Business Growth

Monthly Review of the Texas Economy

Texas1Texas’ labor market has recovered from the onslaught of Hurricane Harvey. The state gained 316,100 non-agricultural jobs from October 2016 to October 2017, an annual growth rate of 2.6 percent, higher than the nation’s employment growth rate of 1.4 percent.

According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the nongovernment sector added 279,300 jobs, an annual growth rate of 2.8 percent, also higher than the nation’s employment growth rate of 1.6 percent in the private sector.

Texas’ seasonally adjusted unemployment rate in October 2017 was 3.9 percent, lower than the 4.8 percent rate in October 2016. The nation’s rate decreased from 4.8 to 4.1 percent.

All Texas industries except the information industry had more jobs in October 2017 than in October 2016.  The mining and logging industry ranked first in job creation followed by other services, manufacturing, financial activities, leisure and hospitality, professional and business studies, and transportation, warehousing, and utilities.

All Texas metro areas except Texarkana, Waco, and Beaumont-Port Arthur had more jobs in October 2017 than in October 2016. College Station-Bryan ranked first in job creation followed by Corpus Christi, San Antonio-New Braunfels, Killeen-Temple-Fort Hood, Dallas-Plano-Irving, and Fort Worth-Arlington.

The state’s actual unemployment rate in October 2017 was 3.5 percent. Amarillo had the lowest unemployment rate followed by Midland, College Station-Bryan, Austin-Round Rock, and Lubbock.

by Ali Anari, November 27, 2017 (Texas A&M University – Real Estate Center)

Monthly Review provided by Keller Williams Dallas Metro North. Call us today for help with your real estate needs!

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What’s the Good News for November?

Good News1

eSports Facility coming to Frisco. Dallas Cowboys owner Jerry Jones has teamed with Fort Worth-based real estate investor John Goff to get into the $700 million global eSports industry.

Esports5Jones & Goff acquired a majority of CompLexity Gaming, an eSports organization that has been based in Houston since 2007.  The CompLexity Gaming organization, its management and its Counter-Strike: Global Offensive and DoTA 2 teams will relocate to the DFW area and will have offices at The Star in Frisco.  The group intends to build an eSports facility at The Star, which is the current office location of the Dallas Cowboys, in the future.

The Cowboys will also participate in the Madden NFL Club Championship events in the coming months, which will be the first time all teams from a professional sports league take part in an eSports event. Other NFL owners such as Robert Kraft and Stan Kroenke have purchased slots in the Overwatch League, but the Jones family joins a short list of NFL owners to invest or acquire an existing team in the space.

Forbes recently estimated there are about 148 million eSports players worldwide.

Logistics1International Logistics Center breaks ground on a new industrial park on the south side of DFW International Airport. Located near the intersection of State Highway 360 and U.S. Highway 183, the 40-acre business park will include 3 buildings totaling more than 640,000 square feet of warehouse space. The development can accommodate tenant sizes of 20,000 to 320,000 square feet.

North Texas has added millions of square feet of new distribution and e-commerce space to the region in recent years. In the first quarter of 2017, North Texas developers leased nearly 6.5 million square feet of space — ranking the region as the No. 2 industrial market in the United States.  E-commerce accounts for about 12% percent of industrial leasing activity nationwide, and an additional estimated 30% of indirect leasing through closely tied logistics, distribution and support businesses.

Pecan2Pecan Square Development moves forward in Northlake. Hillwood officials announced their purchase of 1,157 acres near the southwest corner of I35W and FM 407 in Northlake, about 6 miles north of Texas Motor Speedway.  This is the beginning of a $1.5 billion development that will be known as Pecan Square.

The residential community will eventually include 3,000 newly built homes, with prices expected to range from $270,000 to $500,000 or more.  A mix of commercial retail, educational and residential uses will be featured in Pecan Square, which gets its name from the 200 pecan trees on the property that will be preserved. The initial phase will include 609 single-family homes, and homes from 8 builders should be on the market by summer 2019.  The developer donated land for an elementary school and sold Northwest ISD the land for a middle school, high school and football stadium so that families will be able to attend K – 12 within Pecan Square.  They estimate that the full buildout of Pecan Square will take 10 to 12 years.

Nissan1Nissan partners with Sundance Square. The one acre Sundance Square Plaza in downtown Fort Worth, which includes a stage and a pavilion, has become a gathering place with regularly scheduled concerts and events.   To help pay for its free programs — and to bring in even more events and more widely recognized acts — Sundance Square has signed a one-year sponsorship deal with Nissan USA that lets the automaker display its vehicles, put up signage and be included in advertising for the plaza.   Nissan states that the sponsorship was an obvious decision for them since Texas is home to 70+ Nissan dealerships and 7,000+ Nissan employees.

Rangers1Arlington Breaks Ground on mega-entertainment complex. Arlington’s new $1.1 billion ballpark is officially under construction! The new home of the Texas Rangers will feature 41,000 seats and a retractable roof. However, to be ready for the 2020 season, an estimated 97,000 truckloads of dirt must first be hauled away!

