MEDIAN SALES PRICE
Tarrant County Real Estate has shown a very slight increase in the median sales price of single family homes over the last three years. Overall, the median price of homes in Tarrant County has remained remarkably stable compared to many areas of the country which experienced very high declines after a period of unsustainable gains. The affordability of real estate in Tarrant County is a significant factor in the good performance of real estate values in the single family home sector.
Tarrant County Median Sales Price Q2 2007 – $137,500
Tarrant County Median Sales Price Q2 2010 – $137,567
Change: $67 GAIN
Percentage Change – 0%
MEDIAN SALES PRICE COMPARED TO MEDIAN LIST PRICE
The median sales price vs median list price of homes is significant because it shows how much homes are selling for compared to how much sellers are asking. The median list price is for all homes listed on the market, not just homes that have sold, so the difference in the list price versus the sales price does not represent the amount sellers are willing to negotiate their prices. The median list price shows to be much higher because homes in the higher pricing tiers are taking much longer to sell, especially in this economy.
This data shows that the median list price of homes has increased by 3% over the last three years while the median sales price has only increased by a small margin of $67. The higher median list price could perhaps be a sign that some sellers are asking more for their homes in a market where they anticipate buyers will offer less.
AVERAGE DAYS ON MARKET
The average number of days that homes sat on the market before selling in Tarrant County has actually declined slightly over the last three years. The number of days on the market begins to calculate once a home is listed and stops counting once a contract is fully executed between a buyer and a seller. Because of this, it’s certainly possible that it actually took a bit longer to physically close the transactions because of many factors, mainly the fact that many mortgage transactions are taking longer to close in today’s market.
Tarrant County Average Days On Market Q2 2007: 69 Days
Tarrant County Average Days On Market Q2 2010: 68 Days
Change: -1 Day
Percentage Change: -1.5%
SUPPLY AND DEMAND
A good test of any real estate market is comparing the supply of homes for sale with the actual number of properties that are selling. Although the number of sales in Tarrant County has decreased by a large percentage, the number of homes for sale has actually outpaced the decrease in demand, which helps to balance out the market and also helps to keep prices stable.
Tarrant County homes for sale Q2 2007: 24,100
Tarrant County homes for sale Q2 2010: 18,327
Percentage Difference: -24%
Tarrant County sold homes Q2 2007: 7,064
Tarrant County sold homes Q2 2010: 5,583
Percentage Difference: -21%
So while the number of home sales in Tarrant County has declined by 21%, the number of homes for sale has actually declined by 24% which means the supply of homes for sale has decreased by 3% more than the demand for homes has declined in Tarrant County. If the supply of homes for sale had increased relative to the demand for homes, this would likely have resulted in lower prices.
Expired listings occur when the term of the agreement between the listing broker and the seller expires. There is no “standard” for how long listing agreements must be, but many listing brokers will ask for longer terms when the market is soft.
Tarrant County Expired Listings Q2 2007: 4,913
Tarrant County Expired Listings Q2 2010: 3,283
Percentage change: -33%
While the volume of listings has declined in Tarrant County, so has the number of expired listings.
NEW LISTINGS BY QUARTER
The number of new listings by quarter shows how many new sellers are listing their homes on the market versus just the number of active listings. As the economy has weakened, more
Tarrant County New Listings Q2 2007: 12,410
Tarrant County New Listings Q2 2010: 9,319
Percentage Change: -25%
The number of new listings in Tarrant County has declined significantly over the last three years. When compared to the number of listings by quarter (all listings, not just new), the percentage decline is almost the same. The number of new listings has declined for a number of reasons, which include the fact that many homeowners may be underwater or simply don’t have enough equity to sell their homes, plus the fact that many people who purchased homes during the middle of the decade may no longer qualify for the tighter mortgage guidelines in today’s market. There’s little question that many people will be owning their homes for a longer period of time than in previous years.
SOLD PROPERTIES BY QUARTER
The number of actual home sales has also declined by a significant number over the last three years, but surprisingly, this has not resulted in a decline in the median home sales price. This is likely because the decrease in the supply of homes on the market has kept up pace with the decrease in demand as shown in the previous chart.
Tarrant County Sold Properties Q2 2007: 7,064
Tarrant County Sold Properties Q2 2010: 5,583
Percentage Change: -21%
The number of sold properties has declined by 21%, which is very close to the reduction in the number of active listings and new listings as well. The fact that the supply of homes on the market has declined by an amount similar to the decrease in demand has helped keep prices in Tarrant County stable.
PENDING HOME SALES
Pending home sales are the number of actual executed contracts where the buyer has completed their option period. Not all pending home sales will result in closed transactions since fallouts may occur for many reasons.
- Tarrant County Pending Home Sales Q2 2007: 7,002
- Tarrant County Pending Home Sales Q2 2010: 4,971
- Change: -2,031
- Percentage Change: -29%
- Pending home sales have declined by 29% over the last three years, which is in line with the number of sold properties. Pending home sales tend to lag behind closed transactions by 30-60 days, depending on many factors. The longer it takes to close transactions, the longer the lagging period will be. One surprising piece of this data is the fact that pending home sales in the second quarter of 2010 were basically the same as the first quarter of 2010, but the number of closed transactions in the second quarter was much higher than the first quarter. This likely shows that many people went under contract in the first quarter of 2010 but didn’t close until the second quarter because of the homebuyer tax credits.