Where is Dallas’s Real Estate Market going?

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Recently, Texas A&M University released its 2011 Market Report. Texas A&M evaluates every aspect of the growing communities of Texas, including many of the factors that affect the real estate industry. The good news is according to the 2011 Market Report Dallas is in the top four cities forecasted for population growth in Texas. It is predicted between 2000 and 2020 Dallas will grow between forty and fifty percent. Before 2015, Dallas is predicted to gain almost 600,000 more residents. This is wonderful news for the housing industry. These 600,000 are going to need a place to live.

Things to keep in mind

Dallas is a large community, but the largest job sectors in the area are in

a. trade, utilities and transportation

b. government

Although there are high paying jobs in both of these categories, the annual salary of most people in is well below $100,000. If a third of the monthly budget is supposed to be dedicated to housing, most people in these job sectors will be looking for a home payment well under $2800 a month, including utilities, insurance, and taxes. Looking at these projections, homes that will sell fast will be ones that are valued under $100,000. These homes will be easier to find financing for and should have lower mortgage payments.

What does this mean?

If you are looking to sell a property or are a real estate agent, the market is great for mid to lower priced homes. Unfortunately with the proposed changes to the Qualified Residential Mortgage, it may also mean that finding financing for these homes may be a little tougher. Homeowner financing or smaller lending agencies may have a better market in the coming years. These may be more willing to take a chance on buyers than some of the larger, traditional lending agencies. This may promote the return of small town or community based lending and businesses. It may also contribute to small community and suburban growth.

Where are the people?

The majority of the people are living in apartment communities. In fact, the number of people in apartments has grown 17% from 2009 to 2010. That’s a lot of people moving into apartments.  Part of the growth may have been due to the collapse of the housing market and the downslide in the economy. With the predicted growth in population, there are a large number of people in apartments that are new to the area. This means there are potential homebuyers that have not been found yet. The areas with the least amount of apartment vacancies are Uptown/Oak Lawn, Plano/McKinney/Allen, and Denton/Lewisville. There is also a low amount of vacancies in Irving, Garland/Mesquite, and Southwest Fort Worth/Benbrook. These areas may be good contenders for home sales.

Real estate agents may need to be creative in how they find and recruit homebuyers, but the potential market is there. For more information on the real estate business and real estate franchises, contact us at Homevestors.com.

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