Dallas-Fort Worth home prices could climb this high in 2021
If a new forecast is correct, the median home price in Dallas-Fort Worth would hit at least $ 316,000 in 2021, and home sales growth would outperform that of the other three major Texas metropolitan areas.
Realtor.com predicts that DFW will see combined sales and price growth of 15.7 percent in the real estate market over the next year compared to 2020. With this number, RealWor.com ranks 22nd in the Realtor.com ranking among the top 100 major metropolitan areas. It ranks highest among the state’s four major metros. The DFW figure of 15.7 percent is 11.3 percent for sales growth and 4.4 percent for price growth.
If Realtor.com is correct, the 4.4 percent home price growth rate could push the median home price in DFW from $ 303,500 in October to over $ 316,800 in 2021. That growth rate would be welcome news, however. From October 2019 to October 2020, the average price for a house in DFW rose 12.4 percent, according to the Real Estate Center at Texas A&M University.
Projected sales growth of 11.3 percent would mean a busy 2021 for DFW homebuyers and sellers. Spurred on by historically low mortgage rates, a record 12,829 homes were sold in DFW in July, according to the Texas A&M Center.
“We expect healthy growth in the metropolitan areas of Texas in 2021. Prices in major metropolitan areas are expected to increase by 4 to 5 percent, and sales are expected to increase by 5 to 11 percent through 2020, ”said Danielle Hale, chief economist at Realtor.com. “An improving economy that is driving strong employment growth is an important factor in these metropolises along with above-average household growth.”
“Younger buyers are already doing well in most of these markets,” added Hale. “Since they make up an above-average part of the population in these metropolises, we expect that they will contribute to healthy sales growth.”
Elsewhere in Texas:
Austin could be the most challenging market in the state for younger buyers in 2021, according to Hale. That’s because Austin is a competitive market, with the average price of home buying up 19.7 percent from November 2019 to November 2020, and high down payments “are a major hurdle for first-time buyers.”
Austin ranks second among the state’s four major metros in the Realtor.com forecast. The national ranking is in 37th place, with sales growth compared to the previous year being set at 8.6 percent and price growth compared to the previous year at 4.6 percent for a total of 13 percent.
San Antonio ranks 47th nationwide. There, sales growth of 7.2 percent and price growth of 4.3 percent for a total of 11.5 percent are expected for 2021.
Houston ranks 61st on Realtor.com. The website sees sales growth of 5.3 percent and price growth of 4.6 percent for a total of 9.9 percent.
In 16th place, El Paso is the top-ranked Texan market in Realtor.com’s forecast. The combined growth rate of 17 percent planned for 2021 includes sales growth of 10.6 percent and price growth of 6.4 percent.
Here are the top five metro markets as outlooked by Realtor.com:
Sacramento, California, 24.6 percent overall growth rate
San Jose, California, 21.6 percent overall growth rate
Charlotte, North Carolina, 19 percent overall growth rate
Boise, Idaho, 18.9 percent overall growth rate
Seattle, 18.4 percent overall growth rate