May typically marks the start of the summer real estate season, with buyers and sellers taking advantage of nice weather and summer vacation to move. Of course, this year has been anything but typical.
So what does this mean for the Dallas-Fort Worth market right now?
New listings climbing. After a slower March for the market, we started to see new listings climb back up in April and this trend continued into May. This month, we saw 26% more single-family homes listed in the Dallas-Fort Worth area vs. last month, indicating that more and more sellers are feeling comfortable putting their homes up for sale.
Inventory remains tight. While new listings are continuing to climb, overall housing inventory is still lower than we’d expect for this time of year. Pre-coronavirus, there was already a nationwide shortage of homes for sale compared with previous years. The existing shortage coupled with sellers sitting out towards the end of March and much of April meant fewer homes were for sale in May.
Buyer activity took off. The huge jump in home showing activity, as indicated in the graph below, shows us that buyer interest throughout the state has rebounded and surpassed levels seen before the pandemic. In the Dallas-Fort Worth area, the number of homes that went under contract in May 2020 was up 26% from April 2020.
So what does this mean if you’re a buyer or seller?
For buyers, thousands of new listings continue to hit the market, but not at a rate that will close the inventory gap just yet. This means there are fewer homes on the market heading into June with more interested buyers entering the market each day. If you’re thinking about buying, having a competitive offer (such as a contingency-free offer, which you can make with Orchard) will help you stand out to sellers who may receive multiple bids.
For sellers, median home prices continue to remain stable at 97% in May, suggesting that most sellers are receiving offers close to their original asking price. In the Dallas-Fort Worth area, this typically ranges from 96-98%. The average number of days a home was listed on the market before selling (DOM) was up just slightly from 20 days last May to 23 days this year. With many sellers receiving an offer in under a month, it could be a great time to sell if you plan to move before the new school year.
Social distancing measures (six-foot distance, gloves, masks, thorough cleaning between showings, etc.) will also still need to be implemented when anyone visits your home. With Orchard’s Buy & Sell service, we’ll take care of deep cleaning and listing your home after you move, so you can skip the stress of home showings.
For a deeper dive into the Dallas-Fort Worth real estate report for May 2020, read on.
By The Numbers
New listings in May. While there were 16% fewer homes listed in May compared with the same time last year, this is an increase of 26% more listings than just last month.
The average number of days (DOM) in May a listing was on the market before going under contract. This suggests that homes are being snapped up more quickly than last month when the average was 30 days.
Increase in homes that went under contract in May 2020 vs. April 2020. While still slightly down 4% from the same time last year, homes that went under contract jumped noticeably in May compared to the previous month.
“Now that stay-at-home orders have been lifted, we’ve seen interest in home showings and tours go up significantly. My listings are seeing more frequent showing requests from serious home shoppers, and it’s not uncommon to receive offers within the first few days on the market due to the tighter supply of homes!”
— Eric Passeau, Orchard Home Advisor
Received an offer in 4 days at 99% of list price!
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