D-FW homebuilders put a halt on home starts in the fourth-quarter

North Texas homebuilders put a halt on new houses in the final quarter of 2021 despite hitting a record of 58,140 units. This was up 20% from 2020’s production, according to the latest report from Residential Strategies.

Dallas-Fort Worth builders started construction on 12,855 single-family  homes in the fourth quarter- down 6.9% from the same period last year. Permits for new construction homes fell in the last four months of the year as builders stopped starting new houses to catch up on construction already underway.

Potential homeowners are taking advantage of the low mortgage rates that have created an unprecedented level of housing demand. Demands are high, but construction capacity issues have forced many builders to adjust their starts as they focus on getting current work in progress complete.

Close to 38,000 D-FW houses were under construction at the end of the year.

“The time it takes to build a new home has become greatly elongated, “ Wilson said. “In normal times, a builder can construct a home in 130 to 140 days.”

“In a recent survey we conducted, cycle times are averaging 219 days.”

According to Steve Brown of The Dallas Morning News, a shortage of workers, materials and other factors are slowing housing production in North Texas.

Earlier in 2021 some new build communities were putting a 5 home cap on how many homes were being sold per month. Builders sold 11,264 new homes in the fourth quarter – a small 1.4% rose from the same period in 2020.

Looking ahead, Wilson said builders and housing analysts are watching for the impact of higher interest rates. Home mortgage costs have headed higher in recent weeks and are expected to rise further during the balance of 2022.

If you or anyone you know is looking to move to the DFW area, contact Aaron Everett at 214.403.0805.

Home price gains in Dallas are at an all time high in monthly Case-Schiller report

Dallas area homes saw an unprecedented 25% spike in the latest nationwide housing market comparison.

Most U.S. house markets are seeing a slight uptick in home price increases, the year-over-year increase for Dallas was the highest ever in the just-released S&P CoreLogic Case-Shiller Home Price Index.

According to the Case-Schiller survey, Nationwide home prices were 19.5% higher in September compared with a year earlier, a slightly smaller annual increase than in August.

Steve Brown of The Dallas Morning News has reported that Dallas-area home prices have shown greater gains in the closely watched Case-Shiller survey.

“Housing prices continued to show remarkable strength in September, though the pace of price increases declined slightly,” S&P’s Craig J. Lazzara said in the new report. “In 14 of 20 cities, prices decelerated – i.e., increased by less in September than in August.”

Dallas-area home prices have more than doubled the last 10 years to a record high in Case-Shiller’s monthly cost measure.

North Texas single-family home prices are 18% higher than in 2020, according to real estate agents’ sales reports.

Housing cost in the Dallas-Fort Worth area and across the nation have exploded during the last year due a severe shortage of homes available for sale and a rising demand during the COVID-19 pandemic.

“While housing market activity is experiencing a typical seasonal slowdown, homebuyer demand remains strong and continues push total home purchases above pre-pandemic levels, “ CoreLogic deputy chief economist Selma Hepp said in an email. “Nevertheless, while activity continues to outperform pre-pandemic levels, there are encouraging signs of a slow albeit welcomed return to more sustainable balance between buyers and sellers.

If you or anyone you know is looking to buy, sell, or invest in real estate, contact Aaron Everett at 214.403.0805.

Why Are So Many People Relocating to Texas From California?

There’s been a tidal wave of Californians moving to Texas over the past few years, and I don’t see that trend stopping soon.

Texas is huge, wide open and has plenty of room for growth, and has been a magnet for businesses who don’t want to miss out on the opportunity for growth.

Big Business

Some of the largest tech companies from Silicon Valley, like Oracle and Hewlett-Packard Packard, have moved their headquarters to Austin, Texas. Austin is also the place where Tesla is moving its new giant Gigafactory and Apple is moving its second largest campus here. Governor Abbott made his pitch for Texas as TikTok headquarters on Twitter. CBRE didn’t waste anytime and moved its headquarters from Los Angeles to Dallas, with Charles Schwab officially moving its headquarters to Denton County earlier this year.

The Shift Has Already Begun 

According to Steve Brown of the Dallas Morning News, relocation to North Texas from San Francisco jumped by more than a third last year. Greg Willett, the top economist for Richardson-based RealPage, mentioned he understands why the move to DFW continued last year, even though the number of jobs in the area declined.

“The relationship between where we live and where we work has been loosening for a while now, and the shutdown of offices during the COVID pandemic underlined that many people can work effectively from remote locations”, Willett said. “That shift tends to drive households toward metros with comparatively affordable living costs, while it makes the country’s most expensive markets less attractive”, Willett continued.

As a result, out-of-state investors and new homeowners are placing bids on homes, without ever stepping foot on the property.

