Gig Economy

I adore Joel Kotkin and agree with most everything he writes. In fact, I have written for him, and wish I had time to do more.

By the way, don’t ever let anyone tell you that blogging is fast and easy. It’s not. All writing sucks up an inordinate amount of time. When I visited Joel in California, his wife told me he is always, always at the computer writing. Pretty much the same here now.

Like most of us, I have been struggling to make real estate sense of the crazy reality show our White House has become, balancing that with the extreme weirdness — and intensity — of the coming elections. There are many examples, but Texas governor! A former Dallas County Sheriff who didn’t pay her property taxes on time (“better to offer low rent than pay taxes on time, she says“) is running against a staunch conservative incumbent governor. The Ted Cruz vs. Beto O’Rourke race is just war, and in these two, as many races across the U.S., you could not find more polar opposite candidates.

Middle-of-the-road, centrist politics was buried with John McCain, it seems.

Where will this take our country and what will it do to the housing market, already whiplashed from the new tax law?

Will the new tax law, which limits the mortgage deduction to $750,000 worth of debt and limits your property tax deduction to $10,000 (about a $700,000 home in Dallas) force more to sell their homes and become renters? Dallas is only second to New York City in apartment starts, and 2017 brought in 30,000 units with more than 50,000 under construction. (Dallas rents are actually now beginning to recede.) I am seeing some stunning luxury apartments the likes of which we have never had, that I would move into in a New York minute (stay tuned). Then I see luxury listings lowering prices to sell, while the under $500,000 market remains on steroids. What gives? Where are we going with all this?

Oligarchal socialism, says Joel. It allows “for the current, ever-growing concentration of wealth and power in a few hands — notably tech and financial moguls — while seeking ways to ameliorate the reality of growing poverty, slowing social mobility and indebtedness. This will be achieved not by breaking up or targeting the oligarchs, which they would fight to the bitter end, but through the massive increase in state taxpayer support.”

Bingo.

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A slowdown isn't a bad thing for real estate

The slowdown in the real estate market is more like a shift toward balance for sellers and buyers.

WOW–tremendous responses and feedback on Part I of this real estate slowdown blog topic from last week.  Thanks so much!  Nice to know people are reading, following and giving thought to #tarrantcountytuesday.

Last week we established (with data) that there indeed is a slowdown or market shift in the housing market.  One Dirty Reader asked about this “recession” and I would strongly caution the use of that word.  There’s a big difference from a slowdown to a recession.

Is This Slowdown a Good Thing?

Many have indicated that this shift from a sellers’ market to a buyer-friendly market might actually be a good thing.  I would agree.

As the data indicated, when prices are increasing so quickly, interest rates are going up and individual incomes not keeping pace buyers aren’t buying.  That’s not good for anyone in the real estate business. (more…)

by Deidre Woollard
Special Contributor

Affluent buyers are younger, big home footprints (5.000 plus) are returning, and traditional Victorians and Georgians may soon trump the McModern. These are just a few of the revelations we got from the gal who knows luxury buyers like the back of her hand, maybe better!

Stephanie Anton is the President of Luxury Portfolio International®. She has been with Leading Real Estate Companies of the World since 2005 and is responsible for overseeing day-to- day operations of the companies’ high-end marketing division, Luxury Portfolio International®.  Stephanie researches and frequently speaks to audiences around the world about the luxury industry, real estate marketing, research and insights into that most sought-after consumer, the affluent. She has been named to a myriad of lists from Inman’s 101 list of innovative leaders driving industry change, the Swanepoel Power 200 list of most influential real estate professionals and Luxury Daily’s  Luxury Women to Watch. She also sits on the Board of Managers for the real estate industry initiative, Upstream.

CD’s west coast correspondent Deidre Woollard sat down with Stephanie to zero in on the latest in luxury marketing:

CD: What should the luxury home buyer and seller know right now? (more…)

NAR’s recent generational survey uncovered some really interesting trends. For starters, more and more Millennials are eschewing urban life and heading for the burbs, where they can afford to buy a house. Though Millennials contributed the largest share of home buyers in 2017 at 36 percent, a shortage of single-family construction has kept aspiring homebuyers from making the move. Additionally, larger numbers of households are living a multi-generational lifestyle, with more younger Baby Boomers buying homes to house their adult children and their own parents. Even Gen X households are buying homes with the intent of having their parents under the same roof. 

Now that many Millennials have started to pay down their staggering student debt, more of them are starting families. According to NAR’s report, the share of Millennials with at least one child continues to grow. But for many Millennial households in America, their desire to become homeowners combined with slow wage growth and high housing costs have pushed many out of larger cities and toward the suburbs. In fact, 52 percent of Millennial homebuyers bought larger and more affordable properties in suburban locations. 

In fact, Thrillist just published a piece that speaks to this trend: “State of the Suburbs: Dallas.” Forced to look in every nook and cranny for a home they can afford, Millennials are now turning their eyes toward the close-in suburbs that might not get as much attention as the master-planned communities in Collin County, such as Duncanville, DeSoto, Garland, and Grand Prairie.  

Of course, a lot of these trends speak to life in Dallas, which has a very upwardly mobile workforce and a lot of Millennials. However, are we seeing a run on suburban living? We asked some of our most-trusted Realtors to find out. 

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Realtor.com lists Dallas as its 11th hottest market.

Realtor.com is hailing it the longest inventory decline in two decades. According to a new report from the online property search site, there were 11 percent fewer homes available in June 2016 than the previous year. The drop marks the 24th consecutive month of falling inventory – the longest streak in 20 years. Home prices also reached a new record, selling for 9 percent more than in 2016.  Together, these trends present enormous hurdles for buyers.

Currently, median inventory age in Dallas hovers at only 38 days, well below the national average of 60 days. As the Realtor.com’s 11th hottest real estate market, Dallas feels the strain keenly, but it certainly isn’t alone. “More markets than ever are struggling with inventory problems,” said Javier Vivas, manager of economic research at Realtor.com. “In 80 percent of markets there are fewer homes for sale currently than this time last year.”

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Logo Sign - PRINT 16x16

If you like the idea of having a home on the range but can’t imagine living in the middle of nowhere, you might take a look at Corsicana. The first oil boom town in Texas, it was founded in 1848 and by the early 1900s it was one of the top 10 cities in the nation with the most millionaires. It’s stuck to its small-town roots ever since.

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The Makerspace at Walsh

Conceptual rendering of The Makerspace in Walsh

A new word is circling the globe.  Well, maybe it’s not a new word but it’s certainly one that you’re going to hear more and more as it pertains to real estate and development.  The word is “makerspace.”

Also known as “hackerspace,” “hacklab,” or “metalabs,” a makerspace is a collection of people with similar interests that congregate in a collaborative work space to make things, share ideas and foster education.

It’s a club with membership based on a common interest.

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Halloween Decorations

Photo: Randy Robertson via flickr.com

WalletHub, one of our favorite sources for all of those ranking lists that pit cities against each other on a wide variety of somewhat pointless criteria, just crunched the numbers to discover what American cities are the best places to celebrate Halloween. Now, this annual day of spooky decor, jack o’ lanterns, and politically incorrect costumes that are shared all over the internet is big business, expected to net $8.4 billion in 2016, WalletHub claims. But what towns get their Samhain on better than anyone else?

Jump to find out!

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