From $100K to more than $1M, see how much house you can buy in Dallas
From $100K to more than $1M, see how much house you can buy in Dallas
Author: WFAA Staff
Published: 9:50 AM CST February 18, 2017
Updated: 9:50 AM CST February 18, 2017
CONSUMER 4 Articles

In the past five years, home prices in Dallas-Fort Worth have shot up more than 40 percent. As a result, other areas of town such as Oak Cliff are emerging for first-time home buyers who are priced out of other markets.

In this series, the Dallas Business Journal and WFAA are looking at different cities in North Texas to see what your money can get you in terms of housing. First up is Dallas, where we are looking at three different price points — under $500,000, between $500,000 and $1 million and the above $1 million market.

The $100K-$500K market

To see a Dallas house and its features in this price range, flip through the slideshow below.

EXPLORE

From $100K to more than $1M, see how much house you can buy in Dallas

CONSUMER
Chapter 1

For additional houses in this range, click here.


If there's a listing under $300,000, it is usually off the market in a matter of days or weeks, not months, said Steve Habgood of Hewitt & Habgood.

"You got your starter home, your first-time homebuyer and select investors are still picking up properties in that price range," Habgood said. "It's moving incredibly fast.”

Alicia Schroeder of Dave Perry-Miller Real Estate is seeing the same thing in that price area. And it's not just the millennials craving the urban lifestyle. Schroeder is seeing a lot of empty-nesters looking to move downtown.

"If we had one- or two-story condos, we'd sell them all day long," Schroeder said.

Schroeder has been a realtor in North Texas for five years. Prices shot up in recent years, but she now thinks the market is starting to settle down through price reductions and houses being on the market longer.

Plus, home values in Oak Cliff were probably undervalued in the past, Schroeder said. So when home prices escalate 25 percent in that area, it's really just the market correcting itself.

And for the people who've waited for the next real estate crash for home values to drop, they've had a rude awakening.

"They've waited and waited and now they say, 'The stuff we could have bought a year ago is $60,000 more,'" Schroeder said. "There is a great struggle to find a great product under $400,000 where maybe two or three years ago you maybe could get something really great at that price point. There's just nothing out there."

The $500K to $1M market

Chapter 2

To see Dallas homes and their features in this price range, click here.

Habgood has been a realtor in Dallas-Fort Worth for 18 years, so he knows what it looks like when a hot real estate market comes to the end of its cycle.

In Dallas, signs are just now starting to show that the double-digit percentage price increases in homes are slowing.

"We have begun to see price reductions come back into the marketplace," Habgood said. "This is an indication that pricing has got a little out of balance and sellers were attempting to hit new highs. In select cases, you can do that. You can't across the board."

Habgood said this has especially been the case in the last three or four months. Home prices in DFW have shot up about 10 percent in the last year, according to Zillow.

Another indicator of a slowing market is the total days a house is on the market. There's been a steady reduction of the average days on market for Dallas homes in the last three years, indicating increased demand. The average is between 30 and 50 days. If that figures goes up, that'll also be a good indicator of price growth slowing, Habgood said.

One big change in this market is the concentration of demand near the core of Dallas as millennials want to be in more of an urban setting. Habgood said they do more than 90 percent of their business in the core that wraps around downtown — Kessler Park, Turtle Creek, Uptown, M Streets, Lakewood, north Oak Cliff, etc.

Habgood hasn't heard a lot of pushback about the increase in home prices because the demand is still so high from relocations. And people who relocate from the New York's or San Francisco's of the world are used to paying way more for a home.

Dallas has a lot of good rental options, too. Apartment construction is on the rise in the area. But those millennials who have been renting in high-end apartments are starting to change their minds.

"We're beginning to see a shift of them out of the rental market and into the home-buying market," Habgood said.

The $1M+ market

Chapter 3

To see Dallas homes and their features in this price range, click here.

What's the biggest difference between the $1 million plus real estate market in Dallas now compared to a decade ago? Well, the existence of a market, for starters.

"Ten, 15 years ago, we really didn't have much of a million-dollar market in Dallas," said Kay Weeks, an associate at Ebby Halliday Realtors. "We have more inventory, but we have a lot more demand."

The $1 million-plus club faces the same problem of limited inventory that the rest of the North Texas real estate market faces, as people keep locating to the area. Weeks said that stops

being a problem at the $3.2-$3.5 million price point because there's not as much demand at the top of the market.

"When you get to that price level, people want to do their own thing so they're more likely to build to achieve exactly what they want," Weeks said. "It's a lot of money. People get pickier."

Home prices haven't risen as much for high-end houses, Weeks said. The DFW region, as a whole, has seen 43.3 percent price increases in the last five years, but the $1 million-plus market hasn't. At the $1 million price point, 40 percent equals almost half a million dollars.

"It's been a very steady and good market," Weeks said. "It's really a seller's market, but those statistics aren't necessarily true (for the high-end market)."

Chapter 4

To see the best buyers’ and sellers’ markets in DFW, click here.