The Dallas real estate market is currently suffering from a combination of low inventory and slow sales, but that trend will likely reverse if the city continues to hold its ground and holds off on new construction.
The market is expected to contract another 6% in 2017, according to CBRE, but analysts expect that to shrink further to 5.5% next year.
The Dallas metro area is expected have a total of nearly $100 billion in real estate sales this year, according the Realtor.com data.
In the metro area, the number of new units is expected be down 2.4% from last year, and prices are expected to fall 7.3% in 2018.
The number of existing units is also expected to decline by 3.3%, but analysts say that could drop to 2.6% next month and then to 2% in 2019.
Realtors in Dallas expect sales of 1,865,400 units this year compared to 1,976,000 units in 2017.
The metro area also saw the first drop in the number and quality of listings over the last year.
That trend will continue in 2018, as listings are expected fall 2.9% and the number is expected fall 5.6%.
While some buyers are taking advantage of the high cost of living, the city is also seeing a lot of new homes sold.
According to CBre, Dallas had 1,863,300 new homes as of last week, a 6.2% increase from the previous week.
Dallas has a median home price of $235,000, and the city’s median home value is $217,000.
The average home price in Dallas is $265,000 and the median home is $275,000 in the metro.
The median home sale price in the Dallas metro is $300,000 for a median sale price of more than $1.3 million.
That is a steep drop from the last few years, when the median sale prices were higher than the previous year.
As of the end of March, the median sales price for new homes in the city was $279,000 compared to $278,000 a year earlier.
In a market that is expected see a decrease in the sales, the RealtyTrac report found that the number will decline by a smaller than expected 3.4%.
The number is also likely to decline from 1.9 million new homes this year to just 1.6 million in 2018 as people wait for the next round of sales.
A shortage of inventory and sluggish sales have left many people struggling to find a home in Dallas.
The city has had a very hard time keeping up with demand.
In March, more than half of Dallas’ apartment complexes were in foreclosure.
The same month, the Dallas City Council approved a new rental tax that will raise $3.6 billion over the next decade.
As the city holds off construction of new housing, many of the units are expected sit empty for years.
Many of the empty units will eventually be sold to developers who will then use them to build apartments or other housing in their new development.
As we head into the spring, the shortage of new construction could lead to a significant shortage of housing in Dallas, even in the midst of a real estate bubble.