While the number of pre-owned, single family northwest Dallas suburban homes sold in February fell slightly from a year ago, the number of homes for sale was down far more substantially. Lower inventory levels pretty much have become a way of life for this market over the past year, and already have pushed the average rate of home appreciation into the 3.5 to 4.5 percent annual increase range. Now, as the residential real estate's busiest months approach, it seems likely that additional increases in home prices will be coming.

The 383 pre-owned homes sold during February in Argyle, Bartonville, Coppell, Copper Canyon, Colleyville, Double Oak, Flower Mound, southwest Frisco, Grapevine, Highland Village, Keller, west Plano, Southlake, Trophy Club and Westlake were 2.3 percent fewer than the 392 homes sold in this area a year ago. On the other hand, this sales level also represents a 5.8 percent increase over the number of homes sold during February two years ago.

About 1,600 pre-owned, single family homes were listed for sale at the end of February in the northwest Dallas suburbs, according to data compiled by North Texas Real Estate Information Systems Inc., slightly fewer than at the end of February. This is an 18.2 percent drop from the approximately 1,960 homes available at the same point a year ago, and a whopping 31.6 percent plunge from the nearly 2,350 homes available two years ago.

For the fifteenth consecutive month, home price appreciation again extended across all price ranges. The square foot price of a typical $250,000 northwest Dallas suburban home sold during the three months ending in February was $91.25, a 3.8 percent increase over the price at which a similar home sold a year ago. The typical $350,000 home sold for $103.37 per square foot, up 2.5 percent over a year ago, and the square foot price of the typical $450,000 home was $120.68 per square foot, a 4.7 percent increase over a year ago. The average price of homes selling for less than $200,000 was up 3.3 percent, as were homes selling for more than $500,000.

Though less meaningful as a market indicator than change in price per square foot, the $257,500 median price of pre-owned homes sold during February in the northwest Dallas suburbs also was again up compared to a year ago. This is an 8.2 percent increase over the $238,000 median price posted last February and up 17.0 percent from the $220,000 median price of homes sold in this area during February two years ago.

Average days on market of homes sold during February was 63 days, which is within a day or two of the average length of time that has been required to sell a home since last November. It also represents a 22.2 percent drop from a year ago, when 81 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 per square foot price was in west Plano. The square foot price of the average $250,000 home there was up 19.2 percent, to $109.37. Fairly far behind were Keller homes selling for $400,000 to $499,999, up 12.6 percent from their previous year price, at $115.02 per square foot.

The Argyle, Bartonville, Copper Canyon and Double Oak area again had the price segment with the largest price decrease. Homes there, selling for an average of $350,000, brought $89.65 per square foot, off 9.9 percent from their previous year price. The average price per square foot of southwest Frisco homes that sold for between $300,000 and $399,999 averaged $95.57, a 6.5 percent decrease.

Trophy Club and Grapevine had the lowest inventory of pre-owned homes among the northwest Dallas suburbs, coming in at 2.3 and 2.8 months supply of homes available for sale. Highland Village was close behind with its 2.9 months supply of homes listed for sale.

The Argyle, Bartonville, Copper Canyon and Double Oak area again had the highest inventory with 11.9 months supply of homes for sale. Colleyville and Keller were next highest, both with a 6.9 months supply of available homes.