The data point I’ve been watching like a hawk has been our months supply of inventory. That’s the metric that tells us how long it would take all current inventory to be purchased based on the current demand.
So, where do we stand?
Great news! We went up. While it was just a hair and we went from .8 months to .9 months, I will take what I can get and be happy with it! When we look at the entire North Texas MLS system, it had an overall increase as well and now has 1.1 months of inventory versus the 1 month from April.
What might also start to help things is that the number of mortgage applications went down 3.1% from one week earlier. Now that isn’t much, but every little bit helps!
Our interest rates are still below 3% at 2.99% with .6% in fees and points.
So let’s dig into the data for May and see how the market performed.
For this local market data, I use numbers from single-family home sales in Rockwall County. These numbers are based on sales data from May.
The average sales price is at $439,612. That’s a 25.1% increase from one year ago.
The number of homes for sale is at 221 homes. We are down 65% in the number of homes available to buy in Rockwall County.
Rockwall County had 243 sales in May, a 14.6% increase over last year.
Homes sold 85.7% faster in May than they did last year, and we averaged just 6 days on the market.
Our months of inventory went up just a hair from .8 months of supply in April to now having .9 months of supply. This number tells us that based on current demand, if no new listings came on the market, it would take just about three weeks for all of the current inventory to be purchased.
We listed 282 homes in May which is 15.6% less than last year.
Our average sales price per square foot is at $150 per square foot, a 15.4% increase from last year.
Up. Everything is up. It got me wondering, which neighborhoods in Rockwall County are seeing the biggest swings from their asking price to the sales price. Essentially, which neighborhoods are getting the highest offers as compared to their asking price?
What I discovered was interesting! Here are the top five neighborhoods when I look at any neighborhood in Rockwall County that had 3 or more sales for the month of May.
#5: Caruth Lakes: 5.56% average sales price of $397,333
#4: Hickory Ridge: 6.05% average sales price of $329,475
#3: Sleepy Hollow: 10.88% - Fate, average sales price of $350,333
#2: Williamsburg 14.69% - Fate, average sales price of $382,442
#1: Sunrise Meadows 14.95% - Royse City average sales price of $310,000
If you are pondering a sale, I’ve been saying it for a little while now, now is the time to do it! We are starting to see more homes come on the market for the summer selling season but we don’t have nearly enough to meet the demand. Listing now could put you in a position to get the amazing over-asking prices.
If you’re curious to know what your home could sell for, let’s talk. Visit LivingInRockwall.com and click on the equity analysis button to see what your home could sell for in today’s market.
In April of 2018, the median price for a home in Rockwall County was $290,500. Just three years later, the median price has increased to $332,977. That’s an increase of about 15%. Some pockets of Rockwall have seen even higher increases.
This made a lightbulb go off for me for all of my clients who purchased three years ago and only put 5% down on their mortgage. It’s quite likely they now have enough equity to remove PMI from their mortgage.
So let’s back up a few steps. What is PMI?
PMI is . It protects the lender, not the borrower by the way, if you stop making payments on your loan. It’s usually on any conventional mortgage where the down payment on the home was less than 20%.
It can be paid by a monthly premium (which is the most common), it can be paid by a one-time upfront premium that you pay at closing, or it can be a hybrid of the two.
The cost of PMI is determined by the total loan amount and your credit score and can be as high as 2.25% of your mortgage. In other words, a lot of money.
How can you get rid of this expense?
You could pay down your loan to reach 20% equity in your home. Or you could refinance. Before starting the process of refinancing your home, you should keep in mind there are costs associated with going through this process.
And here’s a pro tip from local lender, Jason Cooley, with Integrity Mortgage. You want to make sure you’re talking with a lender who will do a cost vs. savings analysis to see how long it will take you to break even on the cost of the refinance versus only looking at your monthly savings.
So, before you start, you should get a sense of what your home could sell for in this market and get an equity analysis. This is something that we provide to our clients whenever they’re considering a sale and I’d be happy to offer this for free for you.
Here’s what you do to get started: go to livinginrockwall.com and click on the button that says, “Get My Equity Analysis.” Provide some details on your property and your current loan payoff amount and I’ll get that analysis to you within three business days.
As a bonus, with interest rates so low, when you refinance you might bring your monthly payment down even more than just the cost of your PMI.
If that sounds like something you’d be interested in, that website again is LivingInRockwall.com. And if you need a recommendation for a lender, I can help you there too.
If you’ve found this video helpful, remember to subscribe to the Living in Rockwall pages on Facebook, Instagram, and YouTube for more information about real estate in the area and market updates.
Jennifer Shannon is a Texas real estate agent and broker, licensed since 2006.