Another housing market report is raising red flags about Dallas' runaway home market. Record prices in the Dallas area have made this one of the most "mismatched" markets in the country - where buyers can't find homes at prices they want, according to the new study by Trulia. More than 30 percent of Dallas-area home shoppers aren't able to buy a house in a price range they can afford, Trulia researchers found. Only Houston – with more than 31 percent of unfulfilled purchases – has a more out of whack home market.
Nationwide, about 10 percent of buyers in the market for a house can't find a property in their price target, Trulia says. Fort Worth and Charlotte, N.C. are also on the list of markets where consumers find houses are increasingly priced higher than what they are looking for. "In Dallas, however, job growth accelerated from early 2015 to today, yet the mismatch is large and growing when compared with the same period in 2015," says Trulia analyst Felipe Chacon. "Unlike Houston which was fairly flat, the median listing price and price per square foot in Dallas climbed 11.8 percent and 10.4 percent year over year in August 2016, while search interest remained relatively unchanged, further driving a wedge between interest and listings." Dallas-Fort Worth home prices are about 40 percent higher over the last few years due to a shortage of homes on the market and strong economic growth in the area. Home prices in North Texas this year are almost 60 percent higher than they were at the peak of the last housing cycle in June of 2007.
- Dallas Morning News, October 6, 2016