The northwest Dallas suburban home market continued its retrenchment during November with monthly sales of previously owned, single family homes again falling below previous year levels. Within the area covered by this newsletter, 386 MLS-listed homes have been reported sold this year, a 10.2 percent drop from the 430 homes sold during November a year ago. Same month, year-to-year sales now have fallen during 10 of the past 12 months and 19 of the past 24 months.

Home prices, nevertheless, moved back into positive territory. On average, sale prices of homes sold during November were 1.7 percent higher than a year ago, breaking a two month run of decreasing average home prices. Whether November's increase is a return to the consistently steady, but slow home appreciation homeowners in this area have enjoyed over the past three plus years is hard to guess. Despite relative strong economic conditions in the DFW metroplex, continued deterioration in the national housing market and a slowing economy overall may be more than local market conditions can overcome.

Appreciation in home values is currently strongest in the middle 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 November again increased by 2.2 percent, to $95.54. The square foot price of a typical $350,000 home sold was up .7 percent, to $104.67, while the price per square foot of the typical $450,000 home decreased by 1.3 percent, to $120.50. The average square foot price of homes selling for less than $200,000 was up a mere .1 percent and the square foot price of homes selling for more than $500,000 decreased by 2.3 percent.

The number of previously owned homes available for sale remains higher than during the past couple of years. According to data compiled by North Texas Real Estate Information Systems Inc., about 2,110 existing homes were listed for sale in the northwest Dallas suburbs at the end of November, 7.1 percent more than the 1,970 homes listed for sale at the end of November a year ago and 23.4 percent higher than the 1,710 homes available for sale at the same point in time two years ago.

At the rate home sales were closed during November, this level of inventory would require 5.6 months to sell. This brings the market back to near the 5.5 months supply of homes available for sale that generally is considered to be the boundary between a sellers' market and a buyers' market.

As would be expected, the average length of time required to sell a pre-owned, single family northwest Dallas suburban home increased during November to 70 days. This is a 14.8 percent increase over the average 61 days required to sell a home during October, and 22.5 percent higher than the 57 average days required during November a year ago.

Increases in market share captured by higher priced homes continue 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 November was $295,000, 5.9 percent more than the $278,500 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 Southlake and Grapevine. The average price increase in Southlake was 4.9 percent. Grapevine posted a 3.8 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 west Plano and the Argyle, Bartonville, Copper Canyon and Double Oak area. The average price of homes sold in west Plano was down 5.1 percent. The average home price in the Argyle, Bartonville, Copper Canyon and Double Oak area fell 4.1 percent.

Coppell, with 3.2 months supply of homes listed for sale, had the lowest inventory of pre-owned homes among the northwest Dallas suburbs. Grapevine slipped to the second position, with 3.5 months supply of homes available for sale.

With 11.4 months supply of previously owned homes for sale, Colleyville had the largest inventory of homes available for sale. The Argyle, Bartonville, Copper Canyon and Double Oak area continued to have the second highest inventory with 9.7 months supply.