Dallas FedThe Federal Reserve Bank of Dallas issued its report on the Dallas-Fort Worth economy, The Real Estate Council named its new leaders for 2019, and the Zweig Group tapped a new COO, all in this week’s roundup of real estate news.

HOME PRICES UP, HOME SALES DIP IN DFW, DALLAS FED SAYS

The Dallas-Fort Worth economy expanded at a modest pace, while jobs growth was subdued in November, the Federal Reserve Bank of Dallas reported on New Year’s Eve.

“Overall, the DFW economy remains solid, with 2 percent annualized job growth year to date (nearly 68,000 jobs),” the report said. “Home sales fell for the second straight month in November, and inventory ticked up but remains tight. House price appreciation has moderated, particularly in Dallas.” (more…)

home pricesThe Dallas Housing Authority announced two key hires last week, we have average Dallas-Fort Worth and state home prices for August, employment forecasts for the state of Texas, and a look at Compass’s latest expansion plans in this week’s roundup of real estate news.
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affordable housing

Wages have not kept apace with housing costs in Texas, resulting in a shortage of affordable housing.

After the housing market bubble burst, what markets recovered the fastest? What does that mean for affordable housing? What policy changes would best impact the need for affordable housing?

Experts weighed in at a recent conference on affordable housing in Texas, held at the Federal Reserve Bank of Dallas. (more…)

Dallas Fed president and CEO Richard Fisher told the Dallas Real Estate Council this morning the usual rah rah Texas stuff:¬† Texans are uniquely qualified to turn the economy around and get a grip on the nation‚Äôs $14.2 trillion debt. Lower unemployment here. We built and can continue the greatest job-creating machine in the world, we are risk-takers, but we need to be more intellectual. Dallas, he said, needs more universities and intellectual think tanks, what he called “warehouses for the capitalist‚Äôs tools‚Äîthe human mind.” And we cannot stay ahead of the game unless we create great universities, he said. He’s so right — one reason why Houston is forging ahead of Dallas is the abundance of great Houston universities, like Rice.

But I wanted the real estate juice, and I got it: existing inventory is being absorbed, thanks to the dearth of construction. And capital is no longer an issue, banks are lending — really? The central bank, he says, has done it’s job.

But here’s the sweet spot of what he said: inflation. Fisher is concerned about rising inflation world-wide that may start to push up wages in Europe and the U.S. He’s hearing talk of¬† pay increases of 3 percent or so in certain high value-added areas, like Washington, D.C., and there’s an inflationary dynamic building world-wide.

“We just have to be very careful not to accommodate inflation in the United States,” Fisher said.

Could very well be why some major money people are buying up real estate.