Is The Dallas Housing Market Going to Crash in 2023?

Over the course of 2022, you may have heard that the housing market is set to crash this year. After all, housing prices have been on the rise, but does that mean they’ll suddenly drop when you least expect it? Today, let’s look at the reasons why a housing market crash will probably not happen in Dallas.

  • A Bubble That’s About to Pop?
  • Is it Time to Sell?
  • How a Dallas Market Crash Could Happen
  • What You Can Expect

A Bubble That’s About to Pop?

Many people and real estate experts have called the recent rise in market value a “bubble,” which misleadingly implies that the housing market will grow until it suddenly “pops,” creating a massive downward crash in the housing market.

Dallas residents have been understandably worried about this “pop” and preparing for it since, lately, prices in the Dallas real estate market have been much higher than they should be. However, while this speculation points to a crash, the actual data indicates a different trend. In fact, rather than the devastating market crash people have been predicting, what we should really be preparing for is a gradual decline in Dallas real estate prices.

Is it Time to Sell?

While lower housing prices are a great situation for buyers to find themselves in, sellers and real estate agents will prefer a market with higher prices. Right now, because there are so few homes on the market, competition in Dallas is high, and lower-priced houses will stand out among the higher prices, getting offers very quickly. The main takeaway is: if you’re thinking about selling your home this year, there is no better time than right now. Get your home up for sale and on the market while demand for homes is high and prices are higher than they will be later on.

How a Dallas Market Crash Could Happen

Even though it’s safe to assume a crash won’t happen and a gradual price decline is more likely, no one can say for certain how the housing market will shift, and it’s good to be prepared for anything—including the worst. While unlikely, given the right conditions and circumstances in the right combination, an unexpected Dallas market crash could occur. Let’s review a few of the factors which contribute housing market’s instability and could indicate a crash will happen:

High Unemployment Rates:

Although gradual rises in unemployment won’t have a large effect on the market, a sudden and substantial increase in unemployment rates could spell disaster. If a great number of people are without jobs, they may frantically try to sell their houses, and foreclosure numbers could rise.

Homebuilding:

When it is thriving, homebuilding leaves more desirable houses on the market. However, during the Coronavirus pandemic, the rising prices of materials meant builders were struggling and facing an increased difficulty in getting building permits. These combined factors can lead to a shortage of homes for sale, which causes prices to rise as they have recently. We are already expecting a continuation of this slow progress in the new-home market in 2023.

Buyer Demand and Motivation:

The two most important aspects of tracking the housing market in Dallas are demand and motivation. After all, if buyers aren’t buying houses, the housing market can’t even exist at all. So, if the public’s demand and motivation to buy houses started to drop suddenly, it would be bad for the housing market as a whole, and prices could drop quickly.

What You Can Expect

This year, we think you should expect to see a gradual decline in prices in the Dallas housing market. While this might not sound good, it is nowhere near the dramatic downward spiral that people have been worrying about! Prices have skyrocketed recently and will simply be sinking back to a more appropriate market value as 2023 progresses.

If you’re thinking of selling your home or buying a new one, there is no one better to help you than EmpowerHome Team. We’ve helped thousands of families through dramatic market shifts, and we have decades of experience navigating the changing markets, so you can rest assured that we can get your home sold regardless of whatever the 2023 markets have in store. Most sellers last year had to call a second or third agent to get the job done, or even worse, not sell at all. The agent you hire the first time matters! Our team sells 98% of our listings the first time, so when you hire us, your home is more likely to sell fast & for top dollar! 

Call or Text us now at 703-634-6615 to start working with a team that will help and support you every step of the way!

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