Yesterday, flew into DFW from our trip to Costa Rica. We had to circle back due to the thunderstorm that apparently came through the area and shut DFW down for a bit. I noticed what looked like many cleared subdivisions around greater DFW area. Several had the streets/cul de sacs completed, but no apparent home construction. Are the developers/builders just sitting on these projects and hoping rates/material costs come down in the near future? Seems like a very risky proposition.
Post Reply
1 of 1
Flying into DFW - cleared lots?
887 Views |
2 Replies |
Last: 16 days ago by SteveBott
White (new) concrete surrounded by dirt - Subdivision is being built.
Gray (old) concrete surrounded by grass/weeds - Developer is waiting for prices to increase or bank repossessed the property.
Interest rates matter to developers, but sales prices matter more. Developers don't control demand, but they do control supply. If prices take a dip, they will stop or slow building. Some of them use that time to look into their next land purchase and their engineering work. Then when prices rise, they have lots available to start construction today.
Not sure about which area you are talking about specifically, but that's usually how the developers operate.
Gray (old) concrete surrounded by grass/weeds - Developer is waiting for prices to increase or bank repossessed the property.
Interest rates matter to developers, but sales prices matter more. Developers don't control demand, but they do control supply. If prices take a dip, they will stop or slow building. Some of them use that time to look into their next land purchase and their engineering work. Then when prices rise, they have lots available to start construction today.
Not sure about which area you are talking about specifically, but that's usually how the developers operate.
Had a client who needed a new Pre approval so issued one. He came back with an offer of 30k real money from the builder. It was cash offer is he used their in house lender. 1 year ago, Houston.
I'm feeling a huge lack of buyers right now. Affordability is a huge drag on the market. 6.5ish rates, insurance raising rates, it a tough market.
I'm feeling a huge lack of buyers right now. Affordability is a huge drag on the market. 6.5ish rates, insurance raising rates, it a tough market.
Featured Stories
See All
Five in Five: Stock-rising defenders as 2025 campaign approaches
by Billy Liucci
2025 Texas A&M Football Wallpapers
by Stewart Wade
6:08
2h ago
1.5k
25 Players in 25 Days: #2 Trey Zuhn III
by Olin Buchanan
Expect razzle from A&M's defense if Dezz Ricks does dazzle in 2025
by Olin Buchanan
16:03
1h ago
821