Housing is heating up all around the country as affordability decreases and inventory of homes for sale sink to their lowest level ever.
This year, Dallas appeared consistently in top-10 lists talking about high home prices and hottest markets. In fact, home prices in Texas are projected to increase 31% by 2020, according to an article by Samantha Sarf for Forbes.
“Texas in general is a hotbed for business,” Movement Mortgage Market Leader Dana Allen said in an interview with HousingWire. “Many mortgage companies are trying to come in and capture some of that.”
Allen, who leads the Dallas and East Texas market, said that Movement Mortgage saw a solid year in 2016, and looks to expand even further in the years to come. Coming from a company whose goal is to hold 10% of all purchases by 2025 and is expanding significantly, perhaps more expansion isn’t shocking, however it isn’t the only company that sees a boom coming in Texas.
This Dallas private equity firm even bet on a home building boom. In fact, the economy in Texas is so great that the U.S. Department of Transportation even chose Texas as its testing ground for autos.
“With five of the nation’s 15 fastest-growing cities in Texas and our population expected to potentially double by the year 2050, Texas must be a leader in new technology that addresses transportation challenges,” said Marc Williams, Texas Department of Transportation deputy executive director.
Allen agreed that builders could bring a building boom to Dallas, adding that the soaring prices are causing first-time homebuyers to struggle.
“I think that the good part is we have plenty of room for expansion and the builders notice that, so they’ll adjust accordingly,” he said. “First time homebuyers I think do struggle a bit to find a property.”
The market is so hot, in fact, that some even starting throwing around the dreaded B-word (bubble, that is) when referencing the city’s market.
Earlier this year, a study from Nationwide Mutual Insurance Company ranked Dallas-Plano-Irving, Texas in its bottom 10 unhealthy markets, in terms of housing affordability.
Allen agreed that while the high home prices might be beginning to price first-time homebuyers out of the market, Dallas is still seeing a healthy expansion.
“Builders are going to start countering by building some more first-time homebuyer, maybe something at a lower price point, which’ll balance that equation out,” he said.
In fact, the entire state is seeing expansion with new highs in its housing market. San Antonio, Texas saw a record-setting year for its housing market in 2016.
“Between the economy and the state laws, it’s been very good for the housing market,” Allen said. “The Dallas market is just blowing up in general.”
“The relocation and number of people moving from across the united states, either to join a company or even relocate their entire company, has just been phenomenal,” he said.