Dallas Housing Market for 2018 – Another Good Year Ahead. Recent forecasts for the Dallas, Texas housing market, extending into the fall of 2018, suggest that home-price appreciation will slow. According to a new report from realtor.com, Dallas is currently one of the hottest housing markets in the United States. But things might cool down just a bit over the coming months.
Dallas One of the 20 Hottest Housing Markets
On 28 September 2017, realtor.com put out its latest list of the 20 “hottest housing markets for real estate” in the United States. The company’s economist look at a variety of indicators relating to housing supply and demand, and then rank the 20 cities or metro areas with the hottest markets.
House prices in Dallas have risen steadily over the last couple of years. According to the real estate information company Zillow, the median home value in Dallas rose by nearly 8percent over the last 12 months alone ending in October 2017). Dallas Housing Market For 2018 – Another Good Year Ahead.
By their estimation, Dallas, Texas was one of the hottest housing markets in the country for September 2017, appearing at #12 on their list. It’s been on the list for several months.
According the North Texas Real Estate Information System, the average price for a single-family home purchase in the Dallas area reached $299, as of August 2017. That was 7 percent higher than the same month a year earlier. Dallas Housing Market For 2018 – Another Good Year Ahead
Dallas Housing Market For 2018 – Another Good Year Ahead
The Dallas real estate market suggest that prices could slow down a bit over the coming months. The company’s 12-month outlook predicts that the median home value will rise by 4.1 percent between now and October 2018. That would be about half of the growth from the previous 12 months, by their estimation.
To put this in perspective, “average” home price growth over the last decades is somewhere between 3 percent and 5 percent. So perhaps what we are seeing here is a normalization within the Dallas real estate market. Dallas Housing Market For 2018- Another Good Year Ahead
The nearly 8 percent growth recorded over the last year or so is abnormal, as it outpaces wage and income growth. That kind of depreciation is generally not sustainable over a long period of time, because it creates affordability issues within the housing market. So a slowdown of home prices within the Dallas real estate market could be viewed as a positive trend, from an economic standpoint.
Another prediction for the Dallas real estate market in 2018. Home buyers entering the market next year will encounter limited inventory and stiff competition from other buyers. That’s the situation right now, and those trends will probably continue in 2018.
A so-called “balanced” real estate market is said to have around five to six months worth of supply. Reports showed that the Dallas metro area had a 2.3-month supply of homes for sale, as of September 2017. Dallas Housing Market For 2018 – Another Good Year Ahead
This is one reason why prices have risen so much over the last couple of years. There are plenty of buyers in the market, but limited inventory. Home values tend to rise steadily under such conditions.
The General Consensus
Overall the supply and demand situation in Dallas has been relatively flat over the last few years, but inventory increased a bit during 2017. Increased construction could create a better balance between supply and demand in 2018. Dallas Housing Market For 2018 -Another Good Year Ahead
While we do expect to see (continued) constrained inventory conditions in 2018, buyers might have increased options when it comes to finding a home.
The general consensus among housing analyst and economist is, the Dallas real estate market is hot right now, but it could begin to cool a bit over the coming months. While home prices are expected to continue rising into 2018, the year over year gains will likely be smaller than in the past. Translation: things might be getting back to normal after a couple of years of overhead growth.