Dallas-Fort Worth home prices rose 9.5 percent year-over-year in the fourth quarter of 2015 as the demand for single-family homes in the region continued to surge, according to the Texas Quarterly Housing Report released Monday by the Texas Association of Realtors.
The region's median home price is $210,700, according to the report.
The Lone Star state has enjoyed a booming real estate market, and Texas Association of Realtors Chairwoman Leslie Rouda Smith said the industry group projects 2016 to be another strong year.
"Texas has enjoyed four straight years of booming real estate growth and record-high housing demand," Smith said in a statement. "While 2016 might not turn out to be another record year for Texas real estate, housing demand will likely remain strong and home prices will likely continue to rise over the next year.
"Four years of housing inventory shortages have created a backlog of housing demand across the state — particularly Texas' metro areas," she added.
In Dallas-Fort Worth, there was 1.9 months of inventory, which didn't increase at all year-over-year as demand quickly snapped up builder's efforts to bring single-family homes to the region.
Texas real estate professionals sold 70,150 homes in the fourth quarter of 2015, which brought the state's total homes sold for the year up 4.1 percent to 309,090 single-family residential homes. This is the first time in history Texas' annual home sales topped 300,000, according to the industry group.
North Texas' median home price is $210,700 (6.2 percent increase year-over-year), which is slightly higher than the state's median home price of $195,000 (5.5 percent increase year-over-year) for the fourth quarter of 2015.
That is the highest annual median price for a single-family home in the history of Texas real estate, according to the Texas Association of Realtors.
Even as the real estate market booms, Jim Gaines, chief economist of the Real Estate Center at Texas A&M University, said the falling oil prices and drilling activity have just begun to significantly impact Texas.
"The full effects have yet to be seen," he said. "However, the decline of the energy sector could add much-needed housing stock to the market, filling labor shortages in the homebuilding industry and helping the Texas housing market move towards a more balanced market for buyers and sellers."
Article courtesy of Dallas Business Journal:
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