The first quarter of 2015 only ended a few weeks ago, but already companies and regional real estate boards are posting their numbers for the first three months. So far, the overall real estate market is the healthiest it has been since 2009. Property sales are up both in volume and in real estate value.
Currently, the only thing lagging behind for the area is inventory. Housing availability is the tightest it has been in decades. More and more individuals are moving to the Metroplex area, putting intense pressure on the resale market as developers struggle to keep up with demand.
Overall, prospects for sellers look absolutely great moving into the busy second quarter buying season, and buyers are excited about the growing market despite the heavy competition.
Dallas Metroplex Residential Real Estate Riding High
An extremely active March pushed the first quarter housing numbers into a healthy standing. Recent figures revealed by Texas A&M’s Real Estate Center and North Texas Real Estate Information Systems showed that pre-owned home sales in the North Texas area remain strong.
The total number of sales rose 12 percent in March, creating “the biggest year-over-year gain so far in 2015,” according to the Dallas Morning News. Real estate agents report selling 7,854 pre-owned single-family homes, all in all, during March. Median home prices were also nudged up a healthy nine percent, to around $197,000.
All said and done, home purchases were up four percent when comparing the first quarters of 2014 and 2015.
Inventory Remains a Limiting Factor
Of course, these numbers would likely look much stronger if there were more houses available. Residential housing availability is some of the tightest in the nation for the Dallas metropolitan area. For North Texas specifically, inventory is at a historic low.
“Sales could be higher if there was more inventory,” bemoans Metrostudy Inc. housing analyst David Brown. “With the job growth we are seeing now, demand is phenomenally strong.”
Compared to March of 2014, the number of homes available on the market is 15 percent lower. An estimated 2.2 month supply exists, whereas more balanced markets have a supply of at least six months. High demand and low supply will continue to put an upward pressure on home resale values until more inventory can be had.
Growth Across All Sectors
Home resales were not the only hot market in real estate. Commercial office construction is soaring, with a 50 percent increase compared to the first quarter of last year. Dallas also leads the nation in the number of apartments being built and leased. However, climbing rent prices are driving many buyers, especially millennials, to consider home ownership as a cheaper alternative.
New home construction in areas like Flower Mound and Denton County is also making big headway. Large communities are being built in an attempt to keep pace with demand, as more families continue to flood the area seeking employment opportunities and the high quality of life the area offers.
Sellers should take advantage of this highly-active climate to add to the slim inventory. Buyers must also work harder than ever to track down a sale in a desirable neighborhood that is not yet seeing competing offers.
Both buyers and sellers looking to navigate this historically-unique North Texas real estate market can use our expert services and get the best possible price for their home, whether it is a home they are gaining or one they are giving up. Fill out the form below to receive a FREE home value analysis!