Price activity

The current median home price in the Dallas area is $300,000, and the national average is $313,533. Prices continue to rise in comparison to last year. The one-year growth rate is 11.2 percent.

Gain in home equity

Gains in the last three years have extended the post-recession trend of positive price growth.

In Dallas, home equity gains are on the rise.

The 3-year gain in housing equity is $49,300, and the 7-year gain is $125,200. Only price appreciation is reflected in equity gains.

The majority of buyers in this market can obtain government-backed financing. The conventional loan limit is $510,400, while the FHA loan limit is $404,800.

The equity gain reflects the price and principle payments made since the purchase, the prevailing 30-year fixed-rate mortgage at the time of purchase, and a 10% downpayment. The downpayment is not factored into the total equity. Since the recession, total equity growth has been boosted by price appreciation and principal payments over the last three years.

Local Supply and Demand Factors

Employment growth has slowed but is still positive. Dallas has lower unemployment than the national average and is improving. In comparison to other markets, local employment growth is strong.

Construction of New Homes

The current construction level is 60.7 percent higher than the long-term average. If production remains above trend for an extended period of time, prices may moderate as inventory accumulates. Construction is increasing in comparison to last year, indicating that the local inventory has stabilized.

Affordability

Long-Term Trend: Local Mortgage Servicing Cost to Income Ratio

The monthly mortgage payment to income ratio has historically been high, but it is lower than in the fourth quarter of 2020. The historical average is less expensive than most markets. Dallas has a ratio of 9.5 percent, while the United States has a ratio of 18.0 percent. By historical standards, the price-to-income ratio is high and worsening.

REALTORS® anticipate higher price growth in Texas than in the rest of the country over the next year. In addition, their price expectations are higher than a year ago.

This Report’s Geographic Coverage

The Dallas area referred to in this report refers to the geographic area of the Dallas-Fort Worth-Arlington metro area as officially defined by the United States Government’s Office of Management and Budget. The following counties are included in the official coverage area:

Collin County, Dallas County, Denton County, Ellis County, Hunt County, Hood County, Johnson County, Kaufman County, Rockwall County, Parker County, Somerville County, Tarrant County, and Wise County

Source: https://cdn.nar.realtor/sites/default/files/documents/2021-q1-local-market-reports-tx-dallas-07-27-2021.pdf