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High-end homes stand a better chance of selling right now
07:58 AM CDT on Friday, April 23, 2010
By: Steve Brown, columnist, Dallas Morning News 4/16/2010
How quickly you sell your house this spring doesn't just depend on its condition and what neighborhood it's in.
The big difference is the price range.
During the first quarter of 2010, sales of North Texas homes priced at more than $600,000 are up between 15 percent and 30 percent from a year ago, according to data from the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems.
But sales of pre-owned houses valued at less than $100,000 are down about 4 percent this year. And homes priced from $200,000 to about $500,000 are basically flat when compared with the first quarter of 2009.
The median price of all homes sold through the Multiple Listing Service so far this year in North Texas was $139,500 – up 3 percent from the same period last year.
At the lowest end of the price spectrum, tougher mortgage qualifying standards and a still-weak economy are keeping buyers at bay, housing analysts say.
The jump in higher-priced sales is most likely due to pent-up demand, said Dr. James Gaines, an economist at A&M.
"Some of these folks who are buying may have lived somewhere else for the past five years and are moving over or up to take advantage of lower current prices, lower interest rates and the [first-time homebuyers] credit."
Even though higher-price homes are selling, the inventory is still high. At the end of March, there was more than a 20-month supply of homes listed at $500,000 and up, compared with an overall inventory of about six months. There are about 4,500 homes priced at $500,000 and up in the North Texas Multiple Listing Service.
"There is still a lot of inventory to work through in certain price points," said agent David Nichols of Allie Beth Allman & Associates. "Yes, the market has picked up in a positive way. But buyers are still cautious and are definitely looking for the best buy possible."
Many affluent buyers feel that the time is right to make an offer, said Robbie Briggs, CEO of Briggs Freeman Real Estate. "They have been sitting on the sidelines waiting for a bottom, and many feel that they have found it," Briggs said. "I think we are about to have some seriously big sales this spring, so we are generally encouraged."
WHICH HOMES ARE SELLING?
First-quarter home sales in North Texas:
| Less than $100,000 |
-4% |
| $100,000-$200,000 |
+0.5% |
| $200,000-$300,000 |
+1% |
| $400,000-$500,000 |
-1% |
| $600,000-$700,000 |
+15% |
| $800,000-$900,000 |
+30% |
| $1 million and up |
+23% |
SOURCES: Real Estate Center at Texas A&M University; North Texas Real Estate Information Systems
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