Dallas Housing Slump Might Mean It's Time to Buy
Despite Dallas’ impressive resiliency in tough economic times, we’re still not out of the housing slump woods yet.
According to the Dallas Morning News :
Dallas-area home prices — buoyed in recent months by a resurgence of buyers — are now expected to fall slightly this year, according to a new forecast. So far in 2010, home prices in North Texas are up almost 4 percent from a year ago. During the same period, pre-owned home sales have increased almost 12 percent. But with homebuyer tax credits running out and foreclosures continuing, researchers at analysts Case-Shiller and Fiserv are cautioning about a double dip in nationwide residential prices
“The first-time homebuyer tax credit has expired, the Federal Reservehas stopped buying residential mortgage-backed securities and the projected number of foreclosures remains extremely high,” Fiserv chief economist David Stiff said in the report. “As a result, markets with recent price increases may see small price declines before prices finally stabilize at the end of this year or early 2011.”
In the Dallas area, home prices are forecast to fall 1.8 percent this year from 2009 levels, the analysts predict.
That’s less than the 3.1 percent dip Case-Shiller and Fiserv researchers are anticipating for the entire county, but any decline would be a setback for the local market.
Analysts say not to be overly concerned about the negative Dallas-area price forecast.
“Because most Texas metro areas – and, in fact, most of the South – did not have the boom-bust in housing, there was no real home price decline,” Moody’s Analytics director Edward Friedman said. “Instead, prices are essentially in equilibrium.
“The small downward movements in our forecast are not significant,” he said. “Once a more substantial recovery gets going later in 2010, home prices will firm up more visibly.”
For some people, this next dip might actually create a good time to buy. Part of the problem when the housing market first crashed in 2008 was that there was much too much uncertainty about the future for many potential buyers to take advantage of the hyper-friendly buyer’s market.
While the economy is still slumping two years later, it’s at least doing so in a more predictable manner. We better know what has caused all this, and can take a calmer, more measured approach to forecasting the future. This also makes it easier for people to make big decisions like buying a house, even if for many the current painful financial reality is preventing this.
So if it’s almost time for you start the homebuying process, we’re here for you. Check out some of the mortgage resources we offer, or learn more about the home purchase loans we provide. Or contact our Dallas home lending experts to get the process started. You’ll want to be ready to buy when the time is right.