DALLAS-FORT WORTH (CBS 11 NEWS) - Fewer people are in the market for new houses in the DFW area and buyers have fewer new homes from which to select, according to research just published by Metrostudy, Inc.
The number of closings on new homes declined by 12 percent in the last 12 months, compared to the same time period the year before.
“Activity is still at a depressed level,” says Metrostudy Dallas Director, David Brown. “Right now there are so many head winds facing the housing market,” he says.
Brown lists a few big factors for the decline:
- the expiration of the mortgage tax credit in April of last year
- more stringent mortgage financing qualifications
- foreclosures are a competitive option
- weak consumer confidence
Brown says he is optimistic about the remainder of 2011 and says his research also shows May was a strong month for existing home sales in the DFW area.