Chapel Downs//Webb Royal
The name Webb Royal is derived from the official Dallas neighborhood watch organization. It consists of many subdivisions which were developed in the 50's and 60's. Therefore the type of house, size and layouts will vary. These statistics only cover a part of the area and are broken down into two areas. Webb Royal East consists similar homes built in the 60's which have slab foundations and attached garages. Webb Royal West consists of smaller homes built in the 50's.
Median Sold Price
This is different than the average price which is adding the sold prices together and then dividing this by the number of sales. The reason the median price is used rather than average is mainly because it is a more accurate indicator of the market, as it reflects the sample size being used.
Days On Market
Days on market commonly referred to as DOM, are the number of days from when a home was first listed to when it goes into pending status. When a seller receives an offer and goes under contract the days on market clock does not stop while it is under option status. If the contract is terminated and the home is put back on the market, the clock stats counting and is added to the previous DOM. DOM often factors into developing a pricing strategy. DOM can also be used as a "thermometer" to gauge the temperature of a housing market.
Months of Inventory
This number tells you how many months it would take for all the current homes for sale on the market to sell, given a monthly sales volume. Four to five months of supply is average. The smaller the number means it's more a Sellers market, conversely, the greater the number means it's more of a Buyers market. You can calculate the months of supply by dividing the total number of homes for sale over the number of homes sold in one month. For example, if you search in a neighborhood and notice that there were thirty homes for sale in June, but only ten actually sold, this means that there are three months of supply left in the market if only 10 homes sold for each month and no new homes came on the market.
Asking Price vs Actual Sold Price
This is an interesting statistic to look at but one that can be interpreted in different ways. For example, you may receive a just sold postcard from an agent bragging that he/she sold the home above list price. We looked into a few of these only to discover that the sold price was above the last asking price but well below the original asking price. The home had been reduced to below market value before it was sold
This chart lists the raw numbers of home listed and sold in the neighborhood with the median price and price per square foot.
Where Will Prices Go
The primary driver of prices in our economy is supply and demand and real estate is no exception. However there are many factors that affect supply and demand. Major economic events such as a recession can affect both supply and demand. When people are out of work because of the lack of jobs then they cannot pay for their homes so there is a lack of demand. When there is a lack of capital, builders cannot build units so there is a lack of supply. Wars and stock market crashes also affect supply and demand. Aside from major events, key indicators which affect normal supply and demand are job growth and affordability. A rise in interest rates also affect the ability to purchase or reduces the amount of home that can be purchased. It also eliminates people at the lower end of the spectrum that can no longer afford to purchase. As the FED raises rates the only offsetting factor for Dallas is the increase in people and job as a result of companies moving here. Dallas is among the top growth cities in job creation which directly affects demand and the ability to pay. Keep your eye on job growth rates because if that slows, so will the real estate market.
In an article in D Magazine - Published July 2017, By Joseph Guinto says " One of the main factors driving prices both in Dallas and nationally has been a lack of available houses for sale. Homeowners who made it through the Great Recession with their own roofs still over their heads tended to stay put. Builders, constrained by tight lending, slowed construction. So around 2012, when new buyers started showing up in Dallas, the housing supply was low. Supply, demand, you get it. Prices went up. Today, though, after eight years of economic expansion, more homeowners are listing their properties as they move up or move on. And builders have started to accelerate their work, too. That’s put more supply on the market, which could soften prices."
Joseph Guinto further explains "Dallas-Fort Worth actually leads the nation in the number of new houses being built, beating out Houston this year for that distinction. Metrostudy, a real estate research and consulting firm, says that local builders completed construction on just under 29,000 houses from the first quarter of 2016 to the first quarter of this year. That’s almost 17 percent more houses than they’d finished in the 12 months before that."