North Texas home sales surged in May, setting new records.
And the trend toward small home price gains continued last month, the latest sales data shows.
Real estate agents sold 11,302 preowned single-family homes in May — the largest number of home sales ever in a single month in North Texas.
May's home sales were 9% higher than the same month in 2017, according to the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems.
While sales activity soared, median home prices were up just 5% from May 2017.
The median price was $266,500 — the highest ever recorded in North Texas.
May's price report followed a shift to more modest home appreciation in the area this year. Last month's percentage home price gains were half what they were in May 2017 when prices were 10% higher year-over-year.
"The price appreciation for more expensive houses has really flattened out," said Ted Wilson with Dallas housing analyst Residential Strategies Inc. "We have a very limited amount of inventory at the lower price points, and that's were a lot of the price appreciation is taking place."
Sales of North Texas homes price below $180,000 are down sharply in 2018 due to a lack of lower cost houses on the market.
"There is an ample amount of inventory at the higher price points — more than there has been," Wilson said. "But the supply of affordable houses is very tight.
"There is such excessive demand from millennials and investors that as quickly as those homes come to the market thy are gone."
The greatest increases in home purchases this year has been for houses priced between $200,000 and $500,000.
Overall home sales in North Texas were 4% higher in the first five months of 2017 compared with the same period last year.
"There is still a lot of activity," Wilson said.
More than 22,000 homes were listed for sale through the real estate agents' multiple listing service in May. That's up 13% from a year earlier.
While more houses are for sale, there's still only a two and a half month supply of properties on the market. A six-month inventory of homes is considered a balanced market.
Tribune Content Agency