Predictions: Dallas housing market in 2016
There has been a lot of speculation over how the Dallas housing market will perform in 2016, and most of it has been extremely positive. PwC recently released their annual “Markets to Watch” report, ranking Dallas as the number one city to watch for 2016. Their report ranks cities via broad analysis of investment, development, and home building potential.
A record 2015
Dallas, which for the most part avoided the massive price drops of the housing crisis, had already reached pre house rising crisis home prices by 2013. Since then the city has experienced dramatic year over year growth, with home prices hitting an all-time high last year after experiencing a 16% increase over 2014.
Driving forces
One of the strongest factors that contribute to home sales is employment growth. The Dallas/Ft. Worth area has seen impressive growth in this area which has in turn bolstered the local economy. Additionally, Dallas is a great place for businesses to “live” as well. The low cost of living and doing business has lead to such business titans as Toyota and FedEx installing campuses. In fact, Dallas leads the state in this regard, with 106 companies expanding or relocating there since 2010.
Other factors that have influenced Dallas’ rise to real estate greatness have been strong investor interest, abundant capital, and a strong local development community.
Cooling off
Despite the overall optimism, expert economists at Zillow have predicted that growth will cool down slightly in 2016. The main reason for this is that “inventory”, which is real estate speak for houses available for sale, is starting to catch up to consumer demand. Simply put, supply is comparatively higher than it was last year relative to consumer demand.
Economists are also speculating that the increased interest rates set by the Federal Reserve in December as well as their promise to gradually increase rates further during 2016 could play a part in dampening consumers’ desire to enter into a new mortgage, albeit slightly.
A great time to sell
For those seeking to get the maximum value on their home, now is a great time to sell in Dallas. However, the homes that are selling the fastest are move-in ready, while many homes still in need of updates and repairs remain unsold. Buyers are not interested in making investments in homes that require additional financial and time commitments since prices are at an all-time high.
If you have a home that needs repairs and are looking to sell quickly, get a quote from We Buy Ugly Houses® Dallas. We can help you sell your home as is for cash.
