Photo courtesy Brian Dooley via Creative Commons

Photo courtesy Brian Dooley via Creative Commons

Strong economic factors, job gains, and population increases have experts predicting strong growth in North Texas home prices in 2015, and a 35 percent increase in home prices over the next three years in the Dallas-Plano-Irving areas.

Local Market Monitor, Inc. released its December 2014 local market reports for North Texas, looking at factors like jobs, migration, housing permits, local market risk premium, and average home prices. Based on those analytics, they say home prices will likely grow 11 percent in the eastern counties of North Texas and 8 percent in the western counties over the next 12 months. Nationally, prices are forecast to increase by 6.3 percent.

They’ve extended their forecast two and three years, as well. In the eastern DFW counties, home values are predicted to increase 11 percent in 2016 and 10 percent in 2017.

In the western counties, home values are expected to increase 8 percent in both 2016 and 2017. The report predicts home prices to increase 25 percent over the next three years, noting that market is currently underpriced 17 percent relative to income.

County level forecast for Home Values

These reports echo the sentiments of local realtors and real estate experts, who have been crowing about strong North Texas job growth, more buyer and seller confidence, continued low interest rates, and investor demand. Jump to read more!

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On Sandage St. near TCU, two large, zero-lot-line homes have been built next door to one another. To curb the trend of investors tearing down homes to build "stealth dorms," residents are supporting greater restrictions for the number of co-habiting adults in these homes. (Photo: Max Faulkner/Fort Worth Star-Telegram)

On Sandage St. near TCU, two large, zero-lot-line homes have been built next door to one another. To curb the trend of investors tearing down homes to build “stealth dorms,” residents are supporting greater restrictions for the number of co-habiting adults in these homes. (Photo: Max Faulkner/Fort Worth Star-Telegram)

This is an interesting story out of Fort Worth, as some neighborhoods push back against big, zero-lot-line homes full of college kids by proposing an overlay to limit unrelated adult residents to three per single-family home instead of the current five. The overlay, which in its current version would not grandfather existing properties, is facing some stiff opposition from investors. They’re pooling their funds and preparing for a legal battle, according to the story in the Star-Telegram:

“We did it how they said to do it,” Kyle O’Keefe, an investor and resident in the overlay, said of the homes they built. “If they go back and change it, that is a break of trust. That is saying, ‘Hey, you guys come in and invest in our city make it a great city and then we are going to screw the hell out of you in a couple of years.”

This is interesting, because while the restrictions are aimed toward protecting the integrity of the neighborhoods surrounding Texas Christian University, they’re targeting a specific group of homes: Large four- and five-bedroom houses in districts surrounding TCU, that are usually rented to college students and dubbed “stealth dormitories.” Residents are mostly concerned about noise, trash, and traffic.

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