With all major market indicators pointing up, the northwest Dallas suburban home market showed broad-based strength during November. Based on this performance, it now seems likely that both home sales and home prices will remain above prior year levels into the spring.

Monthly sales of pre-owned, single family homes sold in Southlake, Colleyville, Flower Mound, Coppell, southwest Frisco, west Plano, Keller, Highland Village, Westlake, Grapevine, Trophy Club, Argyle, Double Oak, Bartonville and Copper Canyon are up 29.9 percent over a year ago, 434 homes versus 334 homes. For the past 12 months, sale volume is up 14.7 percent over the previous 12 month period.

For the third straight month, average per square foot home prices increased across the board. The typical $250,000 northwest Dallas pre-owned suburban home sold during the past three months was priced at $88.12 per square foot, up 1.5 percent over the same period a year ago. The per square foot price of the typical $350,000 home was $99.70 per square foot, up .8 percent over a year ago, and the typical $450,000 home was up 2.7 percent, to $116.51 per square foot.

The median price of homes sold during November was $240,000. This is 4.3 percent higher than the $230,000 median price of homes selling during November last year.

The inventory absorption rate dropped in November to a 4.8 months supply, versus a revised 5.2 months supply in October. Of probably even greater significance is that this represents a 36 percent decrease from a year ago when a 7.5 months supply of inventory was available. Recent drops in the number of homes available for sale indicate that reduced inventory absorption rates are likely to continue. Only about 2,000 homes were listed for sale at the end of November, the fewest homes for sale in more than two years.

Average days on market for northwest Dallas pre-owned, single family homes sold dropped to 72 days during November. This compares to 77 average days on market in October and 74 days on market in September. This marks the first time in more than two years that average days on market are less than they were the same month the previous year. The last time this happened was in October 2002.

Market Highs And Lows

For the third straight month, Colleyville homes selling for $400,000 to $499,999 was again one of two northwest Dallas suburbs home resale market segments with the largest annual increase in average per square foot prices during the past three months. Southlake homes priced at between $200,000 and $299,999 sold for $100.54 per square foot, an 18.4 percent jump over the previous year price. The square foot price of an average $450,000 home in Colleyville increased 13.9 percent to $117.04. Also worth mentioning is that the square foot price of an average $450,000 home in Keller was $110.18, up 10.5 percent above its previous year price.

The market segment with the largest per square foot price decrease was southwest Frisco, where the three month average price per square foot of homes selling for between $300,000 and $399,999 was off 9.3 percent, dropping to $95.05. The average price per square foot of Grapevine homes that sold for between $300,000 and $399,999 averaged $95.68, a 5.5 percent drop from the previous year.