Housing in DFW skyrockets with prices rising 43.3% in five years

Posted on Leave a commentPosted in Real Estate Market

Candace Carlisle, Staff Writer, Dallas Business Journal
http://www.bizjournals.com/dallas/
Jul 26, 2016, 1:06pm CDT

BuildersAs the Dallas-Fort Worth region grows, housing prices have escalated with Case-Shiller reporting Tuesday prices increased 9 percent year-over-year in North Texas, but the cumulative effect is stacking up against buyers seeking affordable homes.

In the past five years, North Texas home prices increased 43.3 percent, which has never happened before in Dallas-Fort Worth history.

“It is stunning to see that kind of growth,” Ted Wilson, principal at Dallas-based Residential Strategies Inc., told the Dallas Business Journal.”Obviously, the shortage of housing is causing this and builders, even being as busy as they can be, are not alleviating the demand or taking care of the shortage of homes.

“The more listings on the market, the faster they are absorbed, which is a challenge for consumers,” Wilson added. “It’s coming to a point where affordability is becoming a big concern and builders are facing steep price increases from trades and home lot price increases.”

Homebuilders are focused on lowering price points, but it remains a challenge to develop a single-family, detached home for under $200,000 unless it’s by a mass production builder, he said. The median home price in Dallas-Fort Worth sits at $340,000.

Meanwhile, Wilson said he’s hearing from builders the higher price points are slowing this summer as they pass through costs to maintain their profit margins. Buyers are helped by the favorable mortgage rate, which dropped 20 basis points after Brexit. But even with the favorable rates, homebuyers are still experiencing sticker shock, he said.

“There’s been some wishful thinking that prices will subside a little bit, but, even with incentives and discounts from builders, there is nothing that is going to allow prices to slip,” Wilson told me. “We still have huge shortages of existing home inventory and there are constraints on new construction.”

With apartment rental rates also climbing, Wilson said he doesn’t expect an oversupply of new homes or that the supply of inventory will increase dramatically in the short term, which points to home prices continuing to climb in North Texas.

“It is stunning to see that kind of growth,” Ted Wilson, principal at Dallas-based Residential Strategies Inc., told the Dallas Business Journal.”Obviously, the shortage of housing is causing this and builders, even being as busy as they can be, are not alleviating the demand or taking care of the shortage of homes.

“The more listings on the market, the faster they are absorbed, which is a challenge for consumers,” Wilson added. “It’s coming to a point where affordability is becoming a big concern and builders are facing steep price increases from trades and home lot price increases.”

Homebuilders are focused on lowering price points, but it remains a challenge to develop a single-family, detached home for under $200,000 unless it’s by a mass production builder, he said. The median home price in Dallas-Fort Worth sits at $340,000.

Meanwhile, Wilson said he’s hearing from builders the higher price points are slowing this summer as they pass through costs to maintain their profit margins. Buyers are helped by the favorable mortgage rate, which dropped 20 basis points after Brexit. But even with the favorable rates, homebuyers are still experiencing sticker shock, he said.

“There’s been some wishful thinking that prices will subside a little bit, but, even with incentives and discounts from builders, there is nothing that is going to allow prices to slip,” Wilson told me. “We still have huge shortages of existing home inventory and there are constraints on new construction.”

With apartment rental rates also climbing, Wilson said he doesn’t expect an oversupply of new homes or that the supply of inventory will increase dramatically in the short term, which points to home prices continuing to climb in North Texas.

What’s Up at Girls Inc?

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Chihuly-like flowers created by Girls Inc girls!

The girls the AWE Dallas (Association of Women Executives) organization supported with their annual auctions have had a lot going on recently. Check out the beautiful Chihuly-like chandelier created by the 9 to 13 year olds at the Carlyn Ray Glas Blowing Studio.

Trained at the Chihuly studio, Ms Ray worked with these girls to create this beautiful artwork. I was at the unveiling and many of the girls approached and showed which flower they created. This is an extension of the mission to be strong, smart and bold.

In mid May volunteers with the equipment donated by Dr. Pepper-Snapple built an incredible and a much needed playground for the girls at the West Dallas campus. Directors Susan Thompson, Marty Marks and the other board directors took a break from their meeting to inspect this fabulous addition to the campus. We are so thankful to Dr. Pepper-Snapple for supporting the girls.

Girls Inc Board