Well, we have a lot of people moving in this direction. I just made a video about that titled, “How many people are moving to Texas?” The short answer is - a lot.
New census numbers have been released and the DFW area led the country in population growth with the addition of 120,000 residents in 2020. We’re now the 4th largest metro in the nation and of the top four metros, we’re the only one who had population growth.
New York lost 170,000 people, LA lost 118,000 people, and Chicago lost 72,000 people. A lot of those folks are coming here.
This migration along with a listing shortage of resale homes and a shortage of new construction homes to hit the market due to supply issues are what’s affecting the pricing.
Are you overpaying in this market?
I don’t think so. Dave Ramsey actually did a great segment on his show about this.
I agree that the market will eventually soften as we get more inventory, and that will happen. The rate of increase in prices will slow but the elements that create a bubble aren’t at play in this market. Every day that you hold off on buying the prices are going up.
I love his statement that just because a market is going up, does not mean that it’s coming down. According to Investopedia, a bubble is driven by something outside the norm such as manipulated demand, speculation, unusually high levels of investment, excess liquidity, a deregulated real estate financing market, or extreme forms of mortgage-based derivative products.
What we’re seeing is not investors speculating in the market but owner occupants moving to the area to buy a home to occupy. The demand is being driven from an increase in population and a decrease in supply. When the supply comes back on board, the bar has already been set as far as pricing goes and there are no factors that I can see that would drive that pricing bar back down, unless there’s an unforeseen mass exodus of people from the area.
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 April.
The average sales price is at $414,922. That’s a 17.3% increase from just one year ago.
The number of homes for sale is at 186 homes. We are down 71.3% in the number of homes available to buy in Rockwall County.
Rockwall County had 203 sales in April, a 14.7% increase over last year.
Homes sold 59.1% faster in April than they did last year, and we averaged 27 days on the market.
Our months of inventory went up just a hair from .7 months of supply in March to now having .8 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 239 homes in April which is 5.5% less than last year. In April of 2019, we had 310 homes listed on the market, so we’re still well behind our normal rate of listings to jump start the spring selling season.
Our average sales price per square foot is at $155 per square foot, a 17.4% increase from last year.
If you’re contemplating selling your home, now is the time to do it! The Patty Turner Group has put together resources to answer questions a lot of potential sellers have in this market right now.
What if I don’t have a home to buy by the time I sell?
How much more will I have to pay for what I want in my next home?
With multiple offers, how will I know which one is best?
How can we live our life in the middle of all these showings?
What if I don’t have the time or energy to get my home ready to sell?
If you have any of these questions, let’s talk. You can visit crazyrealestatemarket.com for answers to these questions or contact me by calling 214-803-4444
Jennifer Shannon is a Texas real estate agent and broker, licensed since 2006.