Are Dallas Home Prices Unsustainable?
Dallas, TX, is a hot spot for real estate investments and home buyers. But the market has been experiencing some major changes over the past few years: prices have been steadily rising while sales have slowed down; this is what we call an unsustainable trend.
Read on to know how Dallas home pricing has become unsustainable in recent years and what you can do if you're worried about your property values or want to sell your house fast.
How The Dallas Housing Market Is Behaving
For years, the Wall Street firm has warned that Dallas-Fort Worth home values are out of whack and unsustainable. Fitch Ratings has sounded a warning bell about runaway home prices in Texas. According to The Dallas Morning News, in September, the company's experts said D-FW housing prices were 10% to 14% overvalued.
Fresh research on home values in major U.S. markets puts D-FW prices in the "sustainable" category. Recent data show that house costs are only 5% to 9% overvalued, placing us among the best performers in Fitch's major areas.
However, the majority of U.S. home markets remain inflated. According to Fitch, 70% of metropolitan statistical areas in the country are overpriced. According to the latest study, "approximately 40% of metropolitan statistical areas are more than 10% overvalued, compared with 4% before the pandemic."
The Real Estate Market Driving Slowdown In Sales
Given existing fundamentals, Fitch's report states that sales of current homes are beginning to slow, which may be attributed to first-time buyers not being able to get mortgages. However, this slowdown in sales is characteristic of all major U.S. cities that are overvalued.
In each of the previous five months, North Texas home sales have dropped from a year ago. The D-FW area also had the largest third-quarter sales drop among big Texas markets, about 9% below last year.
Even though sales have slowed, North Texas median single-family home prices were 18% higher in the first 10 months of 2021 and are approaching an all-time high, according to real estate agent data.
What You Can Do If You Want To Sell Your House Fast
If you're worried about the future of Dallas home prices and how it might affect your property value, the best thing you can do is to sell your house as fast as possible. Many people need to sell their houses fast, either because they face foreclosure, their house has been flooded, or they need money. Who do they turn to? Home cash buyers!
Home cash buyers are the fastest way to sell your house because it means you don't have to go through a long and tedious process of listing your property with an agent, who will take months until they find a qualified buyer. They make cash offers for houses in Dallas, TX, as-is, which means you don't have to make any repairs before selling.
If you're in a hurry and don't want to bother with realtor fees or repairs, try selling your house for cash. Even if your property needs some work, they can still make an offer.