D.R. Horton’s Forestar development group have been turning the dirt for the new Eagle Creek development. The community of Eagle Creek is a multi-phase development that will supply hundreds of new single-family homes during the next few years. Eagle Creek is comprised of a few hundred acres west of the railroad tracks near Borman Elementary and Denia Park. It extends from Rose Lawn Drive on the south up toward Parvin Street on the north end of the development.

D.R. Horton currently builds homes in the $300,000-$500,000 range in the Denton area and the homes in Eagle Creek look to be similar to standard product for the North Texas market. With lots roughly 52′ wide by 115′ deep, it’s safe to assume these will be typical single-family homes geared toward first-time and lower end move-up home buyers.

With home prices at record highs, builders are still playing catch-up in terms of bringing more product to market. Unprecedented distortions to housing supply during the Covid pandemic are still working through the system. Builders like D.R. Horton have a lot of projects in the pipeline, but you still don’t see many finished spec homes on the ground available for purchase.

A lot of new homes were sold before they even started construction in 2021. Unprecedented fiscal and monetary stimulus brought demand forward and caused a run on the available housing stock. Builders cashed in by managing their pipelines and taking advantage of the rare supply shift. With a huge portion of the resale market AWOL, new home builders have enjoyed fat profits and little competition.

2022 will likely see a shift from this Goldilocks setup as a lot of the stimulus is removed from the markets. The Federal Reserve’s bond buying programs are slated to end in March. Investors who have been feasting on cheap liquidity have been buying many of the affordable homes that hit the market. Economic inequality has reached epic new highs as the rich have gotten richer and first-time buyers have been left staring through the window as home prices rocketed to record highs.

The good news for prospective home buyers is that choices should improve in 2022. The feeding frenzy in the housing market is poised to cool. Buyers in the market for a new home will surely appreciate new inventory hitting the market. Eagle Creek will be just one of many new communities bringing new housing stock to the Denton area in 2022.

New Homes for Sale by Stage of Construction October 2021

Fed Balance Sheet November 10 2021

All of the liquidity thrown at the U.S. economy has pushed new home prices up over 34 percent from the pandemic lows. The median price of a new home in the U.S. rose from $310,100 in April 2020 to $416,900 in November 2021. A word of caution is warranted here. What goes up can indeed come down once the liquidity propping it up is removed. Just something to keep in mind if you are in the market for a new home in 2022.

U.S. New Home Prices November 2021