Perspective means something. Ask a real estate agent, read Realtor.com or check out my article, Summer, DFW Housing, and Outlook from last week and you will learn that the DFW housing market is the hottest in the nation — and it is.
However, if you ask Steve Brown the long-time and esteemed Real Estate Editor for the Dallas Morning News, he will provide you with careful analysis and supporting documentation that Dallas-Fort Worth home prices are significantly overvalued. He believes they are overvalued by as much as 9 to 11 percent throughout the DFW area and as much as 19 percent in Austin.
The truth is, both are correct; the market is indeed hot, and home prices are continuing to rise. It is simply a supply and demand issue. When there is less supply, there is higher demand. When there is higher demand, prices rise.
The following chart reflects the trend in the median single-family housing sales prices.
Collin County is up +13.8 percent with a median sales price of $294,726. Dallas County is up +20 percent with a median sales price of $210,000. Denton County is up +16.2 percent with a median sales price of $269,000, and Rockwall County is up +13 percent with a median sales price of $250,000.
Yogi Berra once said, “You don’t have to swing hard to hit a home run. If you got the timing, it’ll go.” If you are in the market to sell, you are in a perfect seller’s market. Will it continue? Well, nobody knows for sure.
The good news is home loan mortgage rates are still close to historic lows. Stay tuned as this week there is a lot of economic news that can impact mortgage rates and housing trends.