recessionThe two Metropolitan Statistical Areas that encompass Dallas-Fort Worth ranked in a recent list of top 10 metros that have recovered the most from the Great Recession, HSH.com said.

But that recovery isn’t all that usual — 27 major cities still haven’t seen home prices recover peak values they were posting pre-recession. But that number is dropping, HSH said, and so far, 73 U.S. home markets seen complete recovery.

Dallas-Plano-Irving found itself in fourth place, with home prices 68.51 percent above peak). Fort Worth-Arlington was fifth, at 59.85 percent above peak.

Three more Texas metros found themselves on the recession recovery list as well: Austin-Round Rock at No. 2 (72.55 percent), Houston-The Woodlands- Sugarland at No. 6 (57.05 percent), and San Antonio-New Braunfels at No. 8 (44.47 percent).

“Although the Denver-Aurora-Lakewood, CO metro still holds the top slot, Texas markets dominate the most recovered group, holding five of the 10 slots,” the company said.

Additionally, El Paso made the company’s “nearly recovered” list, signaling that its current values are only one or two percent below previous peaks, and that the city is likely close to making that “fully recovered” list, possibly even by the next quarter.

The rankings are determined by using the Federal Housing Finance Agency’s Home Price Index to determine which markets have recovered fully and which ones are still lagging.

recessionDallas was among nine metros where the bulk of home values have hit pre-recession levels, affordability is hampering one age group in particular from purchasing homes, Zillow is making yet another bid toward world domination, and mortgage rates are ticking up — all this and more in this week’s real estate news roundup. (more…)

There’s been a pretty steady drumbeat from leading economists — a recession is coming. In fact, at this month’s National Association of Real Estate Editors journalism convention, all three economists on a dais one Friday found themselves agreeing on two things: a recession is coming, and real estate won’t be the impetus this time.

Frank Nothaft (Corelogic chief economist), Danielle Hale (economist with Realtor.com), George Ratiu (research director with the National Association of Realtors), and Aaron Terrazas (senior economist with Zillow) all agreed that other factors — like tariffs, rising mortgage rates, and even a correction in the stock market — will likely be the cause or causes for a recession. (more…)

The only hope many younger generations have to accumulate wealth is to stay cozy with grandma. Since 1995 (over a decade before the Recession), the median wealth of 25-34 year olds declined 39 percent, while 35-44 year olds declined 27 percent, and 45-54 year olds’ wealth declined 15 percent. There have been potent gains reported from 2013 to 2016, but obviously not nearly enough to offset long-term losses. The main culprits are excessive student loan debt and the decline in homeownership rates. You might say the growth of student loan debt has heavily contributed to lowered homeownership rates. To me, the chart below demonstrates why down payments are harder for younger buyers to save up for.

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Single Family Resale Median Prices

News media loves the biggest car crash, so during the Recession, Las Vegas and a few other cities were ever-present in the headlines of bad real estate news.  The table above illustrates how deep the crater went and how far it’s returned to pre-Recession levels. For homebuyers in the market, you may have missed out on the gains from the depths of the market, but there is still room for building equity.

I say that because, as of March 2018, The Greater Las Vegas Association of Realtors reports just over a month’s supply of homes on the market with roughly 30 percent fewer homes listed this past year (but 6.4 percent more condos).  Couple that with a 15.7 percent year-over-year increase in single-family home sales prices and a 30.1 percent increase in condo prices. That translates into a median single-family home selling price of $280,000 and $160,000 for condos and townhomes.  That compares with a historical average of 5 percent annual appreciation.  All this activity and you’d think you were in Dallas.

Head over to SecondShelters.com for more on the Las Vegas real estate heatwave.

recession

Minorities were hit the hardest by the housing crisis, and show lower levels of homeownership today.

The economic recession of 2007-2009 affected most Americans in depressingly real and tangible ways. Two groups of Americans are disproportionately affected, still, by the downturn.

A new study by Apartment List shows that the economic downturn had the greatest impact on homeownership among minorities and young Americans aged 18-45, particularly those in the 35-44 age range.

Analysts at Apartment List, an apartment location website, looked at Census data and reported U.S. homeownership rates in general have fallen steadily, recently dropping to their lowest levels since 1965.

In Dallas, the homeownership rate fell from 60.9 percent to 58.7 percent from 2007-2016. The drops were biggest among African Americans, where homeownership fell by 6.1 percent.

“African Americans were highly affected [by the recession], said said Andrew Woo, director of data science and growth at Apartment List. “In Dallas, it is a large drop [in homeownership], larger than the nation average, which is 5.3 percent. What we notice is that it’s very much tied to employment and socioeconomic trends.”

During this same time period, rents increased by 4.2 percent in Dallas, even as owner costs (mortgage, maintenance, etc.) fell by 11.8 percent. So the people least able to afford it were paying more (in rent), less able to save toward a down payment, and therefore less likely to buy a home.

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Sold and For Sale SignsI guess you can thank no income taxes and pot. Because Dallas and Denver are on a high! I really, really wish I could be a fly on the wall in Robert Shiller’s office someday. I say this because when I heard him speak as the huge national recession was setting in, this was about 2010, I had the chills. I had the chills because I truly thought housing was over as we know it. I thought my kids and grandkids would be doomed to leasing. He spread so much doom and gloom in my soul I may be permanently scarred.  Bob Shiller was not so bullish on housing back then.

But now the company that bears his name reports that Dallas-area home prices are up 10 percent from a year ago. They have hit a new record high in the latest Standard & Poor’s/Case-Shiller Home Price Index.

Our homes — single family homes, resales not new construction — are up 10 percent in March from last year. Prices are even up 1.2 percent from February. And March was the fourth month in a row that Dallas home prices increased at a double-digit rate from the previous year. (more…)

Chanel ClosetWell, this is kind of rude. 

The Texas megamansion that has been redefining “gauche” since 2002—took another tortuous turn this week, when the troubled home hit the market less than two years after being sold at auction.

You know how I feel about homes: there is something about them to love, each one of them, no matter how homely. And there is a LOT to love about Champ d’Or, obviously, like 48,000 square feet! Yeah, it was sold at auction two years ago and yeah, it’s on the tax rolls for $9.72 million. Now where did that number come from? Hmmmmmm. Still, the real estate world has changed A LOT since 2012 and Dallas home prices are higher now than they were in the recession. We have re-gained our footing and more.

I don’t know what all this Curbed secrecy stuff is –“…from an undisclosed buyer with “international ties”, whatever that means.”

I told you what it meant. Gosh, does anyone READ anymore?

Pierre Hotel penthouse
Penthouse at the Hotel Pierre? I’ll take the Champ!

I don’t know, I think $125 million for a penthouse at the top three floors of the Pierre Hotel is pretty tacky. (Last December they lowered the asking by $30 million.) In Beverly Hills, there’s  Fleur de Lys, a 45,000-square-foot house modeled after Versailles.  Ira Rennert, some industrialist, built a house in the Hamptons, that at 66,395 square feet is one of the largest residences in the U.S. and how can we forget the 90,000 square foot Queen of Versailles, which I hear is back in finish-out mode. All these make our Champ look like a bargain!

How much do YOU think Champ will sell for, this time?