The Dallas area leads the country in home price gains, with median home sales prices being more than 10% higher this summer than a year ago. Some Dallas neighborhoods are showing price hikes two to three times higher than that. Prices for Oak Cliff preowned homes are up 30% in the first six months of 2015.
Prices were up 15% or more in a dozen other Dallas-area neighborhoods, according to a midyear analysis of the North Texas home market from the Real Estate Center at Texas A&M University.
North Texas median home prices are at an all-time high of $220,000, almost 40% ahead of where they were at the peak of the last housing boom in mid-2007.
Dallas-Fort Worth led the state in home sales increases at mid-year, and demand has not slacked off. North Texas home sales were up 12% in June from last year, and preowned homes are selling for about 60% more than they were at the worst of the recession in early 2010.
Economist James Gaines predicts that the rate of home appreciation and sales will drop in the Dallas area when mortgage costs rise and economic activity slows. He’s not forecasting another housing crash in this area. “This is not really a bubble; therefore I don’t think there will be a bust,” he said.
Demand is especially high for more affordably priced homes, which are in short supply in the Dallas area. The lower price points — less than $350,000 — are moving quickly. It doesn’t matter where it’s located; it’s still getting multiple offers.
Despite concerns about higher prices, buyers do not seem to be backing away from the market this summer as properties get bid up.
The fast pace of real estate has brought along its share of problems. Some buyers who are in a hurry to get a house under contract then realize they’ve made the wrong deal. A lot of folks are realizing they need to act quickly with a strong offer when they find something they like. Often properties are generating multiple offers as soon as they hit the market, causing buyers to put a property under contract and then take a couple of days to think about it, and possibly terminate, and move on in their home search.
Sales would be higher if there were more properties to sell. Thirty of the 45 Dallas-area residential districts The Dallas Morning News tracks each quarter have less than a two-month supply of houses listed for sale with real estate agents. That’s less than a third of what is considered a normal inventory.
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