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Ken Lampton's Blog

Life And Real Estate In Dallas' M-Street Neighborhoods

By Ken Lampton | Agent in 75206

Declining Inventory In Dallas Will Lead To Higher Prices



I've been thinking all year that the market for homes was getting stronger in the M-Streets. This conviction has been reinforced by the chart below.



The chart comes from the Texas Quarterly Housing Report for 2012-Q3 (issued by Texas Association of Realtors). It shows  a phenomenal drop in the availability of homes for sale, as measured in "months of inventory."

The wise men of real estate tell us a six-month supply of homes for sale indicates a "balanced market." With supply dropping by 33% there will be strong pressure for the market to flip over to a "sellers market." And sellers markets are accompanied by rising prices and shorter days on market.

It isn't all blue sky ahead. Mortgage loans are still too difficult to get. Qualifying standards are too harsh! The high national jobless rate will exert some drag on Texas, even though the Lone Star State is recovering from the recession faster than most of the country.

So everything isn't bright and rosy. But this new development—less inventory available for sale—helps keep Dallas going in the direction of a sustainable real estate recovery.

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Ken Lampton, RE/MAX About Dallas
CRS (Certified Residential Specialist)
CDPE (Certified Distressed Property Expert)
The Expert on Dallas M-Street / Lakewood Homes
www.m-street-dallas.com


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