In summary, the DFW real estate trends for 2016 are upward in every category. Demand is up, prices are up, land prices are up, as are new home starts and sales.
This news is exciting, indicating that our local economy is steady, banks are loaning money, and people are investing in their future living in the Metroplex.
We provided a plethora of statistics from regional and national data sources for you to read over and review. If it gets confusing, please give us a call. We can talk numbers.
Statistics from the Metro Tex (North Texas) Association of Realtors and the National Association of Realtors:
- Condo and townhome prices increased 7.9% from Q1 2015 to Q1 2016
- Median home prices increased from $173,100 in 2013 to $210,000 for Q1 2016.
- Home prices for DFW are up 9.1% from this time last year.
- Greater Dallas area had home sales climb 15% in 2016 from 2015 levels in the month of April.
Dallas County Statistics for May:
May home prices are up 8.9% in Dallas County from May 2015.
The average price per square foot was $142.
Inventory (homes for sale) levels are at two months, indicating a seller’s market.
A home is selling in an average of 31 days at a median price of $358,303.
List to sale price: 99.1%
Collin County Statistics for May:
Median home price: $351, 317
Average Days on the market: 28
Two months worth of inventory.
List to sale price: 100.4%
Average home price: $321,671
Average Days on the market: 31
Price per square foot: $122
Two month’s worth of inventory.
List to sale price: 100.4%
Average home price: $257,753
Days on the market: 29
Average price per square foot: $107
Only 1.8 month’s worth of inventory
List to sale price: 100.3%
Construction permits grew 114,370 from 2012 to 2015; employment grew 3.0% over the same time period.
Metrostudy’s 2016 first-quarter survey of the DFW area reported a 39.1% increase in new home starts over Q1 2015, and a majority of those new homes are in the $300,000 to $349,999 range.
Raw land sales increased 17% from 2013 to 2014; there is no 2015 data available yet from the Texas Realtor’s Association.
Land prices in Dallas rose from 2014 to 2015, with a 15% bump in price per acre. In Fort Worth, the trend was similar, with a 10% per acre price increase.
What’s Going on In DFW?
DFW is ranked No. 1 among major metro areas for job creation. The metro area saw 130,000 jobs created from 2015 to 2016. More multi-family (condo and townhome) communities are under construction, and selling for a higher per unit price than previous years. The DFW area gained 144,704 residents in 2015, a 2% increase in overall population, which currently hovers at 7.1 million.
The drop in oil prices didn’t really affect the DFW market, as we have a pretty diversified industry mix here. Technology, healthcare, and the financial services sectors helped counteract any losses incurred by the oil and gas business.
DFW Real Estate As An Investment
Property is a tangible asset. You can see, touch, build on, buy and sell real estate. These sensory qualities are attractive to investors looking to improve their portfolio’s position.
When the financial crisis hit in 2008, the real estate industry was devastated, but not in the same way as the stock market or banking. We, as real estate participants, saw the effects of bad lending practices, and the severe decline in home valuations, while the rest of the financial services segment experienced some level of an economic meltdown.
And this was a global domino effect, as currencies and exchange rates affected trade, travel, and outsourcing. Suddenly foreign stocks, manufacturing, or commodities became risky business. At the same time, real estate prices in the U.S. hit rock bottom.
This situation that combines affordable U.S. real estate with available offshore cash makes for an ideal setup for multi-national corporations, or individuals, to park their funds on U.S. soil.
Of course, not all of the hustle and bustle of DFW real estate is because of non-natives spending money here, but it is a contributor. Job growth numbers signal a stable environment for businesses. Where there is payroll, there are employees who could qualify for a home loan.
Good News Abounds
All these indicators point toward a bright future for the DFW metroplex. There is no crystal ball, unfortunately, but we like to think this up cycle will continue.
Want to become a part of DFW real estate? We are here to help, click here to contact us.