He factored in year-over-year results: “Obviously, it’s still a bit below where we were a 12 months ago,” he said. “We had a drop from $530,000 to $435,000. Part of it’s seasonal. For the market, the very best time is all the time the primary six months of the 12 months.”
Sales of recent homes are also impressive
He suggested that the sales figures for brand spanking new homes weren’t as dramatic, but are still outliers in comparison with other markets. “New homes have not experienced the drastic drop in price that used homes have, and that is because builders have been capable of offer pretty strong buyer incentives, Reator bonuses, and pay for improvements, closing costs, that form of thing, or a mix of all of it. I even have seen buyer incentives as high as $50,000.
He used the Dallas-Fort Worth market for example: “We’ve had a very moderate drop in selling prices for brand spanking new homes throughout Texas. In Dallas-Fort Worth, to present you an idea, latest home sales prices in July and August were just over $500,000 to $512,000, dropping to only $488,000 in April. There wasn’t that much of a drop, however it was buffered,” he said, referring to buyer incentives.
The anticipation of sales also bodes well for the market
He added that ongoing sales are also encouraging. “Pending sales have done thoroughly,” he said, again using the Dallas-Fort Worth market for example. “Re-market homes were 3,700 in January and 6,700 in March – a really large percentage increase.”
Caballero noted the seasonal nature of the quantity and the conservative aspect of the calculations, taking into consideration the cut-off from data reporting and the inclusion of late reports by some.