The real estate market in Dallas-Fort Worth (DFW) has been on a roll over the last few years. However, the COVID-19 pandemic threw a wrench into things, and the market experienced some slowdown in early 2020. But as the pandemic started to recede, the DFW real estate market picked up pace, and the last quarter has been particularly strong. In this blog post, we will take a closer look at the residential real estate pricing trends in the DFW area over the last quarter and what they mean for buyers and sellers.
Prices Are on the Rise
One of the main takeaways from the last quarter is that prices in the DFW real estate market continue to trend upwards. According to data from the Dallas Area Association of Realtors, the median sales price for single-family homes in the DFW area was $308,000 in February 2021, up 13.1% from the same month in 2020. In March 2021, the median sales price rose to $325,000, an increase of 19.7% from March 2020. The price per square foot also increased from $139 to $165, which is a 18.7% increase.
This trend is not limited to just single-family homes. The median sales price for townhouses and condominiums also increased by 11.6% and 7.2%, respectively, in February 2021 compared to the previous year.
What’s Driving the Price Increase?
There are several factors driving the upward trend in real estate prices in the DFW area. One of the most significant factors is the low inventory of homes for sale. With fewer homes available on the market, buyers are competing for the same properties, which drives up prices. In March 2021, the number of active listings in the DFW area was down 59.3% compared to March 2020, according to data from the Real Estate Center at Texas A&M University.
Another factor contributing to the rise in prices is the high demand for homes in the DFW area. The pandemic has led many people to reassess their living situations, and some have decided to move to areas with more space, better weather, and a lower cost of living. The DFW area checks all those boxes, making it an attractive destination for both in-state and out-of-state buyers.
Finally, historically low mortgage rates are also driving demand for homes in the DFW area. As of April 2021, the average rate for a 30-year fixed-rate mortgage is around 3.125%, according to Bankrate. Low mortgage rates mean lower monthly payments, making homes more affordable for many buyers. However, this also means that buyers are willing to pay more for a home, which further drives up prices.
What Does This Mean for Buyers?
For buyers in the DFW area, the current market presents both challenges and opportunities. With prices on the rise and inventory levels low, buyers may face more competition and may need to act quickly to secure a home they like. Additionally, bidding wars are becoming more common, and buyers may need to offer above asking price to win a property.
However, there are still opportunities for buyers to find their dream home. By working with a trusted real estate agent, buyers can gain access to off-market listings, giving them an edge over other buyers. Buyers can also take advantage of historically low mortgage rates to secure a better deal on their home loan.
What Does This Mean for Sellers?
Sellers in the DFW area are in a strong position right now, with prices on the rise and low inventory levels. With fewer homes available on the market, sellers may be able to sell their homes more quickly and for a higher price than they would in a more balanced market.
However, it’s important to note that even in a strong seller’s market, pricing your home correctly is crucial. Overpricing your home can lead to it sitting on the market for longer than necessary, and ultimately, selling for less than it would have if priced correctly from the start. Working with a knowledgeable real estate agent who can help you determine the right price for your home is key.
Sellers should also be aware that even in a seller’s market, buyers are still looking for homes that are move-in ready and well-maintained. It’s important to take the time to make any necessary repairs or updates to your home before listing it for sale, as this can help it stand out in a crowded market.
How Can I Help?
If you’re a buyer or seller in the DFW area, I would love to help you navigate the current real estate market. As a local real estate agent, I have the expertise and knowledge you need to make informed decisions about buying or selling a home in this market.
Whether you’re a first-time buyer, a seasoned investor, or a seller looking to get top dollar for your home, I can provide you with the guidance and support you need every step of the way. From helping you find the perfect home to negotiating the best possible price, I am here to help.
Contact me today to learn more about how I can help you achieve your real estate goals in the DFW area.