The hot start North Texas home builders saw in the first three months of the year cooled slightly in the spring.
Area home builders reported a slowdown in sales from May to July. High interest rates coupled with a slowdown in jobs and relocations were key factors in the drop, according to the Residential Strategies’ report.was at or above 7% — an inflection point that determines whether the new home market is thriving or struggling, the company said.
Builders are using interest-rate buy-down programs to make homes more affordable, but selling is still a challenge. Builders of entry-level homes remain aggressive, but the market for homes above $1 million in the northern metroplex has weakened somewhat, Wilson said.“We’re hearing from builders that traffic and sales are down 20% to 25% in a lot of neighborhoods,” he said. “Those that are getting sales many times are having to sacrifice profit margin to get them.
According to the Texas A&M Real Estate Center, there were nearly 90,000 sales reported through the MLS for the 12 months ending May 2024. That’s a 3.52% decrease year over year.