DFW Home Construction Soars to Three-Year High

The New Year ushered in good news for the local housing sector, as a new report showed that home construction in Dallas/Fort Worth rose almost 10 percent in the fourth quarter to its highest level in more than three years. There were 3,616 housing starts last quarter, up from 3,200 in the same period the year before, according to Residential Strategies Inc. In addition, builders sold more homes in the fourth quarter than in any other quarter of 2009.

The surge in the number of new home starts in the Metroplex is a reflection that existing inventories are on the decline. “Overall the supply of housing inventory is in excellent shape,” Residential Strategies’ Ted Wilson told the Dallas Morning News. There were fewer than 2,700 new vacant homes on the market at the end of last month, which translates to a 6.5 month supply, he added. A supply of about 6 months is considered market equilibrium, which is a sign that things are looking up in the local housing sector for 2010.