North Texas is experiencing a surge in home real estate prices, Dallas News reports. The area of the state witnessed the average price for a home soar up 12 percent in September. That figure marks the biggest year-over-year 2016 gain in what has turned out to be a record year for the housing market.
The Real Estate Center at Texas A&M University released new data on median housing prices for 2016. According to the report, median sales prices of preowned, single-family homes rose to $225,000. North Texas Real Estate Information Systems further verified the information. Prices are still 10 percent higher in the third quarter than they were during the same period in 2015.
Some of these homes in Dallas and Fort Worth have seen a 40+ percent price increase in only five years. Furthermore, this jump in price has lead to less sales. Housing sales suffered by 11 percent in September alone.
The first nine months of 2016 saw a record 78,154 houses sold by agents in the market. Despite lower sales, more than 9,500 preowned, single-family houses were sold by real estate agents in Dallas-Fort Worth in September. As a result of increased sales, housing inventory in the area has fallen and remained at very low levels. Compared to September 2015, the number of houses in North Texas listed for sale by real estate agents decreased by 3 percent. This is interesting considering that in this area, it takes less than 40 days on average to sell a house.