Now that we’ve reached well over the halfway point of 2016, it’s safe to say the Dallas area has experienced a red hot real estate market for just about the entire year so far. Apartments are being built and rented faster than ever and inventory for just about every other property-type simply can’t keep up with demand. As a result, home prices in DFW have also reached record highs.
But with the local real estate market so robust over the last 6-8 months, new reports are surfacing about the market possibly overheating sometime in the not-so-distant future. National real estate database realtor.com recently released a list of the nation’s 10 “overheating” real estate markets recently, which was compiled from analysis of the country’s 50 largest housing markets.
Few were surprised that Northern California markets such as San Francisco and San Jose topped the list of markets most at risk, however, Dallas was one location that was also mentioned and currently ranked third on the list. It’s hard to imagine, but median home prices in DFW are nearly 80% higher than they were at the worst point during the downturn, and in June, a pre-owned single-family home in the North Texas region had a median price of $237,000, which is also a record high for the area.
But with all that said, it’s also worth noting that job growth in DFW has fueled much of the price gains—something that wasn’t happening during the recession. More companies are moving to the area or expanding their current base, which relates more to demand rather than a lack of home buyers’ ability to afford a home in DFW.
Even still, with prices steadily on the rise, it’s hard to imagine the market keeping pace with what we’ve seen over the first half of 2016 for much longer.