Amid the coronavirus pandemic and new remote work options, people around the country are moving to the suburbs to get more space in their home and yard. Many younger people are entering the housing market for the first time, and out-of-state folks are being drawn to Texas for more space at a better price point. U.S. existing-home prices hit a record high in May, and it’s at a similar pace in Denton County, according to information provided by GLAR President Brenda Taylor, GLAR President-Elect Brooke Hunt and GLAR CEO Kim Lambert.
“Millennials have entered the market with gusto, largely due to the historically low interest rates,” Taylor said. “I-Buyers and investors are buying up homes that typically have been purchased by the average homeowner. Out-of-state buyers are finding Texas a very attractive location based on taxes, quality of homes, etc.”
Those factors have led to the lowest existing-home inventory in Denton County in 35 years. Because of this, most houses in the area that go on the market end up in a bidding war, selling for well over the listing price, and they sell after an average 13 days on the market, compared to an average of 44 days a year ago.
“While standing inventory levels are extremely low, we’re still seeing record sales volume which means that supply is coming online but immediately sold, which leads to bidding wars and higher prices,” Taylor said. “This is highly unusual to see average sales prices exceed list prices across the state and even more exaggerated in certain markets.”
For all of Denton County, the median price for a house in May was nearly $400,000, up 23% from May 2020, according to data provided by GLAR. Active listings were down 65%. Specifically focusing on southern Denton County towns, the smaller towns are experiencing even more of a swing.
In Argyle, the median house price of $671,000 is up more than 56% compared to a year ago, while active listings are down 81%. Double Oak’s median price of $888,000 is up nearly 70%, while active listings are down 67%. Meanwhile, the larger town of Flower Mound is experiencing a more moderate rise in sales price of 19%, though its active listings are also down about 66%.
The market took the turn in November 2020, and it’s expected to stay this way until next year.
“Our real estate economists do not see a ‘crash’ and this type of market will probably last through 2021, with a leveling off in 2022, with more normal moderate sales growth, which should help on the inventory side,” Taylor said.