently there are only 2.5 months supply of inventory, which is a whopping 37.4% decline from the same month a year ago. It was only in May of 2012 when there was a 6.5 month supply. Addison definitely is a sellers market. Supply and demand has driven prices higher by a modest 2 percent, with a median sales price of $261,000. the average days on market for a home is currently around 45 days.

Prosper

In Prosper there were 171 homes for sale on the market in May 2014. This is a 29.5% increase from just a year ago. There is a 4.3 months supply of inventory, which for the last two months is increasing slightly. Since July 2011 when there was a 9.2 months supply of inventory, it has dropped each month until December 2013. The average days on market for a home in Prosper is about 70 days. This is a 15.1 percent decline from a year ago.

McKinney

McKinney has 586 homes for sale as of May 2014. This is a 6.2 percent decline from a year ago. It was only in 2012 that there were 803 home on the market. Currently there is only a 1.9 months supply of inventory. The average list price has increased by 2.4% at $285,484 from a year ago. The average days on market is a low of only 32 days. It was only in February 2011 that the average days on market for a home in McKinney was 122 days.

Plano

As of May, 2014 there were 460 homes for sale. This was a 21.9 decline from a year ago. In May 2012 there were 933 homes on the market! There is only a 1.5 months supply of inventory, which is a 22.9 percent decline from May 2013. The average list price has risen by 13.9% to $355,941. There were 367 homes that closed in May of 2014, which is down 10.7 percent from a year ago.

Westlake

In Westlake there were only 25 homes on the market in May of 2014. This is pretty much identical to 2013 comparing year-to-year. Prices for homes in Westlake have skyrocketed over the last two years. The average list price is $2,860,253 as of May 2014. This has seen a sharp incline since February 2013. There is about 13.8 months supply of inventory and the average days on market (May 2014) is 78 days.

Coppell

As of May of this year there are 110 homes on the market. This is a 27.9 percent increase from May of 2013. In May of 2012 there 177 homes on the market. This makes for an ideal sellers market with only 1.8 months supply of inventory. The average list price is just over $386,000. This has climbed every month going all the way back to January 2007. The average days on market is only 36 days down 32.7 percent from a year ago.

Garland

As of May 2014 there were only 377 homes for sale. This was a 20.6% decline from May of 2013. The average listing price for a home in Garland is $174,030, which is up 13.8 percent from a year ago. Currently there is only a 2.1 months supply of inventory.

Wylie

In Wylie there were only 124 homes for sale as of May 2014. This is a 13.9 percent decline from just a year ago. The average list price is about $208,300 with only a 1.7 months supply of inventory.

Rockwall

In Rockwall there were 572 homes for sale through May 2014. The average list price in Rockwall is about $308,311, which is a 3.3 percent increase from May 2013. There is only 3.8 months supply of inventory, which had declined 17 percent from May 2013.

Clearly we are seeing from city to city in the Dallas metroplex the vivid signs of a seller’s market. If there is a city I have not provided you information with that you would like to know, please complete the form below and I will email you this information. I hope you find this data helpful.

Jim, please tell me how my city/county is doing

3 thoughts on “The Hottest Dallas Real Estate Market Ever”

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