The spring selling season is underway, and those looking to purchase a home in Dallas-Fort Worth should expect to pay a premium — regardless of price point — Zillow says.
A new study from the real estate authority shows that the annual appreciation of DFW home values at all price tiers was at least 8 percent in February 2021, with home values in the most affordable tier growing the fastest.
In the Dallas-Fort Worth metro, the lowest tier of home values grew 9.5 percent year-over-year, to a typical home price of $194,484, Zillow says. That rate slightly outpaced home values in the middle tier, which were up 8.9 percent to $278,259, and home values in the top tier, which grew 8.6 percent to $445,949.
In most major U.S. metro areas, "homes in the entry-level segment of the market most likely to be sought by first-time and/or lower-income home buyers have also grown the most in value over the past year," Zillow says.
Two other Texas metros follow the national trend:
- In the San Antonio metro, the lowest tier appreciated at a rate of 7.9 percent, to a typical home value of $153,904, compared to 7.3 percent for the top tier.
- In the Houston metro area, the lowest tier saw a 9.3 percent increase, to $166,556, compared to a 7.4 percent increase for the top tier.
In Austin, however, home values in the most expensive tier grew the fastest, up 14.9 percent to $666,034. At the same time, the lowest tier of home values in the Austin metro area grew 14 percent year-over-year.
“Demand for homes in the Dallas, Houston, and Austin metros is largely uniform across price tiers," notes Zillow economist Arpita Chakravorty. "While home values in the most affordable segment are growing the fastest in Dallas and Houston, the mid- and higher-valued homes are quickly catching up due to strong demand. The spread between appreciation rates in Austin is tightening as well, indicating extreme competition across all price tiers."
Whether you're in the market right now or planning to house hunt in the future, don't expect things to slow down.
Looking ahead, Zillow expects the typical home value in each of the Texas markets mentioned to grow by at least 10 percent by next February. For Dallas-Fort Worth, Zillow predicts a 12.6 percent price increase — the largest in the state.