G.J. McCARTHY/Staff Photographer
North Texas home prices are still on a hot streak.
In May the price of preowned homes sold in North Texas surged another 10 percent from a year earlier.
At a median price of $255,000, area home prices have never been so high and show no signs of a cool down.
As long as demand for homes in the area remains strong, Dr. James Gaines, the chief economist with the Real Estate Center, sees not stop in the price growth.
"As long as shortage persists there’s no end," Gaines said. "Rate of change might vary, but it’ll still be significant.
"Demand continues to outpace supply."
North Texas real estate agents sold 10,939 single-family homes last month, according to the latest data from the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems.
May’s home sales were 15 percent higher than in the same month last year.
"The North Texas housing market continues to have a shortage of home listings, especially under $300,000," said Ted Wilson with Dallas-based housing consultant Residential Strategies Inc. ".With demand far outstripping supply of ‘starter’ and ‘first move-up’ homes, it remains commonplace to see multiple offers at or above asking price for these more affordable homes as the come to market.
"The challenge is that, with all the growth and in-migration of households stemming from our robust job growth, there simply is not enough housing stock for those households seeking lower-priced, well-located homes."
Neighborhoods that saw some of the biggest year-over-year homes sales gains in May include Duncanville (up 73 percent), Fairview (59 percent), Wylie (50 percent), Oak Cliff (46 percent) and North Dallas (38 percent).
Through the first five months of 2017, area real estate agents have sold a record 40,592 houses – up 5 percent in sales from the same period in 2016.
Another 11,311 home sales were pending but not yet closed at the end of May.
One of the biggest increases in sales so far in 2017 has been North Texas properties priced at $1 million and more. As of May 663 million dollar homes have traded – 37 percent more than in the first five months of 2016, according to the Real Estate Center.
There is finally some sign that the huge shortage of homes for sale in North Texas is easing. In May there were almost 20,000 homes listed for sale with real estate agents in the more than two dozen counties included in the survey. That’s a 10 percent gain in homes for sale from a year ago.
Even with that increase, there is still less than a 2.4-month supply of area houses in the real estate agents’ multiple listing service.
On average it took only 37 days to sell the houses that traded in May.
In 2016, North Texas real estate agents sold a record of more than 100,000 houses.
And median home sales prices in the area have shot up by more than 50 percent in the last five years – one of the biggest such gains in the country.
Paige Shipp with housing analyst Metrostudy said as long as the difference between prices of existing and new homes remains high, preowned values will continue to rise.
"We are seeing a slowdown in price appreciation for new homes, but the median is still $315,000," she said.