As seen in the New York Times:
Continued growth, low interest rates and a slow but steady rise in inventory levels are supporting a strong real estate market throughout the North Texas area.
For the past 18 months, existing home prices in the Dallas area have been on the rise. While gains continue, the rate of price increases is starting to slow. According to the latest Standard & Poor’s/Case-Shiller Home Price Index, local home prices increased just 7.4 percent year over year, the lowest rate in about a year. As we look forward, home prices in our area are forecast to increase by about 4 percent in the next 12 months.
In Dallas we’re finally starting to see a slight improvement in inventory levels. Right now, there’s a 2.6 month supply of homes—still low, considering that a 6 month supply is balanced—but an improvement over a historic low of 2.1 months in January. In the northern suburbs of Plano, Frisco and McKinney, demand continues to outpace supply thanks to several corporate relocations underway and on the drawing board.
Developers, many of them coming from California and New York, are hungry for land in Dallas. Right now land in Uptown is selling for about $200/foot, pushing developers to look at pocket neighborhoods such as Far East Dallas and the Cedars area where prices are a more attainable $20/foot. Another growth area is along the Stemmons Corridor, where expansion in the Medical District and the Design District is bringing development interest. And in the popular Trinity Groves area, a $100 million multi-family/retail project is already underway driving more activity toward Oak Cliff.
This summer we saw a 7 percent increase in the number of home building permits issued in Dallas County. High demand has pushed land prices on key streets in Highland Park upwards for $230/foot. In Preston Hollow, lots are averaging over $46/foot, and in University Park a new benchmark was hit recently when a 70-foot lot sold for $1,450,000.
I welcome your questions and comments.
President and CEO
For more luxury homes, see briggsfreeman.com. Click here to see the latest in real estate news. CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with six offices in Dallas, Uptown, Lakewood, Ranch and Land, The Ballpark and Southlake.