Some Buyers Beginning to Resist Rising New Home Prices in Dallas-Fort Worth
With North Texas home prices jumping another 7.1 percent over the past year, a segment of potential homebuyers is starting to push back from the market according to the Dallas Business Journal.
By comparison, data from the S&P CoreLogic Case-Shiller National Home Price Index showed a 5.9 percent increase for its 20-city composite during the same 12-month period.
Ted Wilson’s company, Dallas-based Residential Strategies, tracks the new home residential market, and he blames the push-back on the short inventory of single-family homes priced below $250,000.
"We are seeing a lot more resistance at this point in the cycle," Wilson told the Business Journal. "There is a huge demand for affordable housing, and yet there's a limited amount of existing housing stock. The rising costs of land and construction costs make it difficult for builders to deliver affordable homes."
Though the current increase is less than the nine and 10 percent rises in recent years, housing costs in Dallas-Fort Worth over the last six years have escalated more than 50 percent, which is unprecedented in Wilson’s decades-long career.
"It is uncommon to see this kind of price appreciation from a historical standpoint, let alone well above the 20-city average," Wilson added.
While the demand for new homes in North Texas remains robust at median-to-higher price points, several homebuilders — including History Maker Homes — have established lower-cost home lines to reach-out to entry-level buyers.