DALTX Real EstateDALTX Real EstateDALTX Real Estate
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
Reading: Is There a Bubble In Dallas Housing Prices? Zillow Senior Economist Says Nope
Share
Font ResizerAa
DALTX Real EstateDALTX Real Estate
Font ResizerAa
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
  • Home
  • Guest Post
  • Agents
  • Contact Us
  • About
  • Advertise With Us
Follow US
© DALTX. All Rights Reserved.
DALTX Real Estate > Economy > Is There a Bubble In Dallas Housing Prices? Zillow Senior Economist Says Nope
Economy

Is There a Bubble In Dallas Housing Prices? Zillow Senior Economist Says Nope

3 Min Read
SHARE
Home-For-Sale-Sign-Dallas-e1406661196559
Could rising housing prices in Dallas-Fort Worth indicate another bubble?

There’s no doubt that Dallas-Fort Worth is one of the hottest real estate markets in the U.S.

Home-For-Sale-Sign-Dallas-e1406661196559
Aaron Terrazas, senior economist at Zillow. Photo: Zillow

Zillow recently named it No. 3 in the country, noting a 4 percent unemployment rate and solid income growth. Additionally, the Zillow Home Value Forecast predicts the Dallas-Fort Worth median home value will go up by 5.6 percent in 2016.

But some housing analysts and mortgage insurance companies fret over the 6 percent increase in North Texas home prices over the past six years. They wonder, could this be another bubble?

Probably not, according to Zillow senior economist Aaron Terrazas.

“Dallas looks pretty good compared to so many other parts of the country,” Terrazas told the Dallas Morning News‘ Steve Brown. “We don’t have anything artificial right now inflating the housing market—the lending standards remain fairly tight.”

Home-For-Sale-Sign-Dallas-e1406661196559

In 2015, the value of all homes across the U.S. increased $1.1 trillion, growing 4.1 percent over the past year, according to Zillow. At the end of 2015, they conducted a fourth quarter Zillow Home Price Expectations survey, asking more than 100 economists and real estate experts about their expectations for the national housing market and 20 large local markets nationwide in coming years.

The most optimistic quartile of panelists said they expected U.S. home values to rise 4.7 percent next year, while the most pessimistic quartile predicted growth of 2.3 percent in 2016.

So if Dallas-Fort Worth is predicted to see a 5.6 percent increase in median home value, it’s no wonder some are experts are asking about a bubble. Some parts of the country, like Las Vegas, as still recovering from the last one.

But Terrazas says he doesn’t see the signs here.

“Texas still looks very affordable—median home value in Dallas is something like 20 percent below the national median,” Terrazas told Brown. “Median income is bout 10 percent above.”

Terrazas previously worked as an economist in the U.S. Treasury Department’s Office of Economic Policy, and was in town this week to check out our housing market. He noted the slump in shale prices isn’t affecting North Texas like other parts of the state, like Houston and West Texas.

“Dallas is actually the least oil dependent market in Texas—if your story about economic diversification is true on the ground, that’s a good sign,” he told Brown.

So what’s in his immediate forecast for North Texas home prices?

“I don’t believe we will have a bubble-bust dynamic—I think a gradual deterioration of affordability will slow things,” he said. “Now, more than ever, it is important not to overpay.”

 

Shall We Freak Out About Rising Interest Rates???
D-FW, Texas Still Face Low Housing Inventories, Plus Other Reports and Studies
6 New Upcoming Trends In The North American Real Estate Market
Losing Amazon HQ2 Gave Dallas Time To Figure Out Zoning Policy
Dallas Housing Director David Noguera on The Comprehensive Housing Policy Headed to City Council Feb. 1
TAGGED:Aaron TerrazasDallas Housing MarketDallas housing trendseconomistHousing BubbleHousing priceslow oil pricesZillow
Share This Article
Facebook Email Copy Link Print
Previous Article After Reporting Gas Smells on West Shore, Lakewood Resident Says Atmos Energy Response Was Admirable
Next Article The Most Fascinating Real Estate Agent in Texas: How Bernie Uechtritz Sold the Waggoner Ranch
Popular News
DFW Real Estate News

A Classic, All-American Traditional in Bells, Texas

Dallas Council Reluctantly Agrees to Accept Reduced Amount in DART Sales Tax Revenue
The Best Things That Happened in Dallas, and Hopes for 2019
If You’re in a Strange Mood This Week, Take a Virtual Tour of Austin’s Weird Homes
David Griffin: Ebby Halliday Masterminded the Best Brokerage Practices, Set Gold Standard for Decades
about us

DaltxRealEstate.com is the largest real estate blog and the only one in North Texas.

Links

  • Privacy Policy
  • Terms of Service
  • Contact Us
  • Paid Guest Post Submission
  • Real Estate Glossary

Categories

  • Commercial Real Estate
  • Home Inspection
  • East Dallas
  • Monday Morning Millionaire

Get Involved

  • Advertise With Us
  • Write for Us: Submit Guest Post

Find Us on Socials

© DALTX. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?