by Larry DeBerry
on Thursday, January 5th, 2023 at 3:56pm.
I am not saying that you need to run out and buy a home immediately. What I am concerned about for buyers is that inventory moved up through October 23 of 2022 and since then has continually come down from that high. In other words, we were seeing about a 2.1 months of inventory and up to that point it was continually increasing. Since then it has dropped back to about 1.6 months of inventory on resale homes in North Dallas and Collin County. This is still much more than months previous but not moving in the right direction or holding like we would like to see. The urgency? If I was a potential buyer of residential real estate looking to purchase a home, I would factor this information into when is the right time to buy. Why? If you recall, there were bidding wars for homes and lots of cash had to be brought to the closing table just a few months ago. Also, most of the homes on the market were going above list price. At this point we are not seeing that happening. I just wanted potential buyers to know they may need to move up there buying decision if the inventory continues to decline.
In Collin County when you look at median sales price and compare December of 2020 to December of 2021 home prices rose a whopping 29.2%! This past December of 2022 compared to December of 2021 home prices only rose 3.2%. This was due to the rising amount of inventory available. Housing prices did not go down in December as some news outlets may have reported but actually increased as I indicated. How long did homes stay on the market in 2021? Only 7 days! Wow, that is how fast homes were moving because there was not enough of them on the market. How many days on the market were they on in 2022? 33 days and rising. Why? Rising inventory which means the public has more homes to look at. By the way inventory increased over 2021 by 371.4% in Dec. 2022 over Dec. 2021. In Collin County the median % of the original price for resale homes was 100% in December of 2020 and in December of 2021 it was 102.6%. a 2.6% increase. People were basically fighting each other to purchase a home. It was much like that as we went into the 1st half of 2022 but for December of 2022 the median % of the original sales price on resale homes was 95.6% which means it was down about 6.8% from December of 2021. Having more inventory is a good thing when you are looking to purchase a home.
The demand for resale homes also dropped in December of 2022 year compared to the December 2021 & December 2020 in Collin County. Various reasons are stated for the decline, higher interest rates, home prices escalating as to make home less affordable. I have told those who read my blog and everyone else don't use the past two years as the benchmark of our real estate market. Go to the 3 years before and you will see that we are moving back to a more normal market if inventory continues to come back to a more balanced market. Don't panic is my advice. Our market is very strong in the way of employment and people wanting to move here to our area. Don't get discouraged when trying to figure out if you should buy now or later. My goal is to help answer any questions that buyers and sellers of resale homes have when deciding to buy or sell. My door is always open and I love to hear from you if you have questions. My name is Roxanne DeBerry and you can reach me at 214-676-8040 or drop me a line at my business email at firstname.lastname@example.org. May each of you have a wonderful 2023!