Dallas is on its way to becoming a residential real estate boomtown, thanks to our growing job market and influx of corporate employers. Interestingly, both CoreLogic and Local Market Monitor show very positive, low-risk projections for our real estate market based on previous months’ performance.
According to the CoreLogic report, Dallas-area home prices are up 10.2 percent for the year ending in April. That’s among the top-performing markets that include Las Vegas and Los Angeles, which posted 19.2 percent increases from a year ago. The national average is 12.1 percent.
Local Market Monitor is still calling the Dallas-Plano-Irving market “low risk” thanks to “higher home prices and low unemployment.” But the report says that while the area can look forward to a 4 percent increase in home prices over the next 12 months, the average home price has already peaked.
In the past 12 months, jobs in this market have grown by 3.2 percent. This compares to a national increase of 1.6 percent. Job growth is our most immediate guide to the demand for housing. New jobs spur population in-migration while jobs regained in a recovery create new households. Investments are riskier when job growth is falling, less risky when job growth is strong.
Home prices in this market peaked in Q2 2013 at $203,475. Since their peak, prices have fallen by 15%. In the last 12 months, prices have gone up by 3 percent. The average home price in this market is currently $172,782.
So, do you think home prices have peaked? Or do you see growth in the future? Also, how do we maintain a healthy housing market? Comment below!