Happy fall, neighbor! Are you enjoying the beautiful cool weather we’re having this week? I certainly hope so.
The results of September home sales are in and it appears that September 2021 was a lot like September 2020. Check out the year-over-year summary below. Months Supply (inventory), Homes for Sale, Days on Market, Closed Sales and Pending Sales all nearly mirror one another. The biggest difference from this year to last is the Median Sale Price. Overall, the median sale price has increased by 35 percent, year over year. But, what does that really mean, and how did we get here? Does it mean that your home specifically has increased in value by 35 percent? No, not necessarily and please don’t take offense to that.
The reason that we are seeing such a substantial increase in the median sale price is because the number of homes selling over $500,000 increased by 100 percent. So, in September of 2020, only three of the 10 homes that sold were priced over $500,000. In September of 2021, six of the 10 homes that sold were priced over $500,000. We (real estate pros) are seeing this throughout DFW. Sales of more expensive homes account for a larger percentage of the market than more moderately priced homes, which is contributing to the large amount of price appreciation that you are seeing reported in the media.
The most common question that I am asked these days is, “When will the market level off?” Most analysts and economists are forecasting that our market will level off in 2022. That position is based on the assumption that interest rates are going to increase and that affordability will be an issue for buyers in the near future. Income growth is not keeping pace with price appreciation in home sales. Eventually, something is going to have to give and move back toward “normal’ or a more balanced market. Looking back, this is exactly what happened in 2017, 2018 and 2019 – price appreciation began to level off.
So, what real estate or market-related questions do you have for me? Let me know. If you have a question, more than likely someone else has the same question, and I am happy to answer it in one of my monthly updates. Give me a call or send me an email and I will answer promptly!
Be well + enjoy the beautiful weather!