What a 350k house looks like across the DFW
The demand and sales have been climbing at a feverish pace in the Dallas housing market for more than two years now. The market started cooling off in the last quarter of 2019 and remains cold as of now. Dallas housing prices have risen by only 1.9% in the last twelve months.
The demand and sales have been climbing at a feverish pace in the Dallas housing market for more than two years now. The market started cooling off in the last quarter of 2019 and remains cold as of now. Dallas housing prices have risen by only 1.9% in the last twelve months. The DFW metro area has experienced smaller price gains as compared to Dallas. Home sales have slowed over the past couple of months and are likely to decline over the coming months as well, as the metro area continues to struggle with a sharp rise in coronavirus cases.
In May 2020, the number of homes sold within Dallas County was down almost 35% from a year earlier. The median sales price dropped by 3.9% to $250,000. There’s about a 3-month supply of homes for sale which is well below what’s considered to be a balanced real estate market. From this standpoint, the Dallas housing market still favors sellers over buyers.
Top Reasons To Invest In The Dallas Real Estate Market (2020 – 2021)
- Population Expected to Double in Next 15 Years
- Dallas is one of the leaders in the U.S. for employment and population growth.
- 52.9% of Dallas rents vs. 33% nationally.
- The demand for rental accommodation is increasing year-over-year.
- Low entry prices for Dallas investment properties.
- Newly remodeled REOs (2004 or newer).
- Properties 5% – 15% below market value.
- Cap rates above 6 percent.
- 3-year appreciation forecast of 11.4%.
- It is a good time to buy a house in Dallas due to favorable supply and demand conditions
Let’s continue to explore the Dallas housing market trends to understand what it will look like in 2020. We shall also discuss some important reasons why you may want to consider buying Dallas investment properties in 2020. You will get a fair amount of knowledge of the fundamentals of this hot real estate market. Please note that real estate prices are deeply cyclical because its demand side is impacted by economic cycles.
Much of it is dependent on factors you can’t control. The recent example is COVID-19 which has badly impacted our economy. Therefore, many variables can potentially impact the value of the real estate in Dallas in 2020 (or any other market) and some of these variables are impossible to predict in advance.
Dallas Housing Market Trends & Prices 2020
We shall now discuss some of the most recent Dallas real estate trends & news, and compare it with the past couple of years. We shall mainly discuss median home prices, inventory, economy, growth, and neighborhoods, which will help you understand the way the local real estate market moves in this region. Dallas is also one of the hottest real estate markets in the nation. In the past ten years, the annual real estate appreciation rate has amounted to 5.83%, according to NeighborhoodScout.com. This puts Dallas in the top 10% nationally for real estate appreciation. During the latest twelve months, the real estate appreciation rate has been at 5.21%.
If we go back to historical data, the median sale price for a house in Dallas-Fort Worth rose 6.31 percent from $236,100 in November 2016 to $251,000 in November 2017, according to the data from the Texas A&M Real Estate Center. At the start of 2019, the median home value for Dallas, Texas was around $201,000. The median for the broader DFW metro area was a bit higher. That was a gain of more than 13% from a year earlier, according to data collected by Zillow.
Predictions were pointed to a home-price growth of 7% and 10%. However, that did not happen and the prices grew by roughly 3% between Jan 2019 to Dec 2019 (Zillow). Although home prices in Dallas continue to rise faster than the national average, however, there is a cooling trend taking place. But if the inventory continues to grow in the Dallas real estate market, it will likely lead to smaller home price gains in Dallas in the future. And that’s probably a good thing. When home prices rise at a much faster pace than local wages and income, it can create affordability problems. So a cooling trend could be beneficial at this point.
Is Dallas going to be one of the hottest real estate markets for investors in 2020 and 2021? To answer this question, take a look at the latest Dallas housing market trends here https://www.noradarealestate.com/blog/dallas-real-estate-market/