Housing market

Denton’s housing market stays flat with median home price hitting record highs – Denton Record Chronicle

Summary

Home sales in the city of Denton were flat during the month of October, with essentially no change from the prior year. Pending sales fell 18%. Looks like a Santa Claus rally for agents is not in the cards this Christmas. The problem, of course, is limited inventory and really high home prices.

The supply of homes in Denton dipped below a single month again in October. Typical seasonality is creeping back into the market. Home prices, on the other hand, …….

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Home sales in the city of Denton were flat during the month of October, with essentially no change from the prior year. Pending sales fell 18%. Looks like a Santa Claus rally for agents is not in the cards this Christmas. The problem, of course, is limited inventory and really high home prices.

The supply of homes in Denton dipped below a single month again in October. Typical seasonality is creeping back into the market. Home prices, on the other hand, are still near record highs. This is not exactly surprising with the Fed still pumping over $100 billion per month into the markets. The median price of a Denton home actually hit a new high in October, posting at $339,500. That’s 25.8% higher than a year ago. Average prices fell slightly from their September high, coming in at $361,228.



Aaron Layman


Single-family lease prices were up 5.4% year-over-year in Denton. New multifamily housing stock continues to provide a buffer to the city’s rent inflation. Numbers for Denton County provide a brutal reminder of how tough things are for renters in some areas of North Texas. Single-family lease rates in Denton County were 21% higher compared to the same time a year ago.

Keep in mind the official 12-month change for shelter inflation posted at just 3.5% for October. The Bureau of Labor Statistics is still playing catch-up with their broken formulas. If you think housing inflation is bad, go try to purchase a good used car.

“This October was the first October in the history of the Manheim Index data, which dates to 1997, to see a non-seasonally adjusted price increase in October,” according to Cox Automotive’s market insights. The index for wholesale used vehicle prices rose 9.2% for the month. It was up 38.1% year-over-year.

With the price of nearly everything marching higher, you would think it would be a slam dunk to buy and flip homes for a profit. Zillow showed that’s not always the case. Zillow posted a horrific third-quarter earnings report that included a $304 million loss in its homes segment. The year-to-date loss in Zillow’s homes segment was over $500 million. Zillow decided to pull the plug on Zillow Offers and abandon home flipping entirely. Go figure.

Zillow’s crash & burn in the home flipping business wasn’t lost on Wall Street opportunists. With Zillow looking to unload thousands of homes across the U.S., enter Pretium Partners. The New York-based investment firm is going to purchase 2,000 homes from Zillow. Terms of the deal were not disclosed. American Homes 4 Rent and Dallas-based Invitation Homes are also reportedly talking with Zillow about bulk purchases. Giant institutional landlords are getting even bigger, …….

Source: https://dentonrc.com/business/business_chronicle/dentons-housing-market-stays-flat-with-median-home-price-hitting-record-highs/article_f5d1d4b7-32b8-5e13-93f6-51ebdcc223ad.html