Like any major housing market, Dallas has seen some ups and downs when it comes to real estate demand. In recent years, it seemed the demand for new homes was slow at best, as a high inventory of existing homes kept new home builders vying for business. Now, however, it looks like demand has ramped up for Dallas homes, bringing with it a revitalized need for new construction.
According to a recent article from The Dallas Morning News, custom home builders are experiencing a boost in business – not just for new developments, but for tearing down and replacing older, existing properties. These so-called “tear-down sites” are purchased by developers who then demolish the existing pre-owned home and replace it with a “new generation of houses,” the DMN says.
To some, the strategy may seem strange. Why tear down existing homes right when demand is starting to pick back up? The answer, it seems, is that prospective home buyers in the Dallas metro area are more inclined to purchase new construction than they were five or six years ago.
“There’s a huge new home shortage,” says Rudy Rivas, partner and co-owner of M. Christopher Custom Homes. “If you are in the right area with fresh product, there is lots of demand.”
According to the DMN article, most of Rivas’ planned homes will be listed at just under $700,000 – which is considerably lower than what new homes went for in the pre-crash market.
For skeptics who fear that these new developments will turn their beloved Dallas area neighborhoods into “cookie-cutter” suburban complexes, Rivas assures that respecting and maintaining the area’s architecture is a priority. On the other hand, the DCM reports that Rivas’ new designs will be quite different than the historic 1920s-era cottages they’re replacing. Many of the new homes will feature three-car garages, swimming pools and higher ceilings. Could this be a testament to the suspected resurgence of the luxury home market? Perhaps. Only time will tell if Rivas and other developers have an edge on the game or if they’re jumping the gun.
Regardless of the so-called tear-down developments’ success or failure, one thing’s for certain. Texas – North Texas in particular – is seeing a great deal of welcome changes in the real estate market. Construction starts are picking up (albeit at a modest pace), home prices are remaining affordable and the overall economy seems to be gaining surer footing.
For advice on financing a home in the current North-Texas real estate market, call The Decker Group today ??at (972) 591-3097.