As Dallas home values begin to level out, there is still a strong-enough demand for inventory that any major decrease in home values seems to be countered by a swarm of buyers driving prices right back up.
Dallas, TX (PRWEB) September 25, 2013
After the thrilling real estate frenzy of the first six months of 2013 that saw home values skyrocket, it’s no wonder that some skeptics are addressing fears that the nation could be heading toward another “bubble burst” that would see values rapidly decline. But market activity in Dallas has always been an exception to the rule—even during the market landslide of 2006—and if recent numbers are any indicator, Dallas homes seem not only to be stabilizing nicely near their peak value point, but actually seeing some week-over-week gains.
Beginning with Dallas’ insular market activity, the S&P/Case-Shiller Home Price Index recently listed Dallas as one of only two major metro markets to best its pre-recession highs in 2013. Outside of the sheer desirability of an area that boasts several of the nation’s fastest growing suburbs (see Frisco and McKinney, just to start), economists say that one reason for the record highs in Dallas home values this year is because there never was a bubble burst in Dallas to begin with. In other words, the fact that the market was not going down much during a previous national real estate crisis and then was soaring during a real estate boom serves as a nice indicator—especially for anyone believing that the currently stabilizing Dallas home values are part of an increasingly persistent trend.
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Providing a statistical backbone to these ideas is a recent jump in the median list price for Dallas homes. Prudential Texas Properties reports that September 16th real estate analytics information by California-based market data tracker Altos Research saw the median list price on Dallas homes at $334,450. This figure was up $4,500 week-over-week from Altos’ September 9th Dallas report, which saw the median list price at $329,250. This is a figure that the market had gravitated around for a few weeks after dropping off from the early July all-time high of about $350,000. What the recent increase shows is that as home prices level out, there’s still some push and pull going on here, and a push of $4,500 upward in one week is a significant-enough factor to keep buyers on their toes. Yes, this is a stabilizing market, but by no means a stagnant one.
“As Dallas home values begin to level out, there is still a strong-enough demand for inventory that any major decrease in home values seems to be countered by a swarm of buyers driving prices right back up,” says DD Flynn, VP of Marketing with Prudential Texas Properties. “If the market continues to act in this fashion, a healthy stabilization of home values would only be natural.”
As for those inventory numbers mentioned by Flynn, Altos listed the number of Dallas homes for sale at 2,416 in the September 16th report. This was a negligible difference from the 2,402 Dallas homes listed a week earlier, and was in line with a prolonged trend that has seen inventory rates right around this number since May, with little variation.
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