Key Takeaways from August 2017 Stats:

  • Good news for both buyers and sellers
  • DFW Market is softening from a seller standpoint 
  • Showing signs of moving towards a balanced market


A Closer Look at the August 2017 Market Statistics & Indicators

New Listings

The number of new listings on the market increased by 10.3% when comparing August 2016 to August 2017.  With that type of increase, it is obvious that more and more homeowners are ready to jump into the market to cash in on the once hot seller's market.  Are the flood of new sellers too late to the party?  That remains to be seen.   But looking at the numbers and stats which follow, they might be getting to the party too late.    Advantage - Buyer

Closed Sales

The number of closed sales have decreased by 2.3% from last August.  The fact that the number of closed sales are down in combination with the increase of new listings can only mean that buyers will have more options and might be able to negotiate more than they have over the past few years.  It is likely too early to say that the market is cooling, but it isn't too much to state the market has "slowed" for the meantime.   Advantage - Buyer

Median Sales Price 

If you're a seller, here's your good news.  Prices have continued to increase and this August vs last August is a whopping 7.6% increase.  But with the numbers mentioned above, I wouldn't put all your faith in the Median Sales Price stat.  The increase in new listings on the market gives you more competition for your home.  More competition generally means prices decrease.  Be careful by only paying attention to this stat if you are thinking of listing.  As a potential seller, you should still get very good money for your property.  However, overpriced homes will be ignored at this point due to the number of new listings, drop in closed sales and the greater inventory of homes on the market.  Advantage - Seller

Percent of Original List Price 

Another indicator in the favor of the buyers.  The percent of sale's price to list price has decreased 0.6% from a year ago.  Bidding wars are becoming less and less common as the number of new listings rise and number of closed homes dips.  This is definitely to the advantage of buyers.   Advantage - Buyer

Inventory of Homes for Sale 

Up 17.4% from last year, this stat supports all the buyer advantages listed above and follows the trend of the market shifting toward the even mark.  Advantage - Buyer


Market Stats for Dallas Suburbs:

Here's a look at a few of the popular individual suburbs around Dallas to give you a better idea of each smaller market.  The standard rule of thumb is that a six month absorption rate is an even market.   Anything under six months is considered a seller's market and anything above six month is considered a buyer's market.  The closer the absorption rate to the six month median, the less it favors buyers or sellers.

Allen 

The low inventory and high rate of absorption along with the 98% of list price to sale price gives a strong advantage to the Allen TX Seller.

Frisco 

Wow!  Frisco with a whopping 42 average days on market and 3.3 months of inventory which is a whole month more than the DFW average!   It would seem everyone in Frisco has decided now is a good time to list their home!    Also note the 98% list price to sale price, down 2% since July.    If you plan to list your Frisco home, be sure to check your facts and be willing to acknowledge you likely aren't going to get over market value right now.   Price it accordingly for the condition and you'll still get good money for your house.  Frisco is still slightly a seller's market, but not by much.  Buyers - If you're looking to buy a home in Frisco, you've got a lot of choices and you're not likely to run into many bidding wars if you strike now.   Look for overpriced homes to start slashing prices to get more traffic with the current Frisco market conditions.

McKinney 

Numbers in McKinney indicate a seller's market with 3.5 months of inventory.  However the list price to sale price ratio declined from 99% last month to 97% in Aug.   Avg days on market remained steady at 39.   Buyers are likely to hit some bidding wars in McKinney.

Plano 

First thing to look at is the 97.8% list price to sale price ratio - this number is down considerably from July when it was at 102%.    The bidding wars in Plano may have started to cool off.   But Plano remains a very hot market with the average number of days at 27, which is lower than the DFW average.   Plano is still sizzling.... great time to sell in Plano.    If you're a buyer, depending on the area and home, you may have to disregard list prices and prepare to pay over the asking price.

Richardson

Another hot sellers market!   Very low inventory and a low days on market, homes in Richardson are selling fast!    Again, if you're a buyer for Richardson, you'll have a low number of homes to view and you could find yourself competing against other buyers.   Be prepared!

Wylie

Wylie's numbers indicate another great sellers market!   Continued low inventory!


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