The Dallas-Fort Worth housing market continues to be stronger now than a year ago, according to two recent studies.
The RE/MAX National Housing Report reveals Dallas-Fort Worth home sales were up 4.6 percent over last year. The August Zillow Real Estate Market Report showed a 4.1 percent increase for D/FW home values.
RE/MAX also points out that D/FW media home prices are up 8.8 percent over last year. On a national scale, the median sales price rose to $290,000, beating the previous report record of $285,000 set in July. Zillow reports that home values are up 5.1 percent, the largest annual rise since March 2019.
It’s a continuing positive sign that the housing market is prospering despite the negative effects of the COVID-19 pandemic and record unemployment. In the case of the housing industry, it’s basic supply and demand combined with falling mortgage rates.
“The demand for houses is easily eclipsing the available inventory in metro areas across the country, Adam Contos, RE/MAX Holdings CEO says in the report. “Buyers are moving forward in record numbers, unfazed by inventory challenges and consistently higher prices.”
In the report, Zillow economist Jeff Tucker says home shoppers are facing an historic shortage of listings.
“Builders are racing to catch up with demand, and rising prices should encourage more potential sellers to come off the sidelines and list,” he says. “Still, the shortage of inventory should keep housing markets unusually tilted in sellers’ favor this autumn.”
The inventory shortage coincides with falling mortgage rates. The average 30-year mortgage rate dropped to a new historic low of 2.86 percent, according to data released by Freddie Mac, which has tracked rates since 1971. The 15-year fixed-rate mortgage averaged 2.37 percent.
Zillow’s monthly report shows the rental market has softened, dropping from 3.8 percent year over year in February to only 0.7 percent in August. In D/FW, the typical rent was $1,620, which was a 1.1 percent increase.