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Housing Permits Down double digit % in North DFW

2,116 Views | 13 Replies | Last: 1 yr ago by The Collective
Red Pear Luke (BCS)
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https://www.bizjournals.com/dallas/news/2022/06/11/building-permits-slumping-dallas-frisco-celina.html
hoosier-daddy
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Paywall but I assume it's bc of the completely obvious bubble bursting? Inflation and the realization that Texas isn't really cheaper bc property tax $ > income tax $. Close?
Red Pear Luke (BCS)
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" Frisco has fallen 42% for the year. Celina's slid 34%. Prosper has plunged 17%. Princeton and McKinney are down 14% and 11%, respectively.

Those percentages represent the year-to-date drop in single-family home building permits compared to the same January through May period last year.

A combination of supply-chain challenges for builders, higher mortgage rates, inflation, higher building materials costs and labor shortages, and general economic uncertainty are some of the reasons being cited for a slowdown in construction."



Yesterday
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I have to imagine the economic uncertainty parlayed with high interest rates has to be the number one cause. Not too many willing to invest in new construction if they think the economy is going to implode.
riverrataggie
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Good. It was out of control.
Yesterday
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riverrataggie said:

Good. It was out of control.

I don't think this is a sign that prices will come down. It may even be the opposite since they are not building as many houses to meet the demand. But I am also not an expert and could be totally wrong
coastalAg
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Yesterday said:

riverrataggie said:

Good. It was out of control.

I don't think this is a sign that prices will come down. It may even be the opposite since they are not building as many houses to meet the demand. But I am also not an expert and could be totally wrong
My anecdotal observation from someone that has been looking in the market since March...

It seems like things started to slow way down in late May. Started seeing fewer buyers out looking at new showings and in open houses. Houses we were interested in were also seeing far fewer offers.

We just went under contract this weekend on a home with one other offer at a $/sq ft below where things were a few months ago.

The price floor has definitely risen permanently, but I think the market has peaked for now and there are a lot of overpriced homes on the market that will need to come down to move.

There is still a shortage of housing in the area relative to the long term population shift so things will probably stay relatively flat for a couple of years until the economy corrects. Will be some opportunities for those with the financial flexibility to take advantage.

Just my 2 cents.
YouBet
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Said it before but I'm assuming this is still primarily in the <$1M home price range. Above $1M in my hood is still going and blowing from what I can tell.

Would this possibly mean that labor and resources become more available for existing home renos? I would assume so if builders are willing to do that in an effort to offset lost revenue from new builds.
The Collective
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YouBet said:

Above $1M in my hood is still going and blowing from what I can tell.


Well done. Cue up the Vivaldi.
ChoppinDs40
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YouBet said:

Said it before but I'm assuming this is still primarily in the <$1M home price range. Above $1M in my hood is still going and blowing from what I can tell.

Would this possibly mean that labor and resources become more available for existing home renos? I would assume so if builders are willing to do that in an effort to offset lost revenue from new builds.
it's slowed down in my development as well but that's from "NO MORE LOTS SORRY 400 PEOPLE ON THE WAIT LIST" and homes going for 400/sqft to... "yeah maybe we'll take 30k off that"

even still... my exact same floorplan in a new section across the street is going for 2x what we signed in Jan '20.

the permit # is staggering in Frisco though, that's nuts. What used to be a 4-5 month build is now turning into 12 months, minimum, out here.


I think you're in Southlake? this is in Prosper. Southlake will always have that green flowing in.
Fannie Luddite
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Prices are going up such that Kindred homes pulled the rug from a buyer with which they had a contract just days before closing and re-listed for $300K higher. Nice folks!

https://www.fox4news.com/news/canceled-for-convenience-north-texas-family-loses-home-after-builder-backs-out-without-warning
Yesterday
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Fannie Luddite said:

Prices are going up such that Kindred homes pulled the rug from a buyer with which they had a contract just days before closing and re-listed for $300K higher. Nice folks!

https://www.fox4news.com/news/canceled-for-convenience-north-texas-family-loses-home-after-builder-backs-out-without-warning


Brutal!! I'm almost always pro business and "should have read the fine print" type of guy but that is just terrible business.
YouBet
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Fannie Luddite said:

Prices are going up such that Kindred homes pulled the rug from a buyer with which they had a contract just days before closing and re-listed for $300K higher. Nice folks!

https://www.fox4news.com/news/canceled-for-convenience-north-texas-family-loses-home-after-builder-backs-out-without-warning
Why have contracts then.
The Collective
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Yea, I think that is total crap. Just because something is allowable under the terms of the contract doesn't make it the right thing to do.
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