Major Supply And Demand Issues For Housing In North Texas

Beth McCandry

Ken Molestina wrote our report “The Ones For Real Estate”.

Video transcript

– – And you’ve probably heard of the madness in our North Texas real estate market. Not enough homes, way too much demand, and now some are saying what’s going on is just unhealthy. Our Ken Molestina explains exactly what that means.

KEN MOLESTINA: To understand why the DFW real estate market is being labeled as unhealthy we should explain. A healthy market typically has around six months of inventory. According to the DFW real estate experts, it was less than a month after the last review. In fact, it’s 0.7.

MICHAEL COBURN: If we stop listing new houses, if people don’t put their house on the market, we won’t have any more houses for sale in two weeks.

KEN MOLESTINA: Michael Coburn is the owner and agent of Remax Town And Country. He says by far Collin County’s worst is as the homes there sell in about five days and not many new ones come on the market.

MICHAEL COBURN: We are in uncharted territory.

KEN MOLESTINA: Coburn said a mix of unprecedented demand from out-of-town home buyers, a slowdown in construction, and historically low interest rates have caused the pressure. While a seller can make a quick and bountiful sale, buyers run out of options, especially those that are affordable.

MICHAEL COBURN: Now you have to look at the buyer and say, do you have $ 50,000 to pay about an estimated value? And they go what do you mean? Pay $ 50,000 over estimated value? Why should I do that? Because in this market you have to.

KEN MOLESTINA: Coburn says if the new build is not accelerated the problem will get worse.

MICHAEL COBURN: There are fewer homes for sale than real estate agents in this market.

KEN MOLESTINA: He advises buyers to think about creative programs like barter loans that will allow you to buy a home before you have to sell your own, as you are likely to sell faster than you can find a landing spot.

The story goes on

MICHAEL COBURN: DFW is a great place to live, but now prices are getting out of hand.

KEN MOLESTINA: So think about it if you are considering selling or buying. I’m Ken Molestina, CBS 11 News.

– – It’s crazy. And because the real estate market has never really been in that position, most experts say it’s pretty hard to predict how long this imbalance will last. The best guess right now – another year, maybe even longer.