PLANO, Texas — The Collin County Association of Realtors (CCAR) reports that sellers were more motivated to sell and negotiate in December than the area has experienced since 2013. On average, sellers accepted 5.1% less than their original listing price in December 2018.
Despite sellers’ willingness to negotiate on sales price, accompanying stats indicate Collin County remains a seller’s market. A market is considered balanced when there is six months of housing supply; Collin County reverted below three months of supply to 2.7 in December.
Additionally, sellers continue to enjoy increased returns on their investment, as median sales prices continue to rise. The median sales price in December was $309,907, a 2.5% increase from $302,375 reported in December 2017.
However, the good news is not limited to home sellers. The Housing Affordability Index increased to 105 in December, signifying that the median household income is 105 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. This is a surprising rebound after two months of record breaking low index numbers.
Home buyers not only found themselves more financially qualified to buy a home in December, they had more to choose from. December 2018 had 26.1% more inventory than the year prior, with 10,763 properties actively on the market at the close of the month. This is a result of an increase in new listings (+3.5%), a decrease in listings under contract (-4.5%), and an increase in days that homes remained on the market (+15.4%).
David Alan Cox, CCAR President, emphasizes the crucial role real estate professionals have in this unusual climate. “We are starting off the year in a unique situation. We have more homes on the market, highly qualified buyers, and sellers who a more motivated to negotiate than we have seen in over five years,” notes Cox. “Clients are depending heavily on the expertise of their agent during their transactions. Now, more than ever, it is imperative buyers and sellers are represented by a Realtor who is educated on market values, engaged with their clients’ wants and needs, and ready to negotiate and protect their clients’ best interest.”