Local Market Monitor Report Echoes Optimism of Realtors, But We Want to Know What Area’s Aren’t Growing Like Crazy
The Local Market Monitor Report for the Dallas, Plano, and Irving areas calls the real estate market “Low Risk.” This is echoing what we’ve heard since November — prices are up, homes are on the market for a 30 to 60 days, inventory is low.
The report forecasts a 3 percent increase in home values over the next twelve months, and says the recession is pretty much over for our area, as jobs are growing, too, thanks to our large finance sector. So there are fewer homes on the market, more demand for homes, and a job growth rate that is almost twice the national rate …
That got me wondering. In some areas, I’m seeing the same signs in the same front yards that have been there for months. If the market has such awesome momentum, why aren’t some of these perfectly fine homes in an otherwise great area not selling?
Take this cute, well-preserved midcentury modern in the Ash Creek area of East Dallas. We’ve said (pretty much ad nauseum) that this area has amazing momentum and is growing like gangbusters. Still, this steal of a deal isn’t selling. I wonder why?
What do you think? Are buyers being more picky than normal despite the low inventory? What are you seeing buyers turn their noses up at?
I've been in that house. It's actually under contract, by the way. The house has some great midcentury charm, a beautiful creek view, and a uber cool sputnik light fixture in the dining room. However, it needs a lot of repairs. Complete gut if you ask me, and new roof. You can tell that it was loved, but almost everything inside is original and in need of replacement. I hope the new owner brings it back up to its former glory! Lovely area and a great creek lot.
I've been in that house. It's actually under contract, by the way. The house has some great midcentury charm, a beautiful creek view, and a uber cool sputnik light fixture in the dining room. However, it needs a lot of repairs. Complete gut if you ask me, and new roof. You can tell that it was loved, but almost everything inside is original and in need of replacement. I hope the new owner brings it back up to its former glory! Lovely area and a great creek lot.
Great point. I think that today's buyer just doesn't want to make the repairs. They want a turn-key product — move in ready. The homes that are "projects" are the one languishing…
Great point. I think that today's buyer just doesn't want to make the repairs. They want a turn-key product — move in ready. The homes that are "projects" are the one languishing…
The strength of the "market" is over-hyped. Yes, there is less inventory, but I, too, have seen the same houses languish even now.
Certain prices and schools are popular and are quick to move, but it's a bit more complicated than to say, "Housing is back". When interest rates go back to norms I fear the real estate market will come crashing down upon us again. Will it be gentle landing or a complete disaster?
Consumers are dumb. They focus on the payment question and buy accordingly. For instance, at 3%, the payment on a modest PrestonWood home today is $1200 plus Taxes. It was $1200 a few years ago, too. But the difference is today's purchase price of $350,000 versus $200,000 about 5-6 years ago.
There is another bubble that will pop when bonds start to increase (and they will). We'll have another pricing adjustment because incomes are flat. Higher rates, mean lower affordability and lower principal prices and upside-down mortgage situations.
I wouldn't want to be on the buying side today without extreme caution.
That said, certain price ranges and neighborhoods have been extremely flat. I sold my home in Bent Trail for $399K 10 years ago. It's on the market now for $449K after a major, major remodel.
Interesting theory, Robert! I agree that every time we say "housing is up" we need to look at the market in a much more segmented and local way. The Dallas market may be up in Preston Hollow and Oak Cliff and some areas of Lakewood, but not all ships are benefiting from a rising tide.
The strength of the "market" is over-hyped. Yes, there is less inventory, but I, too, have seen the same houses languish even now.
Certain prices and schools are popular and are quick to move, but it's a bit more complicated than to say, "Housing is back". When interest rates go back to norms I fear the real estate market will come crashing down upon us again. Will it be gentle landing or a complete disaster?
Consumers are dumb. They focus on the payment question and buy accordingly. For instance, at 3%, the payment on a modest PrestonWood home today is $1200 plus Taxes. It was $1200 a few years ago, too. But the difference is today's purchase price of $350,000 versus $200,000 about 5-6 years ago.
There is another bubble that will pop when bonds start to increase (and they will). We'll have another pricing adjustment because incomes are flat. Higher rates, mean lower affordability and lower principal prices and upside-down mortgage situations.
I wouldn't want to be on the buying side today without extreme caution.
That said, certain price ranges and neighborhoods have been extremely flat. I sold my home in Bent Trail for $399K 10 years ago. It's on the market now for $449K after a major, major remodel.
Interesting theory, Robert! I agree that every time we say "housing is up" we need to look at the market in a much more segmented and local way. The Dallas market may be up in Preston Hollow and Oak Cliff and some areas of Lakewood, but not all ships are benefiting from a rising tide.
Robert, great insight. Was with a financial biz friend this weekend who also says that when interest rates are unleashed, bad stuff may happen. What other Dallas 'hoods remain "flat"?
Robert, great insight. Was with a financial biz friend this weekend who also says that when interest rates are unleashed, bad stuff may happen. What other Dallas 'hoods remain "flat"?
In the same area as that Estacado Dr house, I am more surprised that this beauty has sat on the market for 46 days. No creek lot, but very cool architecture and large, open spaces! Cool bathrooms too. http://www.zillow.com/homedetails/2629-Beechmont-Dr-Dallas-TX-75228/26847287_zpid/
In the same area as that Estacado Dr house, I am more surprised that this beauty has sat on the market for 46 days. No creek lot, but very cool architecture and large, open spaces! Cool bathrooms too. http://www.zillow.com/homedetails/2629-Beechmont-Dr-Dallas-TX-75228/26847287_zpid/
Very interesting comments from everybody. I'm experiencing the same with my listing in N.E.Dallas. The up market does not seem to have reached there yet. Even though it is priced rigth. But some buyers might like to see more updates.
Very interesting comments from everybody. I'm experiencing the same with my listing in N.E.Dallas. The up market does not seem to have reached there yet. Even though it is priced rigth. But some buyers might like to see more updates.