(Source: Steve Brown The Dallas Morning News (MCT) — Dallas-area home shoppers may be in for a surprise this spring.

There are fewer bargain buys on the market.

And the overall number of pre-owned houses for sale in North Texas is at the lowest level in more than a decade.

Many neighborhoods have less than a four-month supply of single-family homes listed for sale with real estate agents.

A six-month supply has long been considered a “balanced” inventory. Anything less than that is usually considered a sellers’ market. Nationally, the supply is 6.1 months.

North Texas home sales listings were down 23 percent in January from a year earlier, according to the Realtors’ multiple listing service.

In some areas, 30 percent to 40 percent fewer homes are on the market than in early 2010, show statistics from the Real Estate Center at Texas AandM University and North Texas Real Estate Information Systems.

“Inventory is way down, and our showings are up and pending sales are way up,” said agent Lydia Player of Ebby Halliday Realtors. “Even houses that have been sitting on the market for more than 200 days are getting more showings.

“Investors are really scrambling because they realize the market has bottomed out and this is the time to buy,” Player said.

Three of the tightest home markets are in the suburbs. In January, Grapevine had only a 2.5-month supply of homes on the market. The total inventory there is 43 percent lower than a year earlier.

Bedford and Frisco had a three-month supply of homes for sale — down at least 30 percent in both markets.

Even in the Park Cities, where high prices usually mean longer sales times, there’s only about a five-month supply of houses for sale.

And the number of days it takes to sell a property in the Park Cities is now less than the areawide average and down 30 percent from last year.

Current low inventory levels usually would cause a surge in home prices and a scramble to close sales, but the market response has been muted.

“Normally, inventory of less than five months would indicate a very strong market,” said Jim Gaines, an economist with the Real Estate Center. “Historically, this was the case because demand was growing so much faster than people were trying to sell.

“So with greater demand, prices would be pushed up.”

But Gaines said that is “just not happening this time.”

Downward forces

Thousands of foreclosed homes coming on the market are keeping prices depressed in some neighborhoods.

Exacting measures by appraisers are also holding values in check, real estate agents say.

Sales agent Scott Schueler of Keller Williams Realty said home appraisals are low in some neighborhoods because they reflect what houses sold for last year, not current market conditions.

“If you are looking for a house in Plano for $250,000 to $275,000 and in good condition, it won’t be on the market for long,” Schueler said. “You might see multiple purchase contracts.

“But if you don’t get the appraisal comps to support the price, it doesn’t matter if you get multiple offers.”

If a buyer or his lender believes the home is overpriced for the market, the deal will probably fall through, he said.

Homebuyers may also be disappointed to find that there are fewer deep discounts, said veteran Dallas agent David Griffin, who handles home sales in some of the area’s most affluent neighborhoods.

Deals are done

“I think they will find this spring the kinds of deals we have had in the last couple of years are not around,” Griffin said. “We went through all that inventory of homes the speculators had that went back to banks. That has pretty much dried up.

“We have a healthier overall market than we have had at anytime since 2008,” he said.

Griffin said his business is picking up.

Still, potential buyers may be counting on discounts.

“People are very reluctant to pay a premium for anything,” Griffin said.

Owners hold off

Housing analysts point out that there is a wave of potential sellers waiting for higher prices before they put their property on the market.

“Despite some recent signs of modest improvement in sales activity, the reality is that many households are still concerned about the real estate market and may be avoiding making the decision to list their house and buy another,” said Ted Wilson of Residential Strategies, a Dallas-based home market consultant.

“Many households also may be thinking that this is not the time to sell — that they will wait until values start to go up.”

That could mean a rise in home sales listings in spring and summer.

So far, the number of for-sale signs hasn’t surged, said Player.

“March is the month we typically see a lot more listings,” she said. “But so far it’s not happening.”

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Source: Steve Brown The Dallas Morning News (MCT)