The trend shows that North Texas is in a constrained market, with the increase of home prices slowing down, according to Raul Arriaga, Board Member of the National Association of Hispanic Real Estate Professionals. “With that comes a tight inventory supply, which translates to less sales,” says Arriaga. “That means savvy people start to get off the sideline — investing and selling their homes due to the increase of buyers. That’s a big reason why the increase of home prices are slowing down.”
The average listing price for homes for sale in Dallas, TX was $599,958 for the week ending May 7, which represents an increase of 1.8%, or $10,742, compared to the prior week. Popular neighborhoods in Dallas include Oak Lawn and Preston Hollow, with average listing prices of $574,645 and $1,228,978. Arriaga explains that there is another indicator of the market — inventory levels and inventory accumulation — which is determined by taking the number of homes on the market and how many on average sell each month, and then calculating how long it would take to sell off the inventory.
For sellers, Arriaga says it’s important to price their home comparable to what others in the neighborhood are selling for, but that they shouldn’t stop there. “In today’s seller’s market, even if you want to get above fair market value for your house, it needs to be up to certain standards — up to safety code,” he says. “People don’t mind making cosmetic repairs, but it needs all the code requirements. The roof can’t leak, the stucco can’t leak. The home inspector will pick it up — or the appraiser will.” And for buyers, Arriaga says the number one issue is to keep any eye on credit. “You need good credit these days to get a loan. Save money — there are a few low down payment options out there, but they will get better rates and terms if they come up with 20 percent down. The more you can put down the better.” He adds that buyers should also keep an open mind when it comes to location if they want to get the most house for their money.
“According to data from the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems, North Texas home sales have been down slightly in three of the last four months,” says Arriaga. So far in 2014, sales are off 3 percent from the first four months of 2013.