Let’s start with a little round-up of real estate news…lenders, and in particular Bank of America, are getting more aggressive with jumbo loan financing, offering rates in the mid 5% range for long term fixed financing up to $3M. A hefty downpayment of 20% and the usual documentation is still required, but high jumbo rates (for loans over $417K) have been the culprit over the past year for discouraging buyers in the luxury home market. The Wall Street Journal reported February sales on a national basis were up 5%, surprising most pundits in a report just released today. The Mortgage Bankers Association also reported that loan applications for new mortgages were up over 20% and refi’s up even higher. Per Governor Perry’s office, a report released in Chief Executive Magazine stated that Texas has been ranked as the top state in the country for job growth and business development for the 4th year in a row, in a survey of over 500 CEO’s looking at factors such as taxation, regulation, workforce quality and living environment. Texas is home to more Fortune 500 firms than any other state in the union, and Texas ranked as the top export state for the 7th year in a row, per the US Dept of Commerce. Site Selection Magazine says that Dallas/Fort Worth is the 2nd best market for new and expanded corporate facilities in the country, and in 2008, 156 qualified companies chose DFW as their site for their expansion or relocation. The US Census Bureau just released their figures stating that 146,000 people moved to the DFW area in ’07 and ’08, the largest growth of any metro area for the 2nd year in a row. DFW is the 4th largest metro area in the country, and while growth has slackened a little lately, DFW is still adding about 400 people per day. Another major study of metropolitan statistical areas shows that housing affordability has never been better since records were first kept in 1981. The national housing cost-to-income ratio has dropped from 30% to 27% and in Dallas to 19%, making Dallas among the most affordable cities for housing in the U.S.
This bigger picture is helpful when drilling down to the month-to-month home sales figures, reinforcing the view that when the country pulls out of the slump, Dallas stands to really benefit. Since no one can pick the bottom, but knowing that the bottom is near (months, not years, away), it takes a little of the pain away. Home sellers today may not realize the best dollar they can get for their homes, but they should expect to pay a little less for the replacement home than would otherwise be the case. Still, there were several submarkets where the median sales price was higher in February than a year ago: Northwest Dallas (+31%), Northeast Dallas (+21%), Plano (+3%), and Richardson (+10%). Far North Dallas actually saw a sales increase of 5% in February vs a year ago. Uptown sales were at least flat vs a year ago, but the median sales price was off 40%, indicating very weak sales of luxury high rise condos there. In fact, only 17 condos priced above $400K have sold in the first two months of the year–in all of Dallas. The demand seems to be okay, but again, the financing has been very difficult. By contrast, there have been 381 sales of condos at prices below $400K.
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 at 214-563-8540 or at my Allie Beth Allman office. Scroll down for the “Sales by Price Category” info. DOM is short for Days on Market. Median Price pertains to sales occurring in the period(s).
Overall Market (North Texas):
Feb 09 vs 08: Sales down 28%, med price down 2%, DOM 89, up 1%.
YTD 09 vs 08: Sales down 27%, med price down 4%, DOM 88, unchanged.
Uptown, Downtown and Turtle Creek (Condos and Townhomes):
Feb 09 vs 08: Sales unchanged, med price down 40%, DOM 84, down 43%.
YTD 09 vs 08: Sales down 27%, med price down 27%, DOM 111, down 15%.
Highland Park and University Park, Bluffview, Devonshire and Greenway Parks:
Feb 09 vs 08: Sales down 50%, med price unchanged, DOM 106, down 5%.
YTD 09 vs 08: Sales down 48%, med price up 14%, DOM 124, up 22%.
East Dallas (incl M’s and Lakewood):
Feb 09 vs 08: Sales down 22%, med price down 17%, DOM 78, up 1%.
YTD 09 vs 08: Sales down 22%, med price down 37%, DOM 80, up 3%.
North Dallas (South of LBJ):
Feb 09 vs 08: Sales down 43%, med price down 32%, DOM 126, up 45%.
YTD 09 vs 08: Sales down 45%, med price down 31%, DOM 138, up 55%.
Far North Dallas (incl Addison and to Park Blvd in Plano):
Feb 09 vs 08: Sales up 5%, med price unchanged, DOM 93, up 19%.
YTD 09 vs 08: Sales down 5%, med price up 5%, DOM 86, up 5%.
Feb 09 vs 08: Sales down 21%, med price up 31%, DOM 111, up 17%.
YTD 09 vs 08: Sales down 8%, med price down 4%, DOM 101, up 7%.
Northeast Dallas (incl Lake Highlands):
Feb 09 vs 08: Sales down 26%, med price up 21%, DOM 88, up 35%.
YTD 09 vs 08: Sales down 22%, med price up 7%, DOM 76, up 21%.
Feb 09 vs 08: Sales down 29%, med price up 3%, DOM 68, down 15%.
YTD 09 vs 08: Sales down 30%, med price down 5%, DOM 73, down 10%.
Feb 09 vs 08: Sales down 6%, med price down 1%, DOM 98, down 13%.
YTD 09 vs 08: Sales down 15%, med price up 4%, DOM 90, down 17%.
Feb 09 vs 08: Sales down 30%, med price up 10%, DOM 81, up 3%.
YTD 09 vs 08: Sales down 24%, med price up 3%, DOM 84, up 14%.
Feb 09 vs 08: Sales down 45%, med price down 14%, DOM 86, up 25%.
YTD 09 vs 08: Sales down 46%, med price down 6%, DOM 76, up 16%.
Feb 09 vs 08: Sales down 29%, med price down 4%, DOM 52, down 28%.
YTD 09 vs 08: Sales down 17%, med price up 6%, DOM 54, down 23%.
Feb 09 vs 08: Sales down 43%, med price down 8%, DOM 95, up 10%.
YTD 09 vs 08: Sales down 38%, med price down 7%, DOM 96, down 1%.
Rockwall (incl Heath):
Feb 09 vs 08: Sales down 24%, med price down 3%, DOM 108, up 29%.
YTD 09 vs 08: Sales down 29%, med price down 4%, DOM 99, up 4%.
Here is a look at Single Family home sales by price category for YTD 2009 vs 2008:
$200-299K (14.5% of sales): down 27%, 12 months inventory
$300-399K (5.8% of sales): down 32%, 16 months inventory
$400-499K (2.6% of sales): down 30%, 20 months inventory
$500-599K (1.1% of sales): down 22%, 29 months inventory
$600-699K (0.5% of sales): down 49%, 39 months inventory
$700-799K (0.5% of sales): down 31%, 31 months inventory
$800-899K (0.3% of sales): unchanged, 39 months inventory
$900-999K (0.2% of sales): down 23%, 38 months inventory
$1MM and up (0.6% of sales): down 51%, 59 months inventory
Here is a look at Condos and Townhomes sales by price category for YTD 2009 vs 2008.
$200-299K (15.6% of sales): 62 units vs 113 units year ago, 20 months inventory
$300-399K (6.5% of sales): 26 units vs 41 units year ago, 32 months
$400-499K (2.5% of sales): 10 units vs 12 units year ago, 47 months
$500-599K (0.5% of sales): 2 unit vs 9 units year ago, 163 months
$600-699K (0.0% of sales): 0 units vs 2 units year ago, n/a months
$700-799K (0.0% of sales): 0 units vs 2 units year ago, n/a months
$800-899K (0.8% of sales): 3 unit vs 2 units year ago, 39 months
$900-999K (0.2% of sales): 1 unit vs 2 year ago, 36 months
$1MM + (0.2% of sales): 1 unit vs 6 year ago, 272 months
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