In January of this year, the Dallas Morning News stated that the North Texas real estate market was on fire last year. Although there were some concerns regarding the slow recovery from 2008’s Great Recession as well as the sinking oil prices, home sales were booming all over the state, especially in the Dallas-Fort Worth area.
The paper cited the soaring job gains and rocketing real estate values were the main factors for such strong gains. Although Texas towns have their fair share of post-recession hardship such as foreclosures and real estate development plans that were put on hold, those times quickly faded.
There were findings that showed that by the end of 2015, there was a construction of around 9 million square feet of office space in the bustling North Texas area. That’s equivalent to around 40 percent more compared to the extremely high pre-2007 time frame. It is also not all about the commercial space. The construction starts in the Dallas-Fort Worth metro has 38,000 apartment units, which is 80 percent better compared to the pre-recession rate.
The North Texas market is on its way to completing over 15 million square feet of warehouse and industrial space, on the back of a strong economy and exploding job growth. This represents one of the top industrial building volumes in the country, which is enough to push warehouse development past the preceding cycle peak. The retail construction sector has also been slower compared to the others in recent months.
Of these, the most notable activity is in the single-family housing market, with existing home sales of over 90,000 that broke records last 2015 in North Texas. Another positive news is that the median home sales prices for the Dallas-Fort Worth metro area hit $200,000, which is their highest level yet and 20 percent above the peak seen in 2007.
As we are heading to the end of the year, it is exciting to see whether the North Texas housing can perform better as it did in 2015.