Market Spotlight: Dallas-FortWorth, TX


by Fred Heigold III with RentRange® - A leading provider of market data and analytics for the single-family rental (SFR) housing industry

he strong job market supports the Dallas-Fort Worth real estate market in two ways: It attracts new res -

er than previous years. Home price appreciation re-accel - erated in 2020 due to low interest rates, low inventory, and high demand. South Dallas, Mesquite, Hutchins, Arlington and Fort Worth areas have median prices for SFR near $200k, leading to many high-yield opportunities for investors. The most expensive areas are in northern Dallas along the Dallas North Tollway. Most expensive is in University Park ($1M+) and descends in value moving toward Frisco which is around $500k. Colleyville and Grapevine show another expensive pocket with prices ranging between $500-$800k.


idents into the area, and increases demand for housing, putting upward pressure on prices. Here is a detailed analysis of this hot market and what to expect in 2021. HOME PRICEMETRICS The median home value in Dallas-Fort Worth was $320,000 in October 2020, up over 10 percent year-over- year. Owners in the area have realized a five-year increase of 41.6 percent and a 10-year surge in prices of over 80 percent. New listing inventory remains 10-20 percent low -

Dallas MSA Home Price Forecast through 2021



 Winter spike in COVID-19 cases leading to business restrictions, drop in travel & entertainment industries  Unemployment rising again, potential for further job loss in higher wage industries   Price appreciation is unsustainable, affordability becoming an issue  Forbearance period ending, increase in supply   Future increase in mortgage interest rates Dallas home prices will continue to rise in 2021, with the largest appreciation in the lower price tier. The historically low interest rates will continue to motivate buyers to com - pete for available inventory, and additional stimulus may help first time home buyers with extra cash for their down payment. Demand and price appreciation in the higher

 Low interest rates signaled to continue to 2022

 Low inventory   High demand for SFR  New government stimulus helping first time homebuyers   Extension of forbearance programs & eviction moratorium will limit inventory

priced areas will be muted. Many higher paying job industries have nearly recov - ered from pre-COVID levels due to flexibility of work- from-home. Real (non-stimulus) income will stay flat or decrease slightly as the economy gets back on its feet. Mortgage interest rates are expected to remain low until

70 | think realty magazine :: january 2021

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