More signs that Dallas-Fort Worth's high-priced home market may be running out of steam: Homebuilders are shifting gears to build more affordable houses and holding back on pricey ones. "We continue to see a slowing of demand in the price ranges above $400,000," housing analyst Metrostudy reports in a new study. "With every quarter, demand for new homes above $400,000 wanes." Metrostudy said overall home starts in North Texas rose about 11 percent in 2016, as builders started just under 30,000. But a mismatch between what builders are offering and what customers want to pay is affecting the market, Metrostudy analysts say.
Paige Shipp of Metrostudy said she recently looked at the price of new houses in the booming Collin County town of Celina. In 2013, a 3,000-square-foot house in Celina cost an average of about $251,000. "Today, that same house would cost you $389,000," she said. "It's amazing how prices have gone up." Metrostudy says starts of houses above $400,000 are stalling. The sweet spot is now closer to $300,000. Shipp said starts of homes priced between $300,000 and $399,000 had the biggest increase last year, almost 27 percent. "That's where everybody is building," Shipp said. "The key is to stay below $400,000.
- Dallas Morning News, January 25, 2017