By Steve Brown, Dallas Morning News
A new national housing forecast predicts that the rate of home price gains will drop significantly in North Texas in 2016.
Researchers at Zillow are forecasting that Dallas-Fort Worth home prices will grow by 5.5 percent this year.
That’s down sharply from the 14.2 percent annual home price appreciation Zillow estimates that D-FW housing saw in 2015.
The Dallas-Fort Worth area – along with Denver – led the country in home price increases last year.
Zillow is calling for much slower home price increases in both markets this year.
“There’s no housing market bust on the horizon; instead, expect to see home values slow down and level out to more typical growth rates in 2016,” Skylar Olsen, Zillow Group senior economist, said in a new report.
Olsen said the price predictions are based on economic models that analyze the strength of local economies and housing markets.
‘From these kind of models, we show that median home values in both Dallas and Denver have begun to slow down,” she said. “They cannot maintain the extraordinary trajectory of the previous year.
“Slowdowns in population and job growth also add to our more conservative numbers.”
Significant slowdowns in the rate of home price growth are also forecast this year for Houston, San Francisco and Portland, Ore., according to Zillow.
For the first two months of 2016, median single-family home sales prices in North Texas are about 8 percent higher than in the same period of 2015, according to data from local real estate agents.