By now, most of us are used to riding out the highs and lows of the Texas real estate market – and it’s been mixed with both recently, specifically from the ebb and flow of supply and demand. Demand for single-family homes rose while supply lagged. Here’s a look at some of the highs and lows, and some predictions for the coming year, as published in the latest technical report by the Texas A&M University Texas Real Estate Research Center.
- Diverse and expanding economy, favorable business policies, and steady population growth support a favorable outlook.
- Improved industry wages, employment, and construction values are driving steady construction levels.
- Single-family construction permits maintained steady growth of 4.8 percent, trending upward for more than a year.
- Sales for homes priced more than $400,000 improved for the third straight month.
- Average days on market (DOM) fell to a record-breaking level; 25 days in Fort Worth and 26 days in Dallas.
- The median mortgage rate remains below year-ago levels.
- Homeowners behind on their mortgage payments in DFW flattened at 6 percent and expected foreclosures ticked down.
- Unprecedented low levels of inventory available for sale is the greatest challenge to Texas’ housing market.
- Skyrocketing lumber prices set record highs, leading to a decrease in total Texas housing starts.
- Stabilizing and slowing of sales brought on by declining activity for homes priced less than $300,000 due to dwindling inventories.
What’s on the Horizon?
Continued stability in the housing market is essential to Texas’ economic recovery. The recent rise in wages and declines in joblessness and unemployment claims are fueling the overall economic improvement.
The Dallas-Fort Worth Residential Construction indexes suggest steady construction in the coming months. If you are ready to buy in the Greater Dallas area, we can help you get started on your financing.