Lack of Housing Puts Pressure on Market
In a sobering repeat of the previous year’s finale, the 2016 housing market again reached a record low inventory of available housing stock. While the sales volume and prices did rise year over year, industry experts may express concern at some of the underlying currents displayed in the monthly sales figures released today by the MetroTex Association of REALTORS.
“Overall, the market performed exceeding well in 2016,” said James Martin, president of MetroTex. “We’ve reached over $28 billion in sales for the first time in history, and completed over 101,000 transactions. That’s an incredibly active market for us. However, for the size of the market we are experiencing, we would hope to see many more new listings coming up. In December we really didn’t see enough to replace the homes we sold. It’s almost hard to imagine what will happen to price levels if we continue to see inventory levels fall at this rate. Hopefully, we’ll see more completed new homes enter the market in the spring.”
According to the report, 8,365 homes were sold in North Texas in December, a 3 percent increase from 2015. The dollar volume of sales in North Texas increased 10 percent year-over-year to $2,373,050,120. The average price in December was $283,688 up 8 percent from last year.
North Texas’ monthly housing inventory fell to 1.9 months in December, tying the record low that was set last December. The Real Estate Center at Texas A&M University remarks that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.
Homes spent an average of 47 days on the market in December. There were 16,401 active listings for the North Texas housing market during the same time frame, a 1 percent drop.
- 8,365 – Homes sold, 3 percent higher than December 2015.
- $232,000 – Median sales price for homes, 10 percent more than December 2015.
- $283,688 – Average sales price for homes, an 8 percent increase over December 2015.
- 1.9 – Monthly housing inventory in December 2016.
- 47 – Average number of days homes spent on the market in December 2016.
- 16,401 – Active home listings on the market in December 2016, a 1 percent drop.
- $122 – Average price per square foot, up 6 percent year-over-year.
2016 Market Overall
- 101,529 – Homes sold, 6 percent higher than 2015.
- $28,050,996,211 – Total dollar volume of sales, up 13 percent from 2015
- $225,000 – Median sales price for homes, 10 percent more than 2015.
- $276,286 – Average sales price for homes, a 7 percent increase over 2015.
- 42 – Average number of days homes spent on the market in 2016.
- 18,355 – Average active home listings on the market in 2016, a 1 percent drop.
- $119 – Average price per square foot, up 7 percent year-over-year.
Source: “Stunning lack of available housing puts increasing pressure on market.” MetroTex Pressroom. 09 Jan 2017. http://mymetrotexblog.com/pressroom/2017/1/9/stunning-lack-of-available-housing-puts-increasing-pressure-on-market
The MetroTex Association of REALTORS® represents more than 18,000 members involved in all aspects of the real estate industry. As the largest REALTOR® member association in North Texas, MetroTex represents the entire region. Established in 1917, MetroTex is an advocate for the real estate industry and private property rights. For more information, visit us online at DFWRealEstate.com.