North Texas is having a prolonged moment in the limelight. The housing market is growing like crazy, and shows no sign of slowing down anytime soon.
With almost 800,000 new residents to the Dallas area since 2010 (86,000 who moved here last year alone), Dallas has become the top place in the nation for population growth as of 2016.
According to the MetroTex Association of Realtors, about a third of all Texas home sales in February took place in North Texas, which accounts for about 35 percent of total state sales! If you’re thinking about getting into North Texas real estate, now is your time to shine.
For the past few years, North Texas has seen a growth in luxury home sales, thanks to region’s substantial economic growth. According to North Texas Real Estate Information Systems, Inc., 16.6 percent more homes priced at $800,000 and above have been purchased than during the prior 12 months. Furthermore, luxury homes sales are up 9.7 percent in Dallas County, 30.8 percent in Collin county and 27.3 percent in Tarrant County. The average time a DFW home spends on the market is just 48 days.
Economist Jim Gaines estimates that 2017 will be a big year for Realtors, as this year’s home sales are already keeping pace with last year’s record-breaking results.
Who is buying in North Texas?
According to Steve Habgood of of Hewitt & Habgood, a listing under $300,000 will go off market in a matter of days or weeks. These sorts of prices cater to anyone looking for a starter home, a first-time homebuyer or select investors.
The boom in North Texas is not going unnoticed. Finance site WalletHub recently found that Texas has four of the top 10 cities for first-time home buyers in 2017, with McKinney, Texas coming in first place and Frisco, Allen and Richardson all ranking as well.
What is it about North Texas?
These areas are growing at a rapid rate with new homes priced well below what they would be in other parts of the country. Additionally, the majority of communities in these areas have lower crime rates, low unemployment rates, excellent education opportunities, and good transportation options.
According to Forbes, the local economy of many North Texas counties produces high wages that contribute to a strong real estate market. This includes jobs in aerospace, telecommunications, transportation, energy, healthcare, and finance and business services.
Good news for renters
So what does this mean for you, if you’re thinking about investing in and renting out your property? According to online real estate investment management firm HomeUnion, rent will only continue to increase, which is great news for sellers. This is due in large part to strong job growth, and residents who prefer renting over homeownership.
CultureMap Dallas reports that there will be an expected 3.5 percent increase in rental rates, and a vacancy rate that’s expected to drop to 6.7 percent. As an investment opportunity, getting into real estate in DFW now would be the smartest thing you could do.