DFW Housing Market: 2021
A recently updated forecast for the Dallas, Texas housing market in 2021 suggested that home prices in the DFW area will continue to climb at a steady pace through 2021 and into early 2022. It’s not surprising, given the supply-and-demand situation within the real estate market. Now the current housing market conditions tend to favor sellers over buyers — and that’s putting pressure on home values.
In the Dallas-Fort Worth area, single-family homes surged more than 30% in 2020 with the highest construction volumes in over a decade. Home prices in North Texas and across the country have seen significant gains as demand for houses have risen. The DFW area housing market has less than a two-month supply of homes listed for sale. That’s much lower than what is considered to be a balanced market. In most parts of the Dallas metro area, the current real estate scene tends to favor sellers over buyers.
According to the real estate information company Zillow, the median home value for the Dallas-Fort Worth metro area rose to around $271,000 as of February 2021. That was an increase of 7.4% from the same month a year earlier, by their estimation. The company’s forecast for the Dallas real estate market predicts that prices will continue to climb over the coming months, perhaps through 2021 and into 2022.
Here’s Zillow’s housing market forecast for Dallas and Dallas MSA. The Zillow Home Value Forecast (ZHVF) is the one-year forecast of the Zillow Home Values Index (ZHVI). It is created using all homes, mid-tier cut of ZHVI and is available both raw and smoothed and seasonally adjusted.
- Dallas-Fort Worth-Arlington Metro home values have gone up 11.9% over the past year and the latest forecast is that they will rise 15.1% over the next twelve months.
- Dallas County home values have gone up 10.5% over the past year and the latest trends show that prices will continue to rise at a similar pace over the next twelve months.
- Texas home values have gone up 10.7% over the past year and will continue to rise in 2021.
The Bottom Line
Forecasts for the Dallas-Fort Worth real estate market in 2021 predict that home prices will keep rising throughout this year and into next. And that seems likely, given the current conditions. Home-buying demand remains strong in this market, despite the ongoing coronavirus pandemic and economic downturn. Inventory, meanwhile, is hovering at historically low levels. There are not enough homes listed for sale to satisfy the overall demand from buyers. The DFW population continues to grow steadily, outpacing nearly every other metro area in the U.S.