Area Market Still Bucking National Trends
September 17, 2007
DFW luxury home market conditions are quite different than what is being seen in much of the country's housing market. Sales of previously owned, single-family luxury homes are up, albeit somewhat modestly, as are home prices.
Sales in August of pre-owned, single-family luxury homes in the DFW metroplex increased by 3.4 percent over same month, previous year sales, to 300 residences. Sales for the quarter are up by the same percentage, and compared to the previous year, sale volume increases have been posted during five of the past six months.
The average price of DFW luxury homes sold during August increased by 2.6 percent over the average price of similar homes sold during the same month a year ago. This was somewhat stronger than July's revised 1.8 percent increase and significantly stronger than June's revised .4 percent increase.
The inventory of homes listed for sale, however, remains stubbornly high. About 2,435 pre-owned luxury homes were listed for sale at the end of August in the DFW metroplex, according to MLS data gathered by the North Texas Real Estate Information Systems Inc. While this again was a slight monthly decrease from the 2,490 homes that were being offered for sale at the end of July, it also is a nearly 25 percent jump from the 1,950 homes listed at the end of August last year.
This pushed the supply of existing luxury homes, relative to August sales, to 8.0 months. While this is only about 2.5 percent higher than July's revised 7.8 months supply, it also represents a 21.7 percent increase over the 6.6 months supply of DFW luxury homes that were available for sale during August last year.
Appreciation in luxury home values was seen in most price segments. The weighted average square foot price of homes sold for $500,000 up to $750,000 during the three months ending in August was $154.63, a 1.6 percent increase over the price for which similar homes sold during the same period last year, while homes priced at $750,000 up to $1 million dropped by .2 percent to $198.75 per square foot. Homes priced at $1 million up to $1.5 million sold for $253.84 per square foot, up 2.5 percent from a year ago. Homes selling for $1.5 million to $2 million sold for an average $307.43 per square foot, an annual increase of .8 percent. The average square foot price of homes selling for more than $2 million increased 3.2 percent.
The 62 average days required to sell a DFW luxury home during August was down from both the revised 65 average days required to sell a luxury home in July and the 70 average days needed during August last year.
Market Highs And Lows
The DFW luxury home enclaves with the largest annual increases in their three month rolling average prices ending in August for the third month in a row 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 8.7 percent. In the Park Cities, the average annual price increase was 6.0 percent.
None of the DFW luxury home enclaves experienced a price decrease. The Southwest Collin / Southeast Denton Counties area had the smallest price increase, .6 percent. The Northeast Tarrant County area had the second lowest price increase. Homes there on average sold for .8 percent more than during August last year.
With 4.4 months supply of luxury properties listed for sale, the Park Cities continued to have the least inventory of pre-owned luxury homes in the metroplex. The Northeast Tarrant County had the second lowest inventory with 6.1 months supply of homes for sale, followed closely by North Dallas, which had a 6.2 months supply.
The Southwest Collin County / Southeast Denton County area again had the highest inventory in August, with a 12.9 months supply of luxury homes for sale. The Fort Worth / Arlington area continued to have the second highest level of inventory, with an 11.9 months supply of pre-owned luxury homes available for sale. |
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