There are two factors helping a 6.9% increase in home price sales in Dallas homes. They are a low inventory of homes and a low vacancy rate among owner-occupied housing.
Why does this matter? Higher rates of owner-occupied housing mean owners are staying in the Dallas area. They aren’t renting out the homes and living elsewhere nor are they losing the homes to foreclosure like the epidemic we saw in about 2009. Dallas-area home prices have risen almost 65 percent in the Case-Shiller index since the worst of the recession in early 2009. The percentage increases in Dallas-area prices have steadily moderated during the last year, but housing costs in the area remain at record levels.
While the inventory of homes for sale in North Texas has risen from a year ago, there’s still only about a two-month supply of properties on the market. As long as the supply of homes on the market remains low, prices will continue to rise, agents and analysts say.
“We expect home price growth to potentially continue to accelerate this year when looking at year-over-year comparisons due to low inventory levels,” Ruben Gonzalez, chief economist with Austin-based sale firm Keller Williams said. “If mortgage rates continue to rise, they could slow growth later in the year; however, right now we see inventory constraints as the predominant factor influencing prices.”
It goes without saying that if you wish to command the maximum gain on your home’s equity, a fastidious time to sell is now. It’s also a great time if you’re a home buyer with a home to sell because you will garner the most equity from your home at this point in the market while interest rates are still at a historic low.
We’ll go into detail about that in a future post, or you can contact us to get a strategic plan going in your favor.