East Dallas Real Estate Market Report | July 2012-2013

East Dallas Real Estate Market Report – July 2013

Low interest rates and higher demand have fueled the East Dallas real estate market into overdrive in July 2013. Some market metrics have even surpassed their pre-recession levels (pre-2008). 

In general, prices are up moderately, inventory is significantly lower and the gap between listing price and final sales price has closed significantly.  The number of closed transactions has also increased significantly, with a return to pre-recession levels just months away if current trends continue.  Of course, it won’t be the end of the world if the market cools off a bit, it might even be a good thing for some lucky buyers that wait for the busy summer season to end before taking advantage of price reductions on some listings.

Buyers should be careful, though.  Interest rates have seen steady increases and many economists predict they may continue to rise slightly over the next several months.

MEDIAN SALES PRICE – $239,000

East Dallas Median Home Price July 2013 TopEast Dallas Median Home Price Data

The median sales price for East Dallas (MLS area 12) averaged $239,000 in the 12 months ending July 2013.  This was an increase of 9.6% on top of last year’s increase of 6.9%.

The median home price has risen by $54,000 from the median price of $185,000 in January of 2007 which is a 29% increase.  The median price leveled off at $215,000 in the fourth quarter of 2008 before dropping back to $185,000 in August of 2010.  It has since reversed course, posting steady increases nearly every month since. 

AVERAGE LIST PRICE – $299,241

East Dallas Average List Price Chart July 2013 East Dallas Average List Price Data July 2013

The average list price of homes in East Dallas for the last 12 months ending July 2013 was up by a more modest margin of 4% from July 2011-2012.  The average list price of $299,241 has also risen over $50,000 since January of 2007.  The gap between average list price and average sales price for homes in East Dallas has closed significantly since 2007. 

AVERAGE PRICE PER SQUARE FOOT – $140/FT

East Dallas Average Days On Market Chart July 2013 East Dallas Average Days On Market Data July 2013

The average price per square foot for homes in East Dallas for the 12 months ending July 2013 was $140 per square foot, which was a 9.8% increase over July 2011-2012.  This is also $12 higher than the $128 per foot in January 2007.  The average price per square foot only increased slightly from January 2010 to January 2012 but has been on a more upward trajectory ever since.

AVERAGE DAYS ON MARKET – 66

East Dallas Average Price Per Square Foot Chart July 2013 East Dallas Average Price Per Square Foot Data July 2013

Perhaps the most stunning metric of the East Dallas real estate market is the significant plunge in the average days on market.  The days on market dropped from an average of 104 between July 2011 and 2012 to just 66 in the 12 months ending July 2013 which was a decrease of 36.3%.  This was likely the result of several factors, including the increase in demand but also a drop in foreclosures and short sales which often take much longer to close.  The lowest average days on market over the last six years was 64 days in both August and September of 2007.   

PERCENT OF ORIGINAL LIST PRICE RECEIVED – 94.6%

East Dallas Percent List Price to Sales Price Chart July 2013 East Dallas Percent List Price to Sales Price Data July 2013

Homes are also selling much closer to their list prices as well, which happens in a hot market where demand starts catching up with supply.  East Dallas sellers received a full 94.6% of their asking price in July 2013, up from 92.5% in July 2012.  The market only has a fraction of a percent more to go to exceed the levels seen in 2007. 

MONTHS SUPPLY OF HOME INVENTORY – 3.3 MONTHS

East Dallas Months Supply of Home Inventory Chart July 2013 East Dallas Months Supply of Home Inventory Data July 2013

The number of months of home inventory in East Dallas also plunged significantly in the 12 months ending in July 2013 with a modest 3.3 months of inventory recorded on average.  This is still higher than the low of 2.2 months set in the early part of 2007, but it’s catching up.  The supply of inventory decreased by a wide margin of 48.6% compared to July 2011-2012.  And furthermore, July 2011-2012 saw a 32% decrease from July 2010-2011.  The number of months of inventory is roughly one-third of what it was just two to three years ago. 

HOME SUPPLY (NUMBER OF HOMES FOR SALE) – 719 ACTIVE LISTINGS (AVERAGE 12 MONTHS)

East Dallas Homes For Sale Chart July 2013 East Dallas Homes For Sale Data July 2013

The low number of listings is also a huge factor in the number of months of supply.  East Dallas saw the total number of homes for sale drop 35.9% from July 2011-2012, with a total of just 719 listings.  Compare that to the July 2010-2011 total of 1,519 which is a total drop of over 50% in two years.  (Could it be that people love living in East Dallas so much that they don’t want to sell their homes??)

NEW LISTINGS – 3,736

East Dallas New Home Listings Chart July 2013 East Dallas New Home Listings Data July 2013

Some good news in the supply trend: The number of new listings in East Dallas in the 12 months ending July 2013 actually increased 5% over July 2011-2012.  The increase marked the turn of a steady decline which started in April of 2010. (It’s important to note that the First Time Homebuyer Tax Credit ended in April 2010 which could explain part of the decline).  The increase makes sense.  People have slowly but surely begun to have faith in the market again and are listing their homes for sale.  And the low interest rates and rising prices have definitely enticed some people to upgrade homes.

PENDING HOME SALES – 2,988 (12 MONTHS ENDING JULY 2013)

East Dallas Pending Home Sales Chart July 2013 East Dallas Pending Home Sales Data July 2013

Pending home sales in East Dallas for July 2012-2013 rose by a wide margin of 29.7% over July 2011-2012.  A total of 2,988 homes were in pending status between July 2012 and 2013, which means a contract is pending on those properties but they had not yet closed.  This metric has been on a steady increase since early 2011, with the total rising over 50% in two and a half years. 

CLOSED HOME SALES – 2,916 (JULY 2012-2013)

East Dallas Closed Home Sales Chart July 2013 East Dallas Closed Home Sales Data July 2013

Closed sales in East Dallas for July 2012-2013 rose to 2,916, which was an increase of 30.9% from the July 2011-2012 figure of 2,227.  This metric, which closely follows pending sales, has also increased by over 50% in just over two years.  The highest number of closed sales since 2007 was 3,112 from May 2006-2007 so we’re not far off from exceeding the pre-recession market in East Dallas.