Existing Home Sales Hit 4-Year Low
February 21, 2008
Sales of previously owned, single-family luxury homes in the Dallas/Fort Worth metroplex dropped a whopping 35.9 percent in January, 98 homes this year versus 153 homes sold last year during the same month. This was the lowest one month sales total since January 2005, when only 94 such homes sold, and a bit less than half the number of monthly sales total seen just two months ago in November.
The number of homes available for sale also moved higher. At the end of January about 2,205 luxury homes were listed for sale, according to data compiled by North Texas Real Estate Information Systems Inc. This is 20.8 percent more homes than were listed for sale a year ago. Between the end of December and the end of January, DFW luxury home listings increased 8.3 percent.
As would be expected, the supply of existing luxury homes, relative to January sales soared, to 21.0 months. This is a 51.1 percent increase over the 13.9 months supply of homes listed for sale in December. It also is nearly twice the 11.4 months supply of MLS-listed homes available in January a year ago, and almost four times the 5.5 months supply generally considered to be the boundary between a buyers' market and a sellers' market.
Nevertheless, the average price of previously owned DFW luxury homes that changed ownership during January still increased by 5.2 percent when compared to the average price of similar homes sold during the same month a year ago. This probably is because of a lag in the cause and effect relationship between sales volume and prices, and because this year a larger percentage of the homes commanding higher per square foot prices sold while homes with lower perceived value did not.
For the past quarter, appreciation in luxury home values continued to be seen across 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 January was $159.20, a 1.7 percent increase over the price for which similar homes sold during the same period last year and the value of homes priced at $750,000 up to $1 million increased by 2.6 percent to $204.22 per square foot. Homes priced at $1 million up to $1.5 million sold for $260.84 per square foot, up 4.4 percent from a year ago, while homes selling for $1.5 million up to $2 million sold for an average $319.91 per square foot, an annual decrease of 1.3 percent. The average square foot price of homes selling for more than $2 million increased 2.2 percent.
The 85 average days required to sell the DFW luxury homes that sold during January was down 3.4 percent from the 88 average days required during December, but up 8.3 percent from the 79 average days needed during January 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 January were the South Denton County area and the North Dallas area. Within South Denton County, the average luxury home price increased by 8.8 percent. In North Dallas, the average annual price increase was 5.6 percent.
The Northeast Tarrant County area saw the largest price decrease. Homes there on average sold for 2.9 percent less than during January last year. Average prices in the Southwest Collin / Southeast Denton Counties dropped .1 percent.
With a 10.4 month supply of luxury properties listed for sale, the Park Cities of Highland Park and University Park had the lowest inventory of pre-owned luxury homes in the metroplex. The Northeast Tarrant County area had the second lowest inventory with 17.5 months supply of homes for sale.
The Fort Worth / Arlington area had the highest level of inventory, with 68.5 months supply of pre-owned luxury homes available for sale. The Southwest Collin County / Southeast Denton County area again had the second highest inventory in January with a 24.3 month supply of luxury homes listed for sale. |
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