In Collin County, no matter how you view it, it looks like we are seeing some changes. However, not as dramatic as they could be in the very near future. What do I mean? When you compare both resale homes and new home sales for like periods, in other words, April 2022 to April 2021 it may look as if the market is still on the upswing. However, when you go from January through April of this year you can see some trends going in the other direction. One of the things that we notice is that inventory seems to be lower in April of this year compared to April of last year. However, when we look at January through April of this year inventory is steadily climbing upwards and if this continues on the track it is on it will exceed last years inventory. The same thing is true about New Listings. If you look at April 2021 to April 2022 you would see that they are lower this year than last. However, the trend line from January through April of this year has shown a dramatic upswing.
What does all this mean? It means that the market is changing. With higher interest rates we are seeing New Construction demand start to lower. Preowned homes will be affected by it as well. We haven't seen the amount of inventory come on just yet that is moderating offers on homes through April. However, as more inventory continues to climb it will definitely have an affect on offers. One of the other areas that is adding fuel to growing inventory is interest rates. You may say, how does that affect inventory? Remember interest rates were very favorable for quite sometime but as they increase this may affect demand. Less demand ad growing inventory means that the buyers in the market will have more to choose from and that fact alone will affect offers on homes. We are telling our past clients that if they are thinking of selling, this is the time to get your home on the market before any major changes happen.
On resale homes we can view what happened in April of 2021 and compare it with April of 2022. When looking at both pending sales and closed sales they are down from last year. With more inventory coming on that means that there is going to be more and more choices for buyers. Another factor we watch is Days On Market. Although this number has not changed dramatically, the trend line is upwards which means inventory is starting to sit longer on the market. At this point in time that is not a major factor but it is moving in the direction that could help create the growth of more inventory and therefore more competition between homes. It is important to know what is going on in your particular subdivision and we can assist with that information, so please let us know if we can be of help.