Q3 – REAL ESTATE Wrap-Up for Northwood Hills
As for real estate in Northwood Hills Q3 2020, IT’S ALL GOOD NEWS!
All of us have been impacted in some way while for the last nine months the country has been suffering from a global pandemic. Early on during the shelter-in-place, Jim Gaines, Chief Economist, of the Real Estate Center at Texas A&M University, predicted that “real estate sales is likely to be the primary economic driver during the pandemic.” He was right!
According to the latest statistics, Dallas-area home prices are up by the greatest amount in more than two years, by a nationwide comparison. Dallas prices rose 4.2% year-over-year in the latest S&P CoreLogic Case-Shiller home price index. Across the country, home prices were up 5.7% over August levels from a year ago.
Steve Brown, Real Estate Editor of the Dallas Morning News, said in a recent article, “Dallas home prices have gained steam in recent months as homebuyers rushed to take advantage of record-low mortgage rates. Home sales in the area were 27% ahead of a year ago.”
What can we attribute this to? A shortage in the supply of homes for sale in the DFW area, along with many other metro areas, has stimulated the steady increase in prices.
The lack of available homes, along with the additional needs the pandemic has fostered, finds many homeowners wanting “flex spaces” for their everyday living. Today’s families are looking for as many as two home offices, in-home classrooms and playrooms for kids who found themselves confined indoors. The four walls many once called home just aren’t big enough anymore.
Additionally, historically low interest rates and the “ease” of mortgage financing qualifications since the start of the pandemic are spurring buyers to enter the market. Selma Hepp, CoreLogic deputy chief economist said in an email, “current home price growth is exceptionally strong given that the U.S. is in an economic recession, but it is the historically low inventories and the record-low mortgage rates that are outweighing the economic and employment headwinds, fueling price acceleration.”
The inventory of existing homes in some market segments in DFW is below a 2 month supply. This means that for the number of buyers looking in a particular area and price point, all things remaining equal, the supply will be gone in sixty days. This equates to a strong sellers’ market, resulting in rising prices. It should be noted in a neutral market, not favoring buyers or sellers, there would be at least a six month supply of homes on the market.
How is this impacting Northwood Hills, our best kept secret in North Dallas? Q3 2020 has far outpaced the same period in 2019. During the first three quarters of this year, 19 homes have sold, compared to 20 closings a year ago. In 2019, the average home sold for $724,207.00, or $191.22/sqft. This year, during the pandemic, the average sold price during the same period is up to $812,988.00 or $212.82/sqft. The average days on market [DOM] are up slightly from 55 days to 75 days this year. I believe that is attributable to the two months the real estate community was unable to conduct “business as usual” during the shutdown.
So, to reiterate, it’s all GOOD NEWS! If you are contemplating selling, please call or text me on my direct line at 214-801-7273 or feel free to send me an email at [email protected] I would love to work with you to get the highest possible price, in the shortest amount of time, with the least inconvenience to you.