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March Home Sales Provided a “Happily Ever After” for Both Buyers and Sellers in 2019

PLANO, Texas — The Collin County Association of Realtors (CCAR) reports that buyers and sellers hit their stride in March 2019, resulting in more projected closed sales, fewer days on the market, and an increase in percent of original listing price received.

In March 2019, there were 4.9% more new listings than March 2018 and 25.2% more inventory of homes for sale than the year prior.

Homebuyers were ready to purchase the increased inventory, resulting in 4.5% more listings under contract than March 2018, 6.9% more projected closed sales than March 2018, and the fewest days on market (60) for the CCAR Pulse area since November 2018.

The increase in sales may be in part to the housing affordability index of 106 in March 2019; signifying that the median household income is 106% of what is necessary to qualify for the median-priced home under prevailing interest rates.  The index may have been boasted by a 1.1% decrease in the median sales price of homes in March 2019 ($313,854) compared to March 2018 ($317,500).

However, the decrease in median sales price should not discourage sellers. When compared to February 2019 ($300,000), the median sales price increased a significant 4.4% in one month’s time, continuing a two-month trend of month-over-month median sales price increase.

Sellers also received 96% of their original list price in March 2019, continuing a three-month upward trend of original list price received. An indication of well-informed sellers setting competitive prices, an additional factor contributing to increased projected closed sales in March 2019 and decreased days on the market.

The months supply of homes for sale is one data figure that continues to remain steady for the CCAR Pulse area. March 2019 reported 3.1 months supply of homes for sale—the median months of homes for sale for the past 11 months. This represents a steady sellers’ market, despite increased inventory and slowing of sales prices.

“Spring is historically thought of as the peak season for real estate and the March market performance in Collin County has indicated this year will not be the exception,” remarked David Alan Cox, CCAR President.

As sellers prepare their homes for the market and buyers qualify for their home loans this spring, signs indicate a happy ending for all parties involved.

Winter’s Chilly Sales Pace Is Beginning to Warm Up

PLANO, Texas — The Collin County Association of Realtors (CCAR) reports that while the Collin County real estate market has had a slow winter, the promise of spring began to force its way through in February.

“Both buyers and sellers experienced positive outcomes in February. Sellers enjoyed solid offers from well qualified buyers, and buyers enjoyed more inventory than previous months,” reports David Alan Cox, CCAR President.

Indeed the February stats agree. In February 2019 there were 7.4% more new listings than February 2018, 29.4% more inventory of homes for sale than the year prior, and 2.6% more listings under contract than February 2018.

February 2019 also presented stats that are initially concerning for sellers when compared to 2018, but promising when examined next to January 2019. For instance, there was a 0.0% increase in the median sales price in February 2019 ($300,500) compared to February 2018 ($300,441). However, when compared to January 2019 ($289,450), the median sales price has increased a significant 3.7% in one month’s time.

The percentage of original listing price received in February 2019 decreased 1.2% compared to February 2018. Yet, remarkably, February 2019 was the first month since May 2018 that the percentage has increased from the month prior, with 0.8% more of the original listing price received in February 2019 than January 2019.

Homes also remained on the market 25.5% longer than the year prior for a total of 64 days. This is not an alarming increase when compared to January 2019, when homes remained on the market for 63 days.

Similarly, the months supply of homes for sale increased 38.1% from February 2018, resulting in 2.9 months of inventory of homes in February 2019. A large change from one year ago, but only a slight change from January 2019, which experienced 2.8 months supply of homes.

With such a positive experience for both buyers and sellers in February, many are hopeful that the winter chill is thawing and the real estate market will be warming up.

Home Affordability in Collin County and Surrounding Area Remains at All-Time Low

The Collin County Association of Realtors (CCAR) reports that November 2018 continued to be a difficult time to qualify for the purchase of a home. According to the Housing Affordability Index, the October 2018 drop of home affordability did not improve in November, and remained at 97 percent. This means that the median household income is only 97 percent of what is necessary to qualify for the median-priced home under prevailing rates.

The CCAR Pulse, which delves into the real estate markets of 37 local communities, reflects this decrease in affordability. In November 2018, Collin County had 7.2 percent fewer homes under contract and was projected to close 5.1 percent fewer sales. While it is traditionally accepted to see a seasonal decline in sales towards the end of the year, the decline is highlighted by a 3.9 percent decrease year-to-date in listings under contract—the first negative year-to-date stat regarding listings under contract our area has seen in over three years.

