During the first half of 2016, Northwood Hills and all of north Dallas has experienced a real estate market that is “hotter than a firecracker!” In fact, in my 27 years selling real estate in the Metroplex, I’ve never seen anything like it.
Since the beginning of the year, thirty-six properties have sold in Northwood Hills, ranging in value from $365,000 to $975,000. Remarkably, just over thirty percent of those properties sold at or above list price. Eleven properties sold between 100%-110% of asking price, most of which were on the market a week or less.
To put this into perspective, let’s compare this activity to the same period in 2015. From the 1 st of January, 2015 through June 30 th , 2015, there were just twenty-two homes sold in Northwood Hills. And of the solds, just one went for over 100% of list price, at 100.32% of asking. Obviously this is a very different picture.
Some of the data associated with our home sales, is a function of what homes are on the market at any given time. For example, in 2015, sold values ranged from $282,000 to $1,590,000. Even so, average $$$/sqft increased from $159/ft in 2015, to just over $170/ft in 2016. Average days on market reduced from 71 in 2015 to 56 days in 2016. And the homes selling over 100% of value this year averaged just ten days on the market.
To what can we attribute this frenzy of activity? There are still more buyers in the marketplace than there are available homes. As this article goes to press, there are just eighteen active listings in Northwood Hills. Given that thirty-six homes sold and closed in the first six months of the year, the active supply is just three months. In other words, if the market continues at the pace we have experienced in the first six months of 2016, the existing inventory would be sold out within three months. What makes this reality more stark, is that the active listings in Northwood Hills range in value from $349,900 to $1,699,000. Obviously all of the listings are not being viewed by the same buyers. This is not to say that other homes may come on the market within the second half of the year. However, with corporations continuing to relocate to the Metroplex and hundreds of people moving to North Texas daily, at least for the time being, the market does not appear to be slowing down.
Interest rates have also remained low, which increases the purchasing power for buyers. The lower the interest rate, the more house a buyer can afford.
As I work with buyers, I continue to get asked the questions, “don’t you think the market is at the peak? Is this really a good time to buy, or should we wait it out, until the market slows down a bit?” Of course there is no crystal ball. But until something drastic would happen to change the current market – low active inventory, low interest rates, and people moving to our great state in record numbers, I don’t see much changing. We typically have some seasonal fluctuations, but all in all, I think for now, the market remains strong.
If you have any questions regarding this information, please do not hesitate to call Judy Switzer, Broker/Owner of Judy Switzer & Associates at 214-801- 7273 or email me at [email protected]