Rising home prices and the incredible competition for available real estate are already making it tough for North Texas buyers.
New estimates from relocation and renovation site Porch It indicates that prices will rise further in the next year.
Porsche said the estimates are based on real estate forecasts from Zillow and Redfin and US Census Bureau information.
The DFW region is ranked ninth among the major US markets with a 21.1% increase expected next year, up from 14% this year. Austin leads the balcony drop with a 37% price increase expected next year.
An example of the effect of price hikes is a 1,336-square-foot Arlington home on Dunview Street that was listed for $195,000.
Lizette Carabalu with iRealty They represent buyers whose offer of the property has been rejected.
“They loved this house. This is the house they wanted. This is the area they are renting in now. We offered $15,000 more than asked and didn’t get it,” said Carabalu.
The seller’s agent told Caraballo that there were 40 bids for the property and a cash offer well above list prices was accepted.
Carabalu said the DFW market is very difficult for first-time home buyers.
“It has become so expensive and it saddens me. This is the dream everyone has, owning their own home,” she said. “It used to be a great, affordable real estate market. That’s why so many people moved here. However, we have this market that has gone crazy. And prices are all over the place. And people buy it.”
Jill Richardson is the original owner of a house across the street from that house on Dunview Street. She said buyers were literally lining up to see her and another next to her house received several offers.
There is a park and an elementary school at the end of the street, and Richardson said she doesn’t surprise people like the neighborhood.
“I want to stay here and I want people to move in, good people who want to raise kids. I raised my kids here,” she said.
Carabalu said many start-up homes are being purchased by outside investors who will take advantage of rising values and end up renting out properties to families who have been excluded from buying.
“They buy it invisible. No inspections. No ratings. It’s cash offers. So, once they are accepted, it will be immediately put on hold. That’s it, they are preparing to close,” she said.
A big rise in prices is beneficial for Jill Richardson’s home equity shares.
“Yes, I could say it would. If I decide to sell. But I don’t think I am,” she said.
Richardson said that finding another affordable home could be a challenge in this real estate market.