The latest report from housing market analyst Metrostudy found that new home starts in North Texas increased 12 percent last year.
More than 16,840 new homes were started in 2010. However, closings were down 6 percent, with 15,275 new home closings during that period.
â€œHomebuilders slowed their starts in the third and fourth quarters in response to the significant slowdown in new sales that began in May once the tax credit expired,â€ said David Brown, director of Metrostudyâ€™s Dallas-Fort Worth office.
Frisco, McKinney and Little Elm had the largest jump in new home starts with a combined 39 percent and 710 homes. Frisco also led the way in overall market closings with a 22 percent gain to 220 homes.
Metrostudy anticipates starts to increase 10 to 15 percent in 2011.
â€œHomebuilders accelerated starts during the first half of 2010 in reaction to the homebuyer tax credit,â€ Brown said. â€œIn the second half of the year they pulled back, especially for homes priced under $200,000. We should see starts begin to get back to a more normal seasonality in 2011.â€