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DFW residential real estate » Market news

DFW Housing Market News and Trends

 

SUPPLY SIDE ECONOMICS WRIT LARGE: One Reason For Dallas’ Soaring Home Prices: Immigrants Aren’t Coming To Work. It's just one of the factors, however, that is causing the DFW housing market to be so fluid and complex.
 
Dallas Morning News, April 24, 2017. Dallas home prices are climbing rapidly, and homebuilders are complaining about labor shortages and soaring wages for construction workers. But something else makes this housing boom different from others: Immigrants aren’t riding to the rescue. For decades, Mexicans and other foreign-born workers have been coming to Texas to build homes, apartments and office towers. By one estimate, they fill almost half the construction jobs in the state, which is about twice as many as in the rest of the nation. That total includes legal and unauthorized immigrants. In the construction industry, both groups are roughly the same size in the U.S., according to the Pew Research Center. Texas has been a job magnet for immigrants because of close ties with Mexico and the amount of work available. But the flow of people has slowed significantly – first, as a result of the housing bust and deep recession, and more recently with the focus on immigration laws and border security.

“We’ve been very reliant on these workers since the late ‘70s,” said Pia Orrenius, senior economist at the Federal Reserve Bank of Dallas. “But the age of cheap labor in the U.S. is over.” It’s not just the anti-immigrant stance pushed by lawmakers and President Donald Trump. After the recession, Mexico’s economy recovered faster so many Mexicans who had left never came back. The demographics in Mexico also have changed, with more dual-earning households and fewer young people. Since the recession, more Mexicans have departed the U.S. than have moved to this country, Pew reported. In the Dallas area, just over 81,000 worked in the construction trades in February, according to government data. To fill current demand in the business, the industry needs up to 99,000 workers – not years in the future, right now.


 

Permalink       •       Posted on Tuesday, April 26th, 2017 at 10:05 am by Dave Downs
 

 

 

STORM CLOUDS ON THE HORIZON? Soaring Home Prices May Hurt Texas' Competitive Advantage, Says Dallas Fed.


 
Soaring home prices and a tight supply of starter homes have eroded Texas’ cost-of-living advantage, according to the latest issue of the Federal Reserve Bank of Dallas’ Southwest Economy. “Since the housing recovery began in 2011, Texas has seen unprecedented home price appreciation with home price gains here outpacing those nationally,” said Dallas Fed economist Laila Assanie in a video accompanying the report’s release. “This run-up in home prices is unusual for Texas, where construction tends to respond quickly to an increase in demand because of the state’s vast supply of flat land and relatively few building regulations versus other large states.”

Housing affordability has also declined, Assanie writes in “Texas Housing Market Soars to New Highs, Pricing Out Many.” While Texas’ nominal median existing-home sales price rose 34 percent from 2010 to 2015, median income only increased 14 percent. In addition, the supply of starter homes—those priced below $250,000—shrank considerably between 2011 and 2016. “Declining housing affordability in the state has eroded the cost-of-living advantage, calling into question whether Texas can maintain its long-term economic and population growth that has often led the nation,” Assanie said.



Permalink       •       Posted on Tuesday, April 21st, 2017 at 10:03 am by Dave Downs
 

 

DALLAS SUBURBS JOB GROWTH NOT JUST IN PLANO AND FRISCO


 
Health care giant McKesson looks to add almost 1,000 employees. One of North Texas’ largest job imports this year, health-care giant McKesson, will formally open the doors to its new Irving campus [on April 6] with plans to bring nearly 1,000 jobs to the Dallas-Fort Worth area.

The U.S. pharmaceutical distributor is one of the largest announced corporate moves to North Texas, along with other giants like State Farm with 8,000 workers, JP Morgan Chase with 6,000 workers and Toyota with 5,000 workers. McKesson’s new campus has capacity for about 2,400 people.




Kubota moves headquarters to Texas. Kubota Tractor Corporation unveiled its new North American headquarters building in Grapevine, Texas, [on April 8th] in a special ribbon cutting ceremony with Governor Greg Abbott, Masatoshi Kimata, President and Representative Director of the Kubota Group, along with State and local officials and supporters from the Grapevine community who all helped to usher in a new era for the company.

Kubota has invested more than $50 million in the three-story, environmentally-friendly office building, which totals 193,000 square feet, and includes an onsite research and development facility.



