ON THE RISE: DALLASHOMES GAININGTRACTION

According to a recent article bySteve Brown of the Biz BeatBlog, in addition to the annualhome price increases in othermajor cities in the country,Dallas has experienced close toa 10% increase in market value.Nearly doubling the averagenationwide rate of 5.4%, it isclear that housing prices in theDallas area maintain a fairchance of continuing to emergein value in relation to thefollowing years in the industry.

10%

Within the Texas state alone, Dallas Fort-Worth leadthe local real estate market by becoming the front-

runner of home price gains , while also showing steady,developing growth within the home price index

measurement of Case-Shiller’s report.

Furthermore, this annual homeprice increase is furtherhighlighted by market value inthe Northern area of Texas arerising more than double. Dallasand the surrounding area are24 percent in ahead of wherethe local market previouslystood in 2007. One report fromthe Wall Street Journal alsovalidates this overall developinggrowth as somewhat unsettling,by highlighting the fact theybelieve will only further developin the future.

24%

The Northern Texas or Dallas market continues tosoar due to the simple fact that there is a set supply or

stagnant inventory of homes which are growing inmarket value as a result of an overall growing demand

in the area. David Brown, a housing analyst withMetrostudy Inc. even reaffirms the fact that

interestingly enough, that inventory is historicallystagnant.

This price increase of residentialhomes from December 2014-December 2015 represents amicro level example of what iscurrently occurring in cities suchas Portland and San Francisco.The statistical data from thisstudy highlights that Portlandand San Francisco continue tosee a soaring housing priceincrease, with both cities havingover a 10% market value influxin the pool of annual Decemberhousing reports.

On the other hand, some local markets have seen asteady decrease of prices. “While home prices

continue to rise, the pace is slowing a bit,” S&P’s DavidM. Blitzer said in the report. “Year-over-year, seven

cities saw the rate of price increases wane.”

In terms of the future of the local market, there is astrong expectation that residential homes and overall

real estate in the Dallas-Fort Worth area will beexpected to appreciate in value within the next year orso. Although rising real estate values in Northern Texasare fairly close to those of cities such as Portland andSan Francisco, it’s salient to evaluate the factors thatare constantly either appreciating or depreciating the

values of these residential properties.