When sale volume goes up and inventory goes down, it almost always follows that prices will rise. Home owners in the northwest Dallas suburbs, especially those who currently or will soon have their homes listed for sale, are no doubt delighted to find this to be precisely the situation in which they now find themselves.

Sales of pre-owned, single family homes in the northwest Dallas suburbs during October were up 10.7 percent, 477 homes this year versus the 431 homes sold last year. This brings the area's three months sales total to 1,740 homes, also a 10.7 jump over the number of homes sold during the corresponding period a year ago.

At the end of October 1,815 pre-owned homes were reported to Texas Real Estate Information Systems as available for sale. This is about 16 percent fewer homes than were listed for sale at the end of October a year ago, and 2.5 percent fewer than the 1,861 homes available at the end of September.

This sales volume / inventory relationship has caused the average price of homes sold during October in Argyle, Bartonville, Coppell, Copper Canyon, Colleyville, Double Oak, Flower Mound, southwest Frisco, Grapevine, Highland Village, Keller, west Plano, Southlake, Trophy Club and Westlake to rise by about 4.4 percent over the average price of a year ago. It also represents a 22.2 percent increase over September's revised 3.6 percent price appreciation, and suggests that prices may appreciate at an even higher rate over the next several months.

The square foot price of a typical $250,000 home sold during the three months ending in October was $90.05, a 2.5 percent increase over the price at which a similar home sold a year ago. The typical $350,000 home sold for $104.79 per square foot, up 4.7 percent over a year ago, and the square foot price of the typical $450,000 home rose to $119.97 per square foot, a 5.2 percent increase.

The median price of pre-owned homes in the northwest Dallas suburbs sold during October also was up, increasing to $265,000. This is 14.2 percent higher than the $232,000 median price posted a year ago and up 15.2 percent from the $230,000 median price of homes sold in this area during October two years ago.

A 3.7 months supply of homes was available for sale during October. This is essentially the same as the revised 3.6 months supply available during September, but down 29 percent from the 5.2 months supply available a year ago.

Average days on market of homes sold during October was 61 days, pretty much the same as the revised 62 days it took to sell a home during September. This metric too is down substantially from a year ago, when 78 days, on average, were required to sell a northwest Dallas suburban pre-owned, single family home.

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 for the fourth straight month again in Southlake, where the square foot price of the average $250,000 home advanced 14.0 percent to $107.92. Homes in Bartonville, Copper Canyon and Double Oak priced from $400,000 to $499,999, on average, sold for $125.41 per square foot, up 12.3 percent from their previous year price. Highland Village homes priced from $400,000 to $499,999, sold for $116.64 per square foot, an 11.4 percent increase over their price a year ago.

Homes in Coppell selling for $400,000 and $499,999 continued to show the largest price decrease, coming in at $119.38 per square foot, or 1.9 percent less than the previous year. The average price per square foot of Keller homes selling for between $200,000 and $299,999 was $86.56, a 1.6 percent decrease from October last year.

Grapevine, with 2.6 months supply of homes listed for sale, moved to the top spot among the towns with the lowest inventory of pre-owned homes. Coppell and Flower Mound each had 3.0 months supply.

The inventory absorption rate again was highest in the Argyle, Bartonville, Copper Canyon and Double Oak area, where it has now risen to a 13.2 months supply of homes available for sale. Southwest Frisco also again was in next to last place with a 6.0 months supply.