The Dallas/Fort Worth (DFW) residential real estate market had another record year in 2017 as sales grew 6.8% year over year. Demand for housing continues to increase and push pricing higher across the market.
According to the Monthly Housing Report by The Real Estate Center January 15, 2018:
- December 2017 had a total of 8,350 sales vs 7,818 in December 2016, an increase of 3.6% year over year. North Texas home sales have risen more than 60% since 2010.
- The median home price in December 2017 was $260,000 vs $240,000 in December 2016, an increase of 8.33% year over year, while the median price per square foot also rose from $113.30 to $122.81. The average sales price rose 9.16% year over year from $292,382 to $319,158, while the average price per square foot subsequently rose from $121.38 to $132.49.
- Year-to-date sales reached a total of 102,128 closed listings and dollar volume rose from $2.29 billion to $2.66 billion. One of the biggest increases in North Texas home sales came from the luxury home market (homes priced over $1 Million.) In 2017, local real estate agents sold 1,652 homes valued at $1 million or more, representing a 21% increase from 2016.
- Total single-family home inventory rose from 1.8 months supply in December 2016 to 1.9 in December 2017. The housing inventory for the U.S. currently stands at 3.4 months’ supply per the National Association of Realtors (NAR). Anything below 6.0 months’ supply is considered a tight market.
- The Milliken Institute, in its new “Best Performing Cities” report, rated Dallas #3 in the country, based on a broad growth base and well-educated work force. The Urban Land Institute, in its “Emerging Trends in Real Estate” report, ranked Dallas #5 on the “US Markets to Watch” list.
Texas Workforce Commission, Homefinder and the Dallas Federal Reserve:
- Employment increased in December by 91,700 new jobs year over year, an increase of 2.55% for the DFW MSA.
- Area unemployment decreased in December 2017 to 3.10% from 3.70% in December 2016. Over the past five years, the job growth rate for the Dallas/Fort Worth MSA has increased at an average annual rate of 3.25%.
- The Dallas Federal Reserve reported that Texas Employment Forecast suggests jobs will grow 2.8% this year (December/December), with an 80% confidence band of 1.2 to 4.4%. Based on the forecast, 349,900 jobs will be added in the state this year, and employment in December 2018 will be 12.7 million.
For Texas, McAlister Investment continues to see accelerating job growth in 2018. As a result, the Texas metro single-family residential markets are positioned to thrive from pending population growth, job growth, and an increase in first time homebuyers.
Should you have any questions, please feel free to contact our office at (713) 535-2250. For more information on our
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Paul Connor , Hydie McAlister
Principals, McAlister Investment Real Estate
Vice President, McAlister Investment Real Estate