"February-Good News, Bad News, No News In Real Estate"
Posted by Larry DeBerry on Thursday, March 2nd, 2023 at 4:05pm.
Sometimes that is how I feel abut the information I hear from certain news outlets. It can be frustrating to the public when searching for accurate information. I am going to give you the statistics from our MLS on what happened in February on resale homes in Collin County. Our team puts together at the end of each month graphs that show data comparing the specific month we just finished with the past 4 years for this specific month. This way we can see the trends and it allows us to make assessments about the market. So let's take a look at the median sales price for the county. It was $482,500 which was up 1/2% of the same period in 2022. This means that prices stabilized over the last few months. However, we are also tracking other factors that might change that dynamic. If you heard that homes are now sitting 620% longer than same period of last year would you want to put your home on the market? Probably not. However let's get away from percentages. Resale homes medium days on market in February was 36 days. If you look at the same period of 2019 you would see in February of that year days on market was 44 days. Yes homes are sitting longer than in 2021 & 2022 but almost the same as 2020. I would say that I believe based on the inventory of homes I don't think this will increase that much..
You may wonder about why prices have not come down much especially when news channels are saying they are. First, inventory has not grown a lot and that continues to have an effect on pricing. However, what has changed is offers are now coming in below list more often than over the past two years. In fact , offers were coming in at 96.2% of list price. This is almost where they were in February of 2019. Our concern is the inventory. It is at 1.3 months of supply for resale homes. This is way up over the past two years but still below 2020 & 2019 inventory numbers. As demand increases it may effect prices once again. This is an area we are watching closely. Pending sales were lower in February but closings were not off that much for this period of time. Why is that? Pending sales is based on what happened in that specific month where homes that closed may have started under contract much earlier than that.
My recommendations for buyers of resale homes is that you may want to start your search early since you may end up with more competition on homes if the inventory doesn't improve significantly. For sellers I am advising them that market dynamics are such that it is a very good time to sell. Inventory is still not grown that much which means competition will still be high for homes. If we see a surge in homes coming on the market all bets are off. If you are considering buying or selling, please give me a call and I can run information for the areas you are looking to purchase in. For sellers I need to look at their individual neighborhood to give them the correct information to make a decision to sell. This is Roxanne DeBerry, Realtor with KW and my number is 214-676-8040. Give me a call.