There is an overwhelmingly positive forecast for the Dallas/Fort Worth real estate market in 2016, supported by an impressive job market, which seems only to be getting better. According to the U.S. Bureau of Labor Statistics, the unemployment rate in the DFW area sits at around 4%, which is down from a recession high of 8.7% in 2009. This is also more than a full percentage lower than the current national unemployment rate.
The area's healthy job market and stable economy make it one of the top real estate markets to watch in 2016. “The DFW market has been a great destination for relocation over the last few years,” says Sterling Mack, a top-producing agent at HomeCity Real Estate. “Texas has done an excellent job of attracting businesses due to its favorable tax system and aid in relocation. The amount of new jobs being created in North Texas has been a major driver of this growth. People from all across the US are targeting Dallas as their new home due to the amount of great jobs available and fantastic cost of living. As compared to most major cities in the US, homes in the DFW market are still very affordable.”
Prices remain comparatively affordable but have been steadily rising over the last few years. “Until inventory rates stabilize and new construction sees a major increase in new home starts, we should continue to see median home prices continue to rise,” says Mack. “Most areas of town still have less than two months of inventory, and a typical market should see six months of inventory. Based on normal supply and demand charts, we will most likely see increases in median home prices for the foreseeable future.”
While new home construction stats are also going up (according to the Texas A&M Real Estate Center), it is likely not enough to affect home prices. “We are still at only 50% of the approved permits that we saw in 2006,” said Mack. “We need a significant increase in new construction for it to make a major impact on overall market numbers.”
Adding to the mix, millennials are predicted to have an effect on the nations real estate market, with more predicted to buy homes in 2016 than ever before. “I believe we will see more millennials buying homes in the future,” adds Mack. “The amount of job growth and affordable housing in the DFW market makes it very attractive for them to move into home ownership. This, coupled with still historically low mortgage interest rates should be a compelling reason for them to buy now.”
With such an influx of people both moving to the area and deciding to enter into home ownership, one of the only places for the DFW area to grow is out. The suburbs are expected to see exponential growth and are the predicted areas to watch in 2016. “Collin County, for example, is growing very quickly,” says Mack. “ There are outstanding schools systems in the area and the job market is extremely strong. Also, Northeast Tarrant County and out towards Rockwall are still seeing a large influx of people.” Enlisting the help of a real estate professional who is familiar with Dallas/Fort Worths ever-growing market climate is imperative as it becomes more competitive than ever.