With so many reports across the nation detailing the decline in real estate, I was excited (dare I say, giddy?) to read the positive reports coming out of the local Dallas real estate market. I devote time everyday to reading about real estate and market trends. My goal is to provide you with accurate information to make informed decisions. The information that follows, though a dull read, is an exciting and upbeat note in the otherwise flat real estate tune.
According to a new report by the Federal Reserve Bank of Dallas, the Texas economy remains strong and is continuing to outpace the national economy, year-to-date employment growth in Texas through August 2006 was 2.7 percent (an increase of 177,300 jobs). This is more than twice the national rate and consumer sentiment is currently 62% (anything above 50% is considered healthy). With so many markets witnessing a decline in home sales for 2006, the Dallas and Fort Worth metroplex saw an increase in sales with over 116,000 pre-owned homes and over 46,000 new homes sold. The number of homes sold for $1 million or more increased 18%.
A September 2006 report by analysts at Global Insight and National City Corp. lists Dallas as the most under-valued home market in the country. Prices in the city are 21.2 percent behind the nationwide norm. Fort Worth is also on the list at -19.3 percent. This is what has and will protect Dallas and Fort Worth from any type of “Real Estate Bubble”.
According to the latest housing outlook by Fiserv Lending Solutions, the D-FW area is expected to see a 4 percent gain in home prices in 2007. Fiserv estimates that since 2001, Dallas-area home prices have risen about 17 percent, compared with more than 53 percent nationwide. They predict this steady and paced growth helps to insulate the Dallas market from price declines. James Gaines, an economist with the Texas AM University Real Estate Center expects appreciation rates across the board in the state to be at least 5 percent to 6 percent or even better.
You can see why I am excited to be part of this amazing Texas real estate market. Now I just wish that the news media would stop looking for ways to spin this positive information into negative headlines. I recently read a local newspaper article with a headline that read, “Home Sales Fall 2%”, but then went on to talk about how Dallas and Texas in general saw positive growth and showed few signs of weakening. This is what the headline should have read, “Texas Home Sales Show Few Signs of Weakening”… but that apparently doesn’t sell newspapers.
If you’re local to DFW or looking to relocate here and were waiting to see what the economy would do before buying or selling… well, now you know!
This entry was posted on Tuesday, January 30th, 2007 at 10:40 pm and is filed under Dallas Fort Worth, Housing Market, Real Estate, Relocation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.