Though the northwest Dallas suburbs housing market remains in much stronger condition than both the national housing market and the overall DFW market, it appears a continuing scarcity of buyers relocating from outside the metroplex is beginning to take its toll. Pre-owned, single family home sales for the towns reported on in this newsletter were off 17.1 percent, with 725 homes sold this June versus 875 homes sold during June a year ago. Early indications are that this area is likely to see a similar percentage drop in sales for July.

Fewer buyers coming into the area also has resulted in a higher than usual supply of homes available for sale. The 3.4 months supply of pre-owned homes offered for sale during June was 47.3 percent higher than the 2.3 months supply of homes listed for sale during June last year, and up 21.4 percent from the 2.8 months supply during June two years ago.

About 2,510 pre-owned, single family homes were listed for sale at the end of June in these northwest Dallas suburbs, according to data compiled by North Texas Real Estate Information Systems Inc. This is a 21.6 percent increase over the approximately 2,060 homes listed at the same time a year ago, and a 12.2 percent increase over the 2,235 homes available for sale two years ago.

This supply and demand dynamic pushed average prices paid for previously owned single-family homes down to only a 1.6 percent increase in June, as compared to the prices that similar homes sold for a year ago. This is a 36.8 percent drop from the average 2.5 percent average annual increase in home prices seen during the previous three months.

Home values did continue, nevertheless, to appreciate across all price ranges. Compared to a year ago, the square foot price of a typical $250,000 home in these northwest Dallas suburbs sold during the three months ending in June increased by 2.6 percent, to $95.63, and the square foot price of a typical $350,000 home sold was up 1.0 percent, to $107.03. The price per square foot of the typical $450,000 home increased 3.0 percent, to $122.65. The average square foot price of homes selling for less than $200,000 was up 2.6 percent and the square foot price of homes selling for more than $500,000 was up 2.2 percent.

The $320,000 median price of pre-owned homes sold during June was 8.5 percent higher than the previous June's $295,000 median price posted last June, and 12.7 percent higher than the $284,000 median sales price posted during June two years ago.

Homes selling during June remained on the market for an average 43 days, up only slightly from the 41 days required to sell a home during May and down slightly from the 45 days required for sales closed during April.

Market Highs And Lows

Up 6.7 percent, Grapevine had the largest annual three month average home price increase. Its neighbor to the east, Southlake, had the second largest increase at 4.5 percent. Colleyville was close behind with a 4.1 percent annual increase.

Both the Coppell and southwest Frisco area experienced average price decreases. Pre-owned homes in Coppell sold for 1.7 percent less than during June a year ago. Home prices in southwest Frisco were down .7 percent.

Flower Mound, with a 2.2 months supply of homes available for sale, had the lowest inventory of pre-owned homes among these northwest Dallas suburbs. Grapevine was in second position, with a 2.5 months supply of homes listed for sale.

Southwest Frisco slipped to last place with 5.6 months supply of previously owned homes for sale. With a 5.5 months supply of homes for sale, the Argyle, Bartonville, Copper Canyon and Double Oak did only slightly better and had the next highest inventory.