Just the Facts: DFW Still Short of Homes

Report: DFW Still Short of Homes Despite Record Construction

Dallas-Fort Worth was still short over 40,000 home listings by the end of 2015, even as the number of single-family homes under construction set a regional record, according to one housing research firm.  By the end of 2015, there were 14,180 single-family homes under construction, which represents a 7.2-month supply, but it wasn’t enough to counteract the North Texas’ home shortage, said Ted Wilson, principal at Dallas-based Residential Strategies, which tracks and analyzes Dallas-Fort Worth’s housing market.   “Shortages of construction labor continue to provide challenges for homebuilders,” Wilson said. “Unfortunately, there appears to be no near-term alleviation for this challenge.”  The record rains in spring 2015 also set back the number of completed homes. For 2015, builders started 27,672 new homes, which was an increase 6.6 percent year-over-year, according to Residential Strategies’ data.   By year=end 2015, builders closed $23,565 single-family homes, which increased 7.9 percent year-over-year.  

 

Builders’ estimated the number of closings were 15 percent to 20 percent below their business plan because of construction delays tied to weather and a tight labor supply, Wilson said. And, so far, there’s no end in sight, he said.  “Shortages of construction labor continue to provide challenges for homebuilders,” Wilson said.  Wilson said North Texas’ homebuilding industry outlook appears “quite bright” for the next few years as companies continue to relocate employees to the region.   “This steady influx of workers should help sustain housing demand,” he said.

–          Dallas Business Journal, January 8, 2016

 

North Texas Home Sales Surged in December to Set Record for 2015

North Texas home sales jumped 21 percent in December as homebuyers scrambled to get purchases closed before the end of the year.  December’s surge in sales was enough to push 2015 home purchases to a record 96,156 preowned homes, according to data from the Real Estate Center at Texas A&M University.  Almost $25 billion in houses were sold last year.  “We knew the market was very strong,” Russell Berry, president of the MetroTex Association of Realtors, said in a statement. “We astounded to see sales volume at nearly $25 billion for the year.”  Home sales in the area in 2015 were almost 15 percent greater than in 2006, the peak local housing year before the recession.  Real estate agents sold 8,543 preowned in December – the highest sales volume in three months. December usually sees declines in home purchases because of the holidays.  Median home sales prices in the final month of 2015 were $210,000 – 9 percent ahead of December 2014, according to data supply by the North Texas Real Estate Information System.

–          Dallas Morning News, January 8, 2016

 

January Pendings Are Up 28 Percent

Early indications show another strong month for home sales in January.  The number of pending home purchases – under contract but not yet completes – was 28 percent higher than a year ago.  The early start for 2016 no doubt ease fears of a housing sector cool down caused by the huge declines in oil prices and cutbacks in Texas’ energy industry.  Worries about rising interest rates may have helped fuel the dramatic rise in December home sales.  “The uptick in Federal Reserve rates pulled people off the sidelines,” said Ted Wilson, a housing analyst with Dallas’ Residential Strategies Inc. “They think it’s time to buy.”

–          Dallas Morning News, January 8, 2016


Toyota rents temporary offices for hundreds of workers in Plano

Less than a week after announcing plans to move its North American headquarters to North Texas, Toyota Motor Corp. has already rented space for a temporary office. The giant automaker has leased 120,000 square feet in the Campus at Legacy complex just east of Dallas North Tollway on Legacy Drive. Toyota plans to have its first workers in the building by August. Thinking about selling? Now is the time. Insert article in the blog, not just the link.

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Toyota is renting 120,000 square feet of office space at Plano’s Campus at Legacy complex. The automaker has said it plans to have the first employees start here in August.

Less than a week after announcing plans to move its North American headquarters to North Texas, Toyota Motor Corp. has already rented space for a temporary office.

The giant automaker has leased 120,000 square feet in the Campus at Legacy complex just east of Dallas North Tollway on Legacy Drive.

Toyota plans to have its first workers in the building by August, the company previously said.

The company will use the office space while it builds its 1 million plus-square-foot office campus at Legacy and Headquarters drives in Legacy business park.

Toyota leased the office space from San Francisco-based Spear Street Capital, which owns the 1 million-square-foot Campus at Legacy.

Other tenants in the buildings include Denbury Resources, PepsiCo, St. Jude Medical, Bear Transportation, FutureWei Technologies and Dr Pepper Snapple Group Inc.

Bruce Miller and Paul Martin with the law firm Vinson & Elkins negotiated the office lease with Chuck Sellers, Russ Johnson and Lauren Perry with Peloton Commercial Real Estate.

Miller said the transaction to rent the office space happened quickly.

“We didn’t know who the tenant was going to be until Monday,” he said. “The lease was signed Wednesday.”

Toyota said Monday that it is moving about 4,000 of its jobs from California, Kentucky and New York to a new U.S. headquarters complex it will build in Plano.

Most of the moves will take place in 2016 and 2017, after the new campus is opened.