Sales and prices of new homes are outpacing the existing home market in north Texas.
New home prices across the north Texas region rose in May from the previous month, according to the Dallas Business Journal, citing a report by Dallas-based HomesUSA.com. Home sales in the Dallas-Fort Worth area also rose for the third straight month in May, with the three-month average of new home sales rising to 1,374 from 1,321 in April, a gain of about 4 percent.
Home builders are providing much-needed supply to the market, while builders facing rising costs of capital, materials and labor are passing along some of those to consumers. The three-month moving average of new home sale prices last month was $486,172, a gain of 17 percent from May 2021. Existing home prices were up about 20 percent in March from a year earlier, while sales dropped about 6 percent.
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“As builders’ costs keep increasing, demand is still exerting upward pressure on new home prices, setting records in three of Texas’s four largest new home markets last month, including Dallas-Fort Worth,” said Ben Caballero, CEO of HomesUSA.com, in a release.
The number of pending new home sales in DFW rose 6.2 percent in May from the previous month, according to the report. Caballero says this is a sign that the number of available home listings in the area will continue to increase.
“Builders are clearly improving inventory as Dallas area new home sales continue to defy conventional wisdom with persistent strength,” he said.
Other cities also saw an uptick in new homes sales. Houston sales rose 1.2 percent to 1797 in May from April; Austin sales gaining 1.7 percent, and San Antonio increasing by 1.7 percent to 548.
“I don’t see anything but explosive growth from here on,” Caballero said in a statement. “We’re just very fortunate to be right in the middle of the best market in the entire country.”
[Dallas Business Journal] — James Bell