Only 358 pre-owned, single family northwest Dallas suburban homes sold during September, a whopping 19.4 percent drop from the 444 MLS-listed homes that sold during the same month a year ago. Compared with the number of homes sold during September two years ago, sales were down an even more eye-popping 33.3 percent. When combined with revised sale volume decreases of 6.6 percent in August and 4.0 percent in July, sale volume for the quarter was down 8.7 percent when compared to the same three months last year.

The cumulative effect of five straight months of monthly sale volume decreases pushed the change between the average prices paid this September and September a year ago into negative territory. The northwest Dallas suburbs covered in this newsletter experienced an average .8 percent price decrease, the first such same month, year-to-year price decrease in this area since September 2004.

For the quarter, however, appreciation in home prices continued to extend across all price ranges. Compared to homes sold a year ago, the square foot price of a typical $250,000 home sold during the three months ending in September increased by 2.4 percent, to $95.97. The square foot price of a typical $350,000 home sold was up .5 percent, to $105.18, and the price per square foot of the typical $450,000 home increased 2.9 percent, to $120.41. The average square foot price of homes selling for less than $200,000 was up 2.1 percent and the square foot price of homes selling for more than $500,000 was up 1.7 percent.

Sluggishly falling inventory of homes available for sale was probably most responsible for September's average sale price decrease not being more severe. About 2,365 existing homes were listed for sale in the northwest Dallas suburbs at the end of September, according to data compiled by North Texas Real Estate Information Systems Inc. While this still is 12.0 percent higher than the approximately 2,115 homes listed for sale the same time a year ago, it also is substantially less than the 22.4 percent year-to-year increase in the number of homes that were listed for sale at the end of June.

When measured against the number of homes sold during September, this level of inventory represents a 6.7 months supply of homes available for sale. This is the first time since January 2006 this figure has exceed the 5.5 months supply of homes that is generally regarded as the line of demarcation between a sellers' market and a buyers' market.

Homes selling during September remained on the market for an average 51 days, up slightly from both the average 47 days required to sell a home during August and the average 49 days needed during September last year.

Increases in the relative number of higher priced homes being sold again pushed the median price of pre-owned homes in the area up. The median price of existing northwest Dallas suburban homes sold during September was $305,000, 9.6 percent more than a year ago.

Market Highs And Lows

The northwest Dallas suburbs with the largest annual increase in their three month average home prices were again Southlake and Trophy Club. The average price increase in Southlake was 6.8 percent. Trophy Club posted a 3.8 percent average price increase.

Only one of the northwest Dallas suburbs reported on in this newsletter experienced decreases in their same quarter, year-to-year average price. The average annual price change in southwest Frisco was -1.3 percent. The least price increase was for homes sold in the Argyle, Bartonville, Copper Canyon and Double Oak area, which were up .4 percent.

Grapevine, with 3.7 months supply of homes listed for sale, again had the lowest inventory of pre-owned homes among the northwest Dallas suburbs. Coppell, with 4.1 months supply of homes available for sale, was in second position.

With a 15.4 months supply of previously owned homes for sale, west Plano had the largest inventory of homes available for sale. The Argyle, Bartonville, Copper Canyon and Double Oak area had the next highest inventory with 14.9 months supply.