As we have all heard on the national news, housing prices are on the rise. Dallas is one of the leading cities in increased prices in the United States. Dallas prices have increased by 8.1% in January 2015 over January 2014. Why such a change? There is a number of contributing factors. First, most of the nation is seeing an uptick in housing prices, this is due in part to lower interest rates. Nationally we are seeing a 4.5% increase in housing costs.
In the Dallas Metroplex we are seeing shortages in supply due to continuous population growth. We are seeing record high prices, well over what we saw prior to the housing recession. As relocating companies look at Dallas as a potential sight to relocate to, they see several positive attributes in the Dallas area. They see lower than the national average housing prices, the ability to compute to either coast easily, a well-educated workforce, open land, a good place for their employees to raise a family and more. Dallas is HOT for relocating companies. This is only part of what is driving up prices.
Many suburbs are seeing an increase in new construction. With new construction, we are also seeing higher prices. Yes, land values have increased, however the cost of building a home has also gone up. In the past few years we have seen an increase in lumber prices and labor prices. Along with that, we have higher energy standards for new construction. In many cities, builders are required to install energy-efficient appliances, radiant barrier, energy efficient water heaters (some cities require tankless water heaters), vinyl windows and irrigation drip systems. When the energy standards became part of the equation in 2010, we saw the beginning of the rise in prices.
In the near future I don’t foresee a decrease in prices. The demand on the market will continue for at least the next two years. We will continue to see rapid-fire growth with new neighborhoods appearing daily. With several major corporations including Toyota, Fed-Ex and Liberty Mutual moving to the area, it increase pressure on the market. People ask me everyday if the prices are going to go down. I just reply that the employees from these major corporations have not even started to purchase homes yet, if you want to make a move and you already live in the area, I would probably do it now.
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