Dallas is still the top location for home building, according to data from Metrostudy.

New data from Metrostudy shows that Dallas is still the top new home market in the country, with builders starting 31,911 homes in the 12 months ending in the third quarter of 2017. Additionally, quarterly new home starts increased 7.6 percent year-over-year, with new homes priced between $200,000 and $350,0000 seeing the greatest buyer demand. Shockingly, new home starts in the luxury range — starting at $750,000 — overran third quarter 2016 numbers by more than 60 percent. 

Price increases are getting pushback from buyers, according to Metrostudy’s research. The median new home price seems to be stagnating around $321,000. That’s good news for homebuyers still hoping to snag a new build without breaking the bank.  This, however, highlights the affordable housing crisis in Dallas-Fort Worth, Metrostudy notes. “In order to satisfy the greatest buyer demand, builders and developers must work together with municipalities to deliver attainably priced new homes or D/FW could be on the declining end of the cycle sooner rather than later,” the report stated.

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New House under Construction

Recent reports show that new home sales are at their highest since 2008, while prices of existing homes are up year-over-year.

New home sales are up 17 percent from the same time last year, according to Residential Strategies, and new home starts are up 11.4 percent, too, at 6,511. Builders are trying to keep up with demand while also trying to keep new homes affordable for buyers, according to a story from Steve Brown:

“Start activity remains strong as builders maintain healthy sales backlogs and are working to reestablish depleted speculative inventory,” Residential Strategies’ Ted Wilson said in the report. “Robust job formation, in combination with tight housing inventories, has kept builders optimistic about sustained new housing demand.”

Rising new home prices have caused a slowdown in sales for some buyers.

Since 2007 the median price of a new home in North Texas has increased $69,000 – 33 percent – to $275,000.

“Affordability continues to be a primary concern for new home builders,” Wilson said.

“Many are anticipating that at some point down the road, interest rates will increase, and they want to ensure that their housing prices are still within reach of the consumer.”

Additionally, a new report from CoreLogic shows that the Dallas-Plano-Irving area is posting an 8.5 percent increase in home price appreciation according to the firm’s most recent HPI.

“Home prices continue to rise, albeit more slowly, across most of the U.S., ” said CoreLogic CEO Anand Nallathambi. “Major Metropolitan Areas such as Riverside and Los Angeles, California, and Houston continue to lead the way with strong price gains buoyed by tight supplies and a gradual rebound in economic activity.”

In Texas, that means we’re holding steady at our return-to-peak price levels, with no major increases. With new home construction up, a positive outlook for investors in several niche markets, and with prices still on the rise, are you optimistic about the Dallas/Fort Worth real estate market going into Q4 2014?