New Home Prices Worry DFW Builders

DALLAS (Dallas Morning News) – New home prices in the area hit a record high during first quarter 2013, leaving some builders wondering whether buyers will be able to afford their homes.

The rising costs of lots, lumber and labor have pushed new homes to a median price of $244,113 in Dallas-Fort Worth, according to Residential Strategies Inc.

The slim supply of new homes is also putting a strain on potential buyers. Residential Strategies projects there will be less than half the number of home starts this year than there were in 2006. And fewer homes are being built with price tags under $200,000.

“The $300,000 to $500,000 category continues to see what we think is astounding growth,” said Cassie Gibson of Residential Strategies. “The market will need help in the way of rising household income levels.”

COLLEGE STATION (Real Estate Center) – The Texas economy gained 331,100 nonagricultural jobs from April 2012 to April 2013, an annual growth rate of 3.1 percent compared with 1.6 percent for the United States.

According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the state’s private sector added 312,200 jobs, an annual growth rate of 3.5 percent compared with 2 percent for the nation’s nongovernment sector.

Texas’ seasonally adjusted unemployment rate fell to 6.4 percent in April from 7 percent a year earlier. At the national level, unemployment decreased from 8.1 to 7.5 percent.

All Texas industries except the transportation, warehousing and utilities industry had more jobs last month than a year ago. The state’s construction industry ranked first in job creation, followed by the mining and logging industry, leisure and hospitality services industry, and professional and business services industry.

All Texas metro areas except Wichita Falls, Texarkana and Beaumont-Port Arthur had more jobs last month than in April 2012. Midland ranked first in job creation, followed by Odessa, Fort Worth-Arlington, Houston-Sugar Land-Baytown and Austin-Round Rock-San Marcos.

The state’s actual unemployment rate in April was 6.1 percent. Midland had the lowest unemployment rate followed by Odessa, Amarillo, Abilene, Lubbock, San Angelo and College Station-Bryan.

HOUSTON (Houston Business Journal) – ConocoPhillips has made plans to fill more office space in the area.

The locally based company, which already has more than one million sf at 600 N. Dairy Ashford, is leasing the entire 550,000-sf Energy Center Three, as well as 300,000 sf in Energy Center Four.

The 20-story Energy Center Three broke ground in December. ConocoPhillips expects to move in by second quarter 2015.

Groundbreaking on the 22-story, 600,000-sf Energy Center Four is expected toward the end of this year. ConocoPhillips plans to move into it in second quarter 2016.

Both Class-AA towers are at the southwest corner of I-10 and North Eldridge Parkway.

Trammell Crow and Principal Real Estate Investors are developing the buildings. Dallas-based Balfour Beatty Construction is the general contractor, and Houston-based Kirksey Architecture is the lead designer.

GALVESTON (REBusinessOnline.com) – A pair of hotels has opened for business this month, just in time for the area’s busy tourist season.

An 85-room Courtyard by Marriott opened at 9550 Seawall Blvd. Designed by Dallas-based Mayse & Associates, the hotel includes a swimming pool and bar on its 4.8-acre site.

Earlier this month, an 88-room Marriott TownePlace Suites opened at 9540 Seawall Blvd.

HOUSTON (Houston Business Journal) – Memorial Hermann Health System has announced it will build three more medical office buildings in the area.

The city’s largest health care system confirmed this week it will build three 100,000-sf buildings, one each in Sugar Land, The Woodlands and Katy. Each will cost as much as $15 million.

Mermorial Hermann is also considering building an additional 80,000- to 100,000-sf property in Pearland, where a 64-bed hospital is in the works.

Marshall Heins of Memorial Hermann said he expects to break ground within 90 days on the Katy and Sugar Land properties.

HOUSTON (Houston Business Journal) – After announcing last year it would open 30 stores in the Houston area, the first nine Aldi grocery stores are opening this week.

The Germany-based grocer is opening its first round of discount stores at the following locations:

2009 S. Mason Rd. in Katy
11510 Broadway in Pearland
2228 FM 2920 in Spring
10402 SH 6 South in Sugar Land
6900 FM 1960 East in Humble
5930 Fry Rd. in Katy
2045 N Loop 336 in Conroe
13340 Tomball Pkwy. in Houston
4140 Fairmont Pkwy. in Pasadena
The remaining 21 stores are expected to open within two years, creating 400 jobs.

DALLAS (Dallas Morning News) – The region posted another strong month of home sales.

Existing home sales in North Texas rose 22 percent in March compared with the same month in 2012. Median sales prices were 8 percent higher than in March 2012, according to the Real Estate Center and the North Texas Real Estate Information Systems. Inventory was at 3.4 months, 22 percent lower than a year ago.

Home sales through March were also up 19 percent over first quarter 2012.

DALLAS (Dallas Morning News) – A healthy local economy is helping area office space fill up fast.

According to Cushman & Wakefield, first quarter leasing of area office space was at its highest since 2000. A net total of 1.4 million sf of office space was leased in North Texas.

Major office leases in the first quarter included State Farm Insurance, Med Assets, Celanese, and USAA Life Insurance.

The largest share of leasing occurred in Irving’s Las Colinas business district (651,500 sf), followed by the Telecom Corridor along US 75 (326,384 sf).

DALLAS (Dallas Morning News) – The only thing hotter than the region’s home sales is its market for condos and townhomes.

In fact, the Dallas Morning News reports that March was the single best month of condo and townhouse sales for North Texas since 2007.

Sales were 55 percent higher last month than a year ago. According to Real Estate Center data, some neighborhoods saw sales double compared with 2012.

WESTLAKE (Fort Worth Star-Telegram) – National builder Toll Brothers has purchased 75 acres within the Solana development to construct 95 single-family homes.

Mehrdad Moayedi sold the acreage to Toll Brothers after acquiring the 285 remaining acres within the 900-acre Solana development last year.

Portions of the land have been sold to Verizon Wireless and to an Irving-based hotel developer.

A spokesperson for Toll Brothers said the home sites should be ready for construction by 2014.