Dallas is known for its competitive and lucrative housing market. As one of the fastest-growing cities in the U.S., it attracts a diverse range of homebuyers and investors. Whether you’re a first-time homebuyer or a seasoned investor, understanding the current trends in the Dallas real estate market is crucial.
This guide provides insights into market dynamics, helping you make informed decisions on your home-buying journey.
Dallas Real Estate Market
The Dallas real estate market presents a compelling proposition for homebuyers in 2024. With its robust and diverse job market, which includes major corporations and a flourishing small business scene, Dallas caters to a range of preferences.
Various neighborhoods offer a variety of housing styles, from single-family homes and townhomes to condos and high-rise living. Check 10 reasons why Dallas is a great place to invest in a home and explore why this vibrant city continues to be a top choice for real estate investment.
Dallas Real Estate Forecast 2024
Is It a Good Time to Invest?
Dallas continues to attract homebuyers and investors due to its relative affordability compared to other major metropolitan areas in the United States. Low mortgage interest rates make homeownership more accessible, further fueling demand.
Home prices are expected to increase due to the shortage of housing inventory. Additionally, suburban growth is likely to provide more opportunities for real estate development, meeting the increasing demand in the housing market.
The Extent of Price Changes
Predictions on price adjustments vary, making it challenging to forecast the exact impact on affordability. Some forecasts suggest price decreases, while others predict a more stable market. The true extent of price changes will depend on various factors, including interest rates, inventory levels, and overall buyer demand.
Inventory Levels
The rise in available homes will significantly influence how much the market shifts in favor of buyers. An increase in inventory is expected in 2024, but the exact volume of available homes will play a significant role in determining the market dynamics.
A substantial rise in inventory could lead to a more buyer-friendly market with increased negotiating power and potentially lower prices. However, a more modest increase may not be enough to significantly alter the market dynamics.
Dallas Real Estate Trends
Potential Price Moderation – After a period of significant price stability, the Dallas housing market may see a rise in 2024. Forecasts vary, with some predicting price decreases of up to 8% compared to 2023, while others indicate a more modest price stabilization or even a slight increase. This moderation is likely a response to rising interest rates in 2023, which dampened buyer demand.
Inventory Rise – The number of houses on the market is expected to rise in 2024, giving buyers more options and potentially leading to a more balanced market. This increase in inventory could be due to several factors. It might be the sellers who held back in 2023 due to high interest rates now feeling more comfortable entering the market. Or a softening in demand leading to longer days on the market and prompting some sellers to list their properties.
Mortgage Rate Stabilization – The Federal Reserve’s interest rate hikes in 2023 significantly impacted affordability, leading to a slowdown in sales. The latter half of 2024 may see mortgage rates stabilize, impacting affordability and buyer activity. If rates stabilize or even decrease, it could reignite buyer interest and lead to a more competitive market, particularly for desirable properties.
For the latest Dallas mortgage trends and tips, check out this complete guide to mortgages in Dallas.
Influencing Factors
- Federal Reserve Interest Rates: Previous hikes impacted affordability and slowed down sales, but stabilizing or decreasing rates in 2024 could reignite buyer interest.
- U.S. Economy: The overall health of the economy affects buyer confidence and loan availability. A strong economy encourages home purchases, while a weaker one could lead to tighter lending standards.
- Local Job Market: Dallas’s robust job market attracts new residents and fuels housing demand. Significant job growth in the Dallas-Fort Worth area supports the real estate market.
Dallas Property Outlook
The Dallas property market in 2024 is expected to be more balanced, with potential price adjustments and rising inventory. While uncertainties remain, the strong local economy continues to be a positive influence.
Consulting a Dallas real estate professional can provide the most current insights specific to your interests. Join a free webinar to get expert guidance on home buying.
Dallas Housing Data
Single-Family Homes
Demand for single-family homes in Dallas is expected to moderate in 2024 compared to the peak seller market of recent years. Interest rates and potential price adjustments might impact buyer urgency, but the expected rise in available homes offers buyers more choices, potentially leading to a more balanced market.
