Texas is among 16 states nationwide that NAR predicts to gain the highest value, with other states in the 5-to-9 percent bracket including California and Washington.
Dallas, Texas (PRWEB) October 16, 2013
Home values in the Dallas-Fort Worth area positively flourished over the first half of 2013. And while the last several months since have seen some continued growth in North Texas home values, the busy buyer season has died down a bit nationally and many DFW-area markets are beginning to plateau; mostly right around all-time market highs, it should be noted. This brings up the question that most everyone involved in the North Texas real estate market has been asking: “After the real estate boom of the first half of 2013, in what direction will home values go next?”
The answer, according to a recently released report from the National Association of Realtors (NAR) is: decidedly up.
Prudential Texas Properties reports that the REALTORS® Confidence Index recently released by NAR—which covers home trends through September 4th of 2013—predicts that while the national median home list price is expected to rise 4 percent as of September 2014, Texas homes are expected to see value gains of 5 to 9 percent. This comes at a time when the median list price for Dallas homes is at $339,900, or about $65,000 higher than where the year started, according to an October 7th report from California-based real estate analytics company Altos Research. If NAR’s prediction were indeed to ring true and Dallas homes were to accrue, say, 7 percent value gains, the median list price for Dallas homes in September of next year would come in at around $364,000, which would be an all-time market high.
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“Even as other markets nationally have seen declines in the wake of the phenomenal first half of 2013, home values here have mostly stayed steady, or even continued to rise in places like Frisco,” says DD Flynn, VP of Marketing with Prudential Texas Properties. “A report like this only sheds encouraging light on what continues to be one of the hottest markets in the nation.”
Providing additional luster to the findings in this report, which diagrammed expected growth in each of the 50 states, is the designation of Texas as among 16 states nationwide that NAR predicts to gain the highest value, with other states in the 5-to-9 percent bracket including areas with affluent business hubs like California and Washington.
Other findings from NAR’s report include the fact that mortgage rates are also expected to rise. Freddie Mac reported the national average at 4.23 percent for a 30-year fixed mortgage as of October 10th, which was up from 3.39 percent a year ago when the real estate boom was kicking into effect. The REALTORS® Confidence Index forecasts that rates on a 30-year mortgage should reach 4.7 percent by the end of 2013 and climb as high as 5.3 percent by the close of 2014. Again, if these NAR predictions do indeed represent the future of the market, both rising home values and rising mortgage rates would point to the fact that in terms of prospective buyers breaking into the hot North Texas home market, there’s simply no time like the present.
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