This month the market is apparently slowing in the DFW northern suburbs. In tracking this trend, we looked at changes from September to October and noted that in Plano and McKinney the DOM, Days on the Market, were up substantially over a month’s period. Frisco's DOM were up only slightly, while in Allen, we noted a slight decrease. Looking at the months of inventory, the range is from 2.5 to 3.5, with Plano being the lowest and McKinney the highest. Frisco and McKinney have the highest number of new homes. That can more than likely accounts for their higher inventory numbers. Prices continue to go up month to month, but the rate of increase has definitely slowed. As the inventory has gone up, the DOM has gone up, as well, and it is taking longer to sell a given home. Of course, with the advent of the Holiday season, this certainly plays a part, but affordability is also a part of the “equation slowdown”. In the spring, I recall standing in line behind as many as eight other Realtors waiting to see a house in the $250K- $350K price range. That is no longer happening. Take Plano as an example, our daily monitoring of the market shows as many price reductions as new homes coming on the market. That certainly says something about the market slowdown.
Looking at the overall Allen, Frisco, McKinney, Plano year over year results, we focus on a few key indicators:
- We find Allen's DOM as of October 2017 vs. the same month in 2016 shows a 6.4% increase.
- Frisco’s data during the same time frame shows a 16% increase in DOM.
- McKinney data shows a 27% increase 2017 vs a 2016 in DOM
- Plano shows a 12% increase in this same time frame.
All of these data points indicate that it takes longer to sell a home in 2017, statistically, than it did in 2016. All of the targeted suburbs have increased inventory versus last year at the same time. These stats show increases from 13% to 50%. The increase in inventories certainly plays a part in the changing market dynamics. We believe the housing affordability will play an even greater part in the market as we enter 2018. For more expert analysis on our local North Texas Real Estate Market, call me! I love to crunch numbers.
Have a wonderful Holiday Season and we look forward to speaking with you soon!
Pat Przada, CRS, ABR, CNHS, CNE, SRES
Nancie Przada, GRI, ABR, CNHS, SRES
Licensed Texas Realtors
Keller Williams Realty
"Housing Cents" @TEAM-PRZADA blogspot.com
A Five Star Professional Realty Team
as noted in May 2012, 2013, 2014, 2015, 2016, 2017 Texas Monthly
Top 50 Plano Realtor as selected by Plano Magazine 2015