North Texas housing inventory is way down

Housing inventory in North Texas is nearing record lows while prices in the area are hitting record highs, according to a new market report from Zillow.

Why it matters: For potential homebuyers, this means fewer choices and steeper costs. It also means a rise in overall inflation in the region.

What’s happening: At the start of February, there were fewer than 8,000 single-family homes listed with area real estate agents. That’s a drop of more than 60% from a year ago — and one of the lowest supplies of homes for sale in North Texas history — according to the Dallas Morning News.

By the numbers: The typical cost of a home in Dallas-Fort Worth is up 26% over last year, per the Zillow report.

• Available inventory is down 12.4% since December.
• The average price of a single-family home sold in January was $411,808, according to Texas Real Estate Research Center and North Texas Real Estate Information Systems.

Of note: Average rent in North Texas is just over $1,700, up 18% from last year.

Between the lines: Permits to build homes in Denton and Collin counties were down in January, despite the fact that homebuilders have lengthy waiting lists full of eager buyers.

• The cost of construction has also increased at least partly due to supply chain issues.

What they’re saying: “We’ve probably got 600 people a month moving to Celina,” that town’s mayor, Sean Terry, told NBC5 last week. “You can’t build a house fast enough for people to move here. Because we have good schools and we are a very safe community.”

What’s next: As mortgage rates go up, sales will slow and housing demand will likely drop, particularly in more expensive neighborhoods.