In North Texas real estate, it’s time for supply to catch up to demand.
McKinney TX (PRWEB) February 13, 2014
The McKinney real estate market saw some impressive gains in 2013, but was hampered some by a limited inventory, which was the case for much of North Texas and the rest of the country. Looking ahead in 2014, many economists are predicting resurgence in inventory, which could only further benefit the continual housing recovery.
The Dallas Morning News cites McKinney as one of several North Texas cities that has experienced a huge demand for new homes, and that builders have taken notice. A combination of factors, including a strengthening local economy and improving home builder confidence, has inventory levels in McKinney and across North Texas looking up this year.
“It’s a simple case of supply and demand,” said DD Flynn, VP of Marketing with Prudential Texas Properties. “The trend last year was demand overpowering supply, and although we still witnessed some impressive gains in North Texas real estate, it’s time for supply to catch up to demand.”
The National Association of Home Builders recently reported that builder confidence in the 55+ housing market ended the fourth quarter of 2013 at record highs. The single-family index for builder confidence grew 20 points to reach 48 in Q4 2013, which was the strongest reading for a fourth quarter since the index started in 2008. It is also the ninth straight quarter that saw year-over-year gains.
According to data analysis from Altos Research, a California-based analytics company, the median single family home price in McKinney rose steadily from January 2013 to January 2014. For the weighted 90-day average, median home prices started 2013 just under the $290,000 mark. To begin 2014, that figure was closer to $320,000. The rising median home price in McKinney can be partially attributed to limited inventory.
For the weighted 90-day average, total inventory in McKinney was at about 555 to start 2013. It peaked at about 739 homes for sale in September, and then dropped back to below the 550 mark to begin 2014.
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