As we enter the last quarter of the year, 2015 will be remembered as the hottest housing market ever in North Texas.
Single-family residential properties are continuing to sell at record levels. In Dallas County alone there were 2,048 houses sold in July which was the highest total for a month over the last five years.
What’s helping values continue to rise?
I believe there are three factors that are helping contribute to property values continuing to rise.
SUPPLY AND DEMAND
Supply and demand is one of the factors contributing to rising home prices. The short supply of residential properties and condos in the DFW market has created a competitive environment for the purchase of those properties. It’s simple; low supply creates high demand.
Throughout the metroplex, inventory for single-family residential properties and condos is near all-time lows. According to NTREIS, the average metroplex area has only 2.4 months of supply. There does not appear to be any signs of this changing anytime soon.
Another factor is the economy. The economy in Texas is red hot. There are ample jobs and lots of people coming to North Texas. Texans’ income has risen 5.6 percent in 2014, primarily due to job growth. According to Vision North Texas, the DFW region is forecasting per-capita income to increase by 32 percent over the next 22 years. The median salary in the DFW area is $65,100.
The DFW metroplex is the fourth largest metropolitan area in the country. Population growth is eye-popping and on a tear which means continued demand for housing. The Dallas-Fort Worth Metroplex and Houston areas top the nation’s fastest growth list. Until this year, Texas was alone with three cities of 1 million or more people. California tied that when San Jose crossed the 1 million mark. But Texas also has five of the top 10 cities in population gain, and six of the 13 fastest growing by percentage, they include — San Marcos, Georgetown, Frisco, Conroe, McKinney, and New Braunfels. Here’s the eye-opener, the majority of people who will live in Collin and Denton counties aren’t even here yet! There will be approximately 2.5 million people in Collin County and 2 million people in Denton County in the next 25 years. Combine the growth with a robust economy and this only fuels demand for more housing.