I frequently get calls or text messages from my clients that have driven by a house with a sign in the yard or found a house on one of the national home sites and they want to know if
Are We Still In A Sellers Market
Are we still in a seller's market?
I am constantly asked questions about the current market: "Are we still in a seller's market?" "When will it switch back to a buyer's market?" "We are thinking about selling, but have heard we will be in a multiple offer situation when we buy - is that true?" Although the answers to most of these questions are not as black and white as most of us would like it be, there is data and statistics to point us in the right direction and help us make informed decisions.
First, it is important to understand what a buyer's and seller's market actually is. It may come as a surprise that these are more than just buzz words thrown around by Realtors but actually statistically quantified states of the market.
Markets are determined by the number of "months of inventory" currently available. Months of inventory is the amount of time it would take to sell all of the current listings in a given area if no new listings became available. Typically in a seller's market we see houses on the market for fewer days, multiple offers and in some cases homes selling for above list price. In a buyer's market, houses sit on the market for much longer and can go through multiple price reductions. It is easy to overgeneralize and say DFW as a whole is still in a seller's market. Although that is true, I would argue that almost every city with a few exceptions is its own market and we are starting to see key differences between markets.
The market has definitely started to soften in the last few months at the higher price points. For example, Colleyville's inventory has steadily increased from 4.4 months of inventory on hand in May to 5.6 months of inventory in July. Although that is still considered a "balanced market" it is no longer the seller's market we experienced for so many months. Colleyville's bordering neighbor directly to the south, Bedford, is still a strong seller's market with only 1.0 month of inventory on hand in July. However, it is critical to note Bedford had an average sales price of $239K compared to Colleyville's $629K in the same month.
So what does all this information mean for you? Every market is different and every buyer and seller's situation is completely different. Do not panic if your $650K home in Southlake takes a couple of weeks to attract the right buyer. However, in Euless, you better know where you are going to move before you list your $215K house or you might end up homeless.
If you are thinking about buying or selling in the next 12 to 18 months, I would love to sit down with you, analyze your situation and develop a game plan tailored to your specific needs. In the next few days, I will be tackling what is causing the drastic increases in home values and whether or not I think we are in a bubble. Stay tuned!
Christy is a multi-million dollar producing agent with the heart of a teacher. She grew up in the HEB area and is a graduate of Trinity High School. She attended the University of Texas at Austin whe....