Dallas Real Estate Market Forecast 2021

by Marco Santarelli, Norada Real Estate Investments

D allas Real Estate is one of the most affordable in the state of Texas. It is also one of the hottest real estate markets for rental homes in the nation. Before the COVID-19 pandemic hit the nation, the Dallas real estate market was expected to outperform the nation in 2020, in terms of annual home value appre - ciation. But what are the predictions for the Dallas real estate market now? Let us look at the price trends recorded by Zillow over the past few years. Since 2015, the median home prices in Dallas have appreciat - ed by a whopping 92 percent (from $122,000 to $238,156). At the start of 2019, the median home price in Dallas was around $201,000 and it was a gain of more than 13 percent from a year earlier. Home prices have risen by only 1.9 percent (Zillow) in the last twelve months. The DFW metro area has experienced smaller price gains as

supply to dwindle to zero. In terms of months of supply, Dallas can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that is not going to happen. In the long term, the Dallas real estate market remains strong and skewed to sellers, due to persistent imbal- ance in supply and demand. For sellers in Dallas, it is a great time to sell. Motivated buyers are looking for houses for sale, and you are not competing with as many property owners. Many sellers have chosen to back out amid this pan - demic. For buyers in Dallas, mortgage rates are at their lowest. For those who qualify for mortgages, low rates help counteract rising home prices and boost purchasing power. So, they should take advantage of scooping up their favorite deals that otherwise are taken away by seasoned inves - tors in bidding wars. •

compared to Dallas. Housing inventory remains low in many major cities across the nation, and Dallas is no exception to that. According to their forecast, the sup - ply and demand dynamics will likely push prices north again over the next 12 months. The Dallas hous - ing market still favors sellers over buyers. Dallas home values have gone up 3.2 percent over the past year and the latest forecast is that they will rise 6.1 percent over the next 12 months. Dallas-Fort Worth-Arlington Metro home values have gone up 4.5 per - cent over the past year and the latest forecast is that they will rise 4.8 per - cent over the next 12 months. Dallas and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. In a bal- anced real estate market, it would take about five to six months for the


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