Local Market Endures Slight Setback
July 16, 2007
After three straight months of double-digit growth, sales of previously owned luxury homes in the DFW metroplex were off 5.1 percent in June, falling from 372 luxury properties changing hands last year to 353 properties this year. Even this slow down, however, DFW luxury home sales for the past three months were up 8.7 percent over sales for the same three months last year. Compared to the same three month period two years ago, sale volume was up an even more remarkable 20.9 percent.
The average price of DFW luxury homes that sold during June increased by only .4 percent over the average price of homes sold the same month a year ago, down significantly from May's revised 4.1 percent annual price increase and April's 2.6 percent increase.
Possibly indicating a reasonably quick return to stronger market conditions, the number of luxury homes listed for sale at the end of June was unexpectedly lower than the number of listings at the end of May. About 2,500 pre-owned luxury homes were listed for sale at the end of June in the DFW metroplex, down slightly from the approximately 2,505 homes that were being offered for sale at the end of May, according to data gathered by the North Texas Real Estate Information Systems, Inc.
This pushed the supply of existing luxury homes down to a 7.1 months supply in June from the 7.4 months supply available in May, despite June's drop in sales. Still, with a 5.0 months supply of homes listed last June, inventory was up 42.0 percent over where it stood a year ago.
Appreciation in luxury home values extended, at least to some measure, across all price ranges. The weighted average square foot price for homes sold for $500,000 up to $750,000 during the three months ending in June was $159.62, a 1.0 percent increase over the price for which similar homes sold during the same period last year. Homes priced at $750,000 up to $1 million sold for $207.00 per square foot, up 5.6 percent from a year ago. Homes priced at $1 million up to $1.5 million sold for $260.46 per square foot, up 2.6 percent from a year ago. Homes selling for $1.5 million up to $2 million eked out a .1 percent increase at an average square foot price of $309.83. The average square foot price of homes selling for more than $2 million increased 2.6 percent.
Average time on market of DFW luxury homes sold during June was 57 days, down 14.9 percent from the 67 average days needed to sell a luxury home in May, and exactly the same number of days required during June last year.
Market Highs And Lows
The DFW luxury home enclave with the largest annual increases in their three month rolling average prices ending in June were the Fort Worth / Arlington area and the Park Cities of Highland Park and University Park. Within the Fort Worth / Arlington area, the average luxury home price increased by 11.1 percent. In the Park Cities, the average annual price increase was 8.5 percent.
The Southwest Collin County / Southeast Denton County area was the only DFW luxury home enclave to experience a price decrease, suffering a 1.0 percent drop. The Northeast Tarrant County area had the lowest price increase with homes there selling on average for 1.2 percent more than the previous year.
With a 3.5 months supply of luxury properties listed for sale, the Park Cities again had the lowest inventory of pre-owned luxury homes in the metroplex. The Northeast Tarrant County area had the second lowest inventory, with 4.7 months supply.
The Fort Worth / Arlington area moved back into its accustomed position of having the highest level of inventory with 17.8 months supply of pre-owned luxury homes available for sale. The Southwest Collin County / Southeast Denton County area had the second highest inventory in June, with a 7.6 months supply of luxury homes for sale. |
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