Real estate investors are showing greater interest in the Dallas market, as evidenced by the results of a recent survey.
The growing interest in area real estate is significant enough to push Dallas-Fort Worth to the top of the list of the U.S.’s top markets, surpassing New York City to become the No. 2 real estate market in the nation, according to CBRE’s annual investor survey.
“Dallas-Forth Worth continues to be a very attractive market for institutional and private equity investors,” Chris Hipps, senior managing director of investor services for CBRE, said in the report. “Our sustained job growth over the last seven years, with no apparent reversal in sight, is providing lift across numerous asset classes.
“Specifically, the industrial sector, with vacancy rate of less than 10 percent since 2012 and an average annual net absorption of 17.7 million square feet, is seeing high investment sale volumes.”
Commercial property investors are likely strengthening the market.
All signs seem to point to a highly robust real estate market in Dallas, with an increasingly high number of investors taking interest in commercial property.
According to a recent article from The Dallas Morning News, a record of more than $6 billion in major commercial property sales was recorded in North Texas last year. During that time, the D-FW area ranked higher than Washington, D.C., Atlanta, San Francisco, and Seattle in a list of metro areas where property investors are most bullish.
Residential home sales are strong, too.
But that’s not to say residential home sales aren’t just as strong. North Texas home sales hit an all time high last month, with prices up 13 percent from the previous year, according to data from the Real Estate Center at Texas A&M University. And the North Texas Real Estate Information Systems found that real estate agents sold more than 6,900 preowned single-family homes through their multiple listing service (MLS) in February.
“I think it’s because of real demand from new jobs and growth from in-migration,” said Ted Wilson, a housing analyst with Dallas-based Residential Strategies, Inc. in a recent Dallas Morning News article. “I’m hearing the last three or four weeks have been exceptionally strong in buyer traffic and sales.”
Could this mean the spring market will not disappoint? It would seem so. According to the Dallas Morning News, real estate agents sold more than 100,000 homes for the first time last year. Perhaps this year, they will break the record again.