Dallas Housing Market 2022: Prices, Trends & Forecast
The Dallas housing market became one of the hottest real estate markets in 2020 and continued to be a seller’s market throughout 2022. However, recent trends suggest it might cool off over the next few years. We’ll review everything you need to know about prices and trends and give you a forecast to determine the right time to buy or sell.
Prices in the market have continuously risen over the past two years. This is due to the housing shortage that began in 2020 as more people flocked to the area. It resulted in the housing supply being only one month. For the market to be a buyer’s market and see housing prices cool off, there needs to be a six-month supply of houses.
In 2021, housing sales saw an increase of 6.2%, resulting in the supply of houses struggling to keep up. Although the housing supply has risen to almost a two-month supply, it is far from where it needs to be to outpace the demand for housing in the area.
According to Zillow, the price of houses in the Dallas area has risen by almost 30% in the past year.
Per the Texas Realtors Review Report for 2021, sales and house prices have risen in Texas for the seventh year.
According to research reports, the housing market in Texas is overheated. Most homes sell for more than 30% of their actual value. It’s a strong seller’s market right now and has been for the past two years.
This is more pronounced in the Dallas area, with many homes selling at slightly over 40% of their estimated value.
Houses have increased in price for seven years, and this trend continues throughout this year. House prices have risen slightly over 20% from the previous year. Per square foot, buyers pay approximately $221 compared to around $174.
Housing demand is up, with single-family houses seeing an increase of 7.7% in sales year over year. Days on the market have decreased by four days as families grab houses soon after they are put up for sale.
However, the supply is also increasing. It’s estimated that the Dallas area has a housing supply of 1.8 months, which continues to grow. New listings have seen a 25% increase from last year. Active listings have increased by 60%.
Housing trends strongly correlate to the economy, which is booming in Texas. The unemployment rate has decreased. The state has seen an 8.5% increase in jobs compared to the number of jobs last year. In the past five years, the number of jobs in the state has risen by an estimated 2.5%.
This helps explain why so many people are flocking to the LoneStar state and why the economy continues to see massive growth. As more people move to Texas, companies continue to pour money into the state at a fantastic rate.
The primary demand in the market continues to be for single-family detached homes. While some people are moving into apartments, townhouses, and condominiums, the majority of people that move into the area purchase single-family homes with at least three bedrooms.
The housing prices in the area are expected to continue to rise over the next year, but they will be at a much slower pace. Experts in the industry expect the price to increase by a meager 4.2% by the summer of 2023.
This is due to the supply of houses available slowly increasing. Active listings in the area increased by 47%. According to the Texas Real Estate Research Center, new listings increased by approximately 23%.
Right now, it is still a seller’s market in Dallas. However, that isn’t going to last. As the supply of houses continues to increase, it is slowly going to lead to a decrease in the cost of housing in the area. There will be a rapid decline in growth over the next year, but the industry will still see a small amount of growth.
If the supply of houses continues to grow, it should balance out within the next few years. Once there is a six-month supply of houses on the market, it will slowly become a buyer’s market. However, that time is still at least a year away. For now, sellers hold more power over negotiations and prices in the market.
This is provided that real estate developers, investors, and real estate agents can keep up with the demand for housing. The massive amount of population growth is making this difficult. The construction in the state for the previous ten years is not enough to keep up with demand. Real estate developers continue to try to keep up with and outpace demand and are succeeding.
It took one year, from July 2021 to July 2022, to see the supply of houses in the market grow from 1.5 months to 1.8 months. If you own a home near Fort Worth and don’t want to list your home on the open market with a Realtor, for whatever reason, you should consider letting an ibuyer buy your house in fort worth.
The Dallas housing market is a strong seller’s market. Year-over-year growth has been positive, but the demand continues to outpace the supply of houses in Dallas. This results in homes selling faster and for a higher price than they did in previous years. Of course you can always sell your home in Dallas, quickly to us, and not pay commissions/and closing costs.
However, real estate agents and investors continue working to create a six-month supply of houses, considered a healthy market. As they slowly climb towards this goal, buyers will see the price of homes decrease. They’ll enjoy more negotiating power. Houses will start to spend more time on the market. That will be seen in the years to come.
For now, sellers will hold the best cards at the table for the next year, if not longer. If you’re buying, you can save money by waiting for the market to cool off. If you’re selling, check out home improvements that increase home value to make the most money off your investment.