alvinology | Nov 25, 2018 | 1
Everything’s Bigger in Texas: The Housing Market
Texas: the land of ten-gallon hats, steaks as big as a newborn, and a booming housing market. While the first two in that list are cliché, to the point that Texans look down on those who think that’s all the state has to offer, the last item has only come around in recent years. What was previously an average and otherwise typical place to buy and sell homes has now become a veritable hub of people trading and selling homes, with everybody walking away happy.
Oddly enough, the prices of properties in Texas, in general, have skyrocketed as new developments occur as far as percentage points go, but they remain affordable to the modern American earner. Single-family homes have been steadily rising in sales over the year 2017, but are slowly levelling off to a more approachable level, making the market more appealing to newbie investors instead of going higher and higher to new, more volatile heights. For the time being, there appears to be a level of relative stability in the prices of housing in the Dallas area.
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Let me slow down a bit and explain what’s been going on in Texas, so you can better understand what’s going on. Over the past five years, the population of major urban centers like Dallas has shifted towards a younger demographic, namely those in the 18-40 range. These are people with degrees or other highly sought qualifications seeking well-paying jobs and the ability to start a family. Because of this, thousands upon thousands of people have migrated to the Dallas area to buy what were at first affordable new developments capable of sustaining this new group, seeking to make their mark on the Lone Star State.
Of course, supply and demand will begin to rear its ugly head after a while and change what was previously seen as being set in stone. The Dallas market is considered to be “overheated,” with home buyers from Texas seeing a highly inflated market due to all of the people who are trying to move into the city while prices are still appealing. These people lack foresight, however. In their haste to buy a house, they’ve made a sort of tiny bubble where demand has outpaced supply and prices have shot up. As a result, people are now by and disenfranchised mainly with the idea of moving to the Dallas-Fort Worth area.
Now, what’s happening is that the overheated market is starting to cool off nearly as quickly as it heated up. In the same vein that people clamored to enter the housing market, people are starting to try and exit with the same lack of foresight. It’s a simple matter of what goes up, must come down. The overall trends are rapidly driving prices back down, and will result in affordability returning to the Dallas area as overeager investors seek to get back as much as their investment as possible. The shrewd home buyers will use this opportunity to knock down the price of their dream home back to affordable levels, and settle nicely into their humble or above humble abode.