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    1205BUS Econsnapshot

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    The Dallas Morning News
    The new home market in the Dallas-Fort Worth area hit its lowest point since the early 1990s due to the recession and housing bust over the past four years. New home construction and sales dropped over 70% since 2006. While the market shows signs of bottoming out, a full recovery is still years away. Builders have shifted toward more expensive homes as lower-priced home sales declined. The inventory of finished new homes available fell almost 70% since 2006 to less than a three month supply. Experts expect only modest sales increases of around 5% next year unless lower-priced home sales under $200,000 improve.

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    1205BUS Econsnapshot

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    The Dallas Morning News
    266 views1 page
    The new home market in the Dallas-Fort Worth area hit its lowest point since the early 1990s due to the recession and housing bust over the past four years. New home construction and sales dropped over 70% since 2006. While the market shows signs of bottoming out, a full recovery is still years away. Builders have shifted toward more expensive homes as lower-priced home sales declined. The inventory of finished new homes available fell almost 70% since 2006 to less than a three month supply. Experts expect only modest sales increases of around 5% next year unless lower-priced home sales under $200,000 improve.

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    The new home market in the Dallas-Fort Worth area hit its lowest point since the early 1990s due to the recession and housing bust over the past four years. New home construction and sales dropped over 70% since 2006. While the market shows signs of bottoming out, a full recovery is still years away. Builders have shifted toward more expensive homes as lower-priced home sales declined. The inventory of finished new homes available fell almost 70% since 2006 to less than a three month supply. Experts expect only modest sales increases of around 5% next year unless lower-priced home sales under $200,000 improve.

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    266 views1 page

    1205BUS Econsnapshot

    Uploaded by

    The Dallas Morning News
    The new home market in the Dallas-Fort Worth area hit its lowest point since the early 1990s due to the recession and housing bust over the past four years. New home construction and sales dropped over 70% since 2006. While the market shows signs of bottoming out, a full recovery is still years away. Builders have shifted toward more expensive homes as lower-priced home sales declined. The inventory of finished new homes available fell almost 70% since 2006 to less than a three month supply. Experts expect only modest sales increases of around 5% next year unless lower-priced home sales under $200,000 improve.

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    of 1

    LOCAL ECONOMIC SNAPSHOT | D-FW REAL ESTATE

    New-home market bottoms out


    By STEVE BROWN
    Real Estate Editor stevebrown@dallasnews.com

    KYLE ALCOTT
    Staff Artist kalcott@dallasnews.com

    The recession and a housing bust have hammered the Dallas-Fort Worth new-home market during the last four years. New-home construction and sales in North Texas are at the lowest level since the early 1990s. And more than three dozen homebuilding companies have gone broke or pulled out of the local market. While new-home activity shows signs of bottoming out and inching higher, analysts say it will be years before the market fully recovers.

    Starts and sales


    North Texas new-home activity has fallen more than 70 percent since 2006.
    15,000 12,000 9,000 6,000 3,000 0 01 02 03 04 05 06 07 08 09 10 11
    SOURCE: Metrostudy Inc.

    The bottom line


    Sales Starts

    Builders who have historically catered to the entry-level buyer are going into move-up houses. You have to go where the buyers are. Ted Wilson, Residential Strategies Inc.

    New home supply


    The inventory of finished new homes in North Texas has fallen almost 70 percent since 2006 and now amounts to less than a three-month supply. Number of new finished and vacant houses available at the end of each quarter:
    12,000 10,000 8,000 6,000 4,000 2,000 0 06 07 08 09 10 11

    3,218

    The homebuilders I talk to say they are all having a better year than 2010 and expect a better year in 2012 than 2011. But better is relative its not going to be a great year.

    SOURCE: Residential Strategies

    High-end prices are driving the market


    With sales of lower-priced homes falling, builders are shifting to more expensive homes. A breakdown of changes in new-home starts in North Texas this year over last year: PRICE Less than $200,000 $201,000 to $300,000 $301,000 to $500,000 $501,000 and up
    SOURCE: Residential Strategies

    James Gaines, the Real Estate Center at Texas A&M University

    STARTS -24.1% -12.3% 10% 33.2%

    MARKET SHARE 40% 34% 19% 7% I am expecting a modest increase in new-home sales next year, probably around 5 percent. Sales of homes priced under $200,000 would have to improve for the newhome market to increase much more than that David Brown, Metrostudy Inc.

    North Texas hot spots


    Only six North Texas residential communities have had more than 100 home starts during the last year. New-home projects with the most construction during the 12 months ending in the third quarter of 2011: 1. Frisco Lakes-Del Webb, Frisco 2. Highlands at Trophy Club 3. Cedar Creek Ranch, SW Dallas 4. Paloma Creek South, Denton County 5. Sendera Ranch, North Fort Worth 6. Castle Hills North, Lewisville
    SOURCE: Residential Strategies

    178 136 113 113 112 111

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