Thanks to Steve Brown for most of the following news. Follow @SteveBrownDMN on twitter.
The big news in Dallas – Fort Worth real estate news this week was the confirmation of the Liberty Mutual Insurance relocation to Plano, and the continued limited supply of homes for sale in certain north Texas suburbs.
While Liberty Mutual’s headquarters will remain in Boston, it will consolidate operations around the country and relocate about 5,000 workers to a new campus in Plano. Dallas-based developer KDC will build the new Liberty Mutual campus in the same area Toyota Motor is building its new North American headquarters. Between Liberty Mutual, Toyota and Fedex, there will be approximately 12,000 new workers in the area along Headquarters Drive just south of State Highway 121.
Dallas homes for sale are at their lowest levels in more than 15 years. With new home construction still running 50% below normal, Dallas has the lowest inventory of homes for sale among the major Texas metros. In fact, Arlington, Hurst, Bedford, Mesquite, Garland, Plano, Carrollton-Farmers Branch and The Colony all have less than a 1-month supply of homes for sale. As the supply-demand imbalance continues, home prices continue to rise. Core-Logic reported that Dallas home prices were up 9.3% in February. Despite the low inventory of Dallas homes for sale, March home sales in Dallas jumped 12% over last year. The wet and late winter may have postponed some home buyer traffic, but first quarter home sales are up 4%.
Even Houston had a robust March with home sale prices up more than 10%. More good news for Houston, and Texas, is that oil futures rose for the fourth week in a row. The price for a West Texas Intermediate barrel of oil for May delivery ended Friday at $51.64.
The Urban Land Institute has predicted that the commercial real estate boom will last at least three more years. With all of the in-migration, Dallas and Texas should benefit as commercial real estate transaction volumes are forecast to rise this year and in 2016 to almost twice the 14-year annual average nationally.
Apartment builder JLB Partners started demolition work for its new apartment community just east of North Central Expressway on Fitzhugh. They plan to build a 5-story 350-unit complex covering 3 blocks on Fitzhugh and Homer. They recently built the Strata Apartments on Capitol and Bennett that were sold to an Atlanta investor. JLB Partners is also building a huge apartment community at CityLine, next door to the State Farm campus.
Centurion America Development plans to build an 1,800-home project called Sutton Fields between Prosper and Celina. Located just north of Frontier Parkway, they expect to deliver the first lots from the project in the summer of 2016.
Quick hitters below.
Dallas Production Inc. bought a 3-story, 56,174-square-foot brick office building at 4600 Greenville Avenue from ANA Properties. Dallas Production was a tenant in the building, which was built in 1986.
NFI Industries has rented about 650,000 square feet of warehouse space in an industrial park in Lancaster. Prologis developed the spec warehouse last year at 1901 Danieldale Road.
The town of Lincoln Park located north of HWY 380 is now pushing back on Little Elm’s proposed annexation. Centurion American bought the acreage from the seller and is now having to renegotiate residents relocation expenses. They have planned to build homes there starting in the $250,000 range.
That’s the top news for this week. Let’s look forward to another great week in Dallas real estate. If we can answer any of your real estate questions, we would love to help. Call our office at 214-827-1200 or reach me directly at 214-690-9682.
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