Are You Prepared for Dallas/Fort Worth's 2021 Real Estate Market?
Despite the onset of the COVID-19 pandemic and all of the economic uncertainty that came with it, the Dallas/Fort Worth real estate industry has remained exceptionally strong. In 2021, markets across the Lone Star State are forecasted to continue to set records. With demand steadily increasing, low-interest rates motivating buyers, and rapidly rising home sale prices, real estate agents all across Texas should gear up for another sweltering year.
2021 Dallas/Fort Worth Real Estate Outlook: Heating Up
As of December 2020, the average home in Dallas was valued at $237,200, with Fort Worth not far behind at $222,820. In Dallas, that’s a 6.9% increase year-over-year; in Fort Worth, it’s a 6.8% increase. Zillow predicts the Dallas market will accelerate and rise another 11.1% and Fort Worth will see 10.0% within the next year. Record real estate activity, despite 2020’s challenges, is a promising sign that 2021 could be profitable for agents and sellers alike.
Additionally, home sales across the Lone Star State grew across all of the major metros. The number of days properties spent on the market also fell to 48 days during that same period. Thanks to record-low interest rates (the lowest they’ve been in five decades) and continued strong demand, Dallas/Fort Worth will likely be a seller’s market as 2021 unfolds.
Rent prices, on the other hand, have increased 3.3% year-over-year statewide but still remain 6.1% lower than the rest of the country. Meanwhile, a total of 8.8% of Dallas/Fort Worth mortgages were reported as delinquent, just slightly above the national average of 7.7%. So, while new transactions continue to boom and warmer weather draws more and more people to Texas, current homeowners will thrive as well.
2020 Dallas/Fort Worth Real Estate Market Data
|Zillow Home Value Index||$237,200||$222,820|
|1-Year Change on Home Values||+6.9%||+6.8%|
|1-Year Change on Rent Prices||+1.0%||+3.0%|
|Homes With Negative Equity||1.4%||1.4%|
|Buyer’s or Seller’s Market||Seller’s||Seller’s|
Market Insights for Dallas/Fort Worth
In November of 2020, the Bureau of Labor Statistics reported that the DFW unemployment rate was 7.1%, down from 7.6% in July. Currently, Dallas/Fort Worth sits just above the national unemployment rate of 6.9%, but that’s likely to change as tourism, events, and hospitality return to normalcy. Economic activity often correlates with growth in the real estate industry, and narrowing unemployment rates along with low-interest rates are a positive sign for agents the year ahead.
The Dallas/Fort Worth also sports some other very attractive features that could positively impact its market. For one, it has attracted several large corporations to the area including but not limited to the investment firm Charles Schwab and CBRE — one of the nation’s largest commercial real estate services and investment firms.
According to our DFW-based Business Development Executive, Raemy Osborn, Frisco, just north of Dallas/Fort Worth, has been dubbed “Orange County 2.0” for its explosive growth. Overall, she expects inventory to remain low, which will keep prices high and encourage bidding wars. DFW real estate, while still a great investment that affords homeowners a high quality of life, will play out to be a strong seller’s market in 2021.
With a robust 2021 economic forecast for Texas and its business-friendly environment, local real estate agents will need to be at the top of their game and prepare clients for the likelihood of bidding wars. However, out-of-state buyers are looking to make Texas their permanent residence and are thus likely willing to pay more, which could push the market to new heights. With a myriad of opportunities on the horizon, there has never been a better time to help your fellow Texans sell their current digs and get that ranch property they’ve always wanted.
Ready to Seize the Year With the Best Dallas/Fort Worth Real Estate Courses From The CE Shop?
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