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Texas is big business in relocation


DFW Metroplex a Hot Bed of Relocation

DAS  Auto shippers taking away our car

A local Dallas area company DAS has direct relationships with human resources departments both locally in North Texas and throughout the U.S.  So what is the business service that DAS brings to major Fortune 500 companies? When people relocate to a new city or region they move their furniture and they also have personal vehicles that might need to be transported to the city to which their relocating.

That’s where DAS comes in.  When companies move employees they use a third-party relocation provider and DAS ships about 4,000 cars a year into Texas currently.  Texas is one of their best relo states as residents move out of the North and Rust Belt region plus many companies from the Golden State of California are moving to Texas as the cost of doing business is much lower in Texas compared to California . Overall DAS is one of the bigger relo car transporters as they will transport more than 102,000 cars this year.

TAKEAWAY:  Texas with its business friendly environment of lower taxes and employee’s cost of living is a hot bed for new companies moving their corporate headquarters to the Lone Star state, especially the DFW Metroplex

Dallas Housing Sales and Activity – May 2010


DFW Housing Activity

The housing sales for May 2010 increased for the third month in a row. Up 18% from a year ago. Another positive sign for our market. This summary report is compiled by Texas A & M Real Estate Center for NTREIS (Net-tris) our MLS that stands for North Texas Real Estate Information Systems.  It’s deemed reliable but not guaranteed.  I don’t think anything is guaranteed.

Most numbers are positive, median price up 2%, days on market is 73 which is 8% lower than last year. Active listings are down 2% and new listings are flat.  Pending sales are down 23% which means future sales activity will be down.  These numbers are for single family residential sales.

Real Estate is retail so it’s always a moving target, the market has been quieter but that could be because of the ending of the tax credit, holidays, school ending and summer vacations.  Mortgage applications have also been down.  Interests rates are at a 50 year low way under 5%. So despite the ending of the tax credit –  lower interest rates are providing a savings incentive, indeed.

As far as Plano (Area 20)  May results so far are below:

  • Sales: 254 units -5%
  • Average price: $251,403 +2%
  • Price per sq ft: $94.+3%
  • Days on Market: 57 +8%
  • Pending Sales: -33%
  • Months inventory: 5.3 -1%

I predict that due to low, low low rates and exceptional pricing opportunities buyers will be finding and making some great buys in the future market place.

How’s the Dallas Real Estate Market Now?


Dallas Real Estate Metro Market Overview

Plano_Homes_and_Land_-_Market_Overview

Every month the Collin County Association of Realtors publishes market indicator reports for the Dallas Real Estate Area.  It’s a great overview and shows current activity from the last 3 months.  You can compare month over month and this year vs last.  All the vital signs at a glance.

Although sales are down which is typical for this time of year, sale prices are up and new listings are too.  February usually starts off the early spring market and activity has picked up considerably.
Buyer and Seller expectations of pricing are more inline and the banks, and the banks are the banks!

Plenty of opportunities in all price points and the tax buyer credit makes a home purchase very attractive but you need to be under contract by April 30th.  It’s only attractive if you’re ready
to buy – don’t buy a home just to get the credit.  Remember, there are always Dallas  real estate opportunities in any market.  Have a good weekend!

Texas Cities are Poised Best for Recovery by Forbes


Best Cities for Recovery….

Dallas Real Estate

7. Dallas – Ft.Worth – The metroplex

Out of Forbes top ten cities to recover from recession the quickest, 40% are Texas cites. Take a look at the list.  You can read thearticle here at Forbes.  Dallas is number 7.  if you live here you can understand why. It will be one of the last southwest cities to grow tremendously just like other sun belt cities in the past.  It truly is a good place to be right now.

  1. Austin, Texas
  2. Fayetteville, Arkansas
  3. Boulder, Colorado
  4. Huntsville, Alabama
  5. San Antonio, Texas
  6. Mobile, Alabama
  7