Slipping sales

New-home market in Dallas-Fort Worth cools off, new data shows

Austin Photo Set: News_steven_home buying need a job to qualify_may 2012_sold house

A decline in pending new home sales can impact future new home sales growth, experts say.

Courtesy photo

It may be hot as you-know-what outside, but the new-home market in Dallas-Fort Worth is cooling off just a tad, according to data compiled by HomesUSA.com.

New-home sales in DFW totaled 1,270 in July, down 6.9 percent from 1,364 in June and down 2.8 percent from 1,306 in July 2018, HomesUSA.com says in an August 19 release.

Meanwhile, the average price of a new home in DFW has held fairly steady over the past year. The average price in July was $375,694, compared with $373,960 in June and $376,596 last July, according to Addison-based HomesUSA.com, whose technology platform helps builders sell homes.

The state’s three other major metro areas saw similar trends in new-home sales, the HomesUSA.com data shows.

Ben Caballero, founder and CEO of HomesUSA.com, says all four of Texas’ major new-home markets remain healthy.

“After a good 2018, the market is steady, but as last fall proved, it is very sensitive to interest rates,” Caballero says. “At the moment, I expect a good market and expect prices to be in check due to builder competition. With current interest rates, this is a good time to buy.”

In the HomesUSA.com data, the most dramatic change outside DFW happened in San Antonio. There, the average number of new-home sales dropped 13.1 percent from June to July (going from 534 to 491). The decline from July 2018 (519 sales) to July 2019 was 5.4 percent, HomesUSA.com says.

At the other end of the spectrum, Austin experienced the smallest year-over-year decline in average new-home sales — from 667 in July 2018 to 653 in July 2019, a decrease of 2.1 percent. The month-to-month fall-off was bigger, however, with the number shrinking 6.7 percent from June 2019 (700 sales) to July 2019.

Houston’s numbers were much like Austin’s. From June 2019 to July 2019, the average number of home sales went from 1,388 to 1,297, a difference of 6.6 percent. From July 2018 (1,256 sales) to July 2019, the decrease was 3.3 percent.

The waning number of new-home sales in Austin, Houston, and San Antonio coincided with a slight overall uptick in new-home prices, according to HomesUSA.com.

Austin witnessed the biggest jump in average new-home prices, the HomesUSA.com data indicates. The average price in July 2019 was $372,365, up 1.9 percent from July 2018 ($365,495) and up 1.5 percent from June 2019 ($367,041).

San Antonio saw less movement in prices than Austin did. The average new-home sale price in San Antonio stood at $299,151 in July 2019, up from 1.8 percent in July 2018 ($293,842) and up 0.6 percent from June 2019 ($297,387), HomesUSA.com says.

In Houston, new-home prices barely budged. The average price in July 2019 was $357,118, up 0.4 percent from July 2018 ($355,842) but down 0.5 percent from June 2019 ($358,810), according to HomesUSA.com.

HomesUSA.com relied on Multiple Listing Service data from Realtors groups in DFW, Austin, Houston, and San Antonio to produce its analysis.

Big deal

Houston investor acquires Bishop Arts mixed-use portfolio in $170M deal

Photo courtesy of Hines

Michelin-recognized Written by the Seasons is one of several Bishop Arts businesses acquired by a Houston-based investor.

A Houston investor has snapped up a mixed-use portfolio of nine buildings in the Bishop Arts District, the second Bishop Arts property acquisition since August.

Hines Global Income Trust told CultureMap it paid more than $170 million for a mixed-use complex with 539 apartments and 49,000 square feet of high-end shops. The Bishop Arts Portfolio, as Hines refers to the real estate package on its website, sits on almost seven acres.

“Bishop Arts is a special place, shaped by the care and investment of its prior ownership. We see our role as building on that foundation through thoughtful ownership and Hines’ integrated operating platform,” Corbin Eckel, managing director at Hines, told CultureMap.

Hines identified the seller as Dallas-based Exxir Capital. Exxir developed Oak Cliff's 750,000-square-foot, two-block Bishop Main Street area, which features retail, residences, and offices, and includes the properties acquired by Hines.

Tenants of the newly acquired properties include:

Italian restaurant Lucia, a Michelin recommended restaurant.
Michelin-praised Written by the Seasons, which serves a New American menu.
Paradiso, a Southern European-inspired eatery.
Bar Eden Lounge, a swanky cocktail bar.
Village Baking Co., an artisan bakery.

Hines is taking over all leases at the residential properties:

Bishop North, 200 N. Bishop Ave.
Bishop Canopy, 515 W. 10th St.
Bishop Flats, 305 and 431 Melba St.
Treehaus, 211 W. 10th St.
Retail at 308 and 275 N. Bishop Ave.; 404, 332, 336 and 337 Melba St.; and 403 and 321 W. Ninth St. Altogether, the portfolio’s retail component comprises 22 tenants.

The Hines deal comes two months after Dallas-based investor 90Ten purchased 301-321 N. Bishop Ave.301-321 N. Bishop Ave. in Bishop Arts. Tenants include burger diner Hunky’s, Italian pastry and coffee purveyor Palmieri Café, vintage clothing store Dolly on Bishop, gift shop Kawaii Candle Co., and cosmetics retailer Simply Bella.

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