New home construction slowed during the first quarter of 2019 as North Texas home builders started just 8,439 new homes. According to data from Residential Strategies Inc, that represents a 4.4 percent decline compared to a year ago. 2019 ended with just under 890,000 new home starts which recorded another record year of low housing production esp. when compared to the 1.4 million built in 2007 right before the housing crash in the first Great Recession of the 3rd millennium.
Despite low mortgage rates and strong demand and buyer traffic, sales definitely tailed off towards the end of 2018, but showed positive gains closing out Q4 2019 with home sales and prices both showing modest gains throughout the DFW area. Home Sales in DFW for December 2019 are likely attributed to strong buyer demand, low inventory, record job growth and record low interest rates providing home buyers with more purchase power. Speaking of buyer purchase power, if you're a buyer in the DFW area considering purchasing in 2020, you're going to need that extra edge with DFW home prices literally rising through the roof due to record home appreciation for single-family residences and condominiums.
In 2019, builders were more focused on unloading existing inventory rather than starting new homes, and in some cases were offering significant discounts and buyer incentives in order to move their inventory. There were around 36,000 new home starts in 2019 and 2020 is expected to increase slightly while existing inventory levels continue to fall.
New homes sales throughout the entire DFW region jumped up by about 2.3 percent in the first quarter of 2019 and are expected to do the same for 2020. Low inventory and high demand is expected to fuel bidding wars, increase home values and ultimately home sales for 2020. Whether you're buying, selling or both, it looks like the DFW market will offer a unique opportunity in 2020 for everyone to cash in on a little upside!