Additionally, ground has been broken on the new $150 million Live! by Loews-Arlington hotel. It will be built adjacent to the Texas Live! entertainment complex and near the Rangers new ballpark.  The resort hotel, the first Loews Property developed in Texas in 30 years, is scheduled to welcome its first guests in 2019.  The 14-story, 302-room hotel will include an infinity-edge pool, and an event lawn for special events. There will also be a covered outdoor bar called Tower Terrace that will have views of the nearby stadiums and Arlington’s entertainment district.

Arlington Mayor Jeff Williams called Texas Live! the largest entertainment complex outside of Las Vegas.  Alex Tisch, executive vice president of Loews Corporation, said it would be “the biggest destination outside of Orlando.”

Information provided by Keller Williams Dallas Metro North. Call us today – we have over 400 qualified agents ready to assist you with your real estate needs!

Housing Reports Indicate Buyers still need to move quickly

Area Housing Reports were just released by Greater Lewisville Association of Realtors (GLAR) and it appears buyers still need to move quickly, as the days on market figures have all decreased from October 2016 numbers.

FlowerMound-Oct17

Good News for Flower Mound buyers – the median price for homes is down 6.3% compared to a year ago!


Highland Village-Oct17

The numbers indicate Highland Village remains a hot area, with homes selling quickly (days on market 24 days less than a year ago) and very little inventory.


Denton-Oct17

The Denton Market is UP! Active Listings – UP 7.6%; Closed Sales – UP 1.4%; Median Price – UP 4.4% … Buyers still need to move quickly in this sellers market.


Information provided by Keller Williams Dallas Metro North. Call us today – we have over 400 qualified realtors ready to assist you!

 

 

 

Boost from Buyers – Confidence in Housing Up

FannieMaeLogoConfidence in housing again met an all-time high in September according to Fannie Mae, propelled by optimism from buyers. Recently polled renters are also helping drive this trend, with the Home Purchase Sentiment Index® (HPSI) posting 88.3 in September, 0.3 percentage points higher than the month prior.

“The biggest driver for the increase in the HPSI is the rebound in the good time to buy sentiment, which outweighed the largest drag: a sizable reduction in the net share of consumers expecting home prices to rise over the next year,” says Doug Duncan, chief economist and senior vice president at Fannie Mae. “Details in the survey showed a meaningful pickup in the good time to buy component, especially from the renter respondents. Additionally, perceptions of easing inventory helped boost the net share saying that now is a good time to buy, which is consistent with less bullish home Realtor 01price appreciation sentiment during the month. Overall, we believe that the devastating impacts of the hurricanes will likely weigh on home sales in coming months, posing downside risks for our forecast, which already calls for only a modest gain in home sales this year.”

The share of home buyers surveyed for the Index who believe now is a good time to buy rose 10 percentage points to 28 percent, while the share of sellers who believe now is a good time to sell rose two percentage points to 38 percent. The share of those surveyed who believe home prices will go up fell eight percentage points to 40 percent.

Information provided by Keller Williams Dallas Metro North. Call us today – we have over 400 qualified realtors ready to assist you with your real estate needs!

Here’s Why Home Building is Thriving in the Lone Star State

building - 6Home-building is floundering against soaring demand, with inventory now at its lowest in two decades. Are any markets keeping up?

New construction is taking off in at least three, where each are expected to gain 40,000 new homes this year, according to a recent study. Activity is exploding in Dallas and Houston, Texas, and New York, N.Y., the study found, with Dallas adding 48,772 homes to its stock, Houston growing by 47,946, and New York expanding by 40,006.

Researchers analyzed building permit data from the U.S. Census Bureau from 1980 to 2016, and the first half of 2017 – which offer a basis to estimate ground-breaking – to project how many new homes will be built across the largest 100 metropolitan areas this year, and which metro areas are constructing more than their historical average. The markets set to have the most permits after Dallas, Houston and New York? Austin, Texas (29,872) and Phoenix, Ariz. (29,280). Austin, markedly, is also outdoing its norm, with 107.7 percent more permits, followed by Charleston, S.C. (72.8 percent more) and Nashville, Tenn. (65.8 percent more).

business - growth 5How are Dallas, Houston and New York coming out ahead when the rest of the country is playing catch-up? Sheer size, for one, but also growth in employment, income and home prices, the study reveals. Home-building is connected to jobs for the simple fact that more jobs provide more residents income, which stokes demand for homes in the market. In fact, in the 100 metro areas assessed, every one percentage point climb in jobs (per data from 2010 to 2016) parallels an average 5 percent rise in permits.

The link between building and income is comparable: a one percentage point increase in the median household income (also using data from 2010 to 2016) leads to a 2.1 percent upswing in permits, on average, the study shows. More pay, the researchers say, ups the ability to purchase a costlier home – and new homes, without question, tend to be higher-priced.

