Rising home prices and incredible competition for available properties already make it tough for North Texas buyers.
New Estimates from the moving and renovation website Porch suggest prices will rise even more in the next year.
Porch said the estimates are based on real estate projections from Zillow, Redfin and US Census Bureau information.
The DFW area was rated ninth among big US markets with a 21.1% hike projected in the next year, on top of 14% this year. Austin tops the Porch projection with a 37% price increase expected in the next year.
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An example of the effect of rising prices is a 1,336 square foot home in Arlington on Dawnview Street that was listed for $195,000.
Lisette Caraballo with iRealty represented buyers whose bid on the property was turned down.
“They loved that house. That’s the house they wanted. That’s the area where they’re renting right now. We offered $15,000 above asking and we didn’t get it,” Caraballo said.
The seller's agent told Caraballo there were 40 offers for the property and a cash offer far above list prices was accepted.
Caraballo said the DFW market is very difficult for first-time home buyers.
“It’s becoming cost-prohibitive and it saddens me. This is the dream that everyone has, to own their own home,” she said. “It used to be a great real estate market, affordable. That’s why so many people moved here. However, we have this market that’s going crazy. And prices are all over the place. And people are buying it.”
Gail Richardson is an original owner of a home across the street from that house on Dawnview Street. She said buyers were literally lining up to see it and another one next to her house also received many offers.
There is a park and an elementary school at the end of the street and Richardson said she is not surprised people like the neighborhood.
“I want to stay here and I want people to move in, good people that want to raise kids. I raised my kids here,” she said.
Caraballo said many of the entry-level homes are being purchased by out-of-state investors who will profit from the rising values and end up renting the properties to families being squeezed out of buying.
“They’re buying it sight unseen. No inspections. No appraisals. They’re cash offers. So, once they've accepted it’s going immediately into pending. Meaning that’s it, they’re getting ready to close,” she said.
The surge in prices is good for Gail Richardson’s home equity.
“Yes, I would say it would be. If I decide to sell. But I don’t think I am,” she said.
Richardson said finding another affordable home could be a challenge in this real estate market.