Outside of continued job and economic growth, one of the primary reasons why the DFW real estate market has remained hot over the past couple years no doubt relates to affordability. But after years of constant gains in home values and home prices, North Texas has officially fallen out of realtor.com's “metros to watch” list in 2017.
Believe it or not, home prices around the Dallas-Fort Worth Metro Area have spiked by a jaw dropping 43.3% in the past five years alone, and prices are still going up. Although the jump in home prices has been a welcoming trend for home sellers in DFW, the buyers’ market has become especially competitive, especially within the last 12 months.
As of now, the Dallas market is ranked No. 48 out of the top 100 metros in the 2017 Housing Forecast, with home prices projected to increase by another 4.13% next year. The good news for anybody considering a move to DFW is that the new construction industry has also been active throughout much of 2016, and a slight increase in inventory should help tame some of the strong price gains.
But even with job growth still on the rise, the region’s insane housing price increases could start making it difficult for companies to recruit new employees, ultimately cooling off what’s been one of the craziest markets we’ve ever seen in the Dallas-Fort Worth area.
Right now, the median home price for a new home in North Texas is $336,381, which is up 13.2% compared to this time last year. For comparison, home prices nationwide are only projected to increase by 3.9% in 2017.