Despite a rapidly expanding number of homes being listed for sale and considerably fewer homes being sold, prices paid for previously owned single-family homes on average still rose by 2.8 percent in May, as compared to the prices that similar homes sold for a year ago. This is exactly the same as the annual average increase in home sale prices seen in this area over the past twelve months.

Home values continued to appreciate 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 May increased by 3.0 percent, to $95.72, and the square foot price of a typical $350,000 home sold was up 1.3 percent, to $107.06. The price per square foot of the typical $450,000 home increased 2.4 percent, to $123.28. The average square foot price of homes selling for less than $200,000 was up 2.9 percent and the square foot price of homes selling for more than $500,000 was up 2.6 percent.

Pre-owned, single family home sales reported for the northwest Dallas suburbs followed in this newsletter were off 10.8 percent, 601 homes this May versus 674 homes a year ago, according to data compiled by North Texas Real Estate Information Systems Inc. April's pre-owned, single family sales were revised upward from a 4.8 percent increase to an 8.0 percent increase. When combined with March's revised sales results, a total of 1,116 homes were reported sold, a decrease of 3.2 percent from the 1,680 homes reported sold during this same three month period last year.

About 2,415 pre-owned, single family homes were listed for sale at the end of May in the northwest Dallas suburbs. This is a 22.4 percent increase over the approximately 1,970 homes listed at the same time a year ago, and a 9.0 percent increase over the 2,215 homes available for sale two years ago.

The supply of pre-owned homes available for sale within the northwest Dallas suburbs, which is calculated by dividing the average number of homes listed for sales by the number of homes sold during the month, increased 35.9 percent, as compared to the supply of homes available during the same month a year ago. A 3.9 months supply of homes was listed for sale this May and a 2.9 months supply of homes was listed during May last year.

Home sales continue to grow stronger for homes priced at $300,000 and up. Just under 1.0 percent more of these homes were sold this May than during the same month a year ago. Sales for homes that sold for less than $300,000, on the other hand, were down 21.1 percent. The split between the number of homes selling for less and more than $300,000 was 38:62, an almost complete reversal of the 59:41 split experienced during May two years ago.

As would be expected given the market shift toward more higher priced homes being sold, the $314,000 median price of pre-owned homes sold in the northwest Dallas suburbs was 9.2 percent higher than the $287,500 median price posted last May and up 16.3 percent from the $270,000 median price that homes sold for in this area two years ago.

The average length of time required to sell a home decreased to 41 days. This is 6.8 percent less than the average 44 days required to sell a home during April and down 9.1 percent from the 46 average days required during May a year ago.

Market Highs And Lows

The northwest Dallas suburb with the largest annual increase in its three month average home prices was Colleyville, with 6.7 percent average price growth. Grapevine came in second with a 6.5 percent increase.

Both the southwest Frisco area and Coppell experienced average price decreases. Pre-owned homes in southwest Frisco sold for 2.1 percent less than during May a year ago. Home prices in Coppell were down .7 percent.

A 2.5 months supply of homes available for sale enabled Coppell to edge out Flower Mound and Southlake for honors in this category. Flower Mound and Southlake each had a 2.6 months supply of homes listed for sale during May.

The Argyle, Bartonville, Copper Canyon and Double Oak area had the highest inventory with 7.0 months supply. West Plano was in next to last place with 6.8 months supply of previously owned homes for sale.