Now’s the time to buy.
This isn’t just some generic permanently bullish real estate agent blowing smoke to gin up sales. This is the real thing. Dallas-Ft. Worth is one of the fastest-growing big cities in the country. It’s attracting investment not just from all over the country, but from all over the world. Jobs are flooding into the Dallas area, and that’s generating intense demand for housing in all markets, driving inventories down and prices up.
There are no signs of that stopping anytime soon. But first, let’s run the numbers:
Dallas real estate prices are appreciating at about twice the overall rate that homes are increasing nationwide, according to the latest data release from the S&P 500/ Case-Shiller Home Price Indices. Here’s what the Dallas market performance looks like:
Dallas was one of the top three markets in the whole country for year-over-year home price gains as of the end of May, according to the latest report from S&P/Case-Shiller. Dallas home prices appreciated an average of 8.4 percent over the twelve months ending in May. Only Denver and San Francisco fared better for sellers, with increase of 10 percent and 9.7 percent respectively. In contrast, home prices measured nationwide (using 20 representative metropolitan areas) increased by 4.9 percent, on average.
Moreover, Dallas is one of only two markets in the entire country to have made up and surpassed its peak from the 2000s housing boom (the other such market is Denver, Colorado).
Nationally, we still have a long way to go before we can say the housing recovery is fully mature. There is still a lot of money and a lot of buyers sitting on the sidelines, waiting for the right moment. In my view, the smart money has been moving into real estate for a while, and the right time to move in or upgrade is before the sideline-sitters do.
Will the price appreciation slow down? It almost has to: Middle market home prices cannot sustain long periods of time in which they increase faster than wages, if interest rates remain steady. Buyers have to be able to pay for them.
But that dynamic doesn’t apply quite the same way in the luxury market. Luxury homes are tied closer to the fortunes of businesses and non-cash compensation, as well as the unique career and earnings prospects of high-performing sales professionals, doctors, top-ranked lawyers, and successful entrepreneurs. These individuals we routinely work with have no upper limit imposed on their success, apart from their own ingenuity, business acumen and work ethic.
The Luxury Market
Luxury home sales are booming in Dallas and Fort Worth, and particularly in the northern suburbs. Sales of homes at prices of $1 million or more rose 15 percent last year, according to the Texas Association of Realtors.
What’s driving the increase? Increased opportunity and prosperity in and around Dallas, which is attracting wealthy people from around the world while at the same time enabling long-time Dallas residents to move up to higher-end houses.
It’s not strictly tied to oil revenues, either. Yes, oil is a tremendous source of income for many Texans, and when oil prices are high Texas tends to do well. But look at the development happening in and around Plano, Frisco, Allen and Carrollton! It’s largely due to non-oil industry companies moving assets and even entire headquarters to this area, including Toyota North America, Liberty Mutual, FedEx. Dallas and the surrounding communities are no longer oil boom towns, if they ever were. The Dallas-Ft. Worth economy is tremendously diverse, and attracting investment from all kinds of industries. That’s not changing any time soon.
As far as the northern Dallas suburbs are concerned, the inventory is already tight, and likely to remain so. Given the thousands of new jobs moving to the area (Toyota alone is bringing as many as 4,000 workers and their families), the entire stock of homes for sale, or that are likely to come up for sale, or that are currently being constructed, is nowhere near enough to meet the coming demand in Plano and the surrounding areas. And that’s going to be true no matter what happens to oil prices.
Now’s The Time to Buy
That’s going to push prices up. My strong recommendation to anyone considering moving to the area, or considering moving up to a bigger or higher quality house, is to make the move now. Don’t be too coy, and don’t be afraid to pull the trigger on a good offer when you find a good house. You want to be in front of this market, not behind it.
When you do, and whether you’re buying or listing, I want to be your realtor. No one has been more successful at connecting buyers and sellers in this market. I have the listings you’re looking for, the connections, experience and skill set to help you buy or sell your home in Plano, Frisco, Allen and the surrounding communities quickly and efficiently. Call me today at 214-435-9551 for a free consultation and to get the process underway!