Well to say we have a housing shortage in the Dallas market is an understatement. I attended a housing updated for the DFW market last week and Ted Wilson with Residential Strategies Inc. and his outlook for next 4-5 years is very strong.
As far as housing inventory goes a health market is considered to be at equilibrium with a finished vacant inventory of 6 month supply. Current inventory levels are right around 2 months and some areas of town are below that.
I feel their are many factors driving this with 2 of the biggest drivers being pent up demand and a ever growing population (notice how traffic is picking up everywhere!!). I mentioned in a blog post early last year about pent up demand. I think as the recession get further behind us, at least in our local economy home buyers are feeling a little better about looking for that new home. With current inventory so low many are turning to custom building as their option for a new quality home.
We currently have 6 custom builds under construction and the phone continues to ring. For many of us who held on by the skin of our teeth its a welcome sound. Most of our builder friends are experiencing the same kind of increases.
Next issue, labor shortage