For much of 2016, we’ve talked extensively about how red hot the North Texas real estate market has been, especially when it comes to apartment rentals and new construction around Dallas’ Uptown neighborhood and other surrounding communities. But to really understand how active the housing market around DFW has been this year, consider this—recently released statistics show that the North Texas region as a whole is on pace to sell more the 100,000 existing houses in 2016, which would be the highest number our market has ever seen.
But as we inch closer to the end of the year, certain segments of the DFW real estate market are actually starting to cool off a bit, specifically in the upper tier and luxury categories. In fact, according to reports, much of the activity we’re seeing right now largely favors first-time and mid-level home buyers, allowing for home sales to surge in many of DFW’s more affordable areas like Lancaster, DeSoto, Mesquite, and Cedar Hill. Furthermore, just about anything in the $150,000 to $300,000 price range isn’t sitting on the market long all throughout much of the DFW region, which certainly isn’t surprising given interest rates are still historically low and job growth continues to soar all over the DFW area.
Going back to the luxury market in DFW, however, perhaps one element relating to a bit of a slowdown could be directly tied to the election, which often brings uncertainty among potential buyers when it comes to new tax laws, economic issues, and feared hikes in interest rates. Traditionally, markets leading up to a presidential election have always faced similar challenges, which have consequently brought similar slowdowns to the nationwide real estate market as a whole, not just the higher-end segment. But with 2017 expected to also be a very active in terms of housing in DFW, expect for much of that uncertainly to fade by late spring and things to pick back up again all over DFW, including the luxury market and even new construction.