Housing availability in the Dallas Fort Worth Metroplex has been in a critically short supply. Builders are at full capacity and have sold out many neighborhoods. Additionally, home builders are restricting monthly sales as they shift towards selling near-completed inventory homes to prevent profit losses experienced in 2020 due to construction material inflation.
A growing number of DFW home builders are leaning towards accepting "bids over asking price," like what is happening in the pre-owned housing market, as desperate homebuyers compete for new real estate. These current economic conditions have combined to create the greatest North Texas seller's market ever and, along with, a growing nightmare for today's homebuyers.
Texas Housing Did Not Need Winter Storm Uri
Then came Winter Storm Uri, as if housing wasn't under enough strain. In a housing shortage, there is maximum scarcity and limited capacity to fill the demand. Now when you factor in the widespread damage caused by burst water pipes and the displacement of families, you have a condition no one wanted. Contractor labor was already in short supply, which only helps make labor and real estate more expensive.
Months Before the polar vortex winter storm of Feb 13-17, a growing percentage of Americans residing in mostly Democrat-controlled states decided they can no longer tolerate a blanket disregard of fundamental laws and choose to vote with their feet to leave those states, with many moving to Texas. When you add up the net increase in housing demand from H1B workers, the housing shortage becomes even more severe.
To those people who made Texas their new home, I want to extend to you and your families a heartfelt welcome and salute you for your decision. Hopefully, if Texans elect Don Huffines Governor, we can eliminate heavy-handed property tax assessments making homeownership more affordable and secure.
The DFW Housing Shortage is Preempting Buyer Choice and Ownership Cost
Today, the North Texas housing industry is working around the clock to accommodate North Texas housing demand. Then there is the double-whammy of fast-moving COVID-induced inflation risk affecting many homebuilder's financial abilities to commit to construction contracts, especially when material shortages delay build times. In today's market, it is not uncommon for area sellers to receive a dozen or more offers on their home in the first couple of days with offers tendering 30-$60K over asking and guaranteed regardless of appraised value. Those that can make such an offer get their home; those that can't don't.
A Tough Market Requires a Tough Agent | How I Can Help You
There are few homes and many buyers. If you want to be successful, you need an aggressive agent to coach you through contract acceptance. In most transactions, if you can't offer over asking, you'll have to consider moving further out or renting. I can also help you with understanding good builders who offer good value or quality-built preowned homes. Other factors include location advantages, school district advantage, real estate taxes, homeowners insurance brokers, and top-notch lenders who can do the job right.
Mike Askins, Realtor, Owner ARG
Got questions for Realtor Mike? Call me at 214-727-3686 (mobile)