When setting the asking price for a home listed for sale, Realtors and sellers typically look at the comps (comparable home sales over the past 3 to 6 months). These are important numbers that no sellers should discount. However, just as important is the current inventory of homes that your property will be 'competing' with.
I've said it hundreds of times. Real Estate is location, location and ... timing. The location is the primary factor in the price of your home, followed by the condition and size. Other details like lot size, trees, pool, etc. play a smaller role in setting the price of a home in North Dallas. But current inventory will determine the demand for your property (and ultimately if the house sells). You can control the location, size, etc. of the home you purchase. But you can't control the current competition.
In Dallas, a six month supply of homes is considered a healthy balanced market. More than that and it is a buyer's market. Fewer than a 6 month inventory and it is a seller's market.
As of today, we have a 14 month inventory of single family homes in the area between the Northwest Hwy and LBJ Freeway, west of Central and east of Midway. However if you look closely at the numbers, the inventory is mostly for properties over $1 million. Homes under $1 million have a 12 month inventory and those over $1 million have an inventory of 19 months. That might sound like a lot, but it was over 24 months a year ago.
Current inventory in the Park Cities and immediate area is 11 months. But even these numbers vary by neighborhood. In the immediate area around my home, the inventory is 11 months. And we have lots of homes over $1 million. So it's still a buyer's market in North Dallas. However, inventory is down from this past summer. Prices will follow the inventory trends.
[where: 75230]
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