The median sales price of a home in Collin County increased again last month to $306,900—2.3 percent more than in November 2017. Sellers accepted on average 95.2 percent of their original list price after staying on the market for an average of 55 days in November 2018—a 14.6 percent increase in days on market than the year prior.

While experiencing an increase in days on market for home listings, Collin County also had 9.9 percent more new listings in November 2018, versus the same time last year. The combination of homes being on the market for more days while experiencing an increase of listings has allowed housing inventory to reach 3.1 months—a continuing sellers’ market.

What does this mean for buyers and sellers? According to Melissa Hailey, CCAR President, it means continuing home sales.

“Individuals who are home shopping during the holiday season are serious buyers. And right now, sellers are aware of the increase of home inventory and options that buyers have. This means the market is seeing motivated buyers and sellers who are ready to make a deal, and that’s a win for everyone,” says Hailey

Collin County Housing Market Approaching Balance; Still Better to Be a Seller

The Collin County Association of Realtors (CCAR) reports that the real estate market continues to favor sellers, but if trends continue, North Texas may soon find itself in a more balanced market. Over the past 12 months, median sales price has increased 1.5 percent to $301,500, which is 6 percent less of an increase than the year prior.

Simultaneously last month, the real estate market experienced 15 percent more homes for sale as compared to October 2017, supplying the market with 3.2 months of inventory. A market is considered balanced when it has six months of home inventory, a seller’s market if it has less, and a buyer’s market if it has a surplus above six months of inventory.

“It is important to remember, despite an increase in home inventory, those homes are still selling, and for more money than the year before,” says CCAR President Melissa Hailey. “It is still a great time to be a seller, Collin County is still experiencing growth, and buyers are excited to buy.”

The CCAR Pulse, which delves into the real estate markets of 37 local communities, supports Hailey’s thoughts, projecting that year-to-date closed sales have increased by 9.4 percent.

For the buyer, Hailey has encouraging news, “You are less likely to find yourself in a bidding war, and sellers are open to reviewing comps and setting a competitive listing price.”

On average, buyers paid 95.4 percent of the original list price of a home in October and homes stayed on the market an average of 49 days. The most popular segment of homes among buyers purchasing in October were those priced from $300,000-$499,999.

Last month, the housing affordability index declined 14.8% compared to the same time last year, hitting its lowest point in 2018. In addition, median household income was only 98 percent of what is necessary to qualify for the median-priced home under prevailing interest rates.

While many are anxious to see if the market continues to trend towards balance, the month of October gave both buyers and sellers reason to smile.

Collin County CCAR Pulse Stats

Market Shows Early Signs of Steadying after Record-Charting Year

While the real estate market in Collin County remained strong during the month of July, it began showing early signs of stabilizing after a year of record-breaking sales.

According to data from the latest Collin County Association of Realtors (CCAR) Pulse report, three areas that are beginning to show signs of a balancing market include new listings, inventory of homes for sale, and days on market. New listings increased 4.8 percent in July compared to last year, and the supply of available homes rose 13.5 percent from July 2016. In addition, the average number of days a home was on the market last month was up 6.7 percent to 32 days.

“Seeing the amount of new listings increase in July, coupled with inventory going up, could mean that the Collin County area is very slowly making its way to a balanced housing market, which is a good thing,” says Jonna Fernandez, CCAR Chief Operating Officer. “Six months of inventory is considered a balanced market. At the beginning of this year, our inventory was only at 1.8 months—an extremely strong seller’s market. Seeing the supply of homes at 2.7 months for July is encouraging.”

Although the housing market may be showing some very early signs of stabilizing, there are still many indicators of our years-long seller’s market. Median sales price is up 8.5 percent to $305,000, which has also impacted how much home buyers can afford. Currently, the median household income is 113 percent of what is necessary to qualify for a median-priced home under prevailing interest rates. This is a 10.3 percent reduction in housing affordability from last year, when household income was 126 percent of what was needed.

“It is no surprise that we see the housing affordability index has decreased in the past year, given the strong seller’s market that we’ve experienced” notes Fernandez. “When you have multiple offer situations, homes often sell for more than their list price, thereby increasing the median sales prices of homes over time. An increase in home prices, means that a potential buyer with a median household income is finding it more difficult to find a median-priced home.”