Rising land prices foretells of strong housing market in PROSPER TEXAS.
Overall housing outlook looks good in the long term as the DFW area continues to see steady population growth with a significant portion of that growth looking for detached single family homes. Low cost of living continues to bring relocations to the area.
I have to laugh when, on the one hand, I see all of the doom and gloom about the collapse of the housing market and on the other hand, look at the boom and boom of cost of Collin County land. If land is selling at higher and higher prices that foretells a strong housing market next year. This housing is not part of a housing bubble in danger of collapse.
Collin County has seen very moderate value growth in comparison to east and west coast housing markets where strong double digit appreciation has prevailed. Availability of raw land for new development and low barriers to entry for home builders has kept the Collin County market in check. Homeowners should not be fearful of any sharp value declines but instead should generally expect mediocre value increases with the exception of select unique sought-after developments such as in Prosper.
Higher interest rates has brought some calming to the breakneck pace of new home starts in the area, particularly in the first home and move-up markets. However, the strong demand for raw land in outlying areas continues to evidence homebuilders confidence in the future of the market.
Completion of the Dallas North Tollway up to US 380 in the fall of 2007 will bring many developable tracts online and we will see housing starts grow significantly in northern towns, such as Prosper, which were previously less accessible.
We are also seeing greater demand for attached product -- particularly townhomes. Many builders looking for opportunities to cater to the empty nester, young professional and young married markets have found success in townhome product. Townhome developments in mixed use environments such as Legacy Town Center have done especially well.CONTACT TIFFANY SHARKEY AND TONYA PEEK FOR ALL YOUR PROSPER TEXAS REAL ESTATE QUESTIONS 214-356-4472.