If you’re a homeowner in East Dallas or planning to become one, I’m going to be sharing a BS free update on the latest housing market trends from August 2023.
What does BS free mean? It means no exaggerated statements and just the straight goods.
Make sure you stick around to the end of this blog or the video so that you can take advantage of some hidden opportunities whether you’re thinking about buying or selling a home in East Dallas.
Where is East Dallas?
Before we get started, let’s take a minute to specify what areas are considered to be East Dallas.
Basically, this market update includes all single-family homes from Central Expressway to the eastern border of Dallas, and from Northwest Highway down to I-30.
Here’s how it breaks down by zip code. East Dallas includes: 75206, 75204, 75214, 75218, 75228, and a very small portion of 75223.
How Much Supply is in the Market?
From a high level perspective, in August there was a 2.7 month supply of single family homes available for sale in East Dallas, which keeps things pretty firmly in seller’s market territory.
What does that mean? Months of supply tells you how many months it would take for all of the homes currently on the market to sell.
Four to six months of inventory indicates a more balanced market. Less than 4 months means there’s not a lot of inventory available which can drive price up. More than 6 months of supply means there’s lots of properties available for buyers to choose from which can drive price down.
So, how is inventory trending? Well, it’s been trending up since summer began, but that is typical for our market because more people put their homes on the market while more buyers are shopping for new homes, which is usually during the summer.
To be more specific though, August inventory was up from 2.4 months in July.
Inventory was also up year-over-year. In August of 2022, there was only 1.8 months of supply on the market.
What about Sale Prices?
In August, the average sale price for a home in East Dallas was $681,988. Please keep in mind that this was the average across all of the neighborhoods in this broad geographic area.
Sale prices ranged from $180,000 for an 894 square-foot, 3 bedroom, 1 bath home in Casa View, to $2.1 million for a 5400 square foot, newly constructed home in Lakewood-proper.
The average sale price is unchanged from this time last year, and down slightly from $706,578 in July.
List to Sale Price Ratio
In August, the average list to sale price ratio was 96.6 percent.
That simply means that on average, homes were selling for 96.6 percent of their original list price.
That’s a slight drop from 98.8% in July, and 98.4 percent in August of 2022.
How Many Days is a Home on the Market Before it Goes Under Contract?
On average it took 26 days for an East Dallas single family home to sell. That’s pretty much the same as July of this year, and up slightly from August of 2022 when it took 20 days on average to sell an East Dallas home.
I anticipate that home sales will take a little longer as we move into fall, but that’s a typical seasonal change that happens every fall as people shift their focus from home buying and selling, to getting back to school and work.
Ok if you’re thinking about buying real estate in the near future, then you’re probably curious about mortgage rates. Rates peaked at 8 percent toward the end of August, but they are back down around 7.375 percent for a 30-year conforming loan, without buying points. Jumbo rates are slightly lower at 7.25 percent.
Interest rates move up and down depending on the most recent economic news that gets released and how the market responds to that news. That being said, my contacts in the mortgage industry think that rates will stay in the lower 7 percent range for the near future.
Forecast for September Housing Sales
One of the best indicators of what lies ahead for September is to look at how many home sales are currently pending.
When a home sale has shifted to the “Pending” status, it means that the buyer and seller have met their contractual terms and they’re simply waiting to close.
Right now, there are 85 single family home sales in East Dallas that are pending. This is about half of the number of sales that were pending during the same time last year. But that’s not of great concern to me, because for the majority of this year, total sales have been about half of what they were in 2022.
On average, these homes were on the market about 28 days before going under contract.
I’ll be able to tell you more about these sale prices in next months update. For now, I can tell you that September list prices are nearly 8 percent higher than they were in September of 2022.
So, to recap…..
- Supply or inventory remains low, which favors home sellers.
- The average sale price was down from July, and unchanged year-over-year.
- On average, an East Dallas home sells for 96.6 percent of the seller’s original asking price.
- In August, it took about 26 days to sell a home in East Dallas. That number will likely go up as we move into fall, like it does every year.
- Fall market activity will depend on the quality of the listings that come to the market and how buyers respond to interest rate stability or fluctuations. My prediction is that we will continue to see pops of activity from week to week as local and out of state buyers continue to search East Dallas for their dream home.
What this means to you
So, as you process this information, it’s really important to understand that macro-level statistics really only scratch the surface of market activity. The bottom line is that whether you’re buying or selling, your situation is unique and a general market update should always be taken with a grain of salt.
If you want an accurate market analysis for your home or you’re thinking of buying and want to know where hidden opportunities may lie, you can either request a free no-obligation market evaluation or book a call with me to have a no-pressure conversation about your options.
I’ll always just give you the straight goods so that you’re informed to make the best decision that’s right for you, based on your personal situation.
If that would be helpful, contact me directly so that we can set up a call. Otherwise feel free to check out my other blogs and I’ll be back next month with an updated, BS free report.
Thanks for tuning in and have a great day.