Over the first part of 2016, the talk of the DFW real estate industry was just how busy things were for most of last year. With job growth on the rise all throughout Texas, but especially here in North Texas, the real estate market around DFW was booming to say the least.
But what segments of the market are we specifically talking about, you ask?
First off, according to recently released numbers, its seems luxury home sales in the Dallas area over the course of 2015 increased substantially, with sales of houses priced at $1 million or more jumping by over 12%. For reference, the sales increase of high-end homes in DFW is about twice the increase of overall pre-owned homes in the area.
To some degree, the constant growth of the luxury market really shouldn’t come as a significant surprise, especially given 2015 saw an even larger jump from 2014 at a 15% sales volume increase.
In all, DFW saw 1,088 luxury homes ($1 million or more) sell in 2015, a number that is no doubt influenced by rising home prices. According to some economists, houses that were priced in the $800,000 to $900,000 price range two or three years ago are easily selling for over a million dollars now as a result of a smaller inventory and population and job growth throughout North Texas.
The other major takeaway from 2015 relates to the crazy apartment market in DFW, which may just be as hot as its ever been. Although inventory isn’t quite as big of an issue as other segments of the market like new construction development and pre-owned condos, the rental market is still seeing record setting numbers in terms of rates and occupancy. Because home prices are still on the rise, affordability has quickly become an issue for the DFW real estate market, leaving many would-be buyers no choice but to keep on renting. Early in 2015, reports were showing between a 4 and 6 percent increase in rent prices, a number that’s also on the rise due to more people moving to the area.Â
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