Metrostudy’s 4Q17 survey ranks Dallas-Fort Worth the top new home market in the nation. According to the report, DFW builders started 33,243 homes in the past twelve months, of which 8,561 started in the fourth quarter. The survey, which compares 4Q17 to 4Q16, reveals new home starts jumped by a whopping 16.9 percent — a major indicator of builders preparing for a strong spring selling season.
This bodes exceptionally well for new home buyers looking in the $200,000 and $300,000 range. The jolt of home starts is an exciting development for the new home market, which has seen a monumental shortage in affordable new homes since 2013.
Key takeaways from Metrostudy 4Q17 survey:
- Dallas-Fort Worth remains top new home market in the country with quarterly starts up 16.9% YoY. Builders started 33,243 homes in 2017.
- Median new home price rose slightly to $328,400, an annual increase of only 1.9%.
- The median resale price climbed 8.4%, narrowing the difference between new and resales prices.
- Annual closings continue to climb. DFW’s closings exceeded 30,000 and in the fourth quarter, and closings surged past 31,000 with 31,708 homes closed. Fourth quarter closings surpassed the previous quarter closings by 3.7%.
- If developers deliver the large number of lots under construction and builders supply homes below $300,000, 2018 could be a banner year for DFW’s new home market.
Paige Shipp, Director of Metrostudy’s Dallas-Fort Worth market says, “Builders report stronger than expected sales at the end of 2017 – a year that experienced generally slower sales than 2015 and 2016. Rapid price appreciation and weak wage growth created the current market – overvalued as compared to what buyers can afford. The encouraging news is that developers and builders heeded earlier warnings and the push into the ‘new affordable’ market, priced between $200,000 and $300,000, is evident. Significantly higher quarterly starts and closings indicate a real shift in the new home market landscape.”