Rising home prices in DFW tied to low inventory

Posted: February 6, 2013 in Uncategorized
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Great Article out of the Dallas Business journal this morning on rising home prices is Dallas.  

This is also great marketing material to potential sellers.  Most people are not in tune to the local real estate market.  Sharing this type of information could spur potential listings.

Click here or see below article by  Staff Writer-Dallas Business Journal

Dallas-Fort Worth area home prices are continuing to climb, which isn’t surprising given North Texas’ low inventory of homes.

There are only about 2.8 months worth of single-family housing inventory on the market, which is less than half the normal six-month supply, Ted Wilson, president of Dallas-based Residential Strategies, told me Tuesday afternoon. Residential Strategies tracks North Texas’ housing market.

“That’s as tight as I’ve ever seen it,” Wilson said, about the 2.8-month supply of homes. “People are not putting their houses on the market right now.”

The reasons: Homeowners could think prices will continue to rise and don’t want to sell too soon. Or credit-poor homeowners can’t move up into larger homes, leaving them house locked.

“Whatever the reason, there’s not as many houses on the market right now,” he said, which has been driving prices higher and higher.

Dallas area home prices rose 3.9 percent year-over-year in December 2012, according to a report released Tuesday by California-based CoreLogic (NYSE: CLGX). Nationwide, home prices rose 8.3 percent year-over-year.

Home prices will continue to rise as more people turn into homebuyers, attracted to home ownership by low interest rates. Those rates offset rising home prices, Wilson said.

“Until I see new inventory in the market, there’s no reason why prices won’t continue to climb,” he said.

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