The median of a set of numbers is that number where half the numbers are lower and half the numbers are higher. In the case of real estate, that means that the median is the price where half the homes sold that month were cheaper, and half were more expensive. The average of a set of numbers is the total of those numbers divided by the number of items in that set. The median and the average might be close and they might not. It all depends on the numbers. So now that I have thoroughly confused you lets get to the numbers.Â
The medium sales price for re-sale homes in Collin County continued to increase into May. We then saw a slow decrease in the medium sale price through August. The median sales price from January to the end of May increased by 16.2% and from there to the end of August decreased 3.6%. The average sales price from January to the end of May increased 9.9% and there to the end of the year dropped 3.7% so both the medium and average sales prices have come down about the same amount. So why is this happening? First, I don't think there is a lack of demand. I believe that because of the increased prices it has caused some people to put their home buying on hold or for them to wait and see when more homes come onto the market. This is actually taking place but at a very slow pace. In August there was only 2.6 months of inventory of pre-owned homes. A balanced market is approximately 6 months of inventory. We rarely see that happen in our market but we have seen a closer balanced market in the past. The two things that drive pricing is demand and inventory. We have the demand but we don't have the inventory in Collin County. However, that is changing gradually. The reason prices fall is several reasons. It could be a lack of demand or as in August school starts and people are getting their kids prepared for school. Employment is driving the demand which is a good thing for our area. I don't think we will see a huge decrease in pricing based on the dynamics of the market at this point. There will be some changes in demand due to the holiday season but overall we will continue to see elevated pricing until the market moves closer to the balanced area. In August the medium sales price for pre-owned homes was $324,900 and the average sales price was $362,269.
Inventory for pre-owned homes reached its highest level in July of 2017. In July Collin County inventory stood at 2.779Â pre-owned homes on the market which was a 111.2% increase from January. Again that sounds good but we are still have only a 2.6 month supply. Closed Sales for Collin County pre-owned homes went from 674 homes in Janurary of 2017 to 1,362 homes in August. This is a a 102.1% increase from the beginning of the year to the end of August. The highest sales month in 2017 was May with pre-owned homes sales of 1,425. As you can see May also had the highest numbers for the other areas that I have already discussed. Depending on the inventory in the specific areas of Collin County the prices will either be more competitive or not. In other words, the more the competition the more the competitive pricing will be..Â
Our team continues to follow the market closely so that we can give our sellers and our buyers the best options for their particular situation. By knowing the market we are able to price homes to get the most out of the sale and for buyers we know the markets and neighborhoods that are the most competitive. We are happy to discuss our services and knowledge of how we continually satisfy over 120 people each and every year with their real estate needs. Call our information line at 214-215-5106 to get the information you need to make your home buying and selling needs a success.
Posted by Roxanne DeBerry on
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