As many of you know our team continues to watch the market closely so that we can share our expertise to those who need our assistance in either buying or selling a home. This is part of our "More Than" approach that we bring to the public to assist them with one of their biggest financial decisions they will ever make. We track 5 cities in Collin County each month to see what the market is doing so we can react with the correct information to those who need that information to make decisions. Looking at the "Median" sales price and comparing April 2018 to April 2017, prices escalated but at a reduced amount over last April. McKinney was the only city that remained the same from April of 2017 compared to April 2018. All cities saw increased median days on market compared to last year except Wylie where homes were 3 days faster selling than April of 2017. Frisco, McKinney and Plano were receiving less than the median original price for their homes for sale compared April of 2017. Allen and Wylie were receiving 100% of median original prices in April 2018 over April of 2017.
Supply and Demand are the two things that effect the pricing of homes in any market. When there are more homes than buyers then the prices of those homes for sale will be affected. The reverse is true as well. So if you have more buyers than inventory of homes for sale then prices tend to increase. Looking at these parameters we can see a trend that is happening in Collin County. First, inventory is slowing growing but has not in most areas, become such a factor that it has affected prices. Demand for homes has changed in most of the areas we track from January through April. In April of this year all the cities we tracked had less "pendings" and "closings" compared to April of 2017. This has not affected resale prices as yet but over time this may become a factor. However, interest rates have now become a factor when making a decision to purchase a home. We feel this should be considered in any long or short term decision making.
Based on this report some may think it is better to wait. We would not suggest that buyers or sellers wait since mortgage rates are very favorable at this time. We are now coming into some of the most active selling months and this next month will give us even more data to consider where the market is heading. As we stated above, prices have moderated somewhat and we feel it is because there is more inventory. It is not enough to make a significant difference at this point, however demand is not as active as it was in the first part of last year and that needs to be factored in. In real estate things can change fairly quickly and that is why we are paying close attention to the housing information closely.
If you are looking to buy or sell call us at 214-676-8040 and we will be happy to fill you in on the information that will help you make an informed decision.