With Home Sales Prices and Volume Down for November, Dallas Home Buyers See Rare Market Window

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Prudential Texas Properties reports that after a month in which the number of North Texas homes sold was at its lowest year-over-year level in nearly two years and home values dropped to eighth-month lows in Dallas, there appear to be golden investment opportunities awaiting those who jump into a market that is only expected to be back on the upswing as 2014 kicks into gear.

Equal Housing Opportunity

Equal Housing Opportunity

Lower sales volume and dropping prices may worry a few North Texas home sellers, but any buyer who knows the potential of this market would look at this activity as a mere break in the action and an excellent investment opportunity.

Prudential Texas Properties reports that with the numbers in on North Texas home sales volume and prices for the month of November, buyers are finally seeing a bit more affordability than what has been present through much of the searing-hot market activity that has defined 2013. Furthermore, economists are saying that a good amount of these value declines are simply a seasonal symptom, and therefore should not be looked at as a long-term indicator of market activity for those interested in investing in Dallas homes for sale; but they do present some enticing savings for those looking to home-shop during the holidays.

The Dallas Morning News reported on December 11 that the year-over-year number of 5,960 North Texas homes that sold for the month of November 2013 was up just 4 percent over November of 2012. This marked the lowest year-over-year uptick in sales volume for the area since early 2011, according to the article. Meanwhile, California-based real estate analytics tracker Altos Research saw the median list price on Dallas homes for sale at $315,950 for the week of December 16, which marked the lowest seven-day average for the area since between March and April. “We’ve been expecting things to slow down,” Dr. James Gaines of the Real Estate Center at Texas A&M University told the publication. “Some is seasonal, but the year-over-year numbers are a little lower than I thought they’d be.”

Click here for a 60-second Dallas home market update.

So what does this mean for those willing to brave the market in late December? The answer would appear to be big potential savings. After all, the current median list price is down from an all-time high of about $350,000 when the market peaked at the beginning of July, and before mortgage rates started rising. Ever since, it’s been moving slowly but somewhat steadily downward. But it’s the forecast temporary nature of this trend that makes it appealing and not worrisome to both economists and North Texas home buyers. After all, despite the average Dallas home being down about $35,000 in value from the market’s peak, this number of $315,950 is still up about $50,000 on average from where the year started, and major polls such as the monthly-updated REALTORS® Confidence Index Survey predict Texas home values to grow at 4 to 8 percent by the end of 2014—solidifying the notion that this will continue to be one of the nation’s hottest markets.

As DD Flynn, VP of Marketing with Prudential Texas Properties says, “Lower sales volume and dropping prices may worry a few North Texas home sellers, but any buyer who knows the potential of this market would look at this activity as a mere break in the action and an excellent investment opportunity.”

In other words, this could very well be a golden savings window that could end in major appreciation within just a few months for buyers.

And as for the patterns of those rising mortgage rates, the number on a 30-year fixed-rate loan of 4.42 percent as of a December 12 USA Today report was not only down from August peaks of closer to 4.6 percent, but is well below the rates of 5-plus percent that are expected by the National Association of Realtors® as home values also look to grow in 2014.

As Flynn adds: “With all the buyer-friendly trends coinciding at this one moment in time, this market certainly seems to be ripe for the picking.”

©2013 BRER Affiliates LLC. An independently owned and operated broker member of BRER Affiliates, LLC. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Prudential Texas Properties is an independently owned and operated member of BRER Affiliates LLC. Equal Housing Opportunity.

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Kyle Fitzsimmons
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