Fort Worth is hot and not just because its summer.
Fort Worth, along with Dallas and San Antonio are three Texas cities in the top 5 single-family housing markets in the U.S., according to Ten-X, an online real estate marketplace.
Nashville and Orlando are the top two, followed by Fort Worth, Dallas and the home of the Alamo.
These regions earned their spots by displaying consistently strong demand, home price appreciation, favorable affordability, and economic and demographic growth, according to Ten-X.
This quarter’s list features four newcomers. Nashville jumped from sixth to first this quarter, pushing out Tampa, which tumbled off the list to eighth. Orlando regained a spot in the top five, jumping from eighth to second. The remaining three spots on the list went to Texas metros. Fort Worth leapt from twelfth to third, Dallas dropped two spots this quarter to fourth, and San Antonio climbed six spots from last quarter.
“This quarter’s housing report continues to show that the housing market recovery varies greatly by region,” said Ten-X Executive Vice President Rick Sharga. “Markets in the South and Southeast with strong job and population growth – notably Texas and Florida – continue to have a much stronger outlook than much of the Midwest and Northeast. Markets in California and the Pacific Northwest appear to be cooling down a bit as home prices have risen to levels unaffordable for many prospective buyers.”
Nashville endured a modest downturn in existing-home prices after the 2008 housing crash, but since then, prices in the metro have surged well beyond their prior peak. Orlando’s ranking reflects the continued opportunity for continued growth amid the protracted recovery seen across many Floridametros. Meanwhile, Texas emerged as a prominent force this quarter. Despite cooling somewhat with the onset of lower oil prices, the Dallas, Fort Worth and San Antonio markets have been resilient, with prices surging well beyond previous highs.
Top Five Markets at a Glance
Market Home Price Growth, Year over Year Home Sales Growth, Year over Year
Nashville, TN 11.9% 7.4%
Orlando, FL 9.9% 5.7%
Fort Worth, TX 11.7% 3.4%
Dallas, TX 9.2% 3.6%
San Antonio, TX 8.6% 3.5%
From the report:
The Fort Worth housing market is taking off, as price growth continues to accelerate, reaching a cyclical high of 11.7 percent year-over-year this quarter. After 23 consecutive quarterly gains, prices are at an all-time high of some 43 percent above their pre-recession peak. Yet homes are still incredibly affordable in the metro and should allow for additional price gains. Sales are also at a cyclical high after a 3.4 percent yearly gain, advancing closer to their previous peak. The oil slump had little effect on Fort Worth’s housing market, and prices declined only minimally during the housing bust, highlighting the metro’s limited downside risk. Thanks to strong demographic trends and a solid economic forecast, the outlook for Fort Worth’s single-family-home market is promising.
The Dallas housing market continues to be one of the nation’s top performers. Home sales are creeping closer towards their pre-recession peak, reaching a cyclical high in the first quarter some 3.6 percent above their level a year ago. Prices continue their impressive surge, rising 9.2 percent year-over-year to $225,000 this quarter, also marking the metro’s 21st consecutive quarterly gain. Prices are now more than 50 percent above their prior peak, though homes remain very affordable and should appreciate even further. Considering the minimal price decline during the housing bust, the metro displays modest downside risk. Dallas has long benefited from outstanding population growth and holds one of our top economic forecasts, which should continue to drive ample housing demand in the coming years.
San Antonio’s housing market is heating up and shows promising signs for future growth. Existing-home sales choppily advanced to a cyclical high in the first quarter, a 3.5 percent year-over-year gain. Median prices topped $170,000 this quarter, 8.6% higher than a year ago. Even though prices are now more than 30 percent above their pre-recession peak, San Antonio homes remain among the most affordable in the nation, presenting ample opportunity for additional price growth. Demand should remain strong in the coming years thanks to outstanding demographic trends and a solid economic forecast. The metro experienced very modest price declines during the housing bust and has historically displayed low employment volatility, suggesting less potential downside risk. These factors all portend a bright outlook for San Antonio’s single-family-home market.