North Texas Home Prices Remain Steady in Spring
DFW: Home prices in North Texas remain steady despite higher mortgage interest rates that have sidelined many would-be buyers. Industry analysts continue to point to DFW’s continued vibrant and diverse economy that continues to attract both individuals and companies from other parts of the state and country. The Texas Real Estate Research Center at Texas A&M University and North Texas Real Estate Information Systems says in a new report that single-family homes in the area dropped about 2% in May, compared to the same period in 2022. But the traditional spring selling season has been good for many sellers. The median price for single-family homes in the area in May was down about 5% from last year but actually recorded a 2.5% spike from April. Inventory continues to remain relatively low and real estate agents report that homes appropriately priced in sought-after neighborhoods and cities continue to demand top dollar.
TEXAS: Those California license plates on Texas roads are not a mirage. The Golden State to Lone Star State relocation route continues to be the biggest one in the country. In 2021, as the country continued to fight its way through the pandemic and seek opportunities away from home, more than 110,000 Californians headed east to Texas. That was about 300 people a day, according to StorageCafe, a data and research company serving the self-storage industry, which says that the trend continues today. The reason for the move is simple: lower cost of living from homes and groceries to gas and incidentals, plus expanding economies and industries, specifically in tech. And the big one: no state income tax. StorageCafe said that 2021 was the peak period of migration from California to Texas in the last decade, increasing 80% from 2012. The company said that about half of those moving to Texas from California were millennials and that Dallas, Houston, and the Greater Austin area was the magnet. A couple of sidenotes: Los Angeles residents moving to Collin County could get more than 60% bigger houses, and residents making their way from San Jose to Dallas could see savings of $1 million and more when buying a home.
U.S.: The country’s housing shortfall has hit more than 1.5 million homes. The National Association of Home Builders says that improved economic conditions, better prices on land and materials and more skilled construction workers will be key in the coming years to help reduce the shortage of homes. During the pandemic, builders could not keep up with the housing demand and faced higher prices and supply chain and labor shortage issues. Homebuyers, on the other hand, replete with both a low mortgage interest rate and cash if needed, moved in droves to bigger, more expensive homes. Many paid thousands of dollars above listing price, waived inspection and opted for fast closings in order to get the home of their dreams. Last year, as both builders and homebuyers faced higher costs for borrowing, many went to the sidelines. But industry experts say that in 2024, the demand for construction will increase as will the need for more construction labor. The Home Builders Institute Construction Labor Report says that there are nearly 400,000 construction job openings in the country. That means that over the next three years, 723,000 new construction workers will be needed each year in order to meet the renewed demand for housing.
TEXAS: Still looking to get away from the hustle and bustle of the city for a piece of Texas farm or ranch land? That’s still gonna cost you, podner, because land in the Lone Star State continues to be more expensive, and prime acreage is less available. The Texas Real Estate Research Center at Texas A&M University reports that the average price of an acre of rural land averaged more than $4,400 an acre in 2022. That compared to less than $3,000 an acre in 2019. Then the pandemic hit and with the availability of remote work and school, thousands of Texans sought refuge away from others. As demand for rural homes grew so did those prices. Prices in Northeast Texas increased to more than $7,000 an acre, as did the Hill Country area around Austin and Waco. South Texas prices were about $5,700 an acre, but buyers could find bargains in sun-soaked and parched West Texas and the South Plains. More than 700,000 acres changed hands in 2022, but sales have since dropped. Even so, rural land industry experts say that drop is tied not only to higher prices but because would-be buyers are more discerning post-pandemic.
DFW: A residential high-rise in Victory Park in Dallas has changed hands. A group led by Madera Residential of Lubbock is the new owner of the Cirque, a 26-story, 252-unit tower across the street from American Airlines Center. The tower also is across the street from the site of a Goldman Sachs regional complex that will house thousands of workers. The Cirque high-rise was built in 2006, has been owned by I&G Direct Real Estate since 2016 and is more than 90% leased. A new regional office for Goldman Sachs will have an average monthly rent of about $3,000. Madera, which received $62 million in financing from MetLife Commercial Mortgage for the Cirque purchase, is no stranger to North Texas residential real estate. It has acquired more than 29,000 rental units in the past 15 years in the area.
KC: Patrick Mahomes is looking to sell one of his Kansas City area homes. The star Kansas City Stars quarterback and his wife Brittany have listed the first home they bought and renovated. They are asking $2.9 million for the 4,800-square-foot, three- bedroom home in the Sunset Hills area of the city. There are custom features throughout the two-level home, including a home office, sunroom and a 1,250 square foot primary suite with glass shower and soaking tub, a closet for the quarterback’s sneaker collection, and a five-car garage. There’s also a swimming pool and a putting green in the backyard. Not only did Mahomes sign a new lucrative $450 million contract in 2020, but he has also invested in businesses and real estate in Missouri and Texas. He and his family are preparing to move to a larger mansion in the Loch Lloyd neighborhood of Kansas City.