It probably was a lot to expect that the northwest Dallas suburban home market would in September again post another big jump in the rates at which pre-owned home prices increased. Nevertheless, it did.

The square foot price of a typical $250,000 home sold during the three months ending in September was $89.86, a 2.6 percent increase over the price at which a similar home sold a year ago. The typical $350,000 home sold for $104.26 per square foot, up 3.8 percent over a year ago, and the square foot price of the typical $450,000 home rose to $116.66 per square foot, a 2.7 percent increase. For all northwest Dallas suburban pre-owned homes, including those priced at less than $200,000 and $500,000 and above, the average square foot price increased by 3.5 percent.

Six months ago annual price increases of 1.4 percent, 1.5 percent and 1.1 percent, respectively, were posted these same market segments, with a 1.4 percent increase overall. While September's nearly 160 percent overall price increase rate was not as high as the eye-popping nearly 350 percent increase posted in August, it is very much in line with what we have seen over the past eight months. Not surprisingly, other major market indicators also are pointing to reasonably robust market performance over the next several months.

Pre-owned, single family home sales in the northwest Dallas suburbs during September were up 8.1 percent over same month sales a year ago, 509 homes versus 471 homes. Sales of an additional 24 homes belatedly reported to the North Texas Real Estate Information Systems caused the increase in home sales reported for August to move from a 7.6 percent increase to an 11.0 percent increase. Additionally, four other previously unreported homes added to July sales bring the area's three months sales to a total of 1,969 homes, an 8.1 percent increase over the same period a year ago. This is the strongest year-to-year quarterly sales performance since the three month period ending January 2005.

The number of homes available for sale in Argyle, Bartonville, Coppell, Copper Canyon, Colleyville, Double Oak, Flower Mound, southwest Frisco, Grapevine, Highland Village, Keller, west Plano, Southlake, Trophy Club and Westlake also continues to be lower than last year. Approximately 1,860 homes were listed for sale at the end of September, compared to about 2,330 homes a year ago, a drop of slightly more than 20 percent.

This results in a 3.8 months supply of homes being available for sale in September, down 25 percent from the 5.1 months supply available a year ago. As should be expected, given the seasonal nature of residential real estate markets, this inventory absorption rate is up somewhat from September's revised 2.8 months supply.

Also to be expected, the average days on market of northwest Dallas suburban pre-owned, single family homes sold increased to 60 days during September from 55 days in August. Still, this is nearly 19 percent less than a year ago when 74 days, on average, were needed to sell these homes.

The median price of pre-owned homes in the northwest Dallas suburbs sold during September was $274,900. This is 8.2 percent more than the $254,000 median price posted a year ago, and 10.2 percent higher than $249,500 median price of two years ago.

Market Highs And Lows

The northwest Dallas suburbs home resale market segment with the largest annual increase in its three month average square foot price was in Southlake. The square foot price of the average $250,000 home there advanced 11.9 percent to $105.24. Southwest Frisco homes priced from $400,000 to $499,999, on average, sold for $117.94 per square foot, up 11.6 percent above their previous year price. Highland Village homes priced from $400,000 to $499,999, sold for $114.49 per square foot, an 11.3 percent increase over their previous year price.

Homes in Coppell selling for $400,000 and $499,999 showed the largest price decrease, coming in at $111.24 per square foot, off 8.4 percent from the previous year. The average price square foot of southwest Frisco homes that sold for between $300,000 and $399,999 was $99.51, down 4.2 percent from September last year.

Southlake, with 2.5 months supply of homes listed for sale, continued have the lowest inventory of pre-owned homes among all the northwest Dallas suburbs. Grapevine was a close second, with 2.6 months supply.

The inventory absorption rate again was highest in the Argyle, Bartonville, Copper Canyon and Double Oak area, where it more than doubled to an 11.7 months supply of homes available for sale, and in Southwest Frisco, where it increased to a 5.4 months supply.