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Dallas, TX: Real Estate Market & Trends 2016

Published on Tuesday - July 26, 2016

The Dallas-Fort Worth area is the commercial and cultural hub of its respective region, and it’s real estate market reflects one of the more prosperous housing markets in Texas. The median home price in the first quarter of 2016 was $210,100 for the Dallas real estate market, and it continues to grow relative to last year. Equity appreciation rates for homes in Dallas remain robust, as one year appreciation rates for real estate in Dallas has risen 9.1 percent to $20,831 compared to the national average of 6.1 percent to $15,781. While historically strong, home affordability in Dallas continues to grow stronger. The monthly mortgage payment to income in the region was 8.6 percent for Q1 2016 compared to the national average of 14.5 percent, while the median home price to income in Dallas was 1.6 compared to the national average of 2.6. Thanks to a home affordability, a growing economy and unemployment rates lower than the national average, the Dallas real estate market is primed for a big year in 2016.

Dallas, TX Real Estate Market Statistics:

Dallas, TX infographic

The Dallas-Fort Worth housing market continues to stay red hot, and 2016 is shaping up to look like its best year since the recession. The latest real estate market statistics reflect positive growth for the city, which is home to more than seven million people. Home prices in Dallas continue to grow relative to last year. The current median home price of $210,100 is slightly under the national average of $215,767, however, total equity gained remains strong. The following highlights year-to-year equity gained through 2016 Q1 in the Dallas real estate market:

  • Homes purchased in the Dallas housing market one year ago have appreciated, on average, by $20,831. The national average was $15,781 over the same period.
  • Homes purchased in the Dallas real estate market three years ago have appreciated, on average, by $58,382. The national average was $49,356 over the same period.
  • Homes purchased in the Dallas housing market five years ago have appreciated, on average, by $77,957. The national average was $68,727 over the same period.
  • Homes purchased in the Dallas real estate market seven years ago have appreciated, on average, by $84,424. The national average was $59,758 over the same period.
  • Homes purchased in the Dallas housing market nine years ago have appreciated, on average, by $83,068. The national average increased $16,435 over the same period.

Dallas, TX: Real Estate Market Summary:

Dallas real estate market summary

  • Current Median Home Price: $210,100
  • 1-Year Appreciation Rate: 9.1%
  • 3-Year Appreciation Rate: 31.0%
  • Unemployment Rate: 3.8%
  • 1-Year Job Growth Rate: 3.9%
  • Population: 7,102,796
  • Median Household Income: $53,849

Dallas, TX: Real Estate Market (2016) — Q1 Updates:

Dallas, Texas real estate market

The first quarter of 2016 has been solid for the Dallas real estate market. Record-low mortgage rates continue to make housing affordable for homebuyers, as mortgage rates for a 30-year fixed-rate loan fell to 3.7 percent in Q1 2016 compared to 3.9 percent in the fourth quarter of 2015. Rates are expected to remain low for the duration of the year.

In terms of the city’s overall economy, Dallas is continuing to improve like other cities around the country, as unemployment and job growth continues to fare better than the national average. The current unemployment rate is 3.8 percent compared to the national average of 5.0 percent, while job growth in the last 12 months increased 3.9 percent compared to the national average of 2.0 percent.

Dallas, Texas has historically been one of the most affordable markets in the nation, with a monthly mortgage payment-to-income of 9.9 percent compared to the national average of 19.5 percent. Entering the first quarter of 2016, the monthly mortgage payment-to-income was 5.9 percent better than the national average despite dropping 0.1 in the first quarter. The median home price-to-income in Dallas was 1.6 compared to the national average of 2.6. Moving forward, investors should continue to monitor the home price-to-income in the Dallas real estate market, as this ratio is getting higher compared to historic standards.

Another component fueling the real estate market in Dallas is new construction. In the past 12 months, the number of single-family housing permits increased 15.4 percent compared to the national average of 11.3 percent, and the current level of construction is approximately 50.2 percent above the long-term average. Compared to last year, home construction is on the rise in Dallas and should continue throughout 2016. Dallas real estate investing should benefit from this news, as the new construction is a sign of strong demand.

Moving forward, the price expectation for the Dallas real estate market is anticipated to be more modest than a year ago. Realtor.org expects weaker growth for the next 12 months, but the Dallas housing market should remain competitive compared to the national average. The duration of 2016 should see the city’s market remain prosperous for Dallas real estate investors, particularly house flipping and rental properties.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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