Friday, February 12, 2016

3 reasons DFW's housing market will be spared from energy slump

As North Texas executives ponder the impact of the energy slump on the region, Dallas-based Residential Strategies' Ted Wilson said he doesn't expect North Texas' housing market to see much of a fallout from declining oil and gas prices.

"If you look at the Toyota move there's a total of 4,000 employees with 75 percent coming to North Texas," Wilson told me. "Whether it's something new or existing, what they are doing is still up in the air, but if they want to buy a new house in April 2017 they would need to get a home started in spring to December of this year.
Four planned neighborhoods are being built by six home builders at Windsong Ranch in Prosper.
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"That's our logical time frame and that's our hope that we are going to start to see a succession of a steady stream of projects for awhile," he added.

Along with Toyota's new North American campus within the $2 billion Legacy West project in West Plano, Liberty Mutual Insurance, J.P. Morgan Chase and FedEx Office have also set up major headquarters or regional hubs within the 255-acre mixed-use development surrounding J.C. Penney's Plano headquarters.

From signing on the dotted line for a new home to being ready to move into that home it takes buyers about seven months, said Wilson, who overseeing the North Texas housing research firm.

The negotiations and finding the right neighborhood often takes another two or three months, he said, and the more expensive a home the longer it takes to finalizes the details of the new home.

Housing inventory in Dallas-Fort Worth has remained tight with roughly 1.6 months of inventory on the market, which doesn't give buyers many options, he said.

See full article here

By Candace Carlisle for Dallas Business Journal