New Forecast: D-FW Homes Sales and Prices are Headed Higher in '21
Dallas-Fort Worth home sales and prices will continue to go up in 2021, but the pace of purchases and cost increases is likely to moderate, according to a forecast from Realtor.com. North Texas is forecast to top the nationwide sales trend. The leading online home listing firm predicts that nationwide median home prices will grow 5.7% in 2021, and home sales across the country will be up 7% from 2020 levels. In the D-FW area, Realtor.com predicts that home sales will rise 11.3% in the year ahead. Median home sale prices in the area are forecast to increase 4.4%.
Through the first 10 months of this year, sales of North Texas single-family homes by real estate agents are 8% higher than during the same period last year. Median home sales prices in the area are 6% ahead of October 2019 numbers. Both home sales and prices in North Texas are at record levels, thanks to all-time low mortgage rates and an increase in buying during the pandemic.
“The 2021 housing market will be much more ‘normal’ than the wild swings we saw in 2020,” Realtor.com chief economist Danielle Hale said in the report. “Buyers may finally have a better selection of homes to choose from later in the year but will face a renewed challenge of affordability as prices stay high and mortgage rates rise. With less cash and no home equity, millennial and Gen-Z first-time buyers will be impacted the most by rising home prices and interest rates,” she said. “While waiting until the fall or winter months of 2021 may mean more home options to choose from, buyers who can find a home to buy earlier in the year will likely see lower prices and mortgage rates.”
The inventory of homes listed for sale in the D-FW area is down 50% this year, as many sellers have stayed on the sidelines because of the COVID-19 pandemic. The shortage of homes to buy has fueled big jumps in prices in some neighborhoods.
Realtor.com is predicting that mortgage rates will rise to 3.4% next year from current averages, below 3%. The number of homes listed for sale in the U.S. is expected to slowly increase from current pandemic lows.
The D-FW area is expected to have the biggest home sales increase among major Texas metros in 2021, according to Realtor.com...
