Dallas Real Estate Values Predicted to Climb Through 2020
Investors in Dallas shouldn’t wait for prices to come down before buying. The white-hot growth of Dallas real estate values isn’t going to slow down anytime soon. According to Forbes, the average price of Dallas homes is expected to increase by 31 percent by 2020, the fastest growth rate of any city in the U.S.
Forbes worked with Local Market Monitor, which provides data about housing markets, to produce the report. Cities were ranked on the following criteria: Three-year housing price growth, affordability, annual job growth, annual home price growth, and three-year population growth. Dallas performed well on all counts, with 6.2 percent population growth between 2012-2015, nine percent annual home growth, and 3.9 percent job growth last year.
Dallas currently has cheaper than average housing stock. Prices are currently still 3 percent, or $35,000, below the national average. Undervalued housing and an exploding population are creating the perfect conditions for rapid price increases.
Local news station NBCDFW reports houses are selling within days of hitting the market, with many offers above the asking price. Houses priced between $200,000 and $400,000 are most likely to receive multiple offers and bids above the list price.
Many people face delays while buying houses in a competitive market, which creates more need for rental units. The pressure on housing is causing increased rent in Dallas as well.
Dallas’ neighbor to the west is also expected to see significant growth: Fort Worth ranked No. 9 on the Forbes list. Texas came in as the No. 2 state in the country for having the most cities on the top growth list.