Summer is typically considered a popular homebuying season, and if you listen to market trends, you might want to act fast if you're planning to dole out a down payment. If you're not looking to move, then this is news you want to hear: Home values in Dallas-Fort Worth are expected to rise 7 percent by the end of 2015.
According to the Zillow May Real Estate Market Report, this growth is among the highest in the country for big cities. Dallas-Fort Worth is already up nearly 12 percent over this time last year, while the national average is 3 percent. In 2016, our homes are expected to jump up another 5.6 percent.
With national median home prices hovering at around $179,000, the DFW market still looks pretty reasonable at a projected $162,000. Considering that the city of Dallas has also nearly reached its pre-bubble peak of $122,600 (currently median value is $122,200), and that number is only expected to grow, we look primed for a very hot market.
"This transition from housing recovery to a more normal market is a good thing in the long-term, but we can expect some bumps along the way," says Zillow's chief economist, Dr. Stan Humphries. "In the end, increasing household formation and stronger income growth should be able to overcome the headwind of rising mortgage rates and return markets to health."
Rent, too, is rising. The median cost to rent an apartment in metro Dallas-Fort Worth is now $1,470, which is a nearly 6 percent increase from last year. In 20 of the 35 largest metro areas, rents continue to outpace home values, with the median cost rising 4.3 percent this year to $1,367.
Houston and Austin are also seeing increases, but the title of current hottest market goes to Denver, with a 14.7 percent increase over last year. However, the Mile High City is only expected to grow 5.7 percent through May 2016.