11422 East Ricks Circle is a listing from Becky Frey that is pending sale.

What goes up has to come down, at some point, right?

It’s like that with home values. Except home values in Dallas have never shot skyward as much as they have in coastal cities and international hubs like Miami and New York City. Our home prices creep up by 5 to 7 percent a year. Then they stay there for a few years until the upward trend starts again. The only time I remember Dallas home prices actually declining as in the late 1980s, agree?

Comes news this week from Standard & Poor’s/Case-Shiller Home Price Index that Dallas home prices were up only 5.2 percent from where they were a year ago. Which is less than the 6.2 percent nationwide home price gain from June of 2017. So for the first time in a long time, we are dragging behind the national average, not leading it.

In fact, Dallas-area home prices expanded by the smallest percentage in almost six years.

The silver lining: (copy and paste this story for DCAD) if prices start to stabilize, our property taxes will, too. Oh and don’t let the Dallas City Council fool you into thinking they are lowering taxes, either. They are trying to lower the rate, because property taxes in this state are set by values. So all these nice Case-Shiller reports have brought in increased revenues from property taxes.

So, should we be concerned? No.

(more…)

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…)

gasAfter a fatal home explosion three weeks ago that left one family burying their daughter and two neighborhoods reeling from the shock that the problem has been an ongoing one, the immediate concern was about safety.

But now, a little more than a week into the massive, 2,800-customer gas service shutdown in Midway Hollow and the Love Field community, people who had been planning on selling homes in the area have begun wondering — what will this do to property values? (more…)

Two new reports paint a bright picture of the housing market in Midland and Odessa now and for the next three years.

The Local Monitor Reports, released today, cite a 7 percent increase in Midland home prices over the last 12 months, which puts the average home price at $183,463. In Odessa, prices have gone up 5 percent over the last year and the current average home price is $210,980. In the last three years, home prices were up 10 percent in both markets.

The good news doesn’t stop there.

Read the whole story over on MidlandDirt.com!

 

 

home prices

Photo: Dan Moyle

Two new reports from Local Monitor Report are projecting big increases in home values in Midland and Odessa over the next three years, almost double the national average. Prices are predicted to rise even more.

Home values for Midland are forecast to increase by 8 percent over the next 12 months—compare that to national forecast of 4.6 percent. In the second and third years, values are forecast to increase 9 percent each year, a 26 percent increase in three years.

Midland home prices are projected to increase even more, at 30 percent over the next three years. In the last 12 months, prices have gone up by 7 percent, bringing the average home price in Midland to $183,463.

In Odessa, the report is predicting a 7 percent increase in home values over the next 12 months, and 9 percent in each of the next two years. That’s a total projected increase of at least 25 percent.

Odessa home prices are forecast to increase more, at 29 percent over the next three years. Odessa home prices have increased by 5 percent in the last 12 months, and the average home price is now $210,980.

All this adds up to a “low risk” categorization by Local Monitor Report for real estate investments in both Midland and Odessa, good news for homeowners and investors, alike.

See the full story at MidlandDirt.com.

Fracking in Mead Colo

Business Insider listed the top nine things that can cripple or kill home values, and fracking (hydraulic fracturing) was listed among foreclosure graveyards, hoarding, sex offenders, and poorly performing schools as one of the top problems that tank home values.

The threat of potentially polluted drinking water scares off buyers from their potential dream home. A study by Duke University and the nonprofit Resources for the Future confirms that fact:

Their study found Pennsylvania homeowners who use local groundwater for drinking lost up to 24 percent of their property value if they are within a mile and a quarter of a shale gas well.

But the news was far better for neighbors who get their water piped in. They saw values rise by nearly 11 percent, likely because of lease money from gas drillers and no worries about polluted water, the researchers found.

The only other real estate eyesore that trashes home values more than fracking is large unsightly billboards, which can sink a home’s appraisal by more than $30,000.

Would you buy a home with a fracking well nearby?

Dallas home values are up 3.5 percent year over year.

It’s something that Candy is working hard to ingrain upon me, but I’m sure you all know this by heart: Real estate is a local story.

So when I read the newest Housing Price Index report from CoreLogic yesterday, I’ll be honest, I kind of yawned.

Sure, it shows that Dallas home values are up 3.5 percent year over year. If you don’t count distressed sales, like short sales or *gasp* foreclosures, then home values are up 5.4 percent. That’s good news for Dallas, and really good news for Dallas residents with homes either poised or on the market.

But CoreLogic is kind of preaching to the choir, isn’t it? Houses are moving and inventory short, so of course, prices are going to inch upward. We’ve heard it first-hand from agents every time we report a story like this.

What I think is ridiculous, though, is the national summary. CoreLogic’s report shows that U.S. home values are up 1.1 percent over the past 12 months, which includes booming markets such as the Phoenix area, which is seeing amazing appreciation at 11.3 percent, and severely depressed markets, such as Chicago, which could be bottoming out with home values dropping 7.3 percent since April 2011.

What do you think? Is there such a thing as a national housing market?

The good news is that home prices rose for a fourth straight month in most major U.S. cities in July, from June, no shocker because we’ve just emerged from the busiest buying season. And that includes Dallas — a whole point (.3) 3%. The bad news is that when you look at last year, home prices are still trending downward, even in Dallas. Experts are warning us, no  duh, the housing market remains precarious and depressed. (And unemployment! And Dodd-Frank!) Prices are expected to decline more in the coming months. So if you are shopping for a home, get ready, get set, dive in now.

Standard & Poor’s/Case-Shiller Home Price Index, which some regardas the Bible when it comes to real estate analysis, showed home prices increased in July from June in 17 of the 20 cities CS tracks. I would not be too giddy that Detroit, Chicago and Minneapolis posted the biggest monthly percentage gains — those cities have been on life support and really, still are. Prices are still falling in Las Vegas and Phoenix, which is not what those homeowners need to hear.

But North Texas prices were down 3.2 percent in July, 2011 from a year ago, the 13th month in a row that local home prices were trending downward. Home values in the D/FW area have been declining since federal housing tax credits for first time buyers expired in early 2010. Still, 3.2 percent not as bad as 4.1 percent, which is how much national home prices have trended downward over the last year. As someone said: it’s basically 2003.

Eighteen of the 20 major U.S. markets in Case-Shiller’s latest survey saw annual home price declines in July. Who was up over last year? Washington, D.C., Boston, Charlotte, Miami (foreign buyers), Tampa — but we are talking negligible amounts.

I’m actually beginning to think though, that this might be the bottom or very close. The reason is inventory: dwindling by the minute. Yesterday, CoreLogic, a leading provider of real estate information, analytics and business services, reported that the current residential shadow inventory as of July 2011 had declined slightly to 1.6 million units, representing a supply of 5 months. This is down from 1.9 million units, a supply of 6 months, where it was a year ago. It also follows a decline from April 2011 when shadow inventory stood at 1.7 million units.

What that means: there may be less distressed inventory coming on the market to drag down home prices. That slowdown could be driven by a a slower pace of disposing of new delinquencies, too. Keep in mind that the vast majority of distressed assets are below $500,000.