Our real estate market has never been better. North Texas sales were up 26% in November. Our median home price is now $230,000. Yeah, the trophy home sales are a little soft, but our region saw some of the biggest property price/value increases in the country in September, just three months ago. We are up a whopping 8% year over year from 2015 (Standard & Poor’s/Case-Shiller Home Price Index) and only Seattle, Portland and Denver have bigger price gains. We are among the top U.S. cities with the greatest annual home price gains. Nationwide, prices were only up 5.5 percent from 2015. Says Standard & Poors:
“Other housing indicators are also giving positive signals: sales of existing and new homes are rising and housing starts at an annual rate of 1.3 million units are at a post-recession peak,” S&P’s David Blitzer said in the report. “We are currently experiencing the best real estate returns since the bottom in July of 2012.”
Dallas-area home prices are up over 30 percent from the pre-recession high in mid-2007, according to Case-Shiller.
But I am still terrified. And confused. All this could be wiped out by the absolute Class A disaster going on down at City Hall: figuring out how to save the Police and Fire Pension plan. Which has been around since the mid 1990’s. Did everyone just ignore the problems up until now? (Including me — wasn’t on my radar.) And where is the tax revenue on all these gains going? I sat at City Hall in late August and heard, with my own ears, Mayor Rawlings say there was “room in the budget”.
Could this be the next perceived nail in the Dallas real estate coffin? “Bad schools, bad taxes, let’s look in the ‘burbs.”