Is buying a home in Dallas-Fort Worth still a good investment?

 

     The median home price in the DFW has risen from 188K in 2014 to 249K in early 2018. As a result of the rapid increase in average home prices, many prospective homeowners are questioning whether or not buying a home is still worthwhile in the DFW because people are being priced out of homes or unable to find homes at all due to the housing shortage. The January article from the Star-Telegram states that buying is still a good investment and that the market is still relatively inexpensive compared to other parts of the country.

    The increases in home prices are likely to continue at an estimated 5.57% in 2018 due to the booming Dallas economy. Also, the supply of homes is expected to increase by 6.02% which should help slow the increase in average home price. Lawrence Yun, the chief economist for the National Association of Realtors, believes that the tax charges could reduce sales growth by 1 to 2 percent because the deduction of state and local property taxes doesn't help a majority of Texas homeowners. Furthermore, the lowering of the mortgage interest rate deductible in Trump tax reforms makes buying a home in higher price ranges less appealing.

     The average price of homes are still rising although slower than in 2017. This will, in turn, push more people to rent as the housing shortage will inflate prices. Although wage and job growth increases across North Texas, it is not keeping up with the rapid rise in housing prices. Although prices are still reasonable in comparison to national levels, people working in the Dallas center may opt to rent due to the exorbitant prices near to the city.

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Sean Ray