December is traditionally a “reset month” for the housing market. Many houses are withdrawn from the market to allow Sellers to host gatherings at their homes for the holidays and let the days on market (DOM) reset after 31 days off market.
Consequently, we would expect more expensive occupied homes that have been on the market for a while to be the first to be removed for a reset. These actions create a lower median listing price because there are fewer expensive homes on the market. It also should drop the median number of days on market because these homes could have been on the market more days due to their price point.
Meanwhile, the median price per square foot is expected to increase because smaller homes typically cost more per square foot, assuming all other factors remain equal. After all, a two-level 5,000 sq ft home can be on the same amount of land as a 1,500 sq ft home. The price points can be dramatically different, but the price per square foot should be higher for the smaller house. This difference clearly manifests for all homeowners during tax appraisal season in April.
Anything that goes against these general cyclical trends is noteworthy this month. Specifically, the DOM is mostly up, which indicates more Sellers than expected left houses on the market and may need rather than want to sell, which is good for buyers. Meanwhile, total Active listings are down across all three reported counties and mixed across individual cities. Closed sales increased in Collin and Denton counties.
Dallas and Collin counties decreased their Median Percentage of Original Price. Celina had the most significant sale price percentage drop at 87.1% of the original price. It was joined by Prosper and Van Alstyne as locations offering potential bargains. No reported areas are in strong Buyer’s Markets this month since none have more than six months of inventory.
All reported areas have seasonally reduced inventory levels as expected. Aubrey has the highest year-over-year (YOY) inventory increase at 54.8%. Little Elm has the lowest at -9.8%, while Van Alstyne and McKinney are at 0.0%. Dallas County has 3.7 months of inventory, while Collin and Denton counties have 3.4 months.
McKinney has the most Active homes at 851, while Van Alstyne has the fewest at 137. Prosper has the top Median List and Sold prices. The low percentage of the original price may indicate that many homes are overpriced. Prosper tied Frisco for the highest Median Price Per Square Foot (PSF) at $233 PSF. Anna remains the most affordable Median PSF listings in the reported area at $158 PSF (another decrease from last month).
Collin County has the lowest median price PSF this month at $189. Dallas County has the most Active properties at 6,047. Dallas has the highest median closed percentage of the original listed price at 95% of the list price.
Van Alstyne got the lowest median percentage of the original price at 89.3% (a sharp reversal from last month), while Plano and Denton got 95.3%. Frisco has the lowest reported median days on market, at 43 days, while Van Alstyne has 127 days.
I've Got Your Six!
Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified
214-862-7212 (call or text)
DFWmark@kw.com
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