Luxury Home Sales, Prices Both Slide
April 21, 2008
The DFW luxury home market softened significantly in March with all major market indicators turning negative. For prospective buyers, probably the best news is the average price of DFW luxury homes sold during March decreased by 4.3 percent, as compared to the average price of similar homes sold during the same month a year ago. Adding to the concern of luxury homeowners who want to sell was the number of listings for existing single-family homes offered for sale at $500,000 and above probably reached its all-time high point.
About 2,575 such homes were listed for sale at the end of March, according to data compiled by North Texas Real Estate Information Systems Inc. This is an increase of 19.6 percent over the approximately 2,155 homes that were listed for sale a year ago and a whopping 60.5 percent jump from the 1,605 homes listed for sale at the end of March two years ago, which was about the time I began reviewing DFW luxury home market conditions on a monthly basis.
Same month, year-to-year sales were down 24.7 percent, with 186 previously owned luxury homes sold this year versus 247 homes sold last year. When combined with revised February sale volume of 134 homes and January's revised 99 homes sold, sales of DFW luxury homes for the quarter were down 24.2 percent from the 553 homes sold during the same three month period a year ago.
Also worrisome for DFW luxury homeowners who want to sell in the near term is that the inventory of previously owned luxury homes listed for sale remained remarkably high at 13.0 months of sales. While this is a 21.7 percent decrease from February's revised 16.6 months of sales, it at the same time is an astounding 62.5 percent increase from the 8.0 months supply of MLS-listed homes available during March last year.
The average period of time required to sell DFW luxury homes dropped to 91 days in March, down 14.2 percent from February's revised 106 days on market high water mark. It also, however, was up 28.8 percent from the average 71 days on market posted during March last year.
Luxury home values fell during the past quarter in all but the super-luxury price segment. The weighted average square foot price of homes sold for $500,000 up to $750,000 during the three months ending in March was $157.78, a .6 percent decrease from 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 decreased by 1.0 percent, dropping to $201.13 per square foot. Homes priced at $1 million up to $1.5 million sold for $255.91 per square foot, down 1.5 percent from a year ago and homes selling for $1.5 million up to $2 million dropped in value by 5.5 percent, selling for an average of $305.58 per square foot. The average square foot price of homes selling for more than $2 million increased 11.6 percent.
Market Highs And Lows
The DFW luxury home enclaves with the largest annual increases in their three month rolling average prices ending in March were again the South Denton County and the Fort Worth/Arlington areas. Within South Denton County, the average luxury home price increased by 5.0 percent. In the Fort Worth/Arlington area, the average annual price increase was 4.5 percent.
The Southwest Collin/Southeast Denton Counties area saw the largest price decrease. Homes there on average sold for 3.3 percent less than during March last year. Average prices in the Northeast Tarrant County area dropped 1.1 percent.
The Park Cities area, with a 6.9 month supply of luxury properties listed for sale, had the lowest inventory of pre-owned luxury homes in the metroplex. The Northeast Tarrant County area had the second lowest inventory with 10.5 months supply of homes for sale.
The Southeast Denton County area had the highest level of inventory, with 34.3 months supply of pre-owned luxury homes available for sale. The Fort Worth/Arlington area had the second highest inventory in March with an 18.4 month supply of luxury homes listed for sale. |
Any information you provide through this web site will not be sold, rented or otherwise provided to any third party.
If you decide you no longer want to receive Market Watch newsletters, just let me know and your e-mail address will be removed immediately from the subscription list.
|
|
