Dallas Real Estate Market Report: Facts & Figures, Not Crane Counting
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Thinking of buying a house in Dallas but wonder when the sweet spot really hits? Last week, the Financial Times blessed us with a rather simple-minded story on how much better our economy is faring in Dallas. The criteria? A crane-count. (Last time I was in Manhattan, there were a ton of cranes there, too.) The article said we learned a lot from the 1980s banking depression in Texas, which made our bankers less likely to pursue risky practices. Also, we may benefit from the recent rise in oil prices because it is a boost to our energy industry. I’ve always said the pain at the pumps is sweet news for Texas. There are other reasons I tout (not covered in the article) why Texas has escaped much of the economic pain: we limit home equity loans to 80% of the loan to ratio value, meaning we do not let homeowners go too crazy with debt. Our market bubbled in some areas, but because we have so much darn land, our homes don’t go appreciation nuts which is ONLY nice when you can sell at the top, not so nice when you sell at the bottom. Our “better” real estate market, however, continues to be tainted by the national economic gloom. So I went to a trusted local source for solid facts — economist Britt Fair, CFO at Hexter-Fair Title Company. He gave me a whole lot more than crane-counting:
(1) Interest rates remain unbelievably attractive — but here is my (Candy’s) two cents: the banks are still parsing out loans. Federal regulators are keeping a lid on residential real estate loans until banks clear out bad loans or get infused with new capital. The appraisal problems are also slowing down sales.
(2) The economy and job prospects are slowing improving in North Texas.
(3) DFW economy/jobs are recovering better than the US average.
(4) Stock market wealth effects are helping the high end recover faster than the low end, Case in point. The rich are making deals and buying like crazy. Update: Troy’s house.
(5) The housing market is improving but is up against difficult comparisons caused by comparing sales this year to last spring’s tax credit, particularly on the lower end. Case Shiller shows that D/FW home prices have been rising since 2010. Not by leaps and bounds, but rising.
(6) D/FW house prices appear to be bottoming out before other markets.
(7) The end of Fed’s “quantitative easing” program in June could dramatically impact rates, though arguments can be made for them heading either direction.
(8) Now is a pretty good time to buy because rates may go up, and because sellers will start to believe in the housing recovery come early August when the July year-over-year sales figures get published.
Thanks, Britt!
10 Comments
So glad to have this insight from a true economist. Rates could go up, down or stay the same, housing prices could be bottoming out but maybe not, DFW is better off than most of the US, and Hexter-Fair has been ripping off clients one deal at a time for the last decade by charging unnecessary endorsements and attorneys fees.
So glad to have this insight from a true economist. Rates could go up, down or stay the same, housing prices could be bottoming out but maybe not, DFW is better off than most of the US, and Hexter-Fair has been ripping off clients one deal at a time for the last decade by charging unnecessary endorsements and attorneys fees.
RPC: What, it should be free? Maybe the government should pay for it? David and Britt Fair happen to be two of the most respected voices in Texas real estate. Get a life.
RPC: What, it should be free? Maybe the government should pay for it? David and Britt Fair happen to be two of the most respected voices in Texas real estate. Get a life.
Oh and does our illustrious government offer us any better news?
Oh and does our illustrious government offer us any better news?
1. I didn't say they haven't positioned themselves well as "respected voices", just say something and have an opinion rather than general speak that could have been said by any random person. It is ok to guess incorrectly, we have enough luke warm in our society. For instance, I appreciate you getting fired up even though what you said doesn't make sense.
2. I am republican as they come. I didn't say reasonable fees should be free. Charging an unnecessary endorsement like survey deletion on a lot and block in Dallas, then telling a buyer at the table that if they don't want to pay the fee, they can just have the documents redrawn is very misleading.
3. They need to be glad there has not been a class action suit for charging buyers an attorney fee for doc prep when nothing is prepared. Unfortunately it is not my opinion they shouldn't charge it, RESPA lays that out pretty clearly.
Maybe you will read this comment before firing back nonsense unlike last time.
1. I didn't say they haven't positioned themselves well as "respected voices", just say something and have an opinion rather than general speak that could have been said by any random person. It is ok to guess incorrectly, we have enough luke warm in our society. For instance, I appreciate you getting fired up even though what you said doesn't make sense.
2. I am republican as they come. I didn't say reasonable fees should be free. Charging an unnecessary endorsement like survey deletion on a lot and block in Dallas, then telling a buyer at the table that if they don't want to pay the fee, they can just have the documents redrawn is very misleading.
3. They need to be glad there has not been a class action suit for charging buyers an attorney fee for doc prep when nothing is prepared. Unfortunately it is not my opinion they shouldn't charge it, RESPA lays that out pretty clearly.
Maybe you will read this comment before firing back nonsense unlike last time.
RPC you make excellent points. I hate all this general speak about the economy, but part of me thinks we'd be peeing in our pants, curl up in front of the boob tube if we knew the truth. I think the banks are dangerously close to teetering. Thanks for alerting us to these practices, too. RESPA has been ignored by many. The stories I could tell…
RPC you make excellent points. I hate all this general speak about the economy, but part of me thinks we'd be peeing in our pants, curl up in front of the boob tube if we knew the truth. I think the banks are dangerously close to teetering. Thanks for alerting us to these practices, too. RESPA has been ignored by many. The stories I could tell…