A recently updated forecast for the Dallas, Texas housing market in 2019 – 2020 suggests that home prices will continue to rise at a pretty steady. At least for the foreseeable future. But housing experts also expect home-price appreciation in the DFW area to slow over the coming months.
Our own forecast: In Dallas, the current supply-and-demand situation will continue to put upward pressure on house values through 2019 and into 2020. That’s a fairly safe assumption. But we also expect to see smaller gains over the coming months, as affordability issues creep into the mix.
Here are the latest trends and predictions for the Dallas-Fort Worth real estate market through 2019 and into 2020.
Dallas-Fort Worth Metroplex Housing Forecast
According to the real estate information company Zillow, the median home value for the Dallas-Fort Worth metro area rose to around $242,000 as of July 2019. That was an increase of 6.3% from the same month a year earlier, by their estimation.
The chart below, created by Zillow, shows the median home value for the DFW area over the past year or so. As you can see, prices began to climb steadily in 2014 and followed that trajectory for several years. The company’s forecast for Dallas home prices is shown in the green shaded area.
The annual home-price gains for the DFW area over the past year were slightly higher than the national average. So we’re talking about a real estate market where house values are climbing at a pretty good pace.
Zillow’s long-range housing forecast for the Dallas-Forth Worth-Arlington metro area predicts that home prices will rise by around 2.5% over the next 12 months. That forecast was issued in July 2019, so it stretches into mid-summer 2020.
That’s for the broader DFW metro area. For the city of Dallas, the economists at Zillow predicted a gain of 4.8% through summer of 2020.
These predictions mirror those being issued for many cities and metro areas across the country. In a lot of real estate markets, home prices have been rising at an unusually fast pace for the past few years. In most cases, that was the result of strong demand for housing combined with limited supply.
This is true for the Dallas-area real estate market as well. Housing inventory remains low across the metro area, relative to the number of buyers who are seeking a property.