Fort Worth Housing Bubble: What is the Limit?

Marcus Hiles Fort Worth

Anyone who has been monitoring the Dallas-Fort Worth real estate market over the past several years is certainly aware of just how hot and heavy the trading is in the area. Particularly in the communities in and around Fort Worth, Marcus Hiles and other high profile developers have transformed the area into one of the most active real estate arenas in the south of the country.

Things aren’t quite as rosy in other parts of the country. In Las Vegas for instance, the median price of homes hovers around 29.7% below median prices from ten years before. In fact, all over the country, homes typically sell for 4.9% less than the median value peak of April 2007.

Amazingly, the trend is quite the opposite in the Dallas-Fort Worth areas, which beyond expectations is registering marked increases in home values. After the 2007 peak and the subsequent collapse that swept throughout much of the country, property values in the Dallas-Fort Worth area have actually improved much more than those in other states. In fact, the bubble has resulted in far more favorable conditions for property owners in the area.

Just how significant the effect of the bubble on property prices in Dallas-Fort Worth area is can be gleaned from the figures. While the rest of the country struggled with median prices that dipped well below 2007 levels, Dallas and Fort Worth homeowners actually registered a 29.1% increase in the value of their homes. This is a remarkable development to be sure, one which is eclipsed only by the 45% increase in median house values that occurred in Denver.

What does this mean for property owners in Dallas-Fort Worth? At present, those who have gotten the short end of the stick as far as the housing bubble is concerned are setting their sights on breaking even with the peak in prices expected to occur around 2017. It is scant comfort for those who have watched powerless as their investments dwindled away after the market collapse, but it is surely better than nothing.

Unfortunately for homeowners from other states around the country, the much-anticipated peak isn’t likely to bring about a full recovery. Remember that the upcoming peak–if it does occur–will only serve to bring property values up to the levels where they were at in 2007. That translates into a full decade when property values essentially didn’t move an inch. In fact, homeowners would actually still be operating at a loss because of the boom-bust cycle that the market has undergone since 1999. If the prices of homes had increased in accordance with the rate of increase registered from 1985 to 1999, the median value of a home today would somewhere around $235,000, instead of the $187,000 it is currently pegged at.

In contrast, Dallas-Fort Worth homes are currently priced at around $189,500, compared to the $131,000 median values if prices had followed historical rates of increase. Figures don’t necessarily paint the entire picture of course, but for those looking to invest in properties in Dallas-Fort Worth, Marcus Hiles’ Western Rim Property Services and Mansions Custom Homes and other development firms may offer some very profitable investment options.

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