Posts Tagged ‘Dallas’

Image

 

 

Great Article out of the Dallas Business journal this morning on rising home prices is Dallas.  

This is also great marketing material to potential sellers.  Most people are not in tune to the local real estate market.  Sharing this type of information could spur potential listings.

Click here or see below article by  Staff Writer-Dallas Business Journal

Dallas-Fort Worth area home prices are continuing to climb, which isn’t surprising given North Texas’ low inventory of homes.

There are only about 2.8 months worth of single-family housing inventory on the market, which is less than half the normal six-month supply, Ted Wilson, president of Dallas-based Residential Strategies, told me Tuesday afternoon. Residential Strategies tracks North Texas’ housing market.

“That’s as tight as I’ve ever seen it,” Wilson said, about the 2.8-month supply of homes. “People are not putting their houses on the market right now.”

The reasons: Homeowners could think prices will continue to rise and don’t want to sell too soon. Or credit-poor homeowners can’t move up into larger homes, leaving them house locked.

“Whatever the reason, there’s not as many houses on the market right now,” he said, which has been driving prices higher and higher.

Dallas area home prices rose 3.9 percent year-over-year in December 2012, according to a report released Tuesday by California-based CoreLogic (NYSE: CLGX). Nationwide, home prices rose 8.3 percent year-over-year.

Home prices will continue to rise as more people turn into homebuyers, attracted to home ownership by low interest rates. Those rates offset rising home prices, Wilson said.

“Until I see new inventory in the market, there’s no reason why prices won’t continue to climb,” he said.

If you could close 30 transactions next year with your current title company or 36 transactions next year with BottomLineTitleGuy – Zach Sams at Fidelity National Title; which would you choose?

Great Video with Powerful information

DFW Home Construction Up 19 Percent

DALLAS (Dallas Business Journal) – New home construction is up in Dallas-Fort Worth, signaling a strong housing recovery in the area.

According to Residential Strategies Inc. the Metroplex had 4,538 housing starts during the second quarter, a 19 percent jump from the 3,804 starts during second quarter 2011.

Ted Wilson of Residential Strategies said the growth has been concentrated in the northern suburbs and in higher price brackets.

More Evidence of Texas’ Housing Market Strength

In a previous post, I talked about how the residential real estate market in Texas has appeared to have formed a bottom and is beginning to recover. The following chart shows that the dollar volume of home sales in Texas has recovered. Total sales of nearly $40 billion were reported to the Real Estate Center in 2011, very similar to 2004 before sales spurted in 2005-07 because of greatly relaxed underwriting standards.

As I look at this chart, it appears to me that sales volume has stabilized around $40 billion for the past three years. Early results indicate that 2012 will show a substantial increase.

The inventory of homes for sale is another indication of stabilization in the residential market. If there is an excessive amount of homes for sale, the risk of price declines is higher. When inventory gets lower, prices start to rise.

The next chart shows the number of listings for sale in Texas as reported to the Center. The first thing you see from this chart is that the amount of homes for sale is predictably seasonal. Lots of houses are put up for sale in the spring and summer months. There are fewer homes for sale in the fall and winter every year.

The second thing you can see is a downward trend in the inventory after the historic peak of 31,431 in June 2006. Five years later, the number of listings in June 2011 was 21,771. The number of houses for sale had declined by 31 percent. The June 2012 inventory numbers will come out in the next 60 days.

Another way to look at inventory is the number of “month’s inventory.” This is a theoretically simple calculation. If you have ten homes on the market and you sell two each month, then you have five months of inventory. Previous Center research has estimated that in Texas a balanced market is about 6.5 months of inventory.

What we have observed in the past 15 years is that if inventory levels are below 6.5 months, prices rise more quickly. When inventory levels get above 6.5 months, price appreciation begins to moderate. The danger of falling prices comes into play when inventory gets into nine to 11 month range.

What you can see from the chart above is that inventory of Texas homes for sale was below 6.5 months for the first eight years of the 21st century. Home prices in Texas were increasing consistently during this period.

This indicator of residential market conditions rose above 6.5 months in May 2008 and stayed above that level through November 2011. Since then, the inventory has been hovering around 6.0 months. This is a clear sign of relative strength in the price of houses in the Texas market.

Keep in mind that home price trends can vary dramatically from one city to the next in any state). In fact, price trends can vary widely between neighborhoods in the same city.

So it’s possible that prices could continue to be soft in pockets around the state. But the economic foundation of a recovery in residential real estate is being laid.

DALLAS (Dallas Morning News) – The Dallas area had the second lowest foreclosure rate in the country in May, according to CoreLogic Inc.

The California-based housing and finance analysts found that about 1.6 percent of Dallas-area homes with mortgages were in foreclosure in May. Only Denver had a lower foreclosure rate, at 1.5 percent.

Nationwide, 3.4 percent of homes with loans were in the foreclosure inventory. At less than 2 percent, Texas is among the states with the lowest inventory of foreclosures.