Here's Why Dallas-Fort Worth's Housing Market is the Hottest in America
D-FW's housing market is so hot it's being likened to the 'Gold Rush'
DALLAS — Dallas-Fort Worth has long oozed a unique flavor. Of all the metro areas in the Lone Star State, D-FW offers several notable amenities.
First, there's the location. Whereas Houston is hurricane-prone, D-FW is primarily protected from Mother Nature due to its inland locale. As for the other metro areas, D-FW offers more diversity than San Antonio and feels a tad more urbanized than Austin.
No wonder according to U.S. Census Bureau data in 2018, D-FW gained more new residents than any other metro area in America. "If you look at Dallas-Fort Worth, its economy is continuing to expand and that is creating economic opportunities," said Lloyd Potter, Texas State Demographer.
Throughout the Dallas-Fort Worth area, we are seeing a gold-rush response as buyers flock to new developments because demand is far exceeding supply.
If by chance you're familiar with California's famed "gold rush," you know how this story ends. Right?
"Pressure bursts pipes," goes the saying. And because the "pipes," in this instance, happens to be the housing market, if this pressure to buy homes persists — such "bursting" will lead to pricing out, not gold.
"Pricing out" is a fancy expression that far too many New Yorkers, or residents of other overpopulated cities, are familiar with. Perhaps this explains why Will Rogers once advised: "Buy land. They ain't making any more of that stuff!" Indeed, the higher the demand for living spaces, the higher the price . . . for living spaces.
At the moment, the D-FW housing market is already flirting with pricing out. According to a report, "the three-month moving average of new home prices in D-FW rose in April to $412,057 versus $400,431 in March." Ouch!
Crowded housing markets cause realtors to whisper. "Many sellers think people are paying more than their properties are worth" is the latest. Indeed, according to Realtor.com, almost 30 percent of sellers ask for more than they think properties are really worth. Ah, but from the sellers' perspective, "Fair exchange is no robbery."
George Ratiu, senior economist with Realtor.com, advises “homeowners planning to sell this year [to] research your local market conditions to ensure that your home’s price reflects neighborhood trends.” In other words, if you happen to be involved in real estate at the moment — in arguably the nation's hottest market — Ratiu is simply advising:
Strike while the iron is hot.