Although the Dallas/Fort Worth real estate market has seen a drop in foreclosures, DFW home values continue to fall. In March, homeowners saw a 2.6% decrease in property values since last year and a startling 11% decrease since 2007. Commercial real estate is also slow to recover with a 17% drop in new construction and an increased vacancy rate of 21.2%.
But why is the Dallas – Fort Worth housing market so slow to recover? Some experts say “blame the businesses”. As local entrepreneurs curtail investing until conditions improve they reduce the availability of area jobs. As recently laid off local residents are unable to find new employment, there is an increase in foreclosures and a decrease in consumer spending, so the cycle continues.
Thankfully, most economic indicators suggest that the DFW real estate market is not in perpetual decline. In fact, researchers have calculated the average yearly income growth for US states over the past 50 years and Texas came in fourth. The average Texan’s income shows an annual growth of 8.27% and continues to increase. Job growth is also on the rise with over 83,000 employees added in the Dallas area since last year.
The Dallas/Fort Worth real estate market is still very much a buyer’s market. A slow recovery is frustrating to homeowners but there is hope for real estate revival. An additional 10% decrease in home prices is predicted before values stabilize and begin a steady climb upward. Even though housing prices continue to decrease, this decrease is much smaller than last year and many can see recovery on the DFW horizon.
Photo courtesy of intowndallas.com
