Sales of previously owned, single family northwest Dallas suburban homes were down 1.7 percent in October, 403 homes reported sold this year versus 410 homes a year ago. However, when additional sales, not yet reported, are added to October's current sales volume total, it is likely this slight decrease will change to a slight increase. Such additions resulted in the previously reported 19.4 percent sales decrease for September being revised to a 16.7 percent decrease. Combined with August's also revised 5.3 percent drop, sales for the past quarter, when compared with sales during the same three months last year, are down 7.6 percent.

The .4 percent drop in average sale prices experienced during October is much less likely to see revisions that would move it into positive territory. This means the northwest Dallas suburbs has probably now experienced a second straight month of falling home values. Prior to September's revised .7 percent average price decrease, the last time a same month, year-to-year price decrease occurred was three years ago, during September 2004.

The market downturn currently appears to be having its largest impact in this area on the prices of higher-end homes. Compared to homes sold a year ago, the square foot price of a typical $250,000 home sold during the three months ending in October increased by 2.2 percent, to $95.05. The square foot price of a typical $350,000 home sold was up .8 percent, to $105.17, while the price per square foot of the typical $450,000 home decreased .2 percent, to $119.85.41. The average square foot price of homes selling for less than $200,000 was up .8 percent and the square foot price of homes selling for more than $500,000 decreased by .8 percent.

The number of previously owned homes available for sale decreased over the past month at a slightly faster pace than is typical this time of year, bringing the number of homes listed for sale more in line with, but still higher than at the same point in time last year, according to data compiled by North Texas Real Estate Information Systems Inc. About 2,215 existing homes were listed for sale in the northwest Dallas suburbs at the end of October, an increase of 6.8 percent over the approximately 2,075 homes listed for sale at the end of October a year ago.

At the rate these homes sold during October, it would take 5.7 months to sell all currently listed homes. As was the case in September, when inventory jumped to a 6.5 months supply, this exceeds the 5.5 months supply of homes available for sale that is generally considered to be the boundary between a sellers' market and a buyers' market.

Despite a decrease in available homes inventory, the average length of time required to sell a pre-owned, single family northwest Dallas suburban home increased during October to 61 days. This is a 19.6 percent increase over the average 51 days required to sell a home during September, and up 11.3 percent from the 56 average days required during October a year ago.

While the average price of homes sold in this area has now fallen for two straight months, increases in the percentage of higher priced homes being sold continued to push the median price of pre-owned homes in the area higher. The median price of previously owned northwest Dallas suburban homes sold during October was $299,000, 11.4 percent more than the $268,400 median price of a year ago.

Market Highs And Lows

The northwest Dallas suburbs with the largest annual increase in their three month average home prices were once again Southlake and Trophy Club. The average price increase in Southlake was 6.5 percent. Trophy Club posted a 3.9 percent average price increase.

The northwest Dallas suburbs covered in this newsletter that experienced the largest decreases in their same quarter, year-to-year average home prices were the Argyle, Bartonville, Copper Canyon and Double Oak area and southwest Frisco. The average price of homes sold in the Argyle, Bartonville, Copper Canyon and Double Oak area was down 4.3 percent. The average home price in southwest Frisco fell 2.4 percent.

Grapevine, with 3.4 months supply of homes listed for sale, continued to have the lowest inventory of pre-owned homes among the northwest Dallas suburbs. Flower Mound moved into second position, with 3.9 months supply of homes available for sale.

With a 9.0 months supply of previously owned homes for sale, west Plano again had the largest inventory of homes available for sale. The Argyle, Bartonville, Copper Canyon and Double Oak area continued to have the next highest inventory with 7.7 months supply.