Back in 2013, Dallas hauled itself out of one of its longest-running housing crises, and its real estate market has been bursting ever since. Strong demand for affordable housing caused increases in certain neighborhoods. Housing speculation contributed to pushing prices over the top. As of 2016, Texas is still the homebuilding center of America, but its home costs are growing. That, and a dipping job growth, causes analysts to predict a diminishing housing inventory with fewer residents seeking homes.

Market Insights

In 2015, Realtor.com granted Dallas the distinction of being the fifth-hottest real estate market in the United States, preceded only by Denver and four Californian markets. But in 2016, Realtor published another list of markets for readers to keep their eyes on, and Dallas was nowhere to be found. Dallas's real estate costs had been growing by double-digits to the point of causing a speculator scare. In 2015, Dallas/Fort Worth had 26,905 housing startups, with 917 more from the year before, according to Curbed.com. By 2016, DallasNews.com reported that an average house in the DFW district cost almost $280,000, with sharp increases in land and construction costs pushing the price to $300,000 in many neighborhoods. That’s still less than similar houses sold in Manhattan or Los Angeles, but the tag is higher than five years ago.

As of 2016, Dallas real estate seems to be leveling out, and the energy fall-off, for one, has an impact. Oil prices dipped to 12-year lows in December 2016. Employment is still sizzling but showing signs of a slowdown with the oil downturn.

Other factors that impact the Dallas real estate market include the fact that it is millennials who make up the majority of homebuyers; however, millennials make different decisions when buying houses than homebuyers did decades ago. Millennials tend to value functionality and economy over aesthetics; therefore, they look to share or rent and, when they buy, most prefer smaller lodgings than villas. Most millennials trend to urban cities rather than the suburbs. Furthermore, the government has tightened its lending policies with regulations, such as the Dodd-Frank Act, which has caused fewer engineers to build (since many seek loans to do so), fewer residents to buy and a diminished housing market that causes prices to rise. In short, the housing rush has cooled down and homeowners are beginning to feel the pinch.

Property Tax and Transfer Tax

Texas is one of 12 states in the U.S. that has no property transfer tax. This makes its property tax more expensive than in some other states. Property taxes vary according to region and are calculated by multiplying the assessed value of the property by the total combined mill rate levied by the authorities of each region. Mill, also known as a thou, represents one thousandth of an inch. In Dallas, homeowners pay $2,805 for a home valued at $128,300.

Most Expensive Neighborhoods

Jumper's 2016 February National Rent Report found Dallas to be the 20th most expensive city to rent in America. Its five most expensive neighborhoods were Preston Hollow East, Highland Park, Brookshire Park, M Street and Caruth Hills. The median sales listing price for homes in these areas was $1.5 million in 2016, according to Realtor.com. Rents for one-bedroom apartments ranged from $2,900 in Preston Hollow East to $1,880 in Caruth Hills. Lower down the scale, lodgers could expect to pay $1,785 for such an apartment in the still popular, but cheaper, Victory Park. The median rent for a downtown Dallas home, in May 2016, was $1,525.

Top Real Estate Websites

The Good Home Team promises that it has every listing from every real estate company in the greater Dallas/Fort Worth area. It offers a free market analysis to sellers, with the Team offering to help them prepare their homes for the market and to answer their questions. DaveDowns.com provides current Dallas residential real estate market information, home listings, and extensive insights on the best DFW school districts and best places to buy a home in the DFW district. DallasNews.com is the official website for The Dallas Morning News newspaper. The Dallas Morning News updates readers on residential real estate topics.

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