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US Housing Market Trends and Insights

Mar 25, 2025

US Housing Market Price Cuts and Homebuilding Trends

Overview

  • Home builders in the US, particularly in Texas, are cutting home prices significantly.
  • Example: A house in Frisco, Texas was originally listed at $749,000, now reduced to $599,000.
  • Despite price cuts, builders are continuously constructing more homes.

Current Market Conditions

  • 120,000 completed spec homes are on the market, highest since August 2009.
  • Narrative of a housing shortage in America is challenged by current high inventory.
  • Real issue: affordable housing shortage, with prices ranging from $550,000 to over $1 million.

Economic Disparities

  • Wealthier areas see rising home prices, while poorer areas experience a decline.
  • Report from The Wall Street Journal: Top 10% of earners account for 50% of consumer spending.
  • Disparity in spending growth: Bottom 80% increased spending by 25%, top 10% by 58% since pandemic.

Economic Risks

  • Economy reliant on spending by the wealthiest, posing risks if stock/home prices drop.

Texas Housing Market Specifics

  • Texas offers no state income tax, but suburban/rural areas are prone to continuous development.
  • High level of inventory in Texas, with active listings at their highest in 8 years.
  • Frisco, Texas: House values spiked from $400,000 pre-pandemic to $650,000-$700,000 now.

Builder Specific Trends

  • Lenar selling smaller homes for significantly lower prices ($230,000).
  • High median income in North Texas may prevent a major crash despite price reductions.

Buying Considerations

  • Prospective buyers should be aware of continuing price drops and high inventory.
  • Importance of researching specific city and zip code for accurate market trends.

Investment Insights

  • Premium data from Reventure App provides detailed insights into home price forecast, overvaluation, and more.

Community Preferences

  • Buyers are choosing between new developments and established neighborhoods with more character.
  • Dallas neighborhoods offer diverse living options, from luxury areas to more urban, character-filled regions.

Conclusion

  • The US housing market is experiencing significant changes, with potential risks due to economic reliance on high earners and continuous home construction in areas like Texas.
  • Buyers need to be diligent in researching and understanding the specific dynamics of their local housing market.

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