Two weeks ago, an article from the Wall Street Journal named “The U.S. Housing Boom Is Coming to an End, Starting in Dallas“. After that, I received several phone calls with questions from my clients, investors, and friends. Therefore, I ran some quick data to get a sense of what’s going on, and I thought I’d share it with you.
The graph reflects Numbers of Home Sales (blue bars) in the first week of December over the last decade and the Average Price per Foot (red line). Please note, I picked this same time period over the course of ten years as a sample week to help identify key trends. Here are the highlights:
• Yes, the numbers of home sales have decreased a bit since 2014, when DFW’s housing market was very bullish.
• The Average Price per Foot has gone all the way up from $82 to $140 today, a 70.73% change in the last decade.
• The DFW area is still a top target market for in-migration and corporate relocations (as we all know very well…….here in Texas, we’re a low-tax haven).
So what’s the story here? Yes, the global housing market is softening, but that doesn’t spell doom and gloom for investors or home buyers. There’s still a lot of growth due to a high demand for properties in our region, and they’re getting more valuable with time. We are adding over 100,000 new residents to the metroplex every year. While that might mean terrible things for traffic on 75, that is a great thing for the savvy investor. Read the headlines…but also, let’s read in between the lines.
I would love to hear your feedback and opinions. I’m always here to answer questions and advise you on the best decisions for you, your family, or your business.