Permalink       •       Posted on Tuesday, April 21st, 2017 at 9:47 am by Dave Downs
 

 

YEP. Home Starts In Dallas Fort Worth Topped 30,000 In the First Quarter Of 2017. Most since fourth quarter 2007.


 
Dallas Morning News, April 10, 2017 (excerpts). During the [three] months ending with March, Dallas-Fort Worth homebuilders started more than 30,500 houses. First quarter home starts were up 16 percent from the same period in 2016.

With builders trying to shift their production to more affordable houses, the median price of new homes being built in D-FW actually declined slightly in the first quarter. "In the fourth quarter it was $350,000 and now it’s down to $343,000," [said Ted Wilson, principal with Dallas-based housing analyst Residential Strategies.]



Permalink       •       Posted on Tuesday, April 12th, 2017 at 9:20 am by Dave Downs
 

 

WOW!! DFW Economy Creates 119,000 New Jobs.

According to the latest data from the U.S. Bureau of Labor Statistics, more than 119,000 new jobs were added in the Dallas-Fort Worth area during the 12-month period ending in February. This was second only to the New York City metro area, which saw total employment gains of nearly 131,000 new jobs during the year. New jobs created in DFW also outpaced job growth in the rest of Texas and all but three other states – California, Florida and New York.

Permalink       •       Posted on Tuesday, April 12th, 2017 at 8:55 am by Dave Downs
 

 

DESPITE PRICE INCREASES: Forbes Picks Dallas As 2017 Top U.S. PlaceTo invest In Housing. Fort Worth Places 9th.

  Prices [in Dallas] are expected to grow the most of any [top 20] list city. Informing that forecast is 6.2% three-year population growth, 3.9% job gains last year and 9% annual home price gains. Homes in Dallas are also undervalued compared historic averages and local income.

Home prices gained 9% in Forth Worth last year. Job growth was 2.3%. The population in the second of three Texas markets to make the list grew 5.2% from 2012 to 2015.
 

Permalink       •       Posted on Tuesday, April 11th, 2017 at 8:43 am by Dave Downs
 

 

IT'S NOT JUST AN ISSUE IN DALLAS: Buying a Home Will Be Harder Than Ever This Spring.

 
Wall Street Journal, April 1, 2017.
This year’s spring selling season promises to be the toughest for [U.S. home] buyers in a decade, economists say, as rising prices and mortgage rates combine with inventory near 20-year lows.

 

My analysis shows that the supply of homes in the north Dallas suburban area actually has increased slightly each year since 2014. In February 2013, there was about a 2.9 months supply of homes listed for sale. By February 2014, MLS-listed homes for sale had fallen to about 1.8 months supply. As noted in a previous post, this area currently has a 2.2 months supply of homes for sale.

A 2.2 months supply of available homes, of course, is only slightly less onerous for home buyers than a 1.8 months supply. This too is still an exceptionally out of balance housing market.


Permalink       •       Posted on Tuesday, April 5th, 2017 at 3:04 pm by Dave Downs
 

 

DFW Housing Market Hotness, According To realtor.com.


DFW ranked 4th Hottest Real Estate Market for March and described as a 'very hot' housing market, but 'cooling down slightly' compared to both February conditions and market conditions a year ago.


Permalink       •       Posted on Wednesday, April 5th, 2017 at 2:09 pm by Dave Downs
 

 

EXCELLENT: Consumer Confidence Index Up Sharply In March. Exactly what builders like to see when deciding to build more inventory homes.


 
The Conference Board, March 28, 2017. Consumer confidence increased sharply in March to its highest level since December 2000. Consumers' assessment of current business and labor market conditions improved considerably. Consumers also expressed much greater optimism regarding the short-term outlook for business, jobs and personal income prospects.

 

Permalink       •       Posted on Tuesday, March 29th, 2017 at 8:40 am by Dave Downs
 

 

SOME OF WHAT IS CAUSING SUCH STRONG HOUSING DEMAND IN THE NORTH DALLAS AREA: Frisco’s $5 Billion Mile. PLUS: Plano's $3 Billion Legacy West Project.


It seems almost certain that Allen, Celina, Frisco, McKinney, Melissa, Plano, Prosper, et al. home prices will continue to rise. Not only are these north Dallas suburbs near where much commercial development is occuring, they are ranked among DFW's best places to live.


