By Troy Corman, www.t2realestate.com
Dallas-Fort Worth home builders may build 20,000 homes this year, more in line with historic trends, but still well below the 30,000 plus homes they started in 2004 and 2005. That’s still just above 1997 levels. To get an idea of why there’s so few homes to buy all of a sudden, just check out the historic chart of new home permits in Dallas-Fort Worth. New home construction fell off a cliff during the recession.
The challenge for Fort Worth and Dallas home builders now is rising costs of land, labor and especially lumber. Lumber prices are up 50% over the past two years according to Larry Craven, head of LionsGate Homes, headquartered in the DFW area of Carrollton. He says that the lumber plants shut down during the recession and it’s taking a while to get them back to full throttle.
Ted Wilson, of Residential Strategies Inc. in Dallas, shared that in response to rising costs, Dallas-Fort Worth home builders are increasing prices as much as $10,000 to $20,000 per home.
It appears the money-printing and artificially-induced record low interest rates are finally increasing real estate prices. Landlords and real estate owners should love it!