According to multiple studies conducted on the Dallas-Fort Worth area’s housing market, it ranks as one of the hottest markets in the country.
With multiple factors in play, including the metroplex’s ever-growing population and the continued shortage of home inventory, Dallas-Fort Worth is looking to experience a competitive housing market in 2022.
According to a report from the Dallas Business Journal, in December 2021, an average of 11.3 showings per home listing was observed in Dallas-Fort Worth, which is ultimately twice the national average at 5.9 showings. Seattle ranked on the top of the list with 15.6 showings per home. Denver came in second with 14.7 showings, Orlando in third with 11.8, and Dallas-Fort Worth came in fourth.
CEO of JPAR Real Estate in Frisco, Mark Johnson, talked about the shortage of homes and the possibility of increases in mortgage interest rates. He said in an interview, “Recently, we were able to get rates as low as 3%, but now it’s approaching 4%. Historically, that’s still low. You can go back in history and see when they were 11%, 12%, even as high as 16%.”
“We still have 73 million millennials in America who want to buy homes, and we still have about the same number of baby boomers who aren’t moving out of their homes. So as these millennials start to form homes, it’s a shortage [of inventory]. It’s not a fad. It’s a trend, and it’s going to be around over the next two to three years,” Johnson continued.
The DFW metroplex has also been deemed one of 2022’s “hidden gems” within the housing market by the National Association of Realtors (NAR).
NAR’s chief economist and senior vice president of research, Lawrence Yun, explained, “Several markets did reasonably well in 2021, but not as strong as the underlying fundamentals suggested. Therefore, in 2022, these ‘hidden gem’ markets have more room for growth.” DFW is listed as number one upon the “hidden gem” list.
According to CultureMap Dallas, 29.1% of Dallas-Fort Worth’s population is home to residents between the ages of twenty-five and forty-four. The domestic migration into the metroplex from other areas in the U.S. plays a role in heating up the housing market. “Strong migration into the [DFW] area will continue to create upward pressure for home values to increase further in 2022.”
The Home Buying Institute (HBI) believes that the Dallas-Fort Worth metroplex could experience “double-digit home price growth,” and Census figures show the possibility of Texas becoming home to thirty million more people this year.
