Why are Dallas home prices steadily increasing?
Dallas is the third-largest city in Texas and continues to attract new residents year after year. However, residential property prices have been rapidly increasing in the city, and those who pursue some of the homes for sale in Dallas might pay higher costs if they wait to purchase houses here.
There are several factors contributing to the increasing prices of Dallas houses. What was once a buyer's market has quickly shifted in the favor of sellers, which is reflected in recent data.
The Standard & Poor's/Case-Shiller Home Price Indices released on October 30, 2012, show that the Dallas housing market has been active over the past few months. This report shows that Dallas area home prices rose between August 2011 and August 2012 and the region was among the top 17 housing markets in the country in terms of residential property price increases.
"Home prices continued climbing across the country in August," Standard & Poor's spokesperson David M. Blitzer said. "The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market."
How will rising home prices impact Dallas homeowners?
Those who own houses in Dallas can take solace in the Standard & Poor's data. Dallas homeowners could see their property values rise due to growing interest in the region. Additionally, current residents may notice more people moving to the city. The housing market in Dallas features a wide selection of properties and numerous mortgage opportunities from lenders, and these factors could draw new property buyers to the area.
"Consumer confidence continues to rise," Blitzer told the news source. "Even as we end the seasonally strong home buying period, the statistics are positive."
The rising interest in homeownership is impacting the mortgage rates offered by many lenders. Freddie Mac reports that the average interest rate on a 30-year fixed-term mortgage was 3.39 percent as of November 1, 2012. This figure fell 0.20 percent from August 30, 2012, and could affect people who are looking to buy houses in the region.
Homebuyers could also take advantage of lower-than-average interest rates on 15-year fixed-term loans. The source notes that the average interest rate on this type of loan was 2.70 percent as of November 1, 2012, and it is an option for those who want to make higher monthly mortgage payments for a shorter term.