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GOOD YEAR FOR CENTRAL TEXAS BUILDERS
AUSTIN (Austin
American-Statesman) –
Builders started construction last year on a record number of homes in
Central Texas. The supply of new, unsold homes also climbed to a record
level, prompting builders to start 10 percent fewer homes in the last
quarter of 2006 than the previous year.
About 2,900 new homes — just over a two-month supply — were available in
Central Texas in December. But experts, citing the local healthy
economy, predict the supply of unsold homes, which rose slightly in
2006’s fourth quarter, will diminish by spring.
Builders started almost 16,750 homes last year, a 10 percent increase
from 2005, according to Residential Strategies Inc., a Dallas-based
market research firm. There also were a record number of closings, which
jumped almost 23 percent to more than 16,000.
The median sales price of a new home in Central Texas rose 8 percent to
nearly $196,500.
Unlike other markets in the nation where prices and sales are cooling,
Central Texas has experienced healthy job growth, a steady stream of
newcomers and relatively affordable prices. For the 12 months that ended
in November, 24,800 jobs were created in the Austin area, according to
the Texas Workforce Commission.
“Homebuilders are cautiously optimistic about the market,” said Dr. Jim
Gaines, research economist at the Real Estate Center. “A slowdown in
sales and buildup in inventory should lead to fewer speculative units.
Builders are looking forward to spring activity that will probably
dictate the rest of the year’s activity levels. Employment and
population fundamentals are in place, so adjustments in the market
should be relatively minor.”
RECON
Real
Estate Center Online News
January 5, 2007
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