Dallas, Texas is located in the Northern part of Texas and is ranked as the fourth most populated metropolitan area in the country. According to history, Dallas used to be one of the primary centers for cotton and oil industries because of its strategic location, as a city located among several railroad lines. Recent forecast on the real estate market in 2019 Dallas Texas show that prices on homes in the area could still rise faster compared to the national average of 2019. In fact, a forecast has even ranked the city of Dallas as among the top ten of the hottest real estate markets of 2019.
Bold Forecast for 2019
At the opening part of 2019, Dallas, Texas showcases a median home value of about $201,000. This was an increase of over 13% from the previous year. According to the predictions made by real estate analysts, continued home price growth is expected towards the entire year, especially when it comes to yearly home-value appreciation.
Given the rate of appreciation for the year, it would not really be surprising to observe the median house price in the Dallas, Texas area increasing somewhere ranging 7% and 10% over the succeeding year. It has also been predicted recently that the median value in the Dallas, Texas area would increase by about 11.2% for the next 12 months. This is a bolder forecast compared to the one issued covering the entire country, which forecasted 6.4% growth.
Increase in the Housing Supply
Another important trend which may have an impact on the Dallas area real estate in 2019 is inventory. During this year, home buyers in the metro area expect to have more properties to select from. Towards the end of 2018, the Dallas, Texas real estate market had over a 4-month supply of options on home for sale. This showed to be a higher inventory level compared to most metro areas in the U.S, even higher compared to the national average within that similar period.
The main point here is that the real estate inventory in Dallas, Texas has increased particularly during the latter part of 2018. This results in buyers entering the real estate market this year, giving more options when it comes to selecting a property.
Why Included in the Hottest List?
A forecast was published by Zillow, including Dallas among the ten hottest U.S. real estate markets for 2019. Dallas made it to the seventh rank on that list. In order to establish this list, Zillow looked into different factors for the 50 biggest metro areas in the nation. Afterward, these variables were combined in order to arrive at a score. They also searched for metro areas with good income growth, low unemployment, growing populations, and others.
Preventing Affordability Issues with a Cooling Trend
The real estate market in Dallas, Texas is something of a mystery as of the moment while completing the rest of the year. The prices on homes for sale in the area continue to increase faster compared to the national average. However, there is a cooling trend that is happening at the same time.
For example, The Dallas Morning News reported that the Dallas Fort Worth area, which is considered as the new home market in the country, continues to slow down from an overheated, frenzied pace, reaching a normalized and more stable market. Developers and builders work really hard in delivering product in order to meet the demand for new, affordable homes.
Currently, Dallas leads the country when it comes to new-home construction. There were about 35,000 housing beginnings in the Dallas-Forth Worth area during the 2018 third quarter, which is considered as more compared to other metro areas. With this said, if the inventory continues to increase in this market, it will most likely lead to more modest, and smaller home-price gains in the years to come. This may even be a positive thing. When the house prices start to increase at a much faster pace compared to income and local wages, it may start some problems on affordability. This is basically a reason why a cooling trend could serve some benefits right at this point.
Adapting to Rates and Prices
One reason why buyers are being chased out of the real estate market this year includes higher mortgage costs and years of increasing home values. The good news is that inventory is expected to continue increasing next year. However, unless there is a huge shift in terms of economic trajectory, we will not be able to expect a buyer’s market within the next five years. For buyers, however, it will only be expected to become costlier to purchase, especially the most popular entry-level real estate.
For this, buyers need to consider carefully how they can adapt to higher prices and rates in order to be successful. Realtor.com has provided an estimate that the Dallas Fort Worth real estate sales will decline with just below 1% next year from 2018 levels. During the first 10 months of the year, the median home sale prices in the North Texas area have become flat.
Why Invest in Dallas, Texas?
The Dallas metro area has now attracted the attention of real estate investors. This is particularly true for housing investors who are searching to buy cash flowing property, amidst a rapidly increasing market, while the prices are still low. It would be interesting to see watching your equity grow as time passes by. During the last few years, a lot of companies from bigger cities have also started to explore this area for relocation and expansion, thus making this area conducive for employment. Added to these reasons is the business-friendly environment of the city, which includes a lower cost of having a business, lower tax rates, as well as fewer business regulations. Also, you can expect a lower cost of living that can be expected among employees and residents in the area.
2019 is a promising year for Dallas, Texas. This city has been considered as among the strongest real estate markets for the year, with factors including job growth, affordability, and population growth as its core.