Permalink       •       Posted on Tuesday, March 27th, 2017 at 9:39 am by Dave Downs
 

 

NORTH DALLAS SUBURBS MARKET CONDITIONS STRONGLY FAVOR SELLERS


The north Dallas suburbs listed below experienced a 6.0 percent overall annual increase in the number of previously occupied, single-family homes sold during February. During the same month last year, 467 such homes were sold. This year, sales of 495 homes have been reported. On average, about 1,112 previously occupied homes were listed for sale. It would require 2.2 months to sell this number of homes if they sold at the rate home sale transactions closed during February. For the past three months, average home prices were up 5.5 percent from a year ago.

Similar market updates for these north Dallas cities/towns are available by clicking on these Argyle area, Colleyville, Coppell, Flower Mound, Frisco, Grapevine,Highland Village, Keller, Prosper, Southlake, Trophy Club, west Plano and Westlake page links.


Permalink       •       Posted on Tuesday, March 25th, 2017 at 11:36 am by Dave Downs
 

 

PARK CITIES/NORTH DALLAS HOME SELLERS CURRENTLY HAVE SOMEWHAT THE STRONGER MARKET POSITION


During February, the park cities/north Dallas area had a 4.2 months supply of homes available for sale. The supply of homes for sale in the park cities was basically balanced at 5.5 months and in the north Dallas area it was 3.8 months. Home sales for the area were up 6.0 percent from a year ago. The prices paid for homes sold during the past three months were on average 7.0 percent higher than prices of similar homes sold a year ago.

More in-depth park cities/north Dallas market updates are available on these Highland Park, University Park and north Dallas pages.


Permalink       •       Posted on Tuesday, March 25th, 2017 at 11:34 am by Dave Downs
 

 

WELCOME DEVELOPMENT: US 380 To Become ‘Major Artery’ Into Frisco. Actually, 380 lies along the northern border of Frisco.

 
Community Impact Newspaper, March 7, 2017.
US 380 remains congested as a 20-mile construction project to widen the roadway from Loop 288 in Denton to Custer Road continues. But officials say the end result will support the growing development along the corridor and provide better access to the major north/south roadways in Frisco.


 

Permalink       •       Posted on Tuesday, March 23rd, 2017 at 1:31 pm by Dave Downs
 

 

NEW HOUSING CONSTRUCTION TO FOLLOW: Collin County Population Projected To Double By 2030.


Even if these projections are off by half, expected population growth likely to cause dramatic increases in home construction in Frisco, Prosper, Celina and Melissa. Flower Mound and the Argyle area (in Denton County) and Southlake and Westlake (in Tarrant County) probably also will see substantial housing construction. These are the closest places to Dallas where there are large tracts of undeveloped land.


Permalink       •       Posted on Tuesday, March 22nd, 2017 at 9:15 am by Dave Downs
 

 

UNLIKELY TO DAMPEN HOME BUYING: Fed Hikes Rates, But Mortgage Rate Increase Not Anticipated.

 
Inman News, March 17, 2017 (excerpts).
The Federal Reserve governors voted last Wednesday to raise interest rates by 0.25 percent, to 0.75 percent to 1.00 percent. [This] "Fed move is already built in to rates for other products (like mortgages)," notes Lou Barnes with Inman News — which seems to be the consensus from other experts, too.


 

Permalink       •       Posted on Tuesday, March 21st, 2017 at 4:28 pm by Dave Downs
 

 

ANOTHER RECORD: Most DFW Homes Sold Ever In February. Not exactly good news for prospective Dallas area home buyers.

 
Dallas Morning News, March 8, 2017. North Texas home sales grew 5 percent in February, with the most houses sold ever in the second month of any year. And median home sales prices in the area were near an all-time high last month at $235,000, up 13 percent from a year earlier, according to data from the Real Estate Center at Texas A&M University.

 

Permalink       •       Posted on Tuesday, March 21st, 2017 at 2:09 pm by Dave Downs
 

 

MEDIAN HOUSE PRICES UPDATE


Median prices and ages of single-family pre-owned houses sold during 2016 in 130+ Dallas area best neighborhoods described on this site are now available. Similar updates to north Dallas suburbs neighborhoods and park cities/north Dallas neighborhoods pages also posted.


Permalink       •       Posted on Tuesday, March 21st, 2017 at 12:34 pm by Dave Downs
 

 




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