Here’s how your neighborhood’s runaway home prices compare with the rest of Dallas-Fort Worth

You don’t have to tell apartment hunters that housing values ​​in the Dallas area are getting out of hand.

Anyone who’s looked at a local property in the past year – if they can find one – got a sticker shock about property prices in North Texas.

Sales prices for single-family homes in the area rose 18% through June.

And for the first time in your memory, each of the area’s residential districts that the Dallas Morning News tracks every quarter is showing year-over-year price increases for the first six months of 2021.

Some neighborhoods are experiencing the kind of skyrocketing prices that were unheard of in previous real estate cycles.

Home sales prices in Fairview were up 30% in the first half of the year and prices in Southlake were up 29%. According to data from the Texas Real Estate Research Center and North Texas Real Estate Information Systems, prices rose more than 25% in Celina, southeast Dallas, Oak Cliff, and the Park Cities.

The dramatic rise in home prices is fueled by a combination of low mortgage rates and severe housing shortages.

A migration of thousands of people to North Texas during the COVID-19 pandemic just made things worse for buyers looking for an affordable home in the Dallas area.

Only four of the nearly 50 residential areas The News surveyed had more than one month’s listings of homes for sale through brokers. That is less than a fifth of what is considered a normal market.

For buyers, the shortage of apartments available for sale and the constantly rising prices pose a growing challenge.

Tracy Jordan has been looking for her first home in the northern suburbs for about six months.

“It’s so frustrating,” said Jordan, who works in Plano for one of the largest banks in the country. “I didn’t think it would be so difficult.

“I thought it was like buying a car, but that’s not how it works.”

Jordan and her real estate agent Blake Roberts at Coldwell Banker Apex have looked at more than 50 homes and filed multiple contracts without landing a purchase. It has already increased its top purchase price.

“My cap was initially $ 350,000, and now I’ve increased to $ 400,000,” said Jordan. “I even made some offers for a little over $ 400,000, but I really don’t want that.”

The blind and wheelchair user Jordan is looking for an open house with space for her and her son.

“It seems ridiculous to pay $ 390,000 for a three-bedroom, two-and-a-half bath,” she said.

The average single-family home price in North Texas hit $ 350,000 for the first time in June. The average mid-year retail price in Collin County was $ 440,000.

Home sales in the area have increased more than 50% in the past five years – the largest such increase in history.

“In Texas, a good year would have been a 4% price increase over the past 40 years – a normal year would have been about 2%,” said longtime Texas real estate economist Mark Dotzour. “The worst-case scenario is that at some point houses become unaffordable, even if mortgage rates are where they are.

“At some point you hear people say they won’t buy. And the trend in real estate price growth will flatten out. “

Dotzour believes the Dallas area property price boom will end without going bust.

“I don’t think there is a bubble,” he said. “Bubbles appear when you get unsustainable funding.

“People say they know they are paying too much, but they want a house.”

A growing number of potential buyers who are discouraged or excluded from the market could also lower the temperature of the local housing sector, said James Gaines, who has just retired as chief economist with the Texas Real Estate Research Center.

“That’s the annoyance factor,” said Gaines. “A lot of buyers will say, ‘The hell with it.’

“There is price fatigue,” he said. “We assume that the market will calm down a bit and that the demand that we have seen will have to balance out.”

But even if the home market in the Dallas area cools, analysts do not expect prices to decline.

“I don’t think we’re going to see any dramatic price declines in the next year,” said Eric Fox, chief economist at California real estate analyst Veros Real Estate Solutions. “We said that after the pandemic we thought house prices would go up, and they did.”

Veros projects home prices to rise 9.6% in the Dallas-Fort Worth area over the next 12 months. That would be about half the current rate of appreciation, but still one of the biggest annual price hikes the region has seen in decades.

“I like to say it’s like a car accelerator and all we’ve been doing over the last year is pushing the accelerator harder,” said Fox. “I don’t think we will step on the accelerator anymore.”

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