Denton County home sales pushed higher in January along with average prices. Closed home sales in Denton County rose about 4 percent compared to last year while the average price of a Denton County home was roughly 7 percent higher than this time a year ago. Pending sales were off about 5% in January and the number of homes available on the market was roughly 11 percent higher year-over-year. Denton County months of supply is still less than two months at 1.9.

The City of Denton saw even stronger activity during January. The average price of $270,814 was almost 7 percent higher while close sales increased 24 percent compared to January of last year. Pending home sales in the City of Denton were also higher, rising by 22 percent. Months of supply in Denton stood at 1.5 months. As a reminder, average prices in the City of Denton are far lower than the Denton County average (about $70,000 lower).

Average days on market also climbed within Denton County, posting at 54 days on average in January. It’s still taking longer to sell homes with higher average price points. Average percent of list price is still getting squeezed a bit. January saw a slight improvement from the previous month, but the trend for the ratio still looks to be in decline.

With more home builders shifting their focus to more affordable housing products, it will be interesting to see how the rest of the year plays out. Higher mortgage rates to start the year are already putting a damper on home price inflation.  Govt and Fed policy are making waves in the housing market. So far, the Federal Reserve seems undeterred by recent market volatility. This means that rates could push higher this year before the Fed spills the punch bowl completely.

The Denton County real estate market is still experiencing strong growth with positive dynamics for relocation and job growth. For the time being, solid economic fundamentals are driving the local housing market to new highs. The question which has yet to be answered is whether all of that economic growth is real. With the Fed pulling back on their massive stimulus into the markets we will soon find out.