Here are a few updates and predictions that Steve Brown (real estate editor at the Dallas Morning News) shared with me this morning.
In a nutshell -
- More than 350 people a day are moving to the DFW area. That continues to drive the demand for housing. As long as job growth continues, our population growth will continue and demand for homes will continue.
- Demand for residential real estate remains strong with very few properties available under $300k.
- We currently have about 50,000 apartments under construction with the average rent on a NEW apartment at $1,500 a month. Vacancy rates are less than 5%.
- Very few condos are being built right now due to the competition for land.
- Home prices are rising much, much faster than wage increases. This will make homeownership less attainable for many people in the future. Fortunately mortgage rates are still low.
Looking ahead, I agree with Steve on several items:
- The home market will remain strong for now.
- We'll see a seasonal slow down soon due to the election. Folks don't like to make major purchases right before the presidential election. Regardless of who wins, sales will pick back up after Christmas.
- The rate of growth in prices will slow down especially at the high price points. That's a slow down and level off - not a drop.
- A rise in interest rates could also slow our lightening fast market to a more normal pace.
Remember - 350 PEOPLE A DAY.
All those folks have to live somewhere.