While Dallas is a city with a bustling economy, it’s drawing new residents at a fast pace. As a result, this situation is making it increasingly hard to purchase a home.
Reports reveal that new listings obtain numerous offers in days and homeowners are increasingly hesitant to sell lest they ‘re forced into rentals. If you wish to gain a deeper insight into the rising costs of housing in Dallas, check this out.
Rising Prices of Dallas Homes
Recent reports reveal that tight supply of listings has resulted in a dramatic increase in prices in spite of slower sales. In the latest comparison, Dallas area has experienced one of the highest price gains nationwide.
In May, home prices were up 8.4% from the previous year. Analysts reveal that price hikes are approximately twice as rapid as inflation. In North Texas, home prices are approximately 20% higher than the housing market in 2007.
Statistics also reveal that the median cost of a house sold in the County hit $208,000 in June up from 15% from the previous year. While Texas has experienced one of the strongest housing trades nationwide throughout the economic recovery, there are concerns that the declining oil cost will affect the market
Analysts maintain that a shortage of inventory has merged with robust financial growth to develop the present housing crunch.
Meanwhile, the biggest gains were evident in numerous residential districts in southern Dallas, including Hutchins, Lancaster, Southeast Dallas, and Oak Cliff where sales prices of single-family homes rose by more than 20%.
Nevertheless, experienced sales agents and housing analysts are optimistic and assert that last year’s appreciation rates won’t continue indefinitely.
Reasons for the Price Hikes
Inventory Shortage
Like much of the country, Dallas is experiencing a severe inventory shortage, resulting in dramatic price hikes. In December 2014, there were 26% fewer houses for sale than the former December.
Reports reveal that the area merely has approximately two-month supply of pre-owned houses listed for sale with realtors while a typical market is approximately six months of inventory. The low inventory has also arisen because people aren’t rushing to put their home on the market.
Due to the low availability of houses in the Dallas area, 2014 registered flat sales compared to the previous year. Home sales declined in approximately half of the residential areas, with the biggest declines in affluent neighborhoods including Southlake, the Park Cities, and North Dallas.
Homeowners Are Not Selling
Present homeowners list their house to either downsize or trade up, opening inventory for first-time purchasers. One can’t occur without the other. You’ll also discover that present homeowners aren’t putting up their homes for sale.
While some are concerned that they won’t find a new home, others are still waiting to recover their house’s value lost during the crash.
Halted Construction Projects
Builders have been vigilant throughout the recovery because they need to be certain that homeowners will upgrade to the homes they construct. Analysts reveal that a typical housing market has 1.6 million new multi and single-family homes constructed yearly.
Although last year’s market hit 1 million, single-family homes comprised just 700,000 when ordinarily; it’s slightly above a million.
For those struggling to purchase a home in the Dallas area, renting has since become a viable option for many as they wait for normalcy to return to the housing market.
For more information on rising Dallas home prices, contact us at Apartment Agents or leave suggestions.