No ifs, ands, or buts about it — the Dallas real estate market has officially resumed activity. No “summer slump” here, folks. We are getting back to business. 

In the Dallas real estate market pre-COVID, summers tended to be slower due to the bustling activity seen during the spring market, and because many people are usually traveling during summer months. But not this year. Just as we predicted, the spring market wasn’t eliminated…it was simply deferred.

Confused by the current market? We’re here to help.

From what we’ve seen in and around the Park Cities, Preston Hollow, and Lakewood, now that things have reopened there is a surge taking place in most submarkets — especially compared to this time last year. Here’s what else you should know approaching the Dallas summer real estate market. 

Note: We pulled market data for HPISD only, which is representative of the surrounding submarkets trends. 

6 Summer Real Estate Facts You Should Know

Days on market are low, and inventory is even lower. The average days on market have seen a significant decrease as of late, which is directly correlated with a low inventory — especially in HPISD. We are also seeing an increase in active listings from May to June, which shows that a lot of sellers are deciding to put their homes back on the market, or to finally list their homes. Buyer activity is especially strong now too, due to the pent-up demand following the lock-down. This new demand combined with low inventory has provided support for strong selling prices despite the COVID situation.

Represents avg. days-on-market versus avg. list price
in HPISD from January 2016 through May 2020.

Businesses are opening back up, and people are out. Those in the market to buy a new home are finally able to visit listings, and we’re back to having in-person showings (while keeping our social distance, of course).  

Interest rates are also lower than ever. This is keeping buyers in the market wanting to capitalize on “cheap money.” Lower interest rates also help to sustain prices in the market, and buyers are capitalizing on this historic opportunity. 

When priced appropriately, buyers are more willing to make an offer—and do so quickly. The trend line in the chart below shows that when a listing is priced appropriately, buyers are ready and willing to purchase now. We know this because average price trends remain consistent, but we’re seeing a drastic drop in days on market. So if your home is listed at the right price, you’re going to sell quickly. 

Represents avg. list price per square foot
in HPISD from January 2016 to May 2020.

Price, value and discounts have all leveled out. The chart below shows the amount of discount sellers took for their properties versus the list price. You can see it peaked in April (when sellers were most afraid of the unknown), but went right back to normal in May as they started to see a light at the end of the tunnel. Pricing trends in the Park Cities have seen no drastic drop during the pandemic, either. 

Represents avg. listing close price versus avg. sale discount
amount in HPISD from January 2016 to May 2020.

Dallas is likely to see increased migration from more populated areas. Experts are predicting that people who are experiencing the full effect of COVID-19 due to densely populated areas (think New York, Los Angeles) will want to move to less populated cities that still offer an established business environment. We think Dallas is a top contender that will benefit from this. This could be an additional driver for values in 2021.

While solds and inventory in general are down from last year, the market is picking back up from its previous slump. We’re optimistic that everything will be back to normal soon. But until then, we’ll be here to field any questions you have about the ever-changing Dallas real estate landscape.

Have questions about buying or selling? We have answers.

We grew up here. We live here. We’ve been buying and selling real estate in the area for two generations, immersed in the ebbs and flows of the local neighborhood markets. Deep ties to the community keep us in the know. It’s not just a slogan… WE KNOW YOUR NEIGHBORHOOD.