Residents in North Texas are currently dealing with residential property rates that are at an all-time high. In fact, these levels are making some residents wonder if purchasing a home in Dallas-Fort Worth is still a good investment to consider.
Currently, the median price of a home in this area has increased 33% to $249,000 over the last three years, making overall housing costs much more comparable with other major metropolitan locations throughout the state of Texas.
The new median price is up from just $188,300, which was the median home price in Dallas-Fort Worth back in 2014. Prior to the Great Recession, individuals could expect to pay only $150,900 for a Metroplex home.
In terms of higher prices, these aren’t the only things deterring potential buyers. Back in December of 2017, Donald Trump signed a new federal tax law which, in part, limits exactly how much property tax payments and mortgage limits can be deducted from a homeowner’s taxes. This is a factor that could lead many people to rent a home instead of purchase one.
Even though there are concerns regarding North Texas’s housing market being “too small,” industry followers still maintain that purchasing a home is a wise way to invest your money. This is because Dallas-Fort Worth is still considered to be the second-hottest housing market in the entire United States (with Las Vegas being ranked at number one). Home sales in Dallas-Fort Worth this year are expected to increase approximately 6%, according to a report from the National Association of Realtors.
Throughout the next few years, those residents who don’t see an income increase could end up finding themselves in a bit of a pickle in the event that housing prices continue to rise.
In terms of how much money should be spent on a home, there are many factors to consider, such as if the applicant has any outstanding debt, children, etc. However, mortgage lenders will generally approve mortgage applications with totals that are equal to 30% to 35% of pre-tax income. According to personal finance experts, however, there are differing opinions regarding whether or not potential homeowners should actually borrow that much money. In fact, some of them argue that approximately 30% of their after-tax income is much better for a majority of households.
Thank you for visiting Weichert Realtors Suburban Properties! We’re excited for the opportunity to help you find your next dream home.