Monday, July 11, 2022

The Housing Boom That Won't Go Bust

Having covered the housing market for more than six years, I'm still in a lot of message groups, Slack channels, and Facebook groups about local real estate. The questions most frequently asked are variants of, "Is the housing market about to bust?" and "Will it happen in Dallas?"

 

In our July issue (on newsstands now) writer Joseph Guinto takes a look at the local boom, what's driving it, and whether we're in danger of losing our shirts (or worse) if the market were to take a significant downturn. He's done this for our July issue for many years now, so he has a deep knowledge of how this market has—and hasn't—changed in the past decade.

 

You should really read the whole story, but I'll leave you with two things: In 2008 when the housing bubble burst, most homes in Dallas held their value; they may not have appreciated quickly, but most homeowners were not upside down in their mortgage.

 

Secondly, the sign of a healthy market is somewhere around five to six months of housing supply. According to the Metrotex Association of Realtors, North Texas had 1.5 months of inventory in May, meaning that it's going to take a very long time to hit a healthy five or six months.

 

(It is an increase over supply from March, the most recent month available when Guinto did his research. We only had three weeks back then.)

 

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