The recent volatility in the stock market has left many investors queasy and even nervous about the possibility of another economic crash. Specifically, late August witnessed a “correction” in the market, a term used to describe a decrease of more than 10 percent. This plunge in prices was due to a host of factors, and erased a majority of the gains reaped throughout the entirety of the year.
Of course, as a result, many potential homeowners may be wary of purchasing a home during this period of continued market volatility; after all, the last serious stock market downturn coincided with a collapse in the housing market, as well. In reality, however, those searching for a home, especially in the Dallas-Fort Worth area, should be pleasantly surprised to find that the local housing market is at its healthiest point yet, and only seems to be improving as the days go by.
Prices Continue to Rise
Unlike many equities listed on the stock market, home prices in Dallas-Fort Worth have continuously risen since the end of 2014, and continue to do so now. According to an August 2015 article in the Dallas Business Journal, the “Dallas area reported home gains of 8.2 percent year-over-year in June, trailing Denver and San Francisco at 10.2 percent and 9.5 percent, respectively.” In fact, “nationally, the 20-city composite index grew year-over-year by 5 percent in June,” placing the Metroplex far above a majority of the rest.
But why, exactly, do home prices continue to stay strong while the stock market warily presses on? While stock market volatility may have a minor effect on housing prices, it is certainly not the only factor; in fact, according to a source listed in the article, an “unchanged Fed policy,” along with steady inflation and a decline in the unemployment rate have all likely helped the rise in home prices. DFW has certainly enjoyed a strong economy recently positively, or negatively based on your buyer vs. seller perspective, influencing the price of homes.
Rendition Homes - Affordable Luxury
Of course, a surge in home prices may be good for the market, but it’s not always ideal for a future homebuyer who may be searching for an affordable option. But if you are looking for a comfortable, convenient, and competitively priced home in the Dallas-Fort Worth area, you should look no further than Rendition Homes. We are currently constructing houses in new communities throughout the Metroplex, and we are happy to help you find your dream home.
While the DFW housing market may not be completely immune to the stock market our thriving local economy has helped us enjoy one of the healthiest and fastest growing housing markets in the nation. Indications point to the continuation of this trend, making a new home purchase a logical choice at this time.
Don’t settle for an over-priced resale or a competitively priced fixer-upper when you’re looking for a new home in Dallas-Fort Worth. Reach out to Rendition Homes today to speak to a sales specialist that can get you in a new construction home with the high-end finishes you desire for less than you ever imagined.