Dallas Real Estate Prices & Rents are rising fast. According to Zillow.com, the median home value in Dallas is $192,300. Dallas home values have gone up 14.0% over the past year and Zillow predicts they will rise 12.2% within the next year. The median list price per square foot in Dallas is $205, which is higher than the Dallas-Fort Worth Metro average of $138. The median price of homes currently listed in Dallas is $399,000 while the median price of homes that sold is $298,100. The median rent price in Dallas is $1,650, which is lower than the Dallas-Fort Worth Metro median of $1,700.
In 2018 is shaping up to continue the trend of the last few years as one of the strongest markets in the United States. Despite some fluctuations in the Dallas housing market, demand and sales have continued to climb at a feverish pace for more than two years and show no signs of stopping. The median sale price for a house in Dallas-Fort Worth rose 6.31 percent from $236,100 in November 2016 to $251,000 in November 2017, according to the latest data from the Texas A&M Real Estate Center. Dallas-Fort Worth homebuilders started 33,891 houses in 2017, an increase of 4,488 houses or 15.3 percent above 2016 home starts of 29,403, according to a report from the housing analysis firm of Residential Strategies.
In Dallas housing market, 0.6 homes are foreclosed (per 10,000). This is greater than the Dallas-Fort Worth Metro value of 0.4 and also lower than the national value of 1.6 The percent of delinquent mortgages in Dallas is 1.3%, which is lower than the national value of 1.6%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Dallas homeowners underwater on their mortgage is 5.7%, which is higher than Dallas-Fort Worth Metro at 4.4%.
When looking for real estate market opportunities in Dallas or anywhere in the country, the generally accepted standard is to purchase a property that will give you a modest but minimum 1% profit on your investment. An example would be: at $120,000 mortgage or investment cost, $1200.00 per month rental. That would be the ideal equation example. Even with rent increases, buying a $500,000 investment property in Dallas is not going to get you $5000 per month on rent.