If you’re planning to quit renting and opt for a new home purchase in Dallas, Texas, you need to know when it is the best time to buy. After all, the price of homes, real estate market and mortgage interest rates in the city of changes from season to season and buying a home at the right time will help you save money and get you the best deal.
The COVID-19 pandemic, economic slowdown, and a reduction in the demand for homes make it a great time to invest in Dallas real estate. Home sales within the Dallas areas are down almost 35% when compared to 2019 numbers. More importantly, the median home price fell to $250,000, almost 3.9% lower when compared to a year ago.
If you’re like many potential homebuyers contemplating buying a house now or waiting for upcoming years, then this article is for you. In the following section, I’ll highlight several reasons why it may be the right time to make that home purchase in Dallas.
Population Growth
With an estimated 132,000 people moving to the Dallas-Fort Worth area from 2017-2018, the DFW region has experienced more population growth than any other metro area in the US. What this means for new homebuyers is that the prices of homes and rent are bound to experience a continued increase.
Most of these migrations were usually individuals moving from a city within the state of Texas to the Dallas area. With young millennials and families topping the percentage of movers, there is likely to be a struggle for limited home inventories before the end of the year. If you’re looking to buy a home in Dallas, then now may be the best time to avoid competition.
Strong Economy
The Dallas area, especially the DFW region, is one of the fastest-growing economies, not just in the state of Texas but in the US. It is estimated that over 900,000 new jobs were created in the Dallas area over the last decade. In fact, most finance, insurance, transportation, and warehousing companies are fast-moving to the area.
The continued positive drive of the Dallas economy and job growth has caused the area to welcome an average of 440 new residents daily or 146,238 annually. Currently, Dallas-Fort Worth boasts as one of the leading apartment markets in the US. From 2010 to date, more than 150,000 apartments have been added to the DFW area.
With the Dallas region speculated to be home to 10 million residents by the year 2030, buying a rental home or a single-family home may a great purchase. You not only get to build equity on your property but can also take advantage of revenue from incoming renters.
Home Valuation and Appreciation
The Dallas area, over the decade, has experienced one of the highest appreciation rates in the country. With around 76.20% growth in home valuation since 2010, Dallas is in the top 10% of metro areas experiencing a jump in their appreciation rates.
A data report by Neighborhood Scout shows that not only is the Dallas home appreciation rate of 5.21% over the last 12 months higher than 50% of other cities in the state of Texas, but it is also slightly higher than the national average.
And with the demand for real estate projected to continue due to the influx of job seekers and businesses into the Dallas region, home appreciation rates are more likely to rise. If you want to take advantage of the growth, now is an excellent time to buy.
Low Mortgage Rates
The continued rise in coronavirus cases in the Dallas area and the fear over its effect on the economy has seen mortgage rates in the area slide down further. Fannie Mae reveals that mortgage rates in the US are projected to hit a record low 2.75% for 30-years rates, which may even be lower for homebuyers with sterling credit scores.
However, the report highlights that while mortgage rates may be at a record low, home prices are billed to experience a 4% increase. An upward increase in the price of homes may affect home affordability since current homeowners may not be willing to sell their homes to purchase another but rather refinance into a lower mortgage rate.
Buying a home now in Dallas, TX, may be your only opportunity to take advantage of the low mortgage rates. You may also be able to lower your monthly mortgage payment more later.
Final Thoughts
Buying a home in Dallas, TX, poses several benefits to potential homebuyers. From no state income tax, low mortgage rates, and upward home appreciation to a superb economy, buying a home in Dallas now is a fantastic idea.
However, if you do decide to buy soon, make sure you get pre-approved before the start of your home search to save you time and make the process easier.
