Fundamentally, the Dallas real estate market recovers well from the significant blow of the global pandemic of Covid-19. It is indeed good news for many businesses and companies in that particular field. Anyone who wants to find a house in the area of Dallas needs to check on everything about the Dallas real estate market beforehand.
In short, the only visible matter is that the price is skyrocketing. Nevertheless, numerous factors contribute to that reality. Nevertheless, the prices remain reasonable for many people to secure properties in Dallas regardless of the purpose. All in all, this metropolitan area in the state of Texas will continue to grow in terms of its market for properties.
About the Area
Dallas is a modern metropolis area in the Northern Texas area. So far, it has become a popular place for real estate investors to earn their living. The business-friendly environment of Dallas due to its Tax policies is among the reasons for numerous businesses and companies to move there. Thus, it boosts the economy of the area strongly. It also raises the necessity for residential houses at the same time.
In other words, Dallas is a top-notch place for many people. Unfortunately, the situation regarding its market of residential properties is not too great for those who are in the market for them. The trends in the housing market in Dallas will continue to move toward an increase. It only brings more competitiveness within the market itself which proves to be beneficial mostly for investors.
Dallas Real Estate Market in Brief
At the moment, the market for residential houses in Dallas favors real estate investors. Since the second half of 2020, the supply and demand for single-family homes are never in a balance. This leads to the seventh consecutive year where the median price and house sales in Dallas, Texas are at the all-time highs. The report of Texas REALTORS from 2021 indicated that matter.
Furthermore, The Dallas Morning News delivers the fact that only 8,200 single-family dwellings are available for sale out of 1.9 million units in a metro area. Because of that, the Dallas median home price is at an 18% increase in November 2021 from last year. In many ways, it becomes a slight warning for families who are in the market for single-family houses in the DFW area.
The popularity of the Dallas area itself is one of many reasons for that situation in the market for housing units. The population is mostly above-average millennials who are seeking out the top-notch results out of the thriving economy there. Even the warm climate and big-city excitement also affect the continuous increase of the housing prices in the DFW area.
Population and Growth
Dallas is indeed one of the largest metropolitan areas in the US. Therefore, it is only reasonable for the population to be sky-high. It continues to rise and now it is the 4th largest metro area. In 2010, Dallas was only the 6th largest metropolitan area in the country. With the continuously swelling Dallas population, the available housing units for sale are irrelevant to the demands.
So far, it is home to more than 1.3 million people within the city area and over 7.6 million in the metro section. For the last 10 years alone, it has grown its population up to 9% that as indicated by the most recent census data. The growth of population happens in the suburbs as well with more than 36% of growth since 2010. Without a doubt, those numbers will not be decreasing any soon.
Furthermore, the DFW population is the one that experienced the biggest surge all over the country. On that note, the projection of the population will have up to 18% growth in 2029. Undoubtedly, a strong economy is among the pivotal factors for the growth of the population. It also affects the rising demands for housing units and the prices of the residential properties within the area itself.
The Real Estate Market and Its Trends
It is fundamental to check on the trends within the market when looking for a housing unit in the city of Dallas. Of course, various things eventually affect the trends. In terms of the months of inventory, Dallas hits 0.8 months at the end of March 2022. It indicates a drop from 0.3 months in the same month last year according to the data from MetroTex Association of REALTORS.
Even the 10 years of construction in Dallas have never been enough to handle the growth of population and rising demands for residential housing units. Furthermore, the interest in suburban neighborhoods is also on an increase rapidly. Thus, it is only reasonable for the price of dwellings in the suburbs to rise significantly in the following years.
Looking back at the Dallas median home price, in March 2022 it experienced a jump of up to 19% from the same month last year. It hits $359,900 in March 2022 which will continue to grow due to the unavoidable large gap between the available supply and increasing demand. Many expect that the market will continue to favor the sellers and investors for a couple of years in the future.
Of course, the average house price in Dallas is also on the rise. According to the Zillow Home Value Index, the average price in April 2022 is 24.1% higher than last year. At the moment, the typical value is $321,569. The complete graphic on that matter from 2013 in Dallas shows only an increase. The only occasion where it slides down a bit was during the global pandemic of Covid-19 in 2020.
Meanwhile, about the average days on the market for houses in Dallas, most of them will not be available anymore after 35 days. Unfortunately, it is the part that has gone down slightly since last year. Without a doubt, the exploding price of the properties affects this particular matter. Yet, the market remains in a profitable circumstance, especially for sellers at the moment.
