Home sales in February were down 10% from a year ago and down 13% year-to-date compared to 2007. No area was immune from the decline, but Park Cities and Richardson managed to keep the falloff in sales to single digits. Simply put, we could just say more people want to sell their homes now than those who want to buy…or is it can buy? We know Dallas has always had more inventory than buyers, mostly due to a robust home building industry that knows no boundaries, literally. We have been building north for decades and now building east with great speed as well. There is still a lot of ranchland ripe for construction as we head to the Red River and now to Athens. But, the lending environment has been crazy, and new rules coming from the regulators, in an effort to bring sanity back to the lending biz, are making it tougher for some to get a mortgage. Every new rule or regulation is trimming the pool of potential buyers. Now, you have to have a job, work history, money in the bank and a darn good credit score. Pretty basic requirements. In addition, the number of mortgage products is being trimmed back as well. Starting April 1, for example, 0% down without a second lien will be a distant memory. Second liens are hard to get, because the investors in the secondary market don’t want them (or may be out of business–Bear Stearns?). It feels like the 60’s all over again!
With all that we hear and read about the real estate market, most of which seems negative and pessimistic, we are fortunate to be in Texas and even more fortunate to be in Dallas. CNN Money reported, “All the best bargains were found in Louisiana and Texas. Dallas was the most undervalued big city, by 30%”. If the link is still active, you can find this story at http://money.cnn.com/2008/03/04/real_estate/markets_less_overvalued/index.htm?postversion=2008030417. Residential Strategies, a research firm for the home building and developer industry, cited numerous factors bolstering the prospects for the coming rebound in the Dallas housing market in a The Dallas Morning News story on March 14, found at this link: http://www.dallasnews.com/sharedcontent/dws/classifieds/advertising/homecenter/general/stories/DN-frh0314_feature.ART.North.Edition1.4640e8e.html. Then, there is a wonderful new website, http:www.dfwhousingfacts.org, which offers a number of positive viewpoints on the housing scene here. And, our trusty Dallas branch of the Federal Reserve Bank posts regular updates on the Dallas economy on its website, and this link compares the Texas economy to the nation as a whole, with links to more specific Dallas economic statistics. In the update found at http://dallasfed.org/research/swe/2008/swe0801b.cfm?url, the Fed states that “challenges are on the horizon, but Texas enjoys advantages that will help it outpace the nation.”
Once again, we are thankful for a good local and state economy, which is enabling our area to withstand deeper corrections happening elsewhere. All markets, including housing markets, have cycles. It’s the natural order of things!
Here are the details for single family homes and condo/townhome sales in selected areas. For a more comprehensive look at any one market, give me a call. Scroll down for the “Sales by Price Category” info. DOM is short for Days on Market. Avg Price pertains to sales occurring in the period(s).
Overall Market (North Texas):
Feb 08 vs 07: Sales down 10%, avg price down 1%, DOM 87, up 7%.
YTD 08 vs 07: Sales down 13%, avg price down 2%, DOM 87, up 8%.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
Feb 08 vs 07: Sales down 41%, avg price up 63%, DOM 138, up 5%.
YTD 08 vs 07: Sales down 37%, avg price up 56%, DOM 126, up 15%.
Highland Park and University Park, Bluffview, Devonshire and Greenway Parks:
Feb 08 vs 07: Sales down 2%, avg price down 8%, DOM 114, up 46%.
YTD 08 vs 07: Sales down 7%, avg price down 9%, DOM 103, up 37%.
East Dallas (incl M’s and Lakewood):
Feb 08 vs 07: Sales down 17%, avg price down 3%, DOM 77, up 5%.
YTD 08 vs 07: Sales down 12%, avg price down 3%, DOM 78, up 4%.
North Dallas (South of LBJ):
Feb 08 vs 07: Sales down 26%, avg price up 39%, DOM 85, up 2%.
YTD 08 vs 07: Sales down 25%, avg price up 18%, DOM 87, up 10%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
Feb 08 vs 07: Sales down 19%, avg price up 3%, DOM 78, up 28%.
YTD 08 vs 07: Sales down 24%, avg price up 1%, DOM 82, up 34%.
Feb 08 vs 07: Sales down 28%, avg price down 6%, DOM 92, up 35%.
YTD 08 vs 07: Sales down 37%, avg price up 2%, DOM 92, up 26%.
Northeast Dallas (incl Lake Highlands):
Feb 08 vs 07: Sales down 20%, avg price down 9%, DOM 60, down 8%.
YTD 08 vs 07: Sales down 12%, avg price down 2%, DOM 60, down 5%.
Feb 08 vs 07: Sales down 12%, avg price down 6%, DOM 76, up 12%.
YTD 08 vs 07: Sales down 12%, avg price down 4%, DOM 78, up 22%.
Feb 08 vs 07: Sales down 17%, avg price up 10%, DOM 107, up 26%.
YTD 08 vs 07: Sales down 11%, avg price up 2%, DOM 104, up 24%.
Feb 08 vs 07: Sales down 6%, avg price down 3%, DOM 79, up 22%.
YTD 08 vs 07: Sales down 20%, avg price down 9%, DOM 74, up 6%.
Feb 08 vs 07: Sales down 23%, avg price up 12%, DOM 66, down 35%.
YTD 08 vs 07: Sales down 19%, avg price up 6%, DOM 63, down 34%.
Here is a look at Single Family home sales by price category for YTD 2008 vs 2007:
$200-299K (15.0% of sales): down 13%, 10 months inventory
$300-399K (6.2% of sales): down 7%, 12 months inventory
$400-499K (2.7% of sales): down 9%, 16 months inventory
$500-599K (0.9% of sales): down 22%, 23 months inventory
$600-699K (0.9% of sales): down 18%, 20 months inventory
$700-799K (0.5% of sales): down 23%, 26 months inventory
$800-899K (0.2% of sales): down 41%, 43 months inventory
$900-999K (0.2% of sales): down 21%, 24 months inventory
$1MM and up (1.0% of sales): down 8%, 28 months inventory
Here is a look at Condos and Townhomes sales by price category for YTD 2008 vs 2007.
$200-299K (16.3% of sales): 101 units vs 110 units year ago, 14 months inventory
$300-399K (6.8% of sales): 42 units vs 58 units year ago, 21 months
$400-499K (2.1% of sales): 13 units vs 23 units year ago, 32 months
$500-599K (1.4% of sales): 9 units vs 5 units year ago, 40 months
$600-699K (0.5% of sales): 3 units vs 4 units year ago, 58 months
$700-799K (0.3% of sales): 2 units vs 2 units year ago, 54 months
$800-899K (0.3% of sales): 2 units vs 2 units year ago, 48 months
$900-999K (0.3% of sales): 3 units vs 3 year ago, 33 months
$1MM + (0.6% of sales): 6 units vs 2 year ago, 35 months
Bob & Knoxie Edmonson
Allie Beth Allman & Assoc.
Dallas TX Homes for Sale, Condos and Real Estate
Highland Park Real Estate, University Park Real Estate,
Uptown Dallas Real Estate, M-Streets Real Estate