Housing Supply Increase in Texas

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MORE HOUSING SUPPLY IN TEXAS: IT’S ON ITS WAY For months, it seems as though we’ve been talking about housing supply and demand, not only in the Dallas-Fort Worth area, but also throughout the state of Texas. Specifically, while housing demand has been ramping up, single-family supply hasn’t been keeping pace. We’ve listed the reasons for this gap; they range from lack of labor, to municipal zoning restrictions.

North Texas Home Prices, April 2017

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HOUSING METRICS IN NORTH TEXAS – NO SURPRISES HERE Just when you think housing prices in North Texas can’t get any higher or break any more records, another article comes out in the Dallas Morning News indicating just the opposite. Specifically, the article in question pointed out that, for April 2017, home prices continued to climb ($246,100, a 12% increase year over year), setting another record1.

Builder Sentiment/Housing Completions/Starts Analysis

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MONTHLY DECLINES SHOULD NOT CREATE PANIC March 2017 data released from the U.S. Department of Housing and Urban Development, the U.S. Commerce Department and the U.S. Census Bureau indicated that housing starts dropped in the national housing market. Specifically, the starts fell by 6.8% from February 2017 to a seasonally adjusted 1.22 million units. Though the metrics dropped, the report suggested that “new housing production in the first quarter of this year is running 8.1% above the pace in 2016.1

The Quiet Surprise: East Houston’s Economy

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THE QUIET SURPRISE: EAST HOUSTON’S ECONOMY Mention the words “thriving Houston submarket,” and areas that might come to mind are the Energy Corridor on the far west side, the far north Houston towns of Spring and The Woodlands in Montgomery County, and even Fort Bend County, to the south. Probably the last place on the list that anyone would consider “thriving” is East Houston.

Plano’s Miracle Boom

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AN OVERNIGHT SUCCESS . . . DECADES IN THE MAKING The majority of the Dallas-Fort Worth media reported the recent news that Boeing would be locating the headquarters for its newly formed global services division in Plano’s Legacy West development, a 250-acre, mixed-use project at Dallas North Tollway and State Highway 1211. It’s safe to say that the local media crowed the news for a couple of reasons.

February 2017 Housing Market

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AFFORDABILITY ISSUES PRESSURE HOME SALES The National Association of Realtors (NAR) released news that, in February 2017, existing home sales dropped 3.7% year over year to a seasonally adjusted rate of 5.48 million1. Part of the issue was that January 2017’s sales started rapidly out of the gate (at a seasonally adjusted rate of 5.69 million), though the February 2017 closing sales topped February 2016’s figures, as seen below.

10 Years Later: A Then-and-Now Look at North Texas Jobs

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Texas Jobs Numbers This year marks the 10th anniversary of the start of the last recession. A decade ago, our economy was headed toward an economic meltdown that would eventually be dubbed the “Great Recession” because of its severity. According to the Bureau of Labor Statistics, the economy lost approximately 8.8 million jobs, while the gross domestic product (GDP) contracted by a whopping 5.1%1.

Dallas Housing Market – Is DFW in Equilibrium?

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DALLAS HOUSING MARKET – EQUILIBRIUM? OR NOT? A recent article in the “Dallas Business Journal” noted that a housing supplier distributor, Building Industry Partners, is betting that nationally, 17 million units of new housing will come to the market within the next decade1. Drilling down to the Dallas-Fort Worth metro, BIP’s bet looks to be a sure thing. In less than 10 years, the DFW housing market has gone from one of too much supply, to one in which demand is far outracing the stock available.

McMansion Trends – Larger Homes, Smaller Bedroom Numbers

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LARGER HOMES, SMALLER BEDROOM NUMBERS Many of the articles written for this blog focus on houses that average people can own and afford. But it’s occasionally interesting to take a look at more expensive housing, expressly, mansions. In one recent article, we discussed the McMansion trends. Now, it appears that another trend in mansion housing is fewer bedrooms.

What’s Next for the DFW Housing Market?

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About a year ago at this time, it was anticipated that single-family home prices and sales would likely moderate in the Dallas-Fort Worth area, but still be strong. Then 2016 saw single-family industry records shattered, ranging from number of closings, to increasing closing prices. Will 2017 be a repeat? As of now, most analysts are thinking the housing market should moderate. Metrostudy’s most recent report noted that demand is slowing at certain price points (i.e., homes priced at $400,000 and above)1. Meanwhile, Jonathan Smoke, chief economist with Realtor.com, indicated that the price forecast for Dallas “is moderating right in line with the overall United States.”2

2017 Housing Market Outlook: Single-Family Homes

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2017 Housing Market Outlook: Single-Family Homes Look for millennials to start entering the market, and the economy to continue its moderate growth. The National Association of Realtors (NAR) noted that 2016 was a mixed bag. On the positive side, job creation, low mortgage rates and the expanding economy strengthened interest in home ownership. On the negative side, low supply and high demand pushed prices, meaning some buyers were priced out of the market.

Examining Rowlett, Texas Housing Market

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SMALL ROWLETT – BIG NEWS One piece of interesting news within Dallas-area development community these days consists of a 262-acre, master-planned community dubbed “Bayside.” The $1 billion community will offer 3,445 residential units, a 500-room resort hotel and convention center, and amenities including retail and restaurants1. Also on site will be an eight-acre Crystal Lagoon, a self-cleaning, perpetually blue body of water, complete with a beach. And this all-in-one, town-within-a-town is in Rowlett, TX, a far northeast Dallas suburb, which fronts Lake Ray Hubbard.

MarketWatch Housing Trends for 2017

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MORE 2017 PREDICTIONS Two recent articles written focused on what’s likely to happen in Texas housing in 2017. Now it’s time to take a broader view, and see some other housing trends to keep an eye on in the coming year1. Looking to the Sky Mention “drones” and what might come to mind are surveillance and the NSA. But the unmanned aerial vehicles (UAVs) are elbowing their way into commercial usage. And thanks to the Federal Aviation Administration (FAA), just about anyone in the United States can find a drone, so long as the aircraft meet a certain set of requirements.

North Texas Home Prices

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ARE HOME SALES SLOWING IN NORTH TEXAS? NOT LIKELY Conventional wisdom states that home sales, on average, tend to wind down in November and December. The reasons are obvious: Colder weather can deter foot traffic, plus people, for the most part, aren’t interested in undergoing the stress of home-selling and home-buying during the holidays.

Texas Economy and Housing Market — Looking Up

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The Texas economy has been undergoing a mild recession, due to the oil price slump. The better news, however, is the Federal Reserve Bank of Dallas’ Texas Business-Cycle Index, which noted that Texas’ economy grew at a faster rate (4.5%) than its long-term average (3.9%) 1. The even better news is that the Texas economy will continue expanding into 2017 2. A stronger economy means more job creation. Higher job creation means more people. And more people means a growth in housing demand.