Housing Supply Increase in Texas

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

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

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

February 2017 Housing Market

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.

Dallas Housing Market – Is DFW in Equilibrium?

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

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?

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

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

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.

North Texas Home Prices

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

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.

The Housing World under President Trump

PINPOINTING HOUSING TRENDS UNDER A TRUMP PRESIDENCY The Nov. 8 U.S. presidential election capped off a nasty, volatile and uncertain political cycle. In between the rhetoric, Donald Trump did mention a few policy ideas. Unfortunately, few of those ideas focused on residential housing. As the President-Elect’s administration heads toward the White House, there is a decided lack of clarity on the housing industry.

Jacobs Engineering Group relocating global headquarters to downtown Dallas

MORE JOBS, MORE PEOPLE . . . LESS HOUSING? Recent good news for the Dallas-Fort Worth economy came from Jacobs Engineering Group and its announcement that it was relocating its global headquarters to downtown Dallas1. Jacobs is no stranger to DFW – the company has had a presence in the area for close to 30 years. But the move means that major operations are coming to the Dallas CBD, along with a workforce more than 700 strong.

Austin, Dallas Rank #1 & #2, According to the ULI

Texas Top-Outs Two noteworthy items coming out of the recent Urban Land Institute’s (ULI) Fall 2016 conference in Dallas were that Austin and Dallas were ranked first and second, respectively, in the “Emerging Trends in Real Estate, United States and Canada 2017” survey. The ULI conducts these surveys annually, in conjunction with PwC1. The survey polls those in the commercial real estate industry, asking them where the best investment and development opportunities are.