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2022: What to Expect in Dallas/Fort Worth Real Estate
December 22, 2021

2022: What to Expect in Dallas/Fort Worth Real Estate

by The CE Shop Team

Are You Prepared for Dallas/Fort Worth's 2022 Real Estate Market?

The Dallas/Fort Worth real estate market has remained resilient during these crazy times and has outperformed expectations in 2021. 

Waves of new residents have flooded the housing market, taking hold of the already low housing supply and driving up home prices in both Dallas and Fort Worth. Here’s what real estate agents can expect heading into 2022. 

2022 Dallas/Fort Worth Real Estate Outlook: Hot

As of November 2021, the average home in Dallas was valued at $290,564, an increase of 20.0% year over year (YoY). The average home in Fort Worth was valued at $281,054, an increase of 24.8% YoY. Home prices are forecasted to continue to increase, as according to Zillow home prices in the Dallas/Fort Worth market will rise another 18.7% next year.

Following this trend, the number of homes that sold above the list price increased 15.7% in Dallas and a whopping 19.8 % in Fort Worth.

Dallas/Fort Worth

Dallas/ Fort Worth Home Data Zillow
Source: Zillow

Although home values have increased so much over the last year, home sales across Texas actually declined by 4.0% YoY in 2021. Both Dallas and Fort Worth have followed this trend, as home sales in both markets have slightly declined. In Dallas, the number of homes sold YoY fell 2.3% as of November 2021; it fell by 2.8% in Fort Worth within that same time period.

Buyers in both markets will face another frenzy in 2022. With the number of new listings in Dallas/Fort Worth dropping 7.2% YoY, the inventory of single-family homes fell from 1.6 to 1.1 months. Unless the housing market has a wave of new housing development, buyers in the DFW market should expect home prices to continue to rise.

“Home shoppers in these areas may still be able to find good value even as listing prices are expected to climb in 2022, but getting a leg up on the competition will be key,” said Realtor.com chief economist Danielle Hale in an interview with PeopleNewsPapers.com. “For buyers with more flexible timelines – such as those making a move from a big city – offering a couple extra months on the closing date could sweeten the deal for sellers who also need to buy their next home.”

Renters should also expect high rent prices, as the state’s rental prices increased 12.6%, and DFW was no different. Rent prices in Dallas increased by 18.1% and 7.7% in Fort Worth.

Outside of the thriving housing and rental market, only 0.6% of DFW homeowners were delinquent on their mortgages. This figure falls just under the national average of 0.8%, which is a positive sign for the housing market as it continues its rebound from the impacts of the COVID-19 pandemic.

Even with rising home prices and declining housing supply, Americans are still motivated to move to the Lone Star State’s largest metroplexes. The population of Dallas/Fort Worth in 2021 was 6,397,000, a 1.5% increase from 2020. Over 120,000 people moved to the DFW area during the pandemic.

2021 - 2022 Dallas/Fort Worth Real Estate Market Data
 

Market

Dallas

Fort Worth

Zillow Home Value Index

$290,564

$281,054

Home Value Change YoY

+20.0%

+24.8%

One Year Home Values Forecast

+18.7%

+18.7%

Rent Price Change YoY

+18.1%

+7.7%

Mortgage Delinquency Rate

0.6%

0.6%

Available Housing Inventory

7,339

7,339

Buyer’s or Seller’s Market

Seller’s

Seller’s

Market Insights for Dallas/Fort Worth

In October of 2021, the Bureau of Labor Statistics reported that the DFW unemployment rate was 4.2%, down from 6.2% in October 2020. Dallas/Fort Worth sits well below the national unemployment rate of 6.6%, a positive indicator that the DFW market is outperforming the rest of the country and that the unemployment rate will continue to decrease as the state’s economy continues to heal.

Texas continues to be a top relocation destination, and the DFW area, in particular, continues to be a sought-after metro for movers. Redfin released a report on February 4th, 2021, that said Dallas had the second-largest net inflow of people in the country in 2020. For residents, the wave of new residents isn’t a surprise as they know full well the appeal of living in DFW. Let’s see how Dallas and Fort Worth compare against other top metros in the country:

With a robust economy and a business-friendly environment, local real estate agents will need to be at the top of their game with so many new residents entering the market. Expect fierce competition and low housing supply entering 2022.

Ready to Build Your Dallas/Fort Worth Empire With Real Estate Courses From The CE Shop?

Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Texans with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Dallas/Fort Worth? Join the Texas Real Estate Facebook Group!

 

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