The Dallas housing market has been on fire lately and doesn’t look like it’s about to stop anytime soon. Although there have been some indications of slight slowdown, you could liken it to the difference between driving 100mph and 95mph (slower, but still a break-neck speed). Homes are being snatched up the instant they go on the market, as anything with a price tag under $2 million often sells without a chance for showings or even an open house. As home values continue to appreciate, buyers are facing some fierce competition, while sellers and homeowners are enjoying the effects of positive economic growth across the board (read: stronger equity positions and higher selling prices).
A recent jobs report by the US Department of Housing and Urban Development (HUD) shows that Non-farm payrolls in the Dallas area increased by a whopping 4.1%; significantly beating out the national average of 1.7%. Dallas gets to brag that their unemployment rate is also well below the national average. What’s more is the projected annual increase remains at 2.7% for the 3-year forecast. Home to 19 Fortune 500 companies, the majority of these jobs (18.7% to be exact) are considered to be “professional and business services.”
Obviously, with no shortage of jobs available, many are flocking to the area. Boasting a current head-count of around 4.7 million, Dallas has enjoyed a population increase rate of 2% (or 90,100 people) annually since 2010. This makes it the Texas sub-market with the highest population growth rate. Due to its popularity, the issue of supply is prominent with a county-wide vacancy rate of only 1%.
The exaggerated circumstances of the Dallas housing market may be reminiscent of the past for those old enough to remember the housing bubble that burst back in ‘07/’08 and the crisis that ensued. It’s important to note, however, that there are fundamental differences between the two. Perhaps most pertinent is that overall mortgage debt sits 12% below the peak leading up to the crash. Not only do Americans (and Dallasites) owe less on their homes overall, but with interest rates expected to hit a 40-year low this year, monthly mortgage payments have never been more affordable. Indeed, with today’s low borrowing costs, you’d be hard-pressed to find a better time than now to refinance your mortgage or purchase a home.
Use these mortgage refinance and amortization loan calculators to see how much you could save!
Despite the UK’s Brexit vote that rocked the global market into economic uncertainty; and the fact that Dallas saw the median home price rise to their highest point ever in June, consumer confidence in the rebounding housing market has remained high. Crazy demand in the Dallas area (there’s only about a 2-month supply of homes for sale currently) has heated up the construction numbers. With an estimated 30,000 new home starts expected, Dallas tops the chart as the No. 1 area in the nation for new single family residences.
Those looking to purchase have even more good news to look forward to. These days, there are a lot of no- and low-down payment programs available meant to help first-time buyers segue smoothly into the world of home ownership. Veterans utilizing the VA programs are allowed to finance up to 100% of their mortgage, while non-military consumers can take advantage of FHA loans where as little as 3.5% is needed for a down payment. Even conventional loan programs have options that make needing to come up with 20% a thing of the past.
Homeowners have more options than ever as their property values rise. Refinancing to shorten the term, lower the rate, consolidate debt, or pull cash out of the home’s equity has never been a smarter move. Often, direct lenders like Network Capital are able to combine the benefits and accomplish several of these goals at once. Even those who may be in distress, or “under water,” have hope. The government has recently announced that it will extend the Home Affordable Refinance Program (HARP) into September of 2017. This gives those who owe more than the property is currently worth a chance to cash-in on the incredibly low interest rates in today’s mortgage market.
With ever-evolving advances in technology, finding out what options are available to you is faster and easier than it’s ever been. Speak to a licensed expert in your state today at Network Capital to take advantage of the favorable market conditions, and start enjoying your life with greater financial stability and freedom.
Never miss a beat in the world of mortgages. Our friends at The Mortgage Radio Show, hosted by Teresa Strasser (of The Adam Corolla Show) and mortgage expert Sean Meador (NMLS 870696) keep you up-to-date on the latest in housing and finance news. Dallas residents can tune in to AM 820 WBAP on Saturdays from 4-5pm CST.