New construction of residential homes is alive and well as indicated from HomesUSA.com. The largest amount of new home sales occured in the suburbs surrounding Dallas, where land values remain lower.
Land values increase the closer you get to the Dallas border and continues to increase the closer you get to Downtown Dallas.
When a builder can obtain a lot of under $150,000, he can build a more affordable home. This becomes especially true when a builder can buy a large tract of land and keep his construction crew busy in one area.
Most construction in the Dallas area is single purchase lots costing $300,000 upwards into the millions. You can understand where they have to put a steep price on a home built on one of these lots.
As an appraiser once told…”You want to buy the smallest house on the biggest lot in Dallas. They are not building any more dirt, it is a commodity.”
Comments from Mary Beth Harrison, Dallas Native Team | Dave Perry-Miller Real Estate
HomesUSA.com New Home Sales Index Shows Continued Stability
New home sales continue their record pace in 2018. Days on Market statewide was relatively flat, so new homes sold at about the same pace in November as they did in October in Texas, according to HomesUSA.com. But the big news for November was the increase in the average price of new home sales in Texas for the sixth straight month.
Average new home prices in Dallas-Ft. Worth, Austin, and San Antonio all increased last month, as the statewide average in Texas rose from $357,547 in October to $358,108 in November, the company reported, based on data from local Multiple Listing Services.
The HomesUSA.com New Home Sales Index showed the Days on Market (DOM) for new home sales statewide in November was 112.85 days, up marginally from 112.81 days in October.
The HomesUSA.com Index shows the Days on Market for San Antonio improved from 105.42 days in October, dropping to 104.03 days in November. Dallas-Ft. Worth, the state and nation’s biggest new home market in total sales volume, rose from 114.46 days in October to 115.55 days in November. The pace of new home sales in Austin improved as its DOM decreased from 115.48 days in October to 115.01 days in November. (Due to technical issues the Houston Association of Realtors is experiencing, they are unable to provide Days on Market data. This report will be updated when data is provided.)
“Texas is on target for a record year of new home sales statewide,” said Ben Caballero, owner of HomesUSA.com. ”The bright spot in November was clearly Austin. Taking into account the announcement by Apple to build a $1 billion campus in Austin, its new homes market prospects look even brighter,” he added. (See Grid 1: Texas New Homes Days on Market; Chart 1: Texas New Homes Tracking – Days on Market)
Home prices were higher once again statewide, up in three of the four major new home markets. Only Houston saw a very small decline in its average new home price for November. In Dallas-Ft. Worth, the average new home price in November was $376,179, up from $374,871 in October. In Austin, the average new home price in November was $369,775, up from $368,728 in October. And in San Antonio, the average new home price in November was $296,182, up from $295,322 in October. Houston was the exception, where the average new home price in November was lower at $358,458, down from $358,490 in October. (See Grid 2: Texas New Home Sales Prices)
“Texas continues to be the nation’s hottest new homes market,” said Caballero. “Despite signs of stabilizing, 2018 is going to be a record year for new home sales in Texas,” he noted, based on information compiled by HomesUSA.com from local MLS and trade associations, including the Houston Association of REALTORS, North Texas Real Estate Information Systems, San Antonio Board of REALTORS and the Austin Board of REALTORS.
Real estate’s first Guinness World Record holder for home sales1, Caballero, is sharing this Texas new homes data in tandem with this morning’s announcement by the Commerce Department on New Home Sales for November. The Commerce Department issues its nationwide new home construction data at 10:00 am Eastern, Thursday, December 27, 2018.
NEW HOME SALES DATA
Total new home sales statewide were up from 3,806 in October to 3,825 in November. New home sales were higher in every market but Dallas-Ft. Worth, which saw a slight decline. New home sales in Dallas-Ft. Worth posted a 12-month rolling average of 1,330 new home sales for November, slightly down from 1,337 home sales for October. New home sales in Houston for November were 1,291, up from 1,280 in October.
San Antonio also showed an increase in new home sales: November new home sales were 523, up from 512 new home sales in October. In Austin, home sales also were higher last month with 682 sales in November, up from 677 home sales in October. (See Grid 3: Texas New Home Sales)
About the HomesUSA.com New Home Sales Index
The HomesUSA.com Index is a 12-month rolling average of the Days on Market (DOM) for new homes listed in the local Multiple Listing Services (MLSs) for the four largest Texas markets, including Dallas-Ft. Worth, Houston, Austin, and San Antonio. Created by Ben Caballero, founder, and CEO of HomesUSA.com and the most productive real estate agent in the world, it is the first index to track the sale pace of new home sales specifically.
About Ben Caballero and HomesUSA.com®
Ben Caballero is a Guinness World Record holder1, earning him the reputation as the world’s most productive real estate agent. Top-ranked in America by REAL Trendssince 2013, as published in the Wall Street Journal, he is also the only agent to exceed $1 billion in residential sales transactions in a single year; a feat first achieved in 2015 and repeated each year since. An award-winning innovator, Caballero is the founder and CEO of HomesUSA.com, Inc., working with more than 60 home builders in Dallas-Fort Worth, Houston, Austin and San Antonio. Learn more at HomesUSA.com |Twitter: @bcaballero – @HomesUSA | Facebook: /HomesUSAdotcom.
1 “Most annual home sale transactions through MLS by an individual sell side real estate agent – current.” – Guinness World Records – awarded 2018
Chart 1 – Texas New Homes Sales Index: Days on Market | HomesUSA.com
Grid 1 – Texas New Homes Sales Index Shows Days on Market | HomesUSA.com
Grid 2 – Texas New Homes Prices – Nov. 2018 | HomesUSA.com
Grid 3 – Total Texas New Homes Sales: Nov. 2018 | HomesUSA.com
Note for journalists: You may contact Ben Caballero directly on his cell at (214) 616-9222 or by email at firstname.lastname@example.org.
Ben Caballero, owner of HomesUSA.com, is real estate’s first Guinness World Records holder for home sales, and the world’s most productive real estate agent.