Lochwood Market Update – May 2021

Greetings, neighbor. They say April showers bring May flowers. Right now, I’m hoping that May showers don’t bring too many June mosquitos! All kidding aside, the recent showers have been great for the new sod that Jared put down earlier this spring. Tree trimming from Lindsey’s Tree Service has also helped our new lawn get some much-needed sun.

As you can see from the list below, there were a lot of Lochwood home sales that closed in April. Fourteen to be exact. Eleven of these sales closed within days at or above the seller’s asking price. A few were listed longer than 10 days before going under contract and closed slightly below the list price.

Supply (homes listed for sale/inventory) remained quite low, in Lochwood, and throughout DFW. Our neighborhood has had less than one month of inventory since December 2020, and it will likely dip lower next month as there are even fewer homes currently listed for sale. Limited supply and high demand pushed sale prices higher. Year-over-year, sale prices increased nearly 8 percent in Lochwood. For those of you who are not interested in selling now, it means that your property taxes will be going up again next year. But when that property tax assessment comes next year remember…..it could be worse because for all of Dallas County the median sale price was up 24 percent, year-over-year.

Industry experts anticipate that supply will remain low and that prices will continue to increase for a few reasons. First, we have a lot of population growth from both growing families and in-migration or people relocating to DFW from other parts of the country. Second, materials costs for new construction are increasing so rapidly that builders are holding back their listings until they know exactly how much it will cost them to build a new home. These price increases are largely attributed to global supply chain issues caused by the pandemic. A shortage of skilled labor is also contributing to limited inventory of new homes for sale. Builders cannot find enough skilled labor, so labor costs have also risen. Lastly, it’s still relatively inexpensive for people to borrow money to buy a home. Interest rates did creep up above three percent last week, but that’s still well below the threshold where it would push buyers out of the market.

That’s the long and the short of it for now. Call or email me with your questions or referrals. I’d love to hear from you. Until next time, be well and stay dry!