Dallas Prices On the Rise

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As we have all heard on the national news, housing prices are on the rise.  Dallas is one of the leading cities in increased prices in the United States.  Dallas prices have increased  by 8.1% in January 2015 over January 2014.  Why such a change?  There is a number of contributing factors.  First, most of the nation is seeing an uptick in housing prices, this is due in part to lower interest rates. Nationally we are seeing a 4.5% increase in housing costs.

In the Dallas Metroplex we are seeing shortages in supply due to continuous population growth.  We are seeing record high prices, well over what we saw prior to the housing recession.  As relocating companies look at Dallas as a potential sight to relocate to, they see several positive attributes in the Dallas area.  They see lower than the national average housing prices, the ability to compute to either coast easily, a well-educated workforce, open land, a good place for their employees to raise a family and more.  Dallas is HOT for relocating companies.  This is only part of what is driving up prices.

Many suburbs are seeing an increase in new construction.  With new construction, we are also seeing higher prices.  Yes, land values have increased, however the cost of building a home has also gone up.  In the past few years we have seen an increase in lumber prices and labor prices.  Along with that, we have higher energy standards for new construction.  In many cities, builders are required to install energy-efficient appliances, radiant barrier, energy efficient water heaters (some cities require tankless water heaters), vinyl windows and irrigation drip systems.  When the energy standards became part of the equation in 2010, we saw the beginning of the rise in prices.

In the near future I don’t foresee a decrease in prices.  The demand on the market will continue for at least the next two years.  We will continue to see rapid-fire growth with new neighborhoods appearing daily.  With several major corporations including Toyota, Fed-Ex and Liberty Mutual moving to the area, it increase pressure on the market.  People ask me everyday if the prices are going to go down.  I just reply that the employees from these major corporations have not even started to purchase homes yet, if you want to make a move and you already live in the area, I would probably do it now.

If you have any questions, or would like housing statistics based on your specific neighborhood, please feel free to email us a team@ndreo.com.

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More Jobs Moving to North Texas Equals Higher Demand on the Real Estate Market

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If you live in the North Dallas area and are considering moving to a new or different home in the area, you may want to consider it sooner than later. Liberty Mutual has announced that it will bring 5,000 new jobs to its new Plano campus. As most people know,our real estate market already has very low inventory and prices are on the rise. We are seeing this is before we are seeing Toyota, FedEx or Liberty Mutual employees come in to the market and purchase homes. When the employees from these corporations begin to purchase, will we see land and home values rise even more rapidly? What are your thoughts?

The Current Months of Inventory (as of February 2015) in the North Dallas Area is as follows (please note anything under 5 months of inventory is a Seller’s Market):

Allen- 1.4 Months
Frisco- 1.3 Months
McKinney – 1.2 Months
Plano – 1.0 Months
Prosper – 3.8 Months
Little Elm – 1.6 Months
The Colony – 0.6 Months

Call us if you have questions about the housing market. We are here to help.

Check out the article  from The Dallas Morning News in this link about the announcement of Liberty Mutual bringing 5,000 new jobs to the area:

http://bizbeatblog.dallasnews.com/2015/04/liberty-mutual-confirms-its-bringing-5000-jobs-to-new-plano-campus.html/

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New Builder in Town

My husband and I, both Professional Real Estate Agents, have lived in North Dallas since 2006. As native Californians we had an adjustment to make in what to expect in a home when we moved to the area. the average Southern California home was 2,000 square feet, three or four bedrooms,  two bath home, featuring eight foot ceilings, a fairly standard, boxlike design both inside and out, with a two car garage,  a smaller yard, and lots of sunshine for $600,000-$1,000,000.  Moving to Frisco, we found the average homes were larger and featured much heavier design elements.   The typical home was 3,000 or more square feet, with the master bedroom downstairs, formal studies, high ceilings, with a lot of dark wood for around $250,000-$300,000.  The building standards were completely different.  This contrast is typical in most building markets when two areas are compared.

A few years ago, around 2012, I started to notice a shift in the Dallas building market.  I started to see cleaner, straight lines,  different uses of space, lighter colors, a more modern look.  At the time some of our buyers were very cautious about purchasing the “new look.”  They were afraid that if they ever needed to sell that they would not be able to sell.  I can tell, you coming from a different area, not everyone likes the traditional look that is region specific. Dallas has become the melting pot of the nation in the last few years.  I truly believe there is a buyer for every style.

This week I caught wind of the next generation of builders in the Dallas area.  Main Vue is the name of this new builder.   The company is owned by Australia’s biggest home builder.  They bring a very modern look, using international vendors along with new building concepts.  They are building in  the master planned community of Phillips Creek Ranch in West Frisco. Do you this this builder will be successful here?  I do, however, I do believe that some buyers will need to learn to be less cautious and move away from the area traditions. That, paired with the influx of out of state buyers that we are currently experiencing, I believe it is perfect timing for new ideas to come in.

Check out this excellent article from the Dallas Morning News on February 26, 2015 for more information.

