The North Dallas Chamber of Commerce will examine the economy and new urbanism, a certain shiplap-happy couple will be returning to the airwaves, and we take a look at Texas housing sales, all in this week’s roundup of real estate news.
NORTH DALLAS CHAMBER HOSTS ECONOMIC OUTLOOK
Former Dallas chief of economic development Raquel Favela will be among the speakers at the North Dallas Chamber of Commerce’s annual real estate and economic outlook event to be held Nov. 28 at the Westin Galleria Dallas.
The event will focus on how the city is implementing New Urbanism, including mixed-use developments, land use, walkability, public spaces and more, with an aim at improving the quality of life in the city.
Other speakers include Tillie Borchers, Director of Investments, Civitas Capital Group; Cullum Clark, Director, Bush Institute – SMU Economic Growth Initiative; and moderator Jeff Schnick, Editor, Dallas Business Journal.
CHIP AND JOANNA RETURN TO THE AIRWAVES
If you’ve been missing a certain Waco-centric couple, it seems they will be returning to the airwaves — with their own network.
Chip and Joanna Gaines announced Friday night during an appearance on the Tonight Show with Jimmy Fallon that they had inked a deal with Discovery (which also owns the DIY Network and HGTV) to have their own network.
“We signed a non-disclosure and it said, quote/unquote, you can tell your mother but that’s it,” Chip said Friday. “So mom, I just wanted to make a quick announcement, we are coming back to television. You are going to get to see the kids grow up, you are going to see us, well maybe a six-month delay like the rest of the world, but we are excited to be back.”
Later, the couple’s Magnolia Company, as well as Discovery, made statements confirming the announcement.
HOUSING SALES FELL IN 3Q, SHORTAGE AND INTEREST RATES TO BLAME
Housing sales fell 2.5 percent in the third quarter of 2018, largely because of a shortage of homes in the $300,000 and under market, and rising interest rates, the Texas A&M Real Estate Center’s Texas Housing Insight report revealed.
Supply remained stable in the earliest stage of construction — Vacant Developed Lots. Dallas-Fort Worth had more than 32,000 VDLs ready year to date, the highest rate in the state. Single-family housing construction permits increased statewide 5.1 percent quarter over quarter, with DFW issuing 2,912 of those permits — and Fort Worth alone issuing 819.
However, total housing starts dropped 13.5 percent QOQ thanks to labor shortages and rising costs. Multifamily residential starts rose, but single-family starts actually fell QOQ across the state’s major metros. In DFW and San Antonio, single-family starts of homes priced below $200,000 accounted for most of the quarterly contraction.
Statewide, the Months of Inventory continued to climb, this month to 3.6 months.
“Listing inventories expanded across the price spectrum with large gains occurring at the high-end market (homes priced more than $500,000), where the MOI rose above nine months,” the report said. “In the $200,000-$300,000 range, the MOI reached an annual high of 3.2 months. The market for homes priced less than $200,000 remained the exception, where the MOI sank below 2.8 months and will likely drop further.”
In Dallas, the MOI was 2.9 months.
Softened demand in the market for new homes priced below $300,000 resulted in a total sales decrease of 5.3 percent in Dallas.
Despite the drop in sales, demand is still high for that price point. The average DOM dropped below 58 days statewide. The same was true for homes under the $200,000 range, with a DOM at 58 days. Demand remains strongest for the $200,000-$300,000 range.
The dip in sales brought the state’s homeownership rate below 63 percent, about 1.5 percent below the national rate. In Dallas, the rate hovers around 62 percent.
“The Texas Repeat Sales Indices dropped to 3.3 and 5.0 percent YOY in Dallas and Fort Worth, respectively, the slowest North Texas growth rate in six years,” the report said. “The current trajectory is much more sustainable than peak levels obtained between 2015 and 2017, reducing pressure on affordability.”
Median home prices in the state reached $231,900 in September, with Dallas and Fort Worth breaking records with median prices of $289,500 and $234,700, respectively.
“The state’s booming economy and population growth combined with relatively stagnant wages pulled the Texas Housing Affordability Index below 1.5 for the second straight quarter,” the report said. “The index indicated that a family earning the median income in Texas could afford a home 50 percent more than the median sale price.”
In Dallas, the index dropped to 1.3, and Fort Worth’s fell to 1.6.
