Bloomberg recent published an exhaustive piece detailing the North Texas housing market and here we will break it down in a two-part piece, analyzing just how the region’s industry has grown so substantially so far in 2013.
Some of the more glaring data presented by Bloomberg represents where North Texas, and more specifically Dallas, ranks when compared to the rest of the nation in terms of housing market health. It cites the 20-city S&P/Case – Shiller Index, which found that most recently, home prices in the United States were down 21 percent when compared to the peak reached in 2006. That is in stark contrast to Dallas home prices, which are 4 percent higher.
“This isn’t Texas-like,” John Burns, an Irvine, California-based real estate consultant, told the news source. “When the Texas housing market is strong, the homebuilders usually just build more. But the Texas economy is as strong as it has ever been and the builders can’t keep up.”
Helping to further influence Dallas home buying is mortgage rate activity. For much of the nation, including Dallas, long-term mortgage rate averages crept up during the summer months. This might not seem like a catalyst for new home buying but for interested buyers, the need to jump in and secure a mortgage before rates creep up any higher is a very real incentive.
The source cites Freddie Mac data, which found the average rate for a 30-year fixed-rate mortgage has jumped over the past four months from a record low of 3.35 percent to well over 4 percent.
With home price skyrocketing in Dallas and its surrounding suburbs including Fort Worth, Stephenville and the rest of Erath County, potential buyers can take solace in the fact that affordable mortgage rates are still attainable and new building permits will lead to more single-family homes, and less competition in the future, which could drive prices down.
If you’d like to learn more about Stephenville real estate opportunities, contact us today.