Mirror, Mirror on the Wall, Where are the Q2 Hottest Real Estate Sales of Them All?

By Marcus McCue of Guardian Mortgage Company Exclusive to Candys Dirt readers, this free quarterly report covers North Texas residential real estate sales for the previous three months. Think you know the hottest real estate markets in North Texas? You might be surprised! Hot off the presses for Candys Dirt readers only, we asked master appraiser Jim Goodrich, SRA, MAI, of Goodrich Realty Consulting LLC., to help us prepare this report of Top 10 Areas for Real Estate in Dallas and surrounding cities for Second Quarter of 2012. To give you an idea of how hot these areas are; the average for the entire DFW Metroplex for homes $60K-$99K is 45%; is 42% for homes $100-149K; and is 38% for homes $150K$199. The numbers drop from there, as might be expected. Last quarter, in the under $100K price range, Frisco had a hotness factor of 70% which I had never seen before. This quarter, Plano, Wylie and The Colony are even higher, notes Goodrich. These areas are on fire thanks to pent-up demand and historically low interest rates. Plano in particular is a great place to sell a home right now.

The Hottest of Them All

Area Price Range Hotness Factor
(% of Listings Under Contract)

The Slowest Of Them All

Area Price Range Not-SoHotness Factor

(% of Listings Under Contract)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Plano The Colony Wylie Wylie Allen Allen West McKinney Frisco Plano East McKinney Garland Frisco Plano Lewisville/ Flowermound

$60K-99K $60K-99K $60K-$99K $100K-$149K $100K-$149K $150K$199K $100K-$149K $100K-$149K $100-$149K $100K-$149K $60K-$99K $150K-$199K $150K-$199K $100K-$149K

81% 74% 71% 64% 64% 61% 61% 60% 58% 58% 57% 55% 55% 55%

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Plano West McKinney Allen East Dallas North Dallas Coppell Addison Irving North Dallas The Colony West McKinney

$700K-$1M $700K-$1M $500K-$700K $700K-$900K $700M-$1M $500K-$700K $400K-$499K $500K-$700K $1.5M-$2M $200K-$299K $500K-$700K

7% 12% 13% 14% 15% 17% 17% 18% 18% 18% 18%

What is the Hotness Factor?

The actual number of sales in a particular neighborhood is irrelevant to the Hotness Factor, says Jim Goodrich. What

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we are analyzing is how quickly a home sells. If you could drive around a neighborhood looking at For Sale signs, the Hotness Factor would tell you what percentage of those homes were actually under contract. The more contracts there are relative to the number of listings, the hotter the area.

How Hot are You?

Are you looking to buy a new home soon? Make your negotiations go smoother by getting pre-approved before you fall in love with a home. Give one of our loan officers a call: 972-200-3380 to discuss your specific situation. www.guardianmortgageonline.com

Last quarter, in the under $100K price range, Frisco had a hotness factor of 70% which I had never seen before. This quarter, Plano, Wylie and The Colony are even higher.
The mathematical formula of the Hotness Factor is the ratio of pending sales to active sales plus the pending listings. We look at things like how long homes are on the market before they sell in that area and predict how long it will be before a home in a certain price range sells. In Plano, overall home sales are up 15% from this time last year. Most homes in the $60K-$99K range are selling in two weeks if priced right. Higher priced homes are selling in 4-6 weeks. As this quarters report shows, the market for lower priced homes is still white hot, says Goodrich. Many of these homes are lender owned, priced to sell and being snapped up by investors. With few exceptions, the neighborhoods where the higher priced houses are located are plagued with too many sellers relative to the number of buyers. A preapproved buyer in this price range should be able to strike a deal!

Contact our Contributors:

Jim Goodrich, SRA, MAI, Goodrich Realty Consulting LLC. 972-529-2828 www.goodrichrealtyconsulting.com

www.CandysDirt.com | August 2012