A recently revised forecast for the Dallas, Texas housing market suggests that home prices will continue to rise at a pretty steady pace well into 2019 – and likely beyond. But housing experts also expect home-price appreciation to slow down over the coming months.
Here are the latest trends and predictions for the Dallas-Fort Worth real estate market through 2018 and into 2019.
Dallas-Fort Worth Metroplex Housing Forecast
According to the real estate information company Zillow, the median home value for the Dallas-Fort Worth metro area rose to around $225,000 as of May 2018. That was an increase of 11.2% from the same month a year earlier.
To put that percentage into perspective, home prices in the U.S. have traditionally increased by around 4% to 5% per year (if you average it over the last few decades). So the double-digit gains recorded for the Dallas real estate market are certainly above average, from a historical standpoint.
Looking forward, the company’s economists predict that the median home value for Dallas-Fort Worth will rise by another 5.1%, over the next 12 months. This housing market forecast was issued in June 2018, and therefore extends into late spring of 2019.
These predictions mirror those being issued for many cities and metro areas across the country. In a lot of real estate markets, home prices have been rising at an unusually high pace for the last few years. In most cases, this has been the result of strong demand for housing combined with limited supply.
This is true for the Dallas-area real estate market as well. Housing inventory remains low across the metro area, relative to the number of buyers who are seeking a property.
Competition Is Highest for ‘Starter’ Homes
As of April 2018, the Dallas-Fort Worth real estate market had about a 2.5-month supply of homes for sale. That’s a theoretical measurement used to track inventory levels over time. In this case, it would take two and a half months to sell all homes currently listed for sale if no new properties came onto the market in the meantime.
Housing experts say that a “balanced” real estate market has closer to five or six months of supply. So the DFW area is still leaning toward being a seller’s market, as we head into the summer of 2018.
According to recent housing market reports for Dallas, supply is tightest at the lower end of the price spectrum. A recent report by the Real Estate Center at Texas A&M University showed that the number of homes sold at $180,000 or less dropped significantly in May 2018, compared to the same month last year. This means there are fewer homes for sale within this lower price range, which is where first-time home buyers tend to shop.
Not the Fastest Market, But Still Competitive
In spring 2018, homes listed for sale in the Dallas area spent a median of 30 days on the market, before going under contract. That was slightly less than the national median number of days on market for the same period. This means that homes in the DFW metro area are selling at a more-or-less average pace, despite those tight inventory conditions.
So clearly, Dallas is not one of the fastest moving real estate markets country. The fastest markets (when measured by the median days from listing to contract) are mostly located in the Pacific Northwest and in California, as of spring 2018. Still, low inventory and steady demand will keep the Dallas housing market competitive for the foreseeable future.
Disclaimer: This article includes third-party forecasts and projections for the Dallas-Fort Worth real estate market extending into spring / summer 2019. These outlooks were compiled and presented here as an education service to our readers. MetroDepth makes no claims or assertions regarding future housing conditions.