It’s Too Hot for Bubbles in Texas
Dallas Fort-Worth Housing Market
Texas has set some incomparable record highs in 2016, as Dallas-Fort Worth housing market sales and costs are still skyrocketing. One analyst says he expects the housing market to boom even more as a prediction of the future. “With all the task growth and immigration of firms moving to Dallas-Fort Worth we’re expecting to still see an amazing amount of activity”, Ted Wilson of the Dallas housing analyst Residential Strategies, told the Dallas Business Journal. “In today’s world, the lower cost points are found on the existing home facet and there has been a large demand for affordable housing,” he added.
Housing Market Results Are Mind-blowing
The Texas Association of Realtors discharged its year-end report for 2016 (collected by Candace Carlisle, Senior Reporter Dallas Business Journal, 2017). Which showed that Dallas-Fort Worth and Arlington’s home sales grew 4.8 % in 2016, with 98,625 existing single-family home sales. While home costs rose 9.4 % to $232,000, consistent with the data. In Texas, overall, home sales inflated 4.6 % of 324,924 single-family homes, with the median worth rising 7.7 % to $210,000. Jim Gaines, the chief economist at The Real Estate Center at Texas A&M University, said he expects 2017 to continue pacing like last year’s robust levels of housing sales.
“However, home prices are outpacing household incomes, which is a concern to Gaines and Wilson — who see this as potentially being a stumbling block to future home sales,” writes Candace Carlisle Senior Reporter Dallas Business Journal. Wilson says “Household incomes are rising at a disproportionally low rate than home costs, creating housing affordability challenges across the state.” Gaines, in a statement, said. “In development, labor shortages and regulative barriers are staggering construction, and in turn are driving up new home sales,” he added. Wilson supporting Grimes stated that existing homes on the market are serving to fulfill the demand for affordable homes.
Let the Numbers Speak for Themselves
Only 16.2 % of the new homes sold are affordable to the average Dallas household income. Wilson informed the DBJ that “if you’re making below $70,000 a year, you’ve got to look at the existing home market because there are not many new homes in that price point.” The median price of a brand-new house is worth about $345,000. That’s much more than the median household income in Dallas can afford. Comfortably a home worth about $240,000, is best. In addition, Wilson says “As much as we can see inventories are remaining tight and all told probability, there will still be lots of growth in the Dallas-Fort Worth market within the next few years”.
Web Source: Retrieved February 22, 2017, from http://www.bizjournals.com/dallas/news/2017/02/21/dfw-home-sales-skyrocket-to-record-heights-but.html