Tax Breaks 

Texas has huge tax breaks that have attracted wealthy individuals like Elon Musk, Joe Rogan, Drew Houston, and Joe Lonsdale. As the economies ninth largest business hub, Dallas has always been an attractive city for businesses want to compete in. Dallas has always been one of the financial capitals of the state. Toyota and State Farm also moved here to get a piece of the pie. The Lone Star state has also been one of the top exporters in the country, for 18 consecutive years.

The cost of living is also a major factor in why Californians have moved to Texas. Tech companies and big businesses caught on to the trend and wanted to maximize their return on investment, and the Lone Star state was the best place to plant their flag.

If you or anyone you know is looking to move to the DFW area, contact Aaron Everett at 214.403.0805.

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First time Home Buyer tips

Buying a home for the first time is one of the largest purchases you can make. I have a question for you – Do you know what to expect in the home buying process?

Choose a Realtor

There are so many steps in the home buying process behind the scenes with your Realtor. If you have a great Realtor, they will make the transition from renter to homeowner go smoothly.

I recommend hiring a Realtor as the first step in your home buying process. Friends and family may say you should consult with a Mortgage lender, to see what amount you’re approved for and if you need credit counseling. The reason I prefer my potential clients speak with me first, is because it allows me to set expectations before we start our home search, and I’m able to recommend reputable Mortgage lenders.

Explore mortgage options

When a potential homeowner looks to get approved to buy a house, there are several loan options. The most common is an FHA loan. This type of loan is popular because it accepts a low down payment and requires a low down payment of just 3.5% down on the purchase of their home. The minimum credit score to qualify is 580, and mortgage insurance on a FHA loan isn’t cancelable.

A Conventional loan has a minimum credit score of 620 and requires 3% down. Conventional mortgage insurance can be canceled once you reach 20% equity in your home, so if you plan to keep the home beyond 5-10 years, consider this loan. Additionally, conventional loans charge a higher rate for lower credit scores,  whereas FHA doesn’t.

VA loans are for our Veterans that served our country. These loans don’t require any money down or have mortgage insurance, but instead upfront VA funding fees, such as loan origination charges.

Research first-time home buyer assistance programs

Many states offer first-time homebuyers down payment and closing assistance to low income homebuyers. The purpose of the program is to increase homeownership opportunities.

Get a Pre-approval letter

This is important because it tells the buyer how much their approved for. A lender will pull your credit and review documents to verify your income and assets. This also shows home sellers that you’re a serious buyer that has been pre-approved. You should apply for a pre-approval when you’re ready to make a purchase.

Option Period and Inspection

This portion of the home buying process is an agreed upon amount of days between the buyer and the seller, that allows for an inspection of the home. Buyers are even waiving their option period in order to get their offer accepted.

Buy Home Insurance

Your lender will require you to purchase homeowners insurance before closing. Homeowners insurance covers the cost of repairs and belongings in the home, in the event your home is destroyed by an incident covered in your policy. It’s important to have enough insurance to cover the cost of rebuilding the home.

Closing Cost

These are the fees and expenses you pay at closing to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can always ask the seller to pay a portion of your closing costs.

Your almost home

As tempting as it seems, it’s important not to make any large purchases that may impact your credit. This is important because if a purchase is made, it could significantly impact your loan and even cause it to be denied. It’s best to wait until you have closed on your home before you make a huge purchase.

The combined salary of homeowners is lower today compared to 2008, at the height of the housing crash – this means homeownership is right at your fingertips.

May the odds ever be in your favor during your home search.

What’s New in West Dallas?

Storybuilt Homes plans houses and rental units west of downtown Dallas.

A new housing development planned for West Dallas will bring hundreds of homes to the area near downtown over the next few years.

According to Steve Brown of The Dallas Morning News, Storybuilt Homes is working on a 12-acre development at Fort Worth Avenue and Commerce Street.

Storybuilt Homes goal is to construct a variety of homes, said Adam Stetson, who heads the builder’s Dallas-area operations.

“We are looking at about 400 units of multifamily for rent and about 144 units for sale homes,” said Adam Stetson. “Also we are looking at some attached condos.”

This Austin based company has made a habit of building communities with huge additions in Oak Cliff, Dallas and Plano. The builder just announced a 36- home project in the Lake Highlands area of Dallas.

What’s so special about West Dallas?

You may be asking yourself the same question and wondering why this hot bed for new construction is in high demand.

Thanks to its prime location near downtown, West Dallas has plenty of living options that will meet every need. Well, West Dallas is central to some of the most popular places in Dallas. It’s a 10 minute car ride to Fair Park and 7 minute to the Victory Park area.

The stunning Margaret Hunt Hill Bridge is a landmark on the horizon, adjacent to the old Continental Bridge, marked a new era in West Dallas history and brought new life and pride to an area with a proud past and a promising future.

Whether you’re looking for a new built home that’s close to downtown or you just prefer staying somewhere within walking distance to Trinity Grove, West Dallas is the place to be. How do you feel about the up and coming additions to West Dallas?

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