Home > New Construction > New Homes Report D-FW #2 In Country Ending March 2009

The Dallas-Fort Worth metroplex ranked #2 in the country for new home sales and starts during the 12-month period ending March 2009. DFW comes in after Houston in the nation for new homes report.

Although new home starts dropped more than 50% when compared to the 2008 numbers, DFW sold more than 17,000 houses in the 12-month period following Houston which sold 23,000 new home sales.

Here, new home starts in Frisco Texas are as follows:

2009

April - 54 permits
March - 58 permits
February - 52 permits
January - 52 permits
 

2008

December - 31 permits
November - 39 permits
October - 64 permits
September - 81 permits
August - 111 permits
July - 112 permits
June - 99 permits
May - 116 permits
April - 118 permits
March - 100 permits
February - 102 permits
January - 120 permits
-----------------------------------
Total - 1,093 permits

The new homes for 2009 in Frisco Texas reflected exactly 50% based on 2008 numbers.

Several factors seem to affect the new home sales in Frisco Texas:

Frisco Texas is considered a relatively new suburbs in the Dallas metroplex. Hence, Frisco is still undergoing many new residential development projects. Several years ago (in 2006) when new home sales peaked, many builders sold homes to many home buyers who qualified for 100% or very low down-payment loans. Many of them acquired these homes through adjustable rate mortgages. When the interest rates adjust upwards, many of them found themselves too strapped to pay for the new increased mortgage payments. Many of them faced values less than what they paid originally. Many of them resorted to short sales in Frisco while some chose the bankruptcy and foreclosure routes.

Things do not look pretty in Frisco Texas - as far as foreclosure and short sale rates. At the same time, one man's pain is another man's gain. This becomes a buying haven for those who can qualify now. Many buyers in Frisco Texas can purchase almost new homes, and some even purchase brand new homes from home builders that went into bankruptcy.

Many buyers these days pay far less money to purchase these "good deals" than to purchase from new home builders. Hence, new home builders continue to struggle.

At the same time, the cost of building still pretty much cost the same (if not more) than back in 2006 (at the highest peak). Hence, for many buyers who are seeking "good deals", it seems like new home builds are not the answer to their quest.

New home builders have also faced difficulty in acquiring new loans - just like consumers. Lenders feel uncomfortable approving loans on new home builds that sit on high inventory levels. Some builders in the area offer large incentives to get these inventories off their books so that they can get back into building again.

It's just ugly out here in Frisco Texas. But I choose to view this as a positive effect on new home sales. Here in Frisco Texas, we have a new kind of new home buying opportunity. Seize it and at the same time, let Uncle Sam help you with the Frisco TX First Time Home Buyers $8,000 Tax Credit if you qualify.

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