Lancaster, Texas is one of the areas where we buy houses. Because we buy houses here, it is very important to stay current on the trends in the real estate market. Although we primarily target off-market properties, on-market data available from the local Multiple Listing Service provides valuable information concerning the buying and selling conditions of the local area.
Although we are willing to consider multi-family properties presented to us for sale, we primarily target resale, single-family homes. Below is a general overview of the current Lancaster real estate market conditions (based on single family, resale, all price ranges, sizes, and bedrooms).
Home Prices
The median home sales price for April 2015 increased 10.7% to $125,000 from the prior month. Prices are up 15.7% from the same month in the previous year.
Days on Market
The median days on market increased 155.6% from the prior month, going from 18 days on market to 46 days. For the same period in the previous year, the median days on market are unchanged.
Home Sales
The number of home sales decreased 7.1% from the previous month going from 28 homes sold in March to 26 homes sold in April. Buying and selling activity will generally see an upward tick starting with the spring buying season. Home sales are down 16.1% from the same month in the previous year.
Inventory – Months Supply
The number of homes available for sale in April is down 20.8% from the previous month to 38 homes and is also down 56.3% from the same month in the previous year. The months supply of inventory is down 22.2% to 1.4 months. Inventory is down 64.1% from the same month in the previous year. In general, inventory levels are usually lower during winter all the way into March due to the cool weather but usually start to increase headed in to April.
Market Summary
Home sellers are clearly benefiting from the housing inventory levels remaining extremely low. This continues to put upward pressure on home prices. The rise in the days on market could be an indicator that home prices are becoming too expensive for what buyers are seeking. If this metric continues to rise, it will usually put downward pressure on home prices. We are entering the spring buying season and should expect to see an upward tick in inventory coming on to the market. Overall, levels will probably remain relatively low which should continue to benefit sellers.
As a real estate investment business, it is important to understand the market conditions where we buy houses. The exact same can be said for home sellers. The information above is not intended to provide you with an estimate of what your house might be worth or what you should pay for a house as a buyer. It is intended to give you a brief overview of the Lancaster real estate market and hopefully adds value in making a buying or selling decision.
The source for the above market data is derived from the North Texas Real Estate Information System.
