The housing market in Dallas, Texas seems to be following the temperature. Both are sizzling right now. A recent ranking of the “hottest” real estate markets in the country included Dallas in the top five. Homes are selling quickly in the DFW metro area, due to high demand and limited inventory.
Last month, Realtor.com chief economist Jonathan Smoke and his fellow housing analysts examined real estate trends across the United States. Among other things, they wanted to know where homes were selling the fastest. So they reviewed data for the 300 largest metro areas across the country, and published a ranking of the 20 “hottest” housing markets. Dallas, Texas was ranked at #5.
The Ten Hottest Cities for Home Sales
To find out where housing demand was strongest, Smoke and his team looked at the number of Realtor.com listing views relative to the number of listings for each individual market. To see where homes are selling the fastest, the team looked at the median number of days that houses spent on the market before finally being sold.
“Combined, this exclusive analysis … identifies the 20 medium-size to large U.S. markets where buyers are eagerly seeking homes and sales are closing quickly.”
The top 10 hottest markets are shown below:
- San Francisco, CA
- Vallejo, CA
- Denver, CO
- Santa Rosa, CA
- Dallas, TX
- San Jose, CA
- Ann Arbor, MI
- Boston, MA
- Detroit, MI
- Santa Cruz, CA
California clearly dominated the top-ten list, while the Dallas real estate market appeared at number five. Again, these results are based on an analysis by Realtor.com and based on their own proprietary data.
Why the Dallas Housing Market Is Hot in 2015
According to Realtor.com, homes listed for sale in the Dallas area are currently selling faster than the national average. The median number of days on market in Dallas was 38, compared to 66 days nationally. This is the result of strong demand but limited inventory, a trend that is also driving home prices north across the Dallas-Forth Worth metro area.
A review of Realtor.com’s listing data shows a major contraction in this market, in terms of available inventory. Consider the evidence: Over the last year or so, the total number of homes listed for sale in Dallas has declined by -21.4%. That means home buyers have fewer properties to choose from today compared to last year, along with more competition from other buyers.
On the demand side of the equation, low mortgage rates and job gains are luring more buyers into the market. Dallas boasts one of the lowest unemployment rates among major population centers. Long-term mortgage rates rose above 4% recently, but they are still low by historical standards. These and other factors are bringing more buyers into the market, boosting demand for housing.
As a result of this supply and demand imbalance, home prices are rising steadily all across the Dallas-Forth Worth housing market. According to the real estate information service Zillow, home prices in the DFW metro area rose 10.5% over the last year or so. They expect house values to rise by another 6.5% over the next 12 months (as of July 2015).
Disclaimers: This story contains third-party housing data and statistics that are deemed reliable but not guaranteed. We make no claims or assertions about current real estate conditions in Dallas, Texas, or anywhere else in the country.