The square foot price of a typical $250,000 northwest Dallas suburban pre-owned home sold during the three months ending in August was $90.39, a 2.8 percent increase over the price at which a similar home sold a year ago. The typical $350,000 home sold for $103.39 per square foot, up 3.2 percent over a year ago, and the square foot price of the typical $450,000 home was $115.89 per square foot, up 2.3 percent.

These levels of home value appreciation admittedly are fairly lackluster when compared to the double digit price increases occurring in other parts of the country. But they also are double, or more, what they were six months ago when these same market segments showed annual price increases of 1.4 percent, 1.5 percent and 1.1 percent, respectively. [update: The preceeding are the price increases for March, rather than February. The correct increases are .2 percent, 1.2 percent and 1.2 percent.] Because more pre-owned northwest Dallas suburban homes continue to be sold each month than last year while at the same time fewer homes are listed for sale, it seems likely that we will see similar levels of price increases through next spring.

August sales of pre-owned, single family homes in the northwest Dallas suburbs were up 7.6 percent over the same month a year ago, 704 homes versus 654 homes, according to the data compiled by North Texas Real Estate Information Systems. For the past 3 months, monthly sales have averaged 746 homes, an increase of 5.3 percent over sales during the same three month period a year ago.

Less than 2,000 pre-owned homes were 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 at the end of August, as compared to more than 2,400 homes listed the same time a year ago. This caused the inventory absorption rate for August to drop to 2.9 months supply of homes listed for sale, similar to the revised 3.0 months supply available in July, and 24 percent less than the 3.8 months supply available a year ago.

Higher home sales combined with lower inventory levels during August, and similar to what they have been throughout the summer, caused average days on market for northwest Dallas suburban pre-owned, single family homes sold to remain basically unchanged at 54 days. In comparison, similar homes sold in August 2004 were listed for an average of 71 days.

As likely would be expected, the median price of pre-owned homes in the northwest Dallas suburbs sold during August also gained ground, coming in at $276,250. This is 6.5 percent higher than the $259,450 median price posted a year ago, and 10.5 percent higher than $249,950 median price 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 per square foot price was in Southlake. The square foot price of the average $250,000 home there advanced 16.4 percent to $108.15. Argyle, Bartonville, Copper Canyon and Double Oak area homes selling for $400,000 to $499,999, on average, sold for $122.88 per square foot, up 11 percent above their previous year price. Close behind were Keller homes selling for $300,000 to $399,999, priced at $103.13 per square foot, a 10.2 percent increase over their previous year price.

Homes in Coppell, selling for between $400,000 and $499,999 showed the largest price decrease, coming in at $114.98 per square foot, down 4.9 percent from the previous year. The average price per square foot of southwest Frisco homes that sold for between $300,000 and $399,999 averaged $97.30, a 4.5 percent drop.

Southlake and Grapevine, each with 2.1 months supply of homes listed for sale, had the lowest inventory of pre-owned homes among all the northwest Dallas suburbs during August. Coppell had a 2.4 months supply.

The inventory absorption rate was longest in the Argyle, Bartonville, Copper Canyon and Double Oak area, where 5.6 months supply of homes were available for sale. Southwest Frisco had the next longest inventory absorption rate with 4.9 months supply.