Home Sales Recover, Somewhat
March 21, 2008
Led by home sales, DFW luxury home market indicators for the month of February indicate it may have weathered its dismal sales performance in January with only minor long-term effect. While same month, year-to-year sales were down 16.3 percent, with 128 previously owned luxury homes sold this year versus 153 such homes sold last year, average prices of the homes sold still increased by .5 percent.
This is not to say that the Dallas/Fort Worth luxury home market is out of the woods yet. According to data compiled by North Texas Real Estate Information Systems Inc., slightly more than 2,370 pre-owned homes priced at $500,000 and above were listed for sale at the end of February. This is an increase of 20.7 percent over the approximately 1,965 similarly priced homes that were listed for sale a year ago.
The supply of existing luxury homes, relative to February sales was still exceedingly high at 17.4 months. While this is a 17.1 percent drop from the 21.0 months supply of homes listed for sale in January, it also is 44.0 percent higher than the 12.1 months supply of MLS-listed homes available in February a year ago.
Additionally, the average period of time required to sell DFW luxury homes also was the highest it has been since January 2005. Average days on market was up to 103 days, up about 20 percent from both the 85 days posted during February last year and the average 87 days on market needed during January.
Appreciation in luxury home values for the past quarter still is being 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 February was $158.84, a .2 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 1.2 percent, to $199.76 per square foot. Homes priced at $1 million up to $1.5 million sold for $263.67 per square foot, up 7.8 percent from a year ago, while homes selling for $1.5 million up to $2 million dropped in value by 2.1 percent, selling for an average of $310.71 per square foot. The average square foot price of homes selling for more than $2 million increased 8.1 percent.
Market Highs And Lows
The DFW luxury home enclaves with the largest annual increases in their three month rolling average prices ending in February were the South Denton County area and the Fort Worth/Arlington area. Within South Denton County, the average luxury home price increased by 5.9 percent. In the Fort Worth/Arlington area, the average annual price increase was 4.4 percent.
Only the Northeast Tarrant County area experienced a price decrease. Homes there on average sold for .4 percent less than during February last year. The North Dallas area had the least average price increase. Home prices there were up 1.5 percent.
The North Dallas area, with a 10.8 month supply of luxury properties listed for sale, had the lowest inventory of pre-owned luxury homes in the metroplex. The Park Cities area had the second lowest inventory with 12.6 months supply of homes for sale.
Somewhat surprisingly, the South Denton County area had the highest level of inventory, with 76.8 months supply of pre-owned luxury homes available for sale. The Fort Worth/Arlington area, also a bit surprisingly, had the second highest inventory in February with a 26.9 month supply of luxury homes listed for sale. |
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