What you can expect from this year’s DFW real estate market.
What will the Dallas/Fort Worth housing market look like for the rest of the year? That’s what we’ll be talking about today.
In 2021, Dallas/Fort Worth saw the fastest growth in home prices ever. At the beginning of 2021, the average home price was $275,000. By the end of 2021, the average price had reached $345,000. While housing economists predict that it will slow down this year, let’s take a peek at why we saw this drastic increase.
The driving force behind this was the huge demand to relocate here during the pandemic. Supply chain disruptions also caused the price of materials to increase, so consumers had to pay more to build a home. Additionally, the constrained housing supply resulted in skyrocketing home prices.
“Economists are predicting that price growth won’t be as strong as 2021.”
Because of the low supply and strong buyer demand, we are seeing more and more cash offers in this marketplace than ever before. According to the National Association of Realtors, about 25% of all sales are cash offers, but don’t let this discourage you. We have created a program for our clients that can help you become a cash buyer through our lending partner. We’ve seen huge success with this program.
What are our expectations for 2022? Since mortgage interest rates are increasing and the Federal Reserve will start cutting back on its bond-buying program, most real estate economists predict a slower year and expect that price growth won’t be as strong as 2021. However, that just means we’ll have the second-best year on record. We’re still going to see home prices increasing, and there will be buyer demand coming from other states. The Dallas/Fort Worth real estate market will likely return to a somewhat normal marketplace towards the end of the year and into the beginning of 2023.
While this real estate market may seem tough for buyers, it’s even tougher to be a renter. Vacancies are at an all-time low, and prices have risen. The average rent has increased by nearly 18%, and it’s expected that rental demand will stay high because DFW has seen 14 straight months of increasing rents.
Don’t let any of this discourage you from selling or buying. Our real estate experts have proven strategies to help guide you through the entire process.
If you have any questions, reach out to us by email or phone. We look forward to hearing from you.
