Slightly more than 33 percent fewer pre-owned northwest Dallas suburban homes costing less than $200,000 sold this February than during the same month a year ago. Sales of homes priced from more than $200,000, but less than $300,000, also were down, by nearly 21 percent. Although sales of previously owned homes in this area selling for $300,000 and above were up slightly, by 2.6 percent, sales overall were down by 15.7 percent (334 homes sold this year versus 396 homes sold in February 2006).

Interestingly, and perhaps somewhat unexpectedly, the number of homes listed for less than $300,000 also dropped, though not nearly to the same extent as their sales. According to data compiled by North Texas Real Estate Information Systems Inc., 7.8 percent fewer of these homes were listed for sale at the end of February than a year ago, while listings of homes priced at $300,000 and above were up by about 33.5 percent. Overall, 17 percent more pre-owned homes were listed for sale than a year ago (about 1,605 homes last year versus 1,875 homes this year).

Inventory of pre-owned homes available for sale within the northwest Dallas suburbs increased slightly during February, from a revised 5.4 months supply to 5.5 months supply. This certainly is quite different than the approximately 25 percent drops in inventory that occurred between January and February each of the past two years.

These sales and inventory numbers indicate that a shift to stronger market conditions probably will be delayed for just a bit longer. However, area and regional conditions seem already to have begun exerting upward pressure on the local market, which increases the likelihood that this shift will be apparent by early summer.

Home values within the northwest Dallas suburbs continuing to ratchet up support that view. Although February's 4.0 percent annual appreciation was not quite as robust as January's revised 4.4 percent, it still was up substantially from the 1.5 percent price increase for homes sold during December and the 2.4 percent increase in November.

With one exception, appreciation in home values extended across all price ranges. Compared to a year ago, the square foot price of a typical $250,000 northwest Dallas suburban home sold during the three months ending in February increased by 4.0 percent, to $94.99, and the square foot price of a typical $350,000 home sold was up 1.8 percent, to $105.15. The square foot price of the typical $450,000 home dropped ever so slightly, by .1 percent, to $120.53. The average square foot price of homes selling for less than $200,000 was up 4.5 percent and the square foot price of homes selling for more than $500,000 was up 2.0 percent.

Though not particularly meaningful, the median price of pre-owned homes sold during February in the northwest Dallas suburbs climbed to $289,000, a 13.3 percent increase over the $255,000 median price posted last February. Two years ago, the median price of these homes was $238,000, 21.4 percent less than the current median price.

The average length of time required to sell a home increased to 69 days in February. This is 7.8 percent longer than the 64 days required to sell a home during January, and 9.5 percent longer than the 63 average days required during February a year ago.

Market Highs And Lows

The northwest Dallas suburbs with the largest annual increase in their three month average home prices were the Argyle, Bartonville, Copper Canyon and Double Oak area and Trophy Club. The average price increase in Argyle, Bartonville, Copper Canyon and Double Oak was 6.1 percent. In Trophy Club, it was 5.3 percent.

Among the northwest Dallas suburbs reported on in this newsletter, only West Plano had a same month, year-to-year average price decrease. Homes there sold for 1.1 percent less than during February a year ago. In second worst position, but nevertheless in positive territory, was Grapevine, where homes sold on average for .9 percent more than during February a year ago.

Grapevine again had the lowest inventory of pre-owned homes among the northwest Dallas suburbs with 2.5 months supply of homes available for sale. A 3.8 months supply of homes listed for sale again put Flower Mound in second place.

The Argyle, Bartonville, Copper Canyon and Double Oak area slipped to last place with 10.4 months supply of previously owned homes for sale. Southwest Frisco had the next highest inventory with 8.7 months supply.