Homes prices in the DFW are at an all-time high caused by strong demand, limited inventory and terrific economic growth in the DFW area.
In April the median home price climbed 2.4% to $154,178 in Fort Worth. Home sales across North Texas were 4% greater than last year during the same time period.
According the Case-Shiller, local home prices are 15% above where they were at the peak before the bust a few years ago. It’s simply supply and demand.
With that all being said, some folks are predicting we are in a bubble which will burst in a few months. I disagree with that prediction. I don’t believe we will have a bust but maybe a slow down of the increasing prices but the direction of the market will be up for several years to come. We currently are at the level of construction costs and as construction costs continue to rise so will home prices. A bubble is created when sales prices far exceed the construction costs to a level and it creates unwilling buyers who turn their back on buying and move to renting. That’s when you have the burst. It doesn’t make good sense to pay $200 per square foot for a home that costs $100 per square foot to build.
For now, if you are thinking of buying, I’d recommend you get with it. It’s costing you money to sit and wait.