Lochwood Market Update – September 2020

Hello again, neighbor.

First and foremost, please accept my apology for not getting your Market Update to you the past couple of months. I was consumed with representing several home buyers and sellers all around East Dallas. It was a busy summer! There was so much buying and selling activity, in fact, that our local MLS (Multiple Listing Service) closed out $5 billion in sales in July. That’s the highest amount of sales ever recorded in one month. The record that was set in July was followed by $4.2 billion in sales in August. The total dollar volume of sales for September has not been reported yet, or I would include it here.

Let’s shift our focus to what happened in Lochwood in September! Below is a list of the homes sales that closed in September.

Overall, ten home sales closed, which was up from 6 sales in September 2019. The median days on market was down from 59 to 10. That’s a pretty big drop! Inventory, the months supply of homes for sale, also dropped considerably from three months to 1.3 months. The median sale price was down, but I am not too concerned about that because it’s such a general number and it doesn’t really have any correlation to overall market appreciation or depreciation. There are fewer Pending Sales than last year but it doesn’t concern me too much either because we still have such low inventory and interest rates remain historically low. Additionally, according to my sources at many of our local chambers of commerce, relocation inquiries from companies looking to move to Dallas/Fort Worth, from other parts of the country, are off the charts. That means more population growth and housing demand for the area.

Below is a summary of year-over-year activity for September 2020.

Overall, my outlook for the residential real estate market is really optimistic, especially when you consider what a crazy year we’ve had and some of the uncertainty that lies ahead. Activity does tend to slow during an election year so if our numbers for October, November and December are a little lower than last year, it will not come as a surprise. That being said, if the fourth quarter is slow, I am certain that buyer demand will rebound in the spring of 2021. That’s exactly what we experienced this summer after the market was shut down in the spring due to sheltering in place. There is simply too much demand, too little inventory, and the cost of borrowing money too low for any type of over-correction. Feel free to call me if you have questions about your home or the market in general.

As always, thank you for your time and referrals. Have a great day!