The local economy is strong and buyer’s market persistent enough to overcome the inventory issue over time.
Dallas TX (PRWEB) March 19, 2014
The North Texas housing market is bracing for what will surely be a strong spring buying and selling season, but inventory continues to dampen home sales in the early months of 2014. Prudential Texas Properties reports that as inventory improves, so too will home sales as the demand and economic conditions are present for a very strong 2014 in Dallas real estate.
The Dallas Morning News reported recent data analysis from the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems that found sales of pre-owned single-family homes in February were up only 2 percent on a year-over-year basis. Furthermore, similar data from CoreLogic found that home prices in the Dallas area actually slipped 0.1 percent in December on a month-over-month basis, which was the third straight month of declines.
It’s not that demand isn’t there, however, as it is apparent that a severe lack of inventory is putting a damper on what could be a still surging local real estate market, which was the case for much of 2013. Median home prices continue to rise as limited inventory is driving up value for home sellers. In North Texas, median home sales prices climbed 13 percent in January.
“While inventory remains an issue, a combination of renewed seller confidence and home builder confidence should propel North Texas real estate into the busy spring season,” said DD Flynn, VP of Marketing at Prudential Texas Properties. “The local economy is strong and buyer’s market persistent enough to overcome the inventory issue over time.”
According to Altos Research, a California-based analytics company, Dallas remains in a seller’s market, but not by as much of a margin as one might think. The Market Action Index gauges whether a local real estate market favors buyers or sellers with a neutral point of 30, and as of March 7, Dallas’ index was at 36.35. This is in sharp contrast to early 2013 when the index was well above 40, putting it overwhelmingly in the corner of sellers. Currently, while sellers do have a bit of an edge, buyers are still able to locate attractive purchasing opportunities themselves.
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