Dallas Home Prices and Mortgage Rates on the Rise

Dallas, Texas home prices are on the rise as the market transitions from a home buyer’s market into a home seller’s market.  With droves of new buyers and move up buyers looking for homes in the area, the market is showing serious signs of a lack of inventory.  All the while, home loan rates have moved up to their highest levels in over a year.  Is time running out to buy a home at record low home prices and interest rates?

Dallas home prices have risen just over 7% in the last year, according to the S&P Dow Jones Indices, and are projected to keep rising.  Some particular Dallas areas like Lakewood, Canyon Creek, Prestonwood, and University Park have seen close to double digit growth in the first quarter of 2013 alone.  Home prices aren’t the only thing on the rise though, since mid-April, home loan rates for an average 30-year mortgage have increased from around 3.3% to 4%, just in the last 45 days.  Although mortgage rates are driven by many factors and market conditions, mortgage rates are expected to continue going up with more positive economic data and more money flowing into Stocks.

The economy as a whole has had a rough past few years, but has recently been showing serious signs of growth and improvement.  This kind of positive economic outlook, combined with a growing real estate market, continue to paint a bright future of the U.S. economy and housing market, particularly in Dallas and surrounding markets.  Job growth from local companies as well as many large corporations relocating their company offices and headquarters, have continued to flow into the Dallas area.  The continued population and job growth in the area is ultimately causing housing prices to continue increasing as any new supply is taken away by the new buyers in the area.

With home loan rates and home prices on the rise, now may be the time you’ve been waiting for to sell your home and buy another.  For many other who are deciding to stay in their home, this may be their last chance to refinance before interest rates go back up to 5% or higher.  Regardless of the path for your real estate future, consider the Cost of Waiting to Buy.

If you would like to find out more information about homes in the Dallas, Texas area, as well as the surrounding suburbs like Richardson, Prestonwood, Lakewood, University Park and Highland Park, please don’t hesitate to call us directly at 972-499-0454.  We’ve helped thousands of Dallas-area homeowners and home buyers navigate their home purchase or refinance and we’d love to assist you.  Contact us today!