"Is DFW Real Estate a Buyer or Seller's Market?" Well, it's not that simple.
Is DFW Real Estate a Buyer or Seller’s Market?
You hear these phrases often:
“Oh, you should list your home now. It’s a seller’s market.” or the opposite, “Buy now because there is not a lot of competition. It’s a buyer’s market.”
News organizations, businesses, and individuals love to talk about the DFW real estate market in these generalized terms. Maybe they feel savvy and cool for using such lingo. The truth is that the market is not as simple as they make it sound, and while their description may be the case in their particular circumstance, the market can vary drastically within each community. DFW encompasses so many cities, types of residences, and price ranges within itself. Overgeneralizing the market can not only be inaccurate, but dangerous to your wallet if you base your decision on those numbers alone.
For the first time since 2012, the Dallas-Plano-Irving area’s annual appreciation rate has dropped. It’s not a little drop either. The appreciation rate dropped from 10.67% in 2017 down to 4.43% in 2018.* Prior to this year, the appreciation rate increased steadily from 2011 until 2015 and then plateaued for three years. Now, we are finally seeing the drop (see the graph below).
When people see a stark decline in data like this, they may freak out and decide not to buy or sell. BUT the statistics do not necessarily reflect more localized, specific markets.
For example, many of our clients are looking for single-family homes in communities like Coppell, Flower Mound, or Lewisville. The appreciation value in these areas have not seen a drastic decline like the previous graph reflected. Instead, single family homes in Lewisville are continuing to appreciate in value and single-family homes in Coppell and Flower Mound are only experiencing a slight decline and not a steep drop like Dallas, Plano, and Irving properties.
See the graph below:
To give another example, we can isolate another variable of these statistics. Let’s look at the annual appreciation value of new construction in Dallas, Plano, and Irving. While we do see a depreciation in value in Dallas for new construction (-1.7%), again it’s not as drastic as the beginning graph which reflected all types of properties.
In fact, the appreciation value for new construction in Plano and Irving has actually increased by 4.4% and 1.1% respectively.
See the graph below:
It may be tempting to label DFW real estate markets as a buyer’s or seller’s market based on overgeneralized statistics that you see in the news or hear on the radio. Our advice: don’t base your home-buying or -selling decision off of those articles!
Real estate doesn’t have to be scary. Talk to someone you can trust who knows the nuances of those statistics. Depending on where you’re looking or where your selling and the type of residence you’re either looking to buy or sell, things like appreciation rates can vary greatly. Be sure to consult a licensed real estate agent before making up your mind. The team at Nail & Key Real Estate Group is here for you!
Contact us anytime by email or by phone at 469-333-0975 to set up a free consultation or just shoot us your questions. We look forward to helping you navigate the complex real estate market that is DFW!