Concerning that situation in Dallas real estate, Highland Park is the most expensive city in the metropolitan area of Dallas. The median price there reaches $3.3M. On the other hand, the most affordable city is Mesquite with its median house price sitting at $265,000. Yet, it will most likely go up in the following years because there are no signs of the house pricing in Dallas going down any soon.
Overall, the current trends in the market of houses in Dallas are hot and healthy. The six-month supply of dwellings remains in the area of a healthy market. Meanwhile, the total days on the market are about 19 days less than March 2021. Although the closed sales go down up to 9.2% from last year, it remains a hot market for sellers and investors.
The Renting Market
When it comes to DFW real estate market, the renting market is also a notable one. In May 2022, the average rent for a 1-bedroom apartment is $1,454 in Dallas. That price is the result of an increase of 16% compared to last year. Yet, the average rent for a studio apartment decreases only 1% to be at $1,428 from last month. The 2% increase happens to a 2-bedroom apartment’s average rent.
Furthermore, the annual increase for a 3-bedroom apartment from last year is 19% to be at $2,500 at the moment. The highest increase happens to a 4-bedroom apartment with a 29% difference from last year. The current rent price for that kind of apartment is $3,085. All of those numbers are according to the latest data from MetroTex.
Without a doubt, the rental market is also experiencing a significant increase. Not everyone can afford to buy properties in the area of Dallas, Texas. the development in the renting market boosts the owners of apartments in Dallas to follow the demand for the unit. In many ways, the renting market is the more active one compared to the house for sale market.
Dallas Housing Market Forecast
Overall, despite the increasingly high price of the housing units in Dallas, it remains the most affordable one in Texas State of the US. Furthermore, it is also the most active market in Texas that attracts both sellers and buyers alike. So, what about the condition for the rest of 2022 and the following years ahead?
With the current trends in the market, the situation will outperform the national trends for the rest of the year. The annual home value appreciation will surpass the national value in 2020 just before the global pandemic affects everything. Of course, it will continue to bring positive trends that lead to higher prices and value in the future.
DFW housing market for a single-family houses has increased by over 30% from that period in 2020 before the pandemic. It creates the highest construction volume in over a decade within the area itself. a report from Realtor.com indicates that in 2022 the sales and price growth for the housing market in DFW will reach 12.3%. So far, the national rank for the DFW area in that matter is 37th place.
Furthermore, the closed sales will grow by about 8.3%. Following that matter, the median price for houses will rise by 4% further in the rest of 2022. The balance in the market before the pandemic is there no more in Dallas. For example, after the pandemic, the median price for residential houses in DFW rose about 18.56% already in 2021. There is no reason for it not to continue its rise later on.
Looking at the Zillow Home Value Index, the value for the metro area of DFW reached an increase up to 152%. At the moment, it sits at $370,501 in the metro area. It shows that more than half of the houses in that area are having that value appreciation from Zillow. Back in March 2021, the value of this index was only $286,000. That noticeable increase will continue its trends, indeed.
Meanwhile, Dallas County also experiences similar trends regarding the real estate market there. The appreciation value from Zillow for the area increased up to 24.4% from last year. It leads to the current value of $309,905. For the next 12 months, the price will rise at a slower pace than in the last 12 months. So, an increase will still happen in the future.
Furthermore, the typical home value in Fort Worth rises 29.9% to be at $311,106. Meanwhile, in Arlington, the increase is only 28.8% with the current value being $317,880. On the other hand, the value of houses in the Texas Stateside has increased by 24.1% from last year which will continue on the rise in 2022.
Final Verdict
With all of those numbers and percentages, what about the idea of looking for Dallas houses for sale? So far, it is a top-notch idea with thorough considerations in everything. The healthy and active market for housing units in Dallas is a promising matter for many people. In other words, it is a top-notch place to invest in some properties with a decent expected return in the future.
Does any information on Dallas real estate market Zillow reliable? Of course, the information and all of the reports from Zillow are reliable. The official website is the most visited in the US for real estate matters. Therefore, it is among the best sources of information when planning to buy, sell, or rent properties in the area of Dallas.
What about the Dallas home prices in 2022? Without a doubt, there will only be an increase in various sectors of the market for housing units. It includes rent as well since it is also a part of the market in general. Looking for a house for sale in Dallas right now can be a decent opportunity with the forecast from various sources indicating a significant increase to follow.
Will the Dallas real estate market crash happen any time soon? So far, the trends of the market in Dallas show no indications of a crash. Even during the global pandemic of Covid-19 in 2020, the decrease in the price and value of houses there are not significant at all. So, there is no need to be afraid of that matter concerning the market of residential homes in Dallas, Texas.