North Texas Daily

The Dallas market craze is not stopping anytime soon

The Dallas market craze is not stopping anytime soon

The Dallas market craze is not stopping anytime soon
May 27
12:00 2021

Construction sites are turning away building jobs because of the overwhelming flood of home orders. Run-of-the-mill, suburban houses are being purchased for $50,000 over their asking price. Determined newcomers are having to make a choice between bidding higher than a competitive listing price, or wait until another listing appears long enough to snag it. This unprecedented influx of the metroplex population growth has caused real estate prices to skyrocket, increasing 24 percent from April 2020.

Michael Coburn, broker and owner of RE/MAX Town and Country in Allen, Texas called the feeding frenzy in a recent Dallas Biz Journal article “unhealthy.”

According to the Housing Market Index, the Dallas Fort-Worth area is currently the 22nd highest real estate market in the nation, with a combined sale and price growth of 15 percent. The forecast predicts that as more people move to North Texas, house prices will increase to fit a competitive home-buying population.

This chaotic spike arrived following the ultimate uptick in vaccinations and the steady decline of coronavirus cases around the United States. Previously stuck at home because of the isolating pandemic, residents are becoming tired of their living spaces.

This ultra-pace era is truly a seller’s real estate market, meaning there is an immense number of homes to be sold, but not to be purchased. In order to balance the economic benefits of the residential real estate system, there should always be more houses available than what people are wanting to buy. This maintains stable economic growth and provides availability to prospective residents.

As of March 2021, the median cost of a metroplex house was $383,000 — a growth of 12 percent. Rather than the DFW area growing the availability of homes with the stunning population growth, it’s quite the opposite. Home inventory has decreased a whopping 69 percent, leaving buyers desperate for a way to settle. The metroplex simply cannot keep up with this huge influx of eager buyers and hesitant sellers.

The reason for this massive explosion in home interest lies in varying factors. With the near end of the COVID-19 pandemic on the horizon, residence-seeking millennials along with families are ready to move out of their cushy-quarantine homes for a fresh start. This is similar to the influx in airline ticket prices and availability as people begin to travel and book vacations once more- a plan deemed implausible a year ago.

Specifically citing the impressive amount of people moving to Texas, the Dallas-Fort Worth area has one of the best and fastest-growing economies in the United States. Data from the Federal Reserve Bank in Dallas indicted a 37 percent increase in employment opportunities from 2010-2017. Denton and Collin counties are also projected to be among the nation’s fastest-growing economies from 2017 to 2021, allowing prospectors to capture high paying jobs among an exceedingly developed community.

FRB statistics also demonstrate that the majority of domestic migrants come from California and Florida. It seems that Texas has similar economic growth, diversity and job availability without the overwhelming hoard of tourists, or an inflated market.

Among other reasons for flocking to DFW, seen by a Native Texan, is the education portion. A large number of highly ranked public schools and colleges means that families can stay for the long run, and provide their children enhanced education without the pricey cost of private school. From the urban atmosphere of Deep Ellum to the quaint suburbia of Mansfield to the rural peace in Palmer, a diverse setting means unique variation in everyday life.

Unfortunately, the housing market craze is not stopping anytime soon. In fact, it could shape the economy for the better, or plunge into a recessive state similar to the Great Recession in 2008.

The bright side? As thousands of people flock into North Texas to search for homes, the economy will grow as people find jobs, pay taxes and contribute to society.

The not-so-bright side? The tumultuous uptick of Dallas home seekers could turn into a bubble, bursting similar to the mortgage bust in 2008-2009.

Either way, we will still see a continuation of economic upheaval for better and for worse as people eagerly leave their homes and start to live normal lives again.

Featured Illustration by J. Robynn Aviles

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McKensi Bryce

McKensi Bryce

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