Over the last five years, the number of new homes being built in the Dallas area hit a downhill slide. Over the last three months, however, local builders began more than 7,500 new homes in the Dallas area. That is the largest total in a single quarter since the middle of year 2007. In fact, when compared to the second quarter of 2014, the number of new homes being built in the area are up by over 25 percent.
The number of homes still is not where it should be according to some experts. This is because the weather in Northern Texas was not amicable for building new homes. Although new homes were still being sold, the delay in building the residences needed to fulfill these orders created a bit of a backlog. In the Dallas-Fort Worth area alone there were 13,413 homes that were being constructed at the end of the second quarter.
This number could increase even higher if the weather holds out or even improves over the next quarter. New challenges related to the weather could have an adverse effect on those plans, however. Should the next quarter suffer poor weather conditions, then many closings that were expected to take place in 2015 could be pushed up by several months, even going far into 2016.
It is not just the construction of these homes that are on the rise. Sales are also up! In Dallas-Fort Worth more than 6,000 new homes were sold by builders in the second quarter of 2015. When compared to the same quarter of the previous year, that is a 9 percent jump.
Of all the new homes that became available during this time in Northern Texas, more than half were sold and what was left was expected to sell out within 1.5 months. Sales of previously owned family homes are also on the rise, with 12 percent more being sold in June 2015 than in May 2015.
One reason for the increase in new home building and sales is the strong job market. As more corporations move the hearts of their business to the North Texas area, in and around Dallas-Fort Worth, the need for workers will continue to grow. These workers need homes, and it seems the homes cannot become available quickly enough.
If the desire to buy homes stays competitive in regards to availability then it could very quickly become a seller’s market with potential buyers competing to see which one can outbid the other. Compared to June 2014, the price of a single family home in June 2015 went up 12 percent and hit a median average price of $220,000.