Dallas Fort Worth housing market on upswing

The Metroplex housing market reported a record level of activity during the third quarter, recording 13,298 new single-family housing starts, a 20.8 percent increase over the third quarter, said David Brown, director of Metrostudy's Dallas-Fort Worth division.

The annual starts rate exceeded 40,000 units for the fourth consecutive quarter, rising to 44,486 units, 15.2 percent higher than the annual starts rate of 38,622 units reported last year at the end of the third quarter.

Starts increased significantly in all price ranges during the third quarter, according to Metrostudy, a residential market research firm in Dallas.

However they grew the fastest for homes priced above $275,000, where inventory has been declining over the past year. Starts for homes priced at more than $500,000 were up 51.7 percent in the third quarter, continuing a trend that emerged late in 2003.

Although activity is still growing for homes priced under $150,000, the competition among the builders and inventory has increased significantly in the last year, prompting builders to focus on higher priced homes.

Single-family quarterly closings totaled 11,457 units, a 6.7 percent increase over the same period last year.

Single-family inventory, which is composed of units under construction, finished vacant units and model homes, increased by 19.2 percent from last year to 22,017 units at the end of the third quarter, Brown said.

New lots delivered to the area, however, decrease 15.3 percent to 11,396.