Coronavirus News

COVID-19's effect on Dallas real estate market will benefit the suburbs

Head to the suburbs.

Photo by fstop123/Getty Images

Editor's note: Terry Tremaine is the 2020 President of The MetroTex Association of Realtors is the largest Realtor association in North Texas and sixth-largest real estate association in the U.S.

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COVID-19 has disrupted lives with health concerns, financial struggles, and restrictions on activities. Amidst this uncertainty, real estate professionals, buyers, sellers, landlords, tenants, and investors are trying to figure out the best course forward.

According to Dr. James Gaines, chief economist for the Real Estate Center at Texas A&M University, sales of existing homes in Texas fell in May to their lowest level since 2012.

"The month of May marked the housing market's deepest decline thus far during the ongoing COVID-19 pandemic," Gaines says in a release. "Texas' existing-home sales plummeted 32 percent year over year on top of a 22 percent slide in April."

Single-family homes performed better than condominiums and townhomes.

I recently listened to Dr. Gaines on a webinar regarding the coronavirus crisis and what it means to consumers. Here are a couple of takeaways I found very important.

Home sales on hold
Three things have a positive effect home sales — low interest rates, job growth, and inventory — and right now, only one of those is guaranteed.

Interest rates are anticipated to stay low for an indefinite period of time. It's been proven in the past that there is no better way to come out of a recession than "cheap money."

Job growth is a challenge. Gaines worries that there won't be enough jobs for those who were furloughed or laid off.

Inventory is down. Active listings in May 2020 were down across the board:

11.8 percent down in Dallas County
15.2 percent down in Tarrant County
22.3 percent down in Denton County
10.7 percent down in Rockwall County

Active listings need to rebound, but buyers and sellers are on pause.

Suburbs trending
The suburban market is going to have a lot more demand than we've seen in the last decade. The same is true for communities within 40 minutes of a major urban area.

As managers and business owners have gotten comfortable with remote work, there are more opportunities for people to live 40 minutes away and get their job done remotely.

We may have changes on the horizon, but as we have proven before, North Texas is resilient and in the end, we will come out of this with stronger communities and neighborhoods.

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A version of this story appeared on Candy's Dirt.

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Moving north

$1.5 billion development with working farm takes root in booming Anna

Facebook/Anna

Anna is a fast-growing city north of Dallas.

The fast-growing Dallas-Fort Worth suburb of Anna, once a small farming community, is poised for even more population growth with the addition of a $1.5 billion master-planned community.

Real estate investment firm Tellus Group broke ground Wednesday, March 25, on the more than 970-acre project, called Sherley Farms. Tellus is marketing the development, located in Collin County, as a wellness-focused, master-planned community with about 3,000 homes and an actively managed organic farm.

First-phase homebuilders are Bloomfield Homes, DRB Homes, Drees Custom Homes, Highland Homes, Homebound, Olivia Clarke Homes, and Perry Homes. The initial model homes will be finished in the spring of 2027.

The Sherley Farms site is five minutes from U.S. Highway 75 and near downtown Anna, which ranked fifth among U.S. cities for population growth from 2023 to 2024. As of July 1, 2024, Anna’s population stood at 31,986, up 14.6 percent from the same date in 2023 and up 183 percent from 2016. Anna’s population is projected to hit 100,000 by 2050.

One standout aspect of the project will be a 65-acre organic farm that supplies fresh produce. Tellus says the “working” farm will serve as an “agricultural anchor and gathering place.”

“Sherley Farms reflects our belief that the future of community development is rooted in wellness, connection, and a deep respect for the land,” says Craig Martin, founding partner and CEO of Tellus Group.

Facebook/Sherley Farms

Anna started as a farming community in 1883. But in recent years, it has transformed into a rapidly growing suburb with more than 7,700 households as of 2024.

Aside from homes, the first phase of Sherley Farms will include an amenity center with a resort-style pool and a portion of the planned green space.

“Sherley Farms is a meaningful investment in Anna’s future, expanding our tax base, attracting new residents, and driving long-term economic growth,” says Kevin Toten, Anna’s mayor pro tem. “This project will generate new economic activity, support local businesses, and strengthen Anna’s position as a destination for high-quality development in North Texas.”

In addition to Sherley Farms, Tellus is developing the Mosaic master-planned community in Celina, the Mirabella gated community in Prosper, and the Meraki master-planned community in Forney. Tellus was the principal developer of the $3 billion Windsong Ranch master-planned community in Prosper.

dallas suburbs anna master-planned community development