The relationship between building and home prices is also a factor: a one percentage point step-up in home prices results in an average 1.2 percent tick up in permits – but with a significant distinction. Price growth upwards of 24 percent moves the needle in the opposite direction, possibly because at that point, builders begin shouldering higher land costs and incomes start to lag behind prices, researchers speculate.

Information provided by Keller Williams Dallas Metro North. Call us today – we have over 400 qualified realtors ready to assist you with your real estate needs!

What’s the Good News for October?

1-MercerCrossingMapMercer Crossing Development to open in Farmers Branch. A $1 billion mixed-use development in Farmers Branch is bringing hundreds of homes/apartments and is planned for more than 3,000 residents.  The 370-acre Mercer Crossing development is on the north side of LBJ Freeway near Luna Road.  Mercer Crossing will include 93 acres of urban commerce and 174 acres of residential single-family homes; built by six premier builders, M/I Homes, First Texas Homes, Beazer Homes, Megatel Homes, Oakdale Homes, and Siena Homes.   The first 30 homes should be starting in November 2017, and there are a total of 660 home lots, with larger home lots being around the lake.  Houses in the development will start at price of more than $300,000.  All of the lots have been sold to builders, and the builders have committed over $10 million in earnest money. Centurion American has also sold land to Coppell-based apartment developer Western Rim Properties for 1,250 apartments, of a total 2,500 apartments planned.

2-Amazon.com4North Texas communities partnering to entice Amazon.com to the Metroplex. The Dallas & Fort Worth Chambers are working together to bundle area pitches into a combined, regional pitch which must be turned into Amazon before the October 19th deadline.  The 2 chambers are coordinating the north Texas effort to entice Amazon’s 2nd headquarters location to the DFW area.   HQ2 is expected to create more than 50,000 jobs and represent a direct $5 billion dollar investment into the local economy.  More than 12 North Texas cities, with 30 – 50 specific site proposals, made the internal deadline to be included in the regional pitch.  Lewisville has 2 development sites being proposed:  Castle Hills on the eastern edge of Lewisville is one of the areas to make a pitch and the 2nd location proposed by Lewisville is undisclosed, but thought to be in the southwestern portion of the city (Vista Ridge Mall site which was recently sold at auction?) Allen proposed 2 sites, one being included in a project there called The Strand.  Frisco is submitting at least 6 site proposals along the Tollway.  Dallas is submitting 4 including one put forth by the Texas Bullet Train group which would have them locate in the Cedars area of Dallas and help to create a super economy between Dallas and Houston. Fort Worth suggests 8 sites including on the banks of the Trinity River in Ft Worth.  Plano is pitching 6 possible sites including their historic downtown.  McKinney has a proposal, Arlington and Irving met the deadline as well.  Carrollton sent in 2 sites and Grapevine sent in a site proposal including land owned by DFW Airport.  Denton submitted 3 site proposals – one north, one south and one in downtown Denton.

3-Retire4Texas ranks as one of 2018 Best Places to Retire; Dallas is 11th in Nation! In U.S. News & World Report’s 2018 Best Places to Retire in the United States, released on 10/02/17, the Lone Star state comes out smelling like a yellow rose. Six of the top 12 cities on the new top 100 list are in Texas, with Dallas coming in 11th in the nation.  The ranking measures included housing affordability, the job market, health care, retiree taxes and overall happiness.  Sarasota, FL showed up as the best place to retire in America and San Antonio came in at #1 in Texas, #3 in the nation.

4-Southwest1Southwest adds Boeing 737 to fleet, increasing area coverage and reducing emissions. On Oct. 1, 2017 , Southwest flew its inaugural flight on its new plane – the Boeing 737 Max.   Southwest is now one of the country’s largest domestic airlines, carrying more than 124 million paying passengers in 2016 and adding international flights to Mexico, Central America and the Caribbean.  Looking at Southwest’s new 737 Max, it can be hard to distinguish it from its predecessor, the 737-800.  The Max has updated winglets and larger engines, but its dimensions are nearly the same. Inside, the Max has the same blue-clad interior, approximately 30 additional seats and the galleys have been updated.  Southwest is expected to have 9 of the new aircraft in service by year end 2017 and 36 total by year end 2018. In 10 years, Southwest could have as many as 391 of the aircraft, a figure that represents more than half of the carrier’s current fleet size of about 700 aircraft.  The aircraft’s engines burn an estimated 14% less fuel than the previous generation of 737s, helping Southwest save on its second largest operating expense while cutting down emissions.  Perhaps most important is the 500 nautical miles of additional range Southwest says the jet will provide, which will increase the routes that are possible operationally and profitably.

North Texas Housing Market remains strong

Keller Williams Dallas Metro North presents the September 2017 Market Reports, Courtesy of Texas Association of Realtors® (TAR) and Greater Lewisville Area Realtors® (GLAR). How is your market doing?

Flower MoundLantana

Argyle

Information provided by Keller Williams Dallas Metro North. Call us today to see how YOUR market is doing! We have over 400 qualified realtors eager to assist you with your real estate needs.