Article Link

If you would like more information on this builder, please feel free to give us a call at 214.608.3278.

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Big Developers Headed to Frisco

With the Cowboys moving in and Toyota moving next door, it appears that Frisco has hit the map with an explosion of construction.  Drive around town and there is development everywhere.  It is not only commercial development, but residential development as well.  The town as definitely living up to it reputation of being the fasting growing city in the nation.   In the last few weeks the public has caught wind of a new mixed-use development and a new soccer complex.

Check out these two new developments:

As Written in the Star Enterprise on September 22, 2014:

http://starlocalmedia.com/friscoenterprise/business/dubai-based-developer-to-build-in-frisco/article_31e2fc0e-428b-11e4-bf27-83b02141e153.html

As Written in Lifestyle Frisco, September 23, 2014:

http://lifestylefrisco.com/health-fitness/new-56000-square-foot-soccer-facility-to-break-ground-in-frisco/

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North Texas Real Estate Market Indicators

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Each month I go over the Monthly Indicators report provided by the Collin County Association of Realtors.  I believe that understanding the real estate market is important not only to buyers and sellers, but to anyone who resides in an area.    It is an indicator of the health and stability of the overall economy.  We have been blessed in Texas not to get hit by the recession as hard as many other states.  Our recovery appears to be strong as well.  As of December 2013 this is where we stand:

  • Our Closed Sales from 2012 to 2013 were up 19.4%
  • Our Number of Days on the Market were down 29.4% (Average of 48 days)
  • Our Median Sales Price was up by 12.1% ($213,000)
  • Our Average Sales Price was up by 9.1% ($274,491)
  • Sellers Received an Average of 95.4% Percent of their Listing Price.
  • There were 23.9% less homes on the market in comparison to December 2012.  The 12 month average was at 25.8% less homes on the market.

 

In summary, the laws of supply and demand are in effect.  There are fewer houses on the market, coupled with higher land costs and building costs that are forcing the North Texas Markets to increase in price.  I truly believe that we will continue to see this trend through 2014.  Dallas and the surrounding communities are fast growing cities that are adjusting to the growth well.  With corporate movement in to the area housing prices will continue to rise and land value will go up as well.  It is a great time to live in North Dallas.  If you are interested in purchasing or investing in the Dallas Market, give us a call.

If you have questions, please feel free to contact us at 214.387.4959.  
Mark and Mandy Detrick
The North Dallas Real Estate Team
http://www.NorthDallasRealEstateTeam.com

 

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Win the $50,000 Give Away from Keller Williams by Downloading Our Mobile App!

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Have you heard about the Keller Williams $50,000 giveaway (see details below.) No obligations other than just downloading our new mobile search app on your phone or tablet. We checked out the app and it is super user friendly.
All you have to do is click http://app.kw.com/KW6082NV ,  or click on the  QR Code below, download the “Keller Williams Mobile App”, enter our code (KW6082NV) when prompted, click “enter to win $50,000”, and follow the simple instructions. Let us know if you have any problems, and we hope you’re the recipient of $50k in early April!

Here are the details: Between now and March 31, 2014, your opportunity to win comes by entering the “$50,000 Closer to Home Sweepstakes” through the Keller Williams Realty Real Estate Search App. You don’t ever have to use the app… just download it. Anyone can participate no matter where they live, so feel free to pass this along to family or friends.

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Frisco, Texas – A Small Town No More

OLYMPUS DIGITAL CAMERAI moved to Frisco in January of 2006 with my husband and two children, ages 3 and 7.  We moved to Frisco from Southern California in search of a better education for our kids.  We wanted our kids to be able to compete against other applicants going in to college and the California education system appeared to be weak and not improving. At the time, we looked at every state in the southern part of the U.S. and after visiting several cities we found that Frisco was the best place to call home.

In January of 2006 we saw opportunity and growth in Frisco.  The population when we arrived was 86,970+/- (Estimate from May 2006).  In January 2014 the population of Frisco is estimated at 137,330. To us, this growth is staggering and at times overwhelming when you think about it.  Where once there were fields and farms now stands a vast amount of homes and businesses.  The growth rate from 2000-2013 was at an astounding 303%.

Here is a comparison so you can understand the growth:

  • In the 2005-2006 school year there were 18 elementary schools, 6 middle schools and 2 high schools.
  • In the 2013-2014 school year there are 33 elementary schools, 13 middle schools and 6 high schools.

The good part is Frisco still has a small town feel.  There are multiple venues in the city to gather and get to know your neighbors.  People in Frisco love to be outdoors and the city planners really take this into consideration.  I believe that the venues that we have keep our residents in town for their entertainment, thus aiding in the feeling of community.

In the next few years I believe Frisco will transform in to an amazing city.  With the August 2013 Announcement of the Cowboys moving their World Corporate Headquarters to Frisco, I am sure we will see tremendous growth.  With a land mass of 72 square miles and only 57% of the land being built out I am hopeful that the city will continue to expand with careful consideration of the land use and focus on the family.

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