July in Texas is usually hot. In fact, both July and August is normally our hottest months. So let's see how the market was in Collin County in July-was it hot?!! Let's take a look at a few of the major areas in Collin County to get a sense of what is taking place. In Allen, resale "median resale home prices" were up 8.3% over July of 2017. "Median Days On Market" for resale homes also increased by 63.6%. "Inventory" of resale homes also increased by 41.7%. Although, prices for resale homes in Allen increased, we saw both a reduction in Pending and Closed sales in July over July of 2017 . Frisco is a very dynamic market as well but we are seeing some changes there in July for resale homes. Frisco resale "median resale home prices" were up 8.3% over July of 2017 as well. "Median Days On Market" for resale homes increased by 30.8%. over July of 2017. "Inventory" of resale homes also increased by 10.0% over 2017. Pending and Closed sales in Frisco were also down in July compared to July of 2017. Frisco is one of the areas that has the most inventory of resale homes. So let's see what happening in McKinney. "Median resale home prices" were up 14.5% over July of 2017. "Median Days On Market" for resale homes also increased by 27.3%. "Inventory" of resale homes also increased 35.1%. Pending sales in July in McKinney was down and Closed Sales were up by 1.8% in McKinney over July of 2017. This was the only city that showed an increase in closed sales. Plano is mostly a resale market because it is basically what we classify as a city that is built out. There is some new construction in Plano but not like some of the other areas. So let's see what is happening in Plano in July of 2018 versus July of 2018. In Plano "median resale home prices" were up only 1.4%. over July of 2017. "Median Days On Market" for resale homes also increased by 16.7%. "Inventory" of resale homes also increased by 23.8%. Pending and Closed sales Plano also showed a decrease in July of 2018 over July of 2017. The last city we took a look at is Wylie. In Wylie, median resale home prices increased 3.6% over July of 2017. "Median Days On Market" for resale homes actually decreased by 15.4%, this is the only city we analyzed that actually decreased from July of 2017 to July of 2018. Inventory" of resale homes increased by 48.8% over July of 2017. Pending and Closed sales in Wylie was also like the other cities we analyzed which was both were down over July of 2017.
So what does all these stats mean? Inventory and the lack of demand in July of 2018 did not slow the increase of home prices to any major degree. However, with that said I do believe it is having some effect which may not be picked up in the numbers. First, our team is not seeing as many multiple offers on homes as we did last year. Also, we are continually seeing a growing number of homes for sale in all areas. Our months supply of homes in most areas has grown from less than 2 months of inventory to over 3 months and in some areas up to 4 months of inventory. This is giving buyers much more to look at in the resale home market. We believe this will show up in the price increases of homes. Data is a trailing indicator but the overall trend is that inventory is growing steadily and days on market is starting to stretch. The sellers of resale homes may have to re-adjust their price expectations based on what is going on in the market for resale homes. Buyer's should be excited about this trend because the market is turning more competitive. However, let me caution buyers in their price expectations. Each neighborhood is different and it is important that you gain all the knowledge about the particular area that you wish to purchase in. Some may not be as competitive as others because of the demand in the area. Just because demand may be down in a specific city, it doesn't mean that a particular neighborhood demand is down. Your real estate agent will be able to give you advice to assist you in making an appropriate offer. For sellers, it is also important to know the specific sales information of your specific subdivision and what the activity is like on homes like yours. I believe competitive pricing is very important due to the slower demand and to make sure it will attract the buyers to your home. Always check with your realtor for that information and listen to their advice. If you ever need any assistance or would just like more information to assist you with your real estate decisions, please call Roxanne DeBerry of The DeBerry Team of Keller Williams Realty at 214-676-8040.