Depending on how you view the term the" Ides Of March" whether positive or negative, it can also apply to the Collin County single family home real estate market. It was not a "killer Market" if you reference it to the death of "Julius Caesar" or a kickoff to a "Spring Festival." It is the 1st quarter of the year in real estate and in most cases through history it has been a slower time in overall real estate transactions. If you apply good or bad to this time of the year, you are missing the point. Yes, this year has been off compared to the last 2 1/2 years. In some cases by quite a bit but in others not so much. Homes are selling and that means people are buying. The next quarter will really tell us if the market is going to get back on track to it's historic norms. Let's take a look at what happened in March of this year compared to March of last year. (Remember we were still in the throws of the pandemic).
Why do I ask you to remember that we were still in the pandemic time frame? This caused us to have extremely reduced inventory and that in general caused a rush to purchase available homes which in turn caused escalated home prices above the norm. The "above list price offers" on homes was extremely elevated. I classify this time period as "abnormal" due to what took place and we are now just seeing the correction to that market. How long will it take for us to move back to a more "normal" market is anyone's guess. However, I see us moving in that direction slowly. This means we will continue to see some of the same dynamics play out in our present market but not at the extremes of the past couple of years. Here is the stats for March Single Family Homes In Collin County.
The median sales price was down 9.0% compared to March of 2022 which was up over March of 2021 by 36.6%. See what I mean about inflated prices. I am seeing a correction to that in the first part of this year. Days on market has changed as well. This March it was 18 days before a home sold last March it was 5. Big difference! One of the reasons for the change is due to increased inventory of homes. It was only .6 months of inventory in March of 2022. In March of this year it is 1.4 months of inventory. We were seeing a rise in inventory the beginning of this year and it slowed over the last couple of months. Hopefully, more homes will come on the market which will help with pricing. Offers on homes this March were coming in at 98.4% of list price which is down over last March which was 110% of list price. Inventory and demand affects this area. I have seen over list offers on some homes but not anywhere close to what we saw last year. The area that concerns me is the new listing data. In March of this year it was down 19.2% compared to last March. We need new listings to help the inventory grow and help prices to normalize. One of the reasons this may be happening is because of mortgage rates. Thanks to the Fed increasing the percentage banks do with other banks it causes the mortgage rates to rise. However, let's do a reality check about rates. In the 80"s interest rates soared to over 18% and we were still selling homes. When people want another home the rates may not play as big a part in the decision making process.
My team and I are very busy working with buyers and sellers and we are seeing homes going at the list prices and in some cases slightly above list. The key is making sure our sellers understand that we need to set a competitive price to attract multiple buyers so as to have the opportunity to get multiple offers, which in most cases will be at the list price or slightly above the list price. If you want to know what is going on in the area that you would like to purchase a home or sell one, give us at call at 214-676-8040 and we will be happy to give you the latest scoop on that area. Enjoy the Blue Bonnets this time of year and the wonderful spring weather
Roxanne DeBerry-Realtor
The DeBerry Team of KW
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