As the Dallas/Fort Worth real market continues to sizzle, some buyers and sellers are wondering if we’re headed for a bubble burst?
Experts say that is very unlikely.
Check Out DFW expert Travis Book said there is nothing in the data that suggests a burst or even much of a slow down in the future.
“Inventory is down, the economy is very healthy here and people are still in competitive offers,” Book explained. “Dallas has been listed as a top growth area for many years running. These are just not things that would lead to being in a bubble.”
Comparing today’s market with the pre-pandemic fall market of 2019 highlights how hot the market remains, even as most measures are settling into typical seasonal patterns.
Experts say housing markets typically crash when prices and demand take off and as builders try to catch up with the inventory, demand eventually fades.
However, in the DFW market, inventory is so far behind the demand and the economy is one of the healthiest in the country, that realtors like Book aren’t worried a bit.
Here is a chart from the Texas A&M’s Texas Real Estate Research Center which shows months inventory in the DFW market through August 2021, illustrating the inventory challenge right now:
This chart illustrates the median sale price over the last three years in the Frisco market, showing how hot the market has been but how it is starting to stabilize.
Book said assumptions on what goes up eventually has to come down, just isn’t so for the Dallas market and the lack of inventory has a lot to do with that.
“Based on what would be needed to catch up with the inventory demand, you’re talking about hundreds of thousands of new construction starts,” Book said. “In the past, even when inventory creeped up, the market was still healthy. It would take something drastic to put us in a bubble.”
Realtor Travis Book has enjoyed a successful run in the DFW market but is now focused on building out the database portion of his agency in Allen, Texas.
And Book reminds people that despite the inventory challenges, it’s still a good time to buy.
“A lot of people I talk to say they would sell but where would they go,” he explained. “It’s not as crazy now as it was, it’s not as competitive as it was a few months ago.”
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