A Crystal Ball View Of The Dallas TX Real Estate Market

The city and county of Dallas, TX real estate market has been red-hot for quite awhile now, and viewing (my) crystal ball I believe the trends we have seen will continue for 2017.

Much to the delight of home sellers, home prices continue to rise mainly due to the low available inventory of homes for sale.  So of course much to the dismay of home buyers, few homes are available to choose from and the prices are higher than in years' past.

New home construction continues to gain inventory, but not at the pace needed for the number of buyers that are ready to buy.  As the following charts will show, available existing (resale) homes in Dallas County are lower this past December than 2014 and 2015:

 

 

 

 

 

 

 

 

Buyers find that the sales prices are on the rise for both resale and new construction homes:

 

 

And the average days on market (combined resale and new construction) illustrates the speed of the Dallas County real estate market

 

There is support for my crystal ball predictions in recent articles printed or re-printed from the Metrotex Board of Realtors.

From the Metrotex Blog:

Stunning lack of available housing puts increasing pressure on market

In a sobering repeat of the previous year’s finale, the 2016 housing market again reached a record low inventory of available housing stock. While the sales volume and prices did rise year over year, industry experts may express concern at some of the underlying currents displayed in the monthly sales figures released today by the MetroTex Association of REALTORS.  

“Overall, the market performed exceeding well in 2016,” said James Martin, president of MetroTex. “We’ve reached over $28 billion in sales for the first time in history, and completed over 101,000 transactions. That’s an incredibly active market for us. However, for the size of the market we are experiencing, we would hope to see many more new listings coming up. In December we really didn’t see enough to replace the homes we sold. It’s almost hard to imagine what will happen to price levels if we continue to see inventory levels fall at this rate. Hopefully, we’ll see more completed new homes enter the market in the spring.”

According to the report, 8,365 homes were sold in North Texas in December, a 3 percent increase from 2015. The dollar volume of sales in North Texas increased 10 percent year-over-year to $2,373,050,120. The average price in December was $283,688 up 8 percent from last year.

 

Per Steve Brown's Twitter/Tweet:

North Texas new home sales rose 14 percent in the fourth quarter from a year earlier.

But even with strong demand, Dallas-Fort Worth builders couldn't break the 30,000-home start barrier in 2016.

Builders started 29,337 new homes in the area last year — an increase of only about 5 percent from 2015 levels, according to a report by Residential Strategies Inc.

A lack of labor, rising costs for land and building materials, and slow government approvals held back home construction in North Texas.

"The market continues to be constrained by a lack of construction trades," Ted Wilson, principal with Residential Strategies, said in the report. "While there have been some reported improvements in certain subcontractor categories, the overall construction cycle time remains protracted

 

 

www.LisaSellsTexas.com

 

Lisa Von Domek

 

Lisa Von Domek
BROKER/ASSOCIATE/REALTOR, 
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Lisa Von Domek & Associates, LLC / Real Living Real Estate Group 
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Email:        Lisa@LisaVon.com      
Website:   www.LisaVon.com

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Lisa

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Comment balloon 16 commentsLisa Von Domek • January 30 2017 08:11PM

Comments

Crystal Ball gazing/reading is a lot easier when you have great facts as you do Lisa Von Domek . Nice job! 

Posted by Bob "RealMan" Timm, Owner of Ward Co. Notary Services, retired Realtor (Ward County Notary Services) over 2 years ago

Sounds like housing is Lisa Von Domek  on the Rise in Dallas Tx

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) over 2 years ago

I have investors ask me about whether they should buy investment property in Dallas and my normal answer is, don't expect bargain basement prices, the market is geared towards owner-occupants.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) over 2 years ago

Thank you Bob "RealMan" Timm I appreciate the lovely compliment!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) over 2 years ago

Hannah Williams my market has been the envy of many others for several years now!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) over 2 years ago

You are giving winning advice Joe Pryor as bargain hunters have a difficult time in my hot real estate market . 

 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) over 2 years ago

Lisa we have the opposite market so maybe we can send you some of our housing stock, and you can send us some of the Dallas area Buyers :)

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 2 years ago

George Souto wouldn't it be nice if we could fix things that easily?!! 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) over 2 years ago

Hi Lisa,
Another seller's market that doesn't show any signs of changing soon.  Thanks for the report!

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) over 2 years ago

Hello Carol Williams not any time soon is right! 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) over 2 years ago

Lisa

The Dallas Texas real estate market will be strong in 2017.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 2 years ago

Hi Lisa - the Dallas market is red hot and finding the next home is a big challenge. A boon for the building industry. 

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) over 2 years ago

Lisa Von Domek this is a very thorough update and prediction on the Dallas market. Sounds like you have a bright future ahead!

Posted by Nathan Gesner, Broker / Property Manager (American West Realty and Management) over 2 years ago

Good morning Lisa.  One cannot argue with the facts.  Love information with the data to back it up. 

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) over 2 years ago

Thank you very much for sharing some of your real estate market predictions.

Posted by Roy Kelley (Realty Group Referrals) over 2 years ago

I have really enjoyed gazing into the crystal ball of the AR members. It looks like Dallas has a vibrant future ahead with solid prices and new home opportunities.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 2 years ago

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