Ask an Appraiser: Is the Dallas Real Estate Market Really Sizzling Everywhere?
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Ya’ll know Bryan Hagen, who works with D.W. Skelton at Skelton & Associates. Those folks have been appraising Dallas Real Estate for a very long time, and for some very smart clients. We reached out to Bryan to help us zero in on the really hot neighborhoods, the sleepers, and give us the straight scoop on what he sees in his day to day life as a certified Real Estate appraiser in North Texas this month:
CD: Bryan, I keep hearing that homes are getting multiple offers, people are coming in at full price offers, is this true and at what price points is this happening?
BH: Absolutely, demand is at it’s highest level in years and there is no supply. A healthy inventory is three to six months and there are several areas with only a 30 day supply. The current inventory levels are causing a surge in price, full price offers and in many cases, offers well above list price. I have seen two houses in the last week sell for $25,000 over list price with as many as five to ten buyers competing. This type of competition is taking place in the $1,000,000 price point and is likely to be a common theme this spring for homes that have been recently renovated throughout and are located in neighborhoods where there may be nothing else available to purchase.
CD: Is there any part of the market that is a little slow right now?
BH: Not really, when properties are priced correctly there is very strong demand and days on market are limited. Properties with values in excess of $2,000,000 do take longer to market, but that price point not is not what I consider slow. All areas of residential, from condos to single family homes are doing very well right now with no signs of a slow down for 2015.
CD: Hottest neighborhoods in Dallas — where are people just about dying to get in:
BH: Lakewood, Devonshire and Greenway Parks would my top three, and of course the Park Cities always makes the list
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You should mention that multiple offers and offers above asking price do not equal an increase in appraised value. Buyers can offer whatever they want but if they want a loan it has to be based on appraised value. The problem I see is Realtors confusing multiple offers with a higher appraised value. Appraisals are based on comparable sales not offers or number of offers regardless of the amount of the offer. Keep in mind most comparable sales are not above listing price.
I don’t see a sector or price point in Dallas County that isn’t in this situation right now.
It is also interesting to note the type of buyer in the market right now. We are seeing a lot of recent veterans in the market right now all the way up to the $500k price point. Lots of mellinials, too. And lots of folks who want to explore neighborhoods in East, South, and South East once essentially ignored. I’ve got a 2008