We are starting to see cities that at one time had low costs of living rising exponentially. Areas that were once riddled with crime and poverty are being revitalized and gentrified. Dallas real estate has lead the nation as one of the strongest markets. One of the main reasons is the job market, but also the low inventory of homes. Prices are up 10-12% and up to 20% in some areas. A good year is usually about a 5% increase.

This kind of shortage of homes in Dallas has not been seen since the WWII veterans returned home. Population has been on the rise in Texas for years, but now we are seeing 130,000-140,000 people moving to Dallas every year. Dallas has been one of the leaders in the country for home-price increases and the economy is exploding. There were 140,000 jobs added in 2014 in Dallas. And as of May 2015, Dallas added 120,000 more jobs. There are no signs of this market slowing down, but for some home buyers and renters this is detrimental.

In this seller's market, we are starting to see buyers who are discouraged and turned away from buying a home because of the competition. Buyers are quitting their home search and returning to renting. Rent is higher than ever and even 1-bedroom, 1-bathroom apartments can exceed well over $1,000 a month in certain areas.

New homes and apartments are being built every day. There are about 25,000 single-family homes and 35,000 apartments on the drawing board for Dallas. Industrial cranes can be seen from almost any corner in Dallas. It has become a playground for investors and homeowners who are ready to sell. Some properties that are on the market at a reasonable price can see up to 20 offers from potential buyers.

As for first-time home buyers, it is almost impossible to compete with all cash offers and over-asking-price offers. Upon first glance, it would be easy to say, "Hold off, wait a year or so until the market cools down." but is that really the answer? Rent prices continue to rise and the equity being used for cost of living is hurting the consumer. The only plus to this current situation are the low interest rates and the competitive lenders.

The Dallas real estate market is being softly compared to San Fran, Los Angeles, and New York City. The job growth continues to push the real estate market to the limits and when it will calm down is a mystery. There are certain areas in Dallas where investors are fighting for scarce land and any chance to make money. Dallas expanded north for decades and continues on that path, but with the population rising every day the city searches for new directions to grow.

For the first time in almost 30 years we are seeing Southeast and Southwest Dallas being revamped by the young adults moving here. Particular areas such as Bishop Arts, Oak Cliff, Old East Dallas, and City Place are great examples of gentrification. Homes in these areas were easily purchasable for under $100 a square foot less than 10 years ago and now have become twice as expensive.

