Real estate market in Dallas, 2019
The housing market crash in 2008 led to one of the worst economic periods often called the Great Recession. Even though the economy still struggles to recover, it has been growing steadily ever since. Naturally, the growth has had its effect on real estate markets all over the country. Now, the unemployment rate is at the lowest level in the last fifty years and people continue to spend more since the wages are growing. In the last seven years, the number of prospective home buyers increased faster than the number of houses and apartments for sale. That means that the demand rose faster than supply. Dallas, as the ninth-most-populous city in the USA, was not an exception. But, let’s take a look at what the odds are for the real estate market in Dallas in 2019.
The factors that affect the real estate market
There are numerous factors that have an effect on the real estate market in Dallas. They are pretty much the same as everywhere else. However, their values differ from place to place. If we take a look at the real estate market trends in Ontario, for example, we will see the difference. Here are the most important factors:
- Demographics – age, gender, income, race, migration patterns, and population growth; All of these could indicate the types of properties that are in demand. The number of people living in Dallas at the moment is somewhere around 1.345 million. Naturally, the number is increasing every year.
- Interest rates – they have a major impact on the real estate market; When interest rates go down, they lower the cost of obtaining a mortgage to buy a home. That creates a higher demand which again causes the prices to grow.
- The economy – indicators such as GDP, employment data, the prices of goods, etc. Broadly speaking, when the economy is good, the real estate market is warming up. The median income in North Texas has increased a lot in the last 10 years (from $58,025 to $67,382). Of course, the income dictates whether you will be able to invest in real estate or not.
The real estate market in Dallas is overvalued
The real estate market in Dallas is one of the most overvalued ones in the USA. Based on the population growth, income, and average rental prices, the prices should be 15% lower than they are at the moment. The population growth is measured in tens of thousands a year and the number of new jobs is over 100 000 per year. Such an inflow of people to the city means that long distance moving professionals in Fort Worth are very busy. The median income in the last decade rose by 16%. However, the median home prices went up by 70 percent.
The housing market is cooling down at the moment
Overall, the prices are still rising, but not at the pace as they used to. The median home price in North Texas in 2011 was $150,000. At the moment, it is $254,300. According to the National Association of Realtors, during the first trimester of 2019, we saw the prices increase of 1.4 percent. That would mean the 7.5 percent rise in the median home price this year. That’s only half of the last year percentage (14.2 percent in 2018). But, the market is still on an upward trajectory. It is now going back to its normal pace of activity. So, if you are planning on investing in Dallas real estate, maybe this is the perfect time for you. Chose a property and hire Evolution Moving Company DFW for a smooth move.
“For sale” signs are not leaving the front yards so quickly
In 2013, the local residential property market was at its peak. Prices soared higher day by day and cash offers were being made all the time. The supply was limited while the demand seemed endless. However, now you can see houses being on the market for weeks and even months, which was not the case in the previous years. The average number of days on the market for a house in Dallas is now 53.
Prices continue to rise, but the sales are not going up. For example, in one part of the city, there were some 15,254 homes listed for sale in January. The same area had 18,012 listed houses in April this year. That is a clear indicator that the sales are slowing down.
New listings are coming online all the time
The sales are going down, but new listings are appearing online every day. The new houses are getting advertised for sale as well as the older ones. If we take a look at the number of new homes that are under construction, we can make a conclusion that Dallas is the national number one in this field. Last year, construction began on 34,523 new homes in Dallas, which is up almost 3 percent from 2018.
Even so, the supply is tight and the demand is high. Many experts agree that the explanation of this situation is rather simple: the prices are just too high! They say that what is happening now is known as price fatigue. The buyers are not so thrilled about overpaying for something that is not exactly what they want. So, they decide not to buy at all unless they really ought to. In such cases, the only way they can try and save some money is on the relocation process.
Real estate market in Dallas is still very stable
The good news for homeowners is that the demand is still out there and prices are still climbing. At the same time, the buyers are happy that the prices are not so fast to jump as they were some time ago. The real estate market in Dallas seems to be just fine.