RECAP: A Look Back at the DFW Real Estate Market Over the First Half of 2015

Posted by Kenneth G. Cox on Monday, July 27th, 2015 at 10:37am

Dallas Real Estate Market

Summer is traditionally a pretty hot time of the year for the housing industry, and that’s been especially true for the DFW real estate market this year. According to numerous reports in recent months, North Texas leads the country in home price gains, with median home sales prices more than 10% higher than they were this time last year.

In Oak Cliff, prices on pre-owned homes are up an incredible 30%, while Fairview is seeing a 29% hike, and North Dallas a 22% hike over the first 6 months of 2015. And although these areas seem to be the exception, more than a dozen other Dallas-area communities have seen a 15% or more increase in home prices, according to the midyear analysis from the Real Estate Center at Texas A&M University.

Continued job growth in the area is no doubt fueling demand and pricing, while inventory for affordably priced homes is also low, another contributing factor to such dramatic price increases as well. In fact, The Colony, Richardson, Bedford, and Hurst all have less than a month’s supply, resulting in many homes receiving multiple offers, or even offers well over ask.

For some perspective, a normal supply of housing is around 6 to 7 months.

The inevitability of interest rates continuing to rise is also playing a role in more home buyers being active throughout the first 6 months of the year, and with rates almost certain to climb again early in the fall, it looks like the first part of the second half of 2015 could be just as busy.

So far, North Texas median home prices have hit a record high of $220,000, while preowned homes are selling for a whopping 60% higher than they were during the height of the recession back in early 2010.

Few will argue 2015 has been a crazy year for DFW real estate, but it’s only a matter of time before we start to see a slow down. After all, these monumental price increases can’t continue to increase at the same rate forever.

So while it’s only a matter of time before things start to level off, the question still remains “when?”

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