Sales of existing homes in Dallas - Fort Worth have grown faster than the national pace in most quarters since the beginning of 2014. Accordingly, sales are currently up 9.7% from last year in Dallas, but is there room for even further acceleration?
Investors are wise to be somewhat cautious with their purchasing as broader economic conditions threaten the national housing market's stability. There has been a persistent struggle in the oil market, which could have a negative economic effect on Dallas - Fort Worth, potentially slowing the cities escalation. Also, growth in the new construction market (moreover in the Dallas metro rather than Fort Worth) is coming in response to robust home prices and sales, but not quite fast enough to cure the markets dwindling supply of inventory.
New listings were up 18.4% from February 2015, which may seem like a lot, but inventory of homes for sale actually went down 4.3%. Month’s supply of homes for sale dropped 11.1% to 2.4%. We’ve mentioned before that the Texas A&M Real Estate Center cites 6 months as a balanced market, and this still holds true. We are well below a balanced market in one of the largest metro areas in the country.
According to Auction.com, local population growth bests the national average by a wide margin, and the annual influx of new residents continues to boost demand for housing. Dallas’s population grew 2.1% year over year, while Fort Worth’s grew 1.7%. In comparison, the national population grew 0.7% last year.
The average home price rose 9.3% in February 2016 to $207,500, but housing in Dallas - Fort Worth remains surprisingly affordable compared to the rest of the nation. This is due in part to a high per-capita income in the DFW metropolitan area which, as of the 2014 average income data (released September 2015) was $59,530. This is slightly higher than the nation wide average income of $53,657.
While buyers may be limited, sellers are in a great position, as 96.6% of original list price is received when negotiating a home sale. Supply and demand are overwhelmingly clear in this current market, but the stability of the DFW economy has also played a large part in the continued growth of sales prices. But this doesn’t exactly spell disaster for home buyers, despite the competitive market, the continued growth of big business in North Texas and the continued job stability mean that home prices in the area are more than likely to continue to appreciate. Investors or personal buyers can make informed and conscientious decisions with the right Realtor®.