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