Monday, July 14, 2014

Home lot deliveries in DFW reach highest level since 2008

North Fort Worth is the No. 1 new home submarket, with a 2014 median price of $212,500, which is a 23 percent increase from the 2011 median home value of $173,000. Pictured is Alliance Harvest.

Dallas-Fort Worth's hot housing market has spurred developers to bring a number of new home lots to the region as new home prices rise.

By mid-year, North Texas' new home lot deliveries exceeded the new home starts pace during the the second quarter for the first time since early 2008, according to the latest report by Metrostudy, a Hanley Wood company providing research about the home market.

"Lot development activity has lagged new home starts in Dallas-Fort Worth since inventory hit a peak of over 90,000 lots in March 2008," David Brown, regional director of Metrostudy's Dallas office, in a written statement.

"The most active submarkets in Dallas-Fort Worth that account for 75 percent of the new home demand only have a 14.6 month supply, well below the 20 to 24-months considered to be equilibrium," he added.

Realtors say they have seen the demand for housing in the region spike as more and more companies expand and relocateinto Dallas-Fort Worth. The need for new digs has home buyers getting into bidding wars for homes in well-located neighborhoods and Realtors trying to beat out multiple bids for certain homes.

With the tight lot supply and strong demand in certain submarkets of Dallas-Fort Worth, it has builders selling their homes for much higher prices.

In Dallas-Fort Worth, the media price of a new home rose 24 percent over the past three years to $269,400 in 2014, according to the Metrostudy research. Only 25 percent of new home closings in the second quarter of the year were under $200,000, which is a 40 percent increase since 2011.

Candace Carlisle- Dallas Business Journal