Home Sales Fell in July but What Does it Really Mean?
The big news this past week was how home sales were down in July versus 2020 but let’s dive into this before we draw too many conclusions.
Last year we were in the middle of COVID and people were moving like crazy. This year Dallas County had 2,538 sales which was a 13.2 percent decrease but listings were down 38.3 percent! Collin County has 1,831 sales with a 16.3 percentdecrease from 2020 and down 42.7 percent in listings! Denton County had 1, 639 sales which was 20.6 precent decrease year over year but a 41.6 percent decrease in listings. Of course, if you have far less Listings you will have far less sales.
And these are the reported MLS sales. In 2020 we had numerous off market sales transacted between brokers because of the lack of inventory. Homes were trading at a premium because they were off market and those transactions were not recorded, but I believe it would have increased those sales numbers.
The market has cooled off in recent months, but with the low interest rates, substantial savings people incurred over COVID, and the improving labor market, we will still see a strong finish to 2021. The prices in Texas did increase for a home, as they did in every state, but we are by no means at the top of the highest increases. According to the latest Corelogic HPI report, Idaho (34.2%), Arizona (26.1%) and Montana (24.3%) had the highest home price increases. Texas was not even in the top 10.
As always, we are still very fortunate to live in our great state of Texas.