Prudential Texas Properties Executive Summary

Monday August 27, 2012

SOUTHLAKE, TX
Single Family Homes

This Week
The median list price in SOUTHLAKE, TX this week is $649,700. Inventory is tightening and days-on-market is falling. The Market Action Index shows demand heating up. These are relatively bullish signs for prices.

Real-Time Market Profile Median List Price $ 649,700 Asking Price Per Square Foot $ 148 Average Days on Market (DOM) 160 Percent of Properties with Price Decrease 41 % Percent Relisted (reset DOM) n/a Percent Flip (price increased) 1% Median House Size (sq ft) 4554 Median Lot Size 0.50 - 1.0 acre Median Number of Bedrooms 4.0 Median Number of Bathrooms Market Action Index Strong Buyer's 4.2 21.1

Trend + ==

Supply and Demand

Home sales have been exceeding new inventory for several weeks. Since this is a Buyer's market prices are not yet moving higher as excess inventory is consumed. However, as the supply and demand trends continue, the market moves into the Seller's zone, and we are likely to see upward pressure on pricing.

==

No change

== Strong upward trend Strong downward trend = Slight upward trend Slight downward trend

Price
The market seems to have paused around this plateau. The Market Action Index is a good leading indicator for the durability of this trend.

Market Action Index

Price Trends

7-Day Rolling Average

90-Day Rolling Average

Buyer/Seller Cutoff

The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies Seller's Market conditions. Below 30, conditions favor the buyer.

Quartiles
Quartile Top/First Upper/Second Lower/Third Bottom/Fourth
Median Price Sq. Ft. Lot Size
1.0 - 2.5 acres 0.50 - 1.0 acre 0.50 - 1.0 acre 0.50 - 1.0 acre

7-Day Rolling Average

90-Day Rolling Average

Characteristics per Quartile

Investigate the market in quartiles where each quartile is 25% of homes ordered by price.
Most expensive 25% of properties Upper-middle 25% of properties Lower-middle 25% of properties Least expensive 25% of properties

Beds

Baths

Age Inventory New Absorbed DOM

$ 1,324,395 $ 763,500 $ 562,000 $ 424,950

6390 4932 4040 3232

5.0 5.0 4.0 4.0

5.8 4.5 4.0 3.0

6 10 15 20

58 58 58 58

3 7 4 7

6 7 6 11

232 142 157 110

Prudential Texas Properties

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