Home sellers in North Dallas are often getting more than their asking price with several offers, as the supply of houses in the area is at the lowest point in generations. You can now see buyers who are camping overnight in Collin County in order to get first pick of lots for new houses.
Meanwhile, some market analysts worry about the pace of local price increases and exceptional demand. Dr. James Gaines, chief economist of the Real Estate Center at Texas A&M University, is one of those who worry if things are going to go bust. He said that if people are camping overnight to buy houses, then, that doesn’t sound good.
There are a number of buyers who lined up since Monday just to get the best home sites in a new subdivision built by First Texas Homes, located in west McKinney near U.S. Highway 380.
Keah, a real estate agent who is renting in McKinney, said that it is a good investment as the area is growing so much, planning to acquire a corner lot in a cul-de-sac next to a wooded stretch.
Before, it used to be Plano, then Frisco and now McKinney. Thus, the values just continue to increase in this area. The median new home prices in North Texas are around $285,000. But with the significant increases in land and construction costs in the D-FW area, the new home costs are now above $300,000 in several neighbourhoods.
On the other hand, the supply of finished new houses in the area is only about 2,700 available for immediate move-in, which is near a record low. With the shortage of both new and pre-owned homes, it led the residential property costs to soar in North Texas. Based on Standard & Poor’s Case Shiller Home Price Index, Dallas-area home prices have increased by 8.7 percent in July from 2014 levels.
North Texas home prices grew by 15 percent than before the recession, while Denver and Austin have only around 13 percent. As Homes.com president David Mele said, most homeowners in these markets have regained lost equity from the housing crash. They are also seeing good progress toward restoring equity to the remainder of the nation.