Is there a difference? Yes, there is. What the heck is she talking about? This is what happens when you come into a middle of a conversation that you didn’t know how it started. You are left wondering what are they talking about? I don’t want anyone to be confused about the real estate market in Collin County and so let’s just start there.
Let’s start at looking at last April compared to April of 2023 for resale homes in Collin County. I think this will surprise you, median sales prices are up only .5% over last April. For those complaining about escalating prices you might want to tone that down a bit. Yes, if you look at 2019 there has been an abnormal percent of price increase but not based on April 2022 vs April 2023. You want to hear a big change? The days on market went from 5 days in 2022 to 36 days in 2023 and that is a 620% increase. Wow!! However, looking back to 2019 the time on market is more of a normal days on market for resale homes. Everything is relevant, right?
Another fairly big change is how much we are going to have to pay for a home when having to compete for it. Last year 2022, the median percent of the listing price (offers on listing price) was 106.8%. In other words, it was over list price. In April of this year, even though prices are higher, offers were coming in at 96.2% of list price. You are probably saying to yourself "that is a good deal!" The question I ask myself, what is driving these offers at this time? Inventory is one reason. The inventory in 2021 & 2022 were .4 months and .5 months respectively for resale homes. This April it was 1.3 months of inventory. In other words, more competition. Hold on a moment! In 2020 inventory was 2.1 months & 2019 it was 2.5 months of inventory of resale homes. The concern I have now is that inventory has actually gone down from January of 2023 to where it is at in April. Why am I concerned? If inventory drops and demand picks up, we might get back to where we were last year. I am hoping that does not occur for multiple reasons.
The concern I have is real due to both pending sales and recent closing compared to the last couple of years. Demand is down and that is most likely due to increased prices and interest rates. However, I think it is more about home prices than the latter. I want people to be able to afford to buy homes and when the market has ample inventory with competitive prices it is good for everyone. Yes, sellers might not like it that much because when the market is tight they get more for their homes. However, sellers will do okay.. I am going to sign off of this long blog but don’t forget, if you are looking to buy or sell, ask us for advice and we will give you the full picture. We don’t want anyone coming into the middle of the conversation without knowing the facts.
Roxanne DeBerryPosted by Roxanne DeBerry on