Pricing dynamics according to TRRC data:
- Sales volume for single-family homes increased 13.62% YoY from 4,392 to 4,990 transactions.
- Dollar volume rose from $2.04 billion to $2.37 billion.
- The average sales price rose 2.19% YoY from $465,320 to $475,506.
- The average price per square foot subsequently rose from $196.40 to $202.32.
- The median price rose 1.58% YoY from $379,000 to $385,000.
- The median price per square foot also rose from $187.38 to $190.68.
- Months inventory for single-family homes rose from 2.2 to 2.5 months supply, and days to sell declined from 95 to 92.
Townhomes
Dallas townhomes generally offer a lower entry point compared to single-family homes, making homeownership more accessible. Millennials and young professionals increasingly seek walkable, urban lifestyles, driving demand for townhomes in central locations. If single-family home availability shrinks, especially in desirable areas, townhomes become a viable alternative.
Pricing dynamics according to TRRC data:
- Sales volume for townhomes increased 8.24% YoY from 170 to 184 transactions.
- Dollar volume rose from $70.29 million to $76.46 million.
- The average sales price rose 0.51% YoY from $413,444 to $415,555.
- The average price per square foot declined from $223.83 to $220.94.
- The median price declined 2.19% YoY from $398,750 to $390,000.
- The median price per square foot also declined from $218.98 to $214.12.
- Months inventory for townhomes rose from 2.3 to 3.0 months supply, and days to sell declined from 132 to 90.
Condominiums
Smaller, more efficiently designed condos are gaining popularity in response to urban living trends and affordability concerns. Amenities catering to specific lifestyles, such as co-working spaces, pet-friendly features, and rooftop terraces, are becoming selling points.
Pricing dynamics according to TRRC data:
- Sales volume for condominiums decreased 12.64% YoY from 182 to 159 transactions.
- Dollar volume rose from $56.06 million to $58.94 million.
- The average sales price rose 20.33% YoY from $308,039 to $370,676.
- The average price per square foot subsequently rose from $236.41 to $270.76.
- The median price rose 27.5% YoY from $210,975 to $269,000.
- The median price per square foot also rose from $212.02 to $240.10.
- Months inventory for condominiums rose from 1.6 to 3.4 months supply, and days to sell rose from 74 to 91.
Housing Market Analysis Dallas
The Dallas housing market in 2024 is undergoing a period of transition from a seller’s market to a more balanced state. Here’s a breakdown of key aspects:
Buyer Demand – Buyer demand has cooled down compared to the peak in 2022 due to rising mortgage rates. However, the strong job market in Dallas continues to attract new residents, providing a steady base of potential buyers.
Inventory Supply – Inventory levels are expected to increase in 2024, giving buyers more options and potentially leading to price moderation. This is driven by factors like price growth, new constructions, and seller return.
Major Developments and Initiatives – Investments in infrastructure like the DART Silver Line Rail project and the expansion of DFW International Airport could boost property values in surrounding areas. Initiatives like the development of walkable neighborhoods and mixed-use communities could attract young professionals and first-time buyers.
Government Incentives and Financing Options – Dallas currently offers limited direct incentives for homebuyers. However, first-time homebuyers can qualify for federal programs like FHA loans or USDA loans with lower down payments or more lenient credit requirements.
Texas boasts no state income tax, which can be attractive to buyers from high-tax states. Choose the best type of mortgage for buying a house in Dallas.
Consult with Dallas Real Estate Market Experts
The Tuttle Group helps with the home buying process by providing a deep understanding of local market trends and programs, accurate and reliable mortgage predictions, and personalized guidance throughout the entire loan process.
We streamline and simplify the loan application process for a smooth experience, matching loan types to your goals and financial situation. For expert guidance on home buying, follow this link.
Schedule a professional consultation for expert solutions, appointments, and guidance on home loan programs and mortgage processes.
