New home construction up 27 percent in North Texas

NORTH TEXAS – Home-building activity has increased by 27 percent in first quarter 2014 due to bad weather in fourth quarter 2013, according to a Metrostudy report.

Builders started 5,562 homes in January, February and March, compared with 4,363 during the same period a year ago.

On an annual basis, 22,365 homes were started over the last four quarters, compared with 18,975 the previous year. The number of closings also rose. In 1Q 2014, sales were closed on 4,736 new homes, up 14 percent from 4,160 in 1Q 2013.

“We are only expecting a 10 percent to 15 percent increase in starts during 2014,” said David Brown of Metrostudy. “Part of the large first-quarter increase was caused by weather and lot delivery delays during the fourth quarter of last year, pushing some starts into this year."

Lots prepared for development are still in tight supply, and there is only a 1.7-month supply of finished new homes on the market. Only about 15,000 lots are under construction in the Metroplex — around 3,000 of those were expected to be completed by the end of March.

"Supply constraints have been the headline story in the home-building business over the last year and a half and will likely remain the story in 2014,” Brown said. “Homebuyers this spring are being greeted with fewer choices and much higher prices than a year ago.”