Dallas-Fort Worth has seen an unprecedented boom in the housing market over the last couple of years. Even international news platforms have picked up on the housing gold rush affecting the Lone Star State.
With money to be made for those able to get in on the action, the question remains how long the market can continue. Check out some of the trends from 2021 and what you might be able to expect for the future of Dallas’ real estate market.
Dallas Housing Year to Date
The Texas Real Estate Research Center publishes monthly reports for the Dallas-Fort Worth-Arlington area which are well worth tracking. Trends show that it is taking slightly longer to sell a home over the past few months.
For example, in August 2021, houses remained on the market for an average of 53 days, whereas in September and October, it took 57 and 61 days, respectively. However, when comparing the days to sell for 2021 and 2020, the market is looking hot.
The Texas Workforce Commission published figures stating that jobs in Dallas-Fort Worth have increased from 3,735,000 to 3,876,300 just in October 2021. The unemployment rate also decreased to 4.1% during this time.
When simply looking at sale volume, one might speculate that the housing market is tarnishing. Residential sales for single-unit housing decreased year to date by 8.29%. However, any savvy investor is more interested in the average sale price, which increased by 14% year to date, while at the same time, the average price per square foot rose 20.39%
The Future is Bright for Dallas
We would argue that Dallas is still an excellent bet when it comes to real estate investing. However, available inventory is declining significantly, which will likely drive prices up further over the coming months.
Single-family homes appear to be the most affected by the lack of inventory, where sales volume decreased year by 9.73% year to date. Comparatively, townhomes decreased by 3.24%, and condominiums increased sales volume by 28.22% in the same year-to-date period.
The housing market does not work in isolation. It can be affected by international or national economic swings. However, Texas is still the darling of prominent entrepreneurs like Elon Musk, who create more buzz for businesses in the state.
Regardless of your reason for getting into one of the most affordable real estate markets in Texas, we feel that the Dallas housing market will continue to be a sound investment into 2022.
In fact, Zillow notes that Dallas is one of the hottest markets for iBuyers in 2021, wherein Q2 of 2021, 1321 out of 15,028 of the homes bought by iBuyers were in Dallas-Fort Worth. Moreover, the Zillow Home Price Expectations Survey for Q4 2020 predicts that Dallas will be the 6th hottest housing market in the nation. While the economy in Dallas remains strong with no capital gains tax, we anticipate that the housing market will continue to be strong as well.