Homebuyers this summer may have an easier time purchasing a home in Dallas proper than in nearby suburbs for the first time since the national housing crash.
Since last June, homes in the suburbs have been appreciating faster than in the city, according to Zillow, Advocate Magazine reported.
While home prices have continued to rise at an unprecedented pace across the board, the report shows a reversal of typical market trends. From January 2013 — about the time when home values began to recover following the housing crash — through June 2021, urban homes typically gained value more quickly, according to Zillow economist Nicole Bachaud.
“Even through the beginning of the pandemic, home values in urban areas generally outpaced suburban areas, counter to what many expected during the rush for more space,” Bachaud said. “And while urban home value gains have continued to accelerate, the suburbs are even hotter, showing just how strong demand is for limited suburban inventory.”
The average home value in the City of Dallas ZIP codes in March 2022 was $293,570, an increase of $56,492 year-to-year, while the average price for a house in a suburban ZIP code is $353,094, an increase of $77,878 over the past year, according to the report.
Demand for suburban homes with more space has soared across the country since the start of the pandemic and the widespread adoption of work-from-home practices. The National Bureau of Economic Research shows that the shift to remote work has been responsible for more than half of the gain in U.S. home prices since late 2019, and is likely to have a major impact on the future path of home values.
“That could mean competition for homes will be lighter near city centers this home shopping season, something we haven’t been able to say for nearly a decade,” Bachaud said. “That’s not to say shopping for a home in the city will be a leisurely affair, but any sliver of opportunity for buyers is welcome in this market.”
[Advocate Magazine] — James Bell