A year-end surge in Dallas-area home sales is carrying over into the New Year, and local real estate agents are hoping that the increase in business will stretch into the summer.
Last year, North Texas property agents sold a record of more than 108,000 single-family homes.
A closer look shows that four-fifths of the Dallas area's residential district had an increase in home sales in 2019, and all but a handful of neighborhoods saw rising home prices.
The biggest percentage sales increases were in the fast-growing communities north of Dallas.
Year-over-year home sales grew more than 20% in Prosper and Melissa. Sales were up 17% compared with 2018 in Anna and rose by 13% in Colleyville.
Home sales in 2019 rose by 9% year-over-year in the more than four dozen residential areas The Dallas Morning News tracks each quarter.
The local housing market got a boost in activity from lower mortgage costs in the second half of last year.
Jim Fite, president of Dallas-based Century 21 Judge Fite Co. Realtors, said December was the strongest month for home sales he's seen in five years.
"The market continues to be strong," Fite said. "If listings continue to increase, sales will follow.
"Every first quarter leads to an increase in listings; therefore, I would expect buyer demand will absorb the listings and sales will continue to be strong," he said.
Median home sales prices in 2019 rose in all but eight Dallas-area neighborhoods.
The biggest price gains were in more affordable areas in Southeast Dallas (up 11% year-over-year), Southern Dallas (10%) and Grand Prairie (10%).
Median home sales prices fell in a few neighborhoods, including North Dallas, East Dallas and Far North Dallas.
With home appreciation in North Texas moderating, real estate agents say they are trying to reduce some sellers' expectations.
"Some sellers are greedy and asking astronomical prices," said Michael Coburn, owner of Re/Max Town and Country. "The seller says, 'My neighbor got $400,000 and I wanted $425,000.'
"I tell them you've missed the boat," he said. "Things are still selling, but we aren't seeing the crazy price increases that we were, and that's good for the market."
Home prices in North Texas have risen almost 70% since the worst of the Great Recession. The outlook for 2020 is 3% to 5% home price gains — in line with the long-term norm for this area.
The number of homes on the market in the area rose about 9% last year, but many Dallas-area residential districts still have less than a three-month supply of houses listed for sale — half the normal inventory.
Most of the increase in home listings is at the higher end of the market, which is moving slower these days.
"Under $250,000, you just can't find it," said Terry Tremaine, president of the MetroTex Association of Realtors. "There just aren't many listings in the lower price ranges."
Tremaine, who is an agent with Century 21 Mike Bowman Realtors, said more home listings are coming on the market.
"That always happens this time of year when you get past the holidays," she said. "Agents I talk to seem to be pretty busy — my properties are showing more."
