Neighborhood and Market News, Design Trends, and Events in Dallas, Collin, and Tarrant Counties
Expert Q&A: Is the Homebuilder Market on the Rebound?
Posted April 30th, 2013 |
by Update Metro
With continued issues of low inventory of existing homes for sale in the Metroplex real estate market, homebuilders are doing their best to increase the inventory of new homes.
But it hasn’t been an easy task. Lots have been just as difficult to come by as existing homes for sale, causing some headaches for homebuilders.
According to the U.S. Census Bureau, overall housing starts jumped in March, but construction of single-family homes decreased for a number of reasons - scarcity of lots being one of them.
“Many builders are expressing frustration over being unable to respond to the rising demand for new homes due to difficulties in obtaining construction credit, overly restrictive mortgage lending rules and construction costs that are increasing at a faster pace than appraised values,” said Rick Judson, National Association of Home Builders chairman in assessing homebuilder confidence earlier this month. “While sales conditions are generally improving, these challenges are holding back new building and job creation.”
Here’s some insight about the Metroplex homebuilder market from the expert agents at Briggs Freeman Sotheby’s International Realty.
Q: Is the homebuilder market on the rebound? What are the signs?
Joan Eleazer
A:
There’s very little inventory in lots, just like with houses. I met with a builder who was trying to buy a lot – he said he was overbidding for a lot – but lost it because there were so many other bidders. If you want to build, it’s important to have a relationship with a Realtor who is connected and can find lots or teardowns that might not be listed but are available. 214.537.5923 | [email protected] | theeleazergroup.com
Ann Shaw
A:
In the Park Cities, you can see it just by driving through the neighborhoods and seeing all of the new homes under construction. There’s a builder with two lots in University Park right now, and he’s not going to build a spec house. There’s no need to – he can sell it before he breaks ground. The inventory of homes on the market is low, so it’s a good time for new construction, and the builders seem to be paying top dollar for prime lots. 214.532.4824 | [email protected]
Anne Goyer
A:
Builders have clients who want to build houses, but they can’t find lots. That means builders will need to start soliciting homes that could be teardowns to get the land. As the demand grows for lots in great neighborhoods, we will see more private sales of teardown properties, with homeowners working with agents who can find the right buyer at the right price. 214.457.0417 | [email protected] | gioiagoyer.com
Alex Trusler
A:
There are as many buyers looking for lots for custom-built homes as there are builders offering spec homes. We are seeing a lot of movement especially in Lakewood, the M Streets, and the other premiere neighborhoods east of Interstate 75. Plenty of new homes are going up and residential lots are selling as soon as they hit the market. 214.755.8180 | [email protected] |trusler-seale.com
Click here to see the latest business news and insight from top Dallas-Fort Worth Realtors. Click here to see luxury homes for sale in Dallas-Fort Worth and around the world.
Local news and events around Dallas, Highland Park, Preston Hollow, Southlake, Colleyville, and numerous other North Texas metroplex neighborhoods. See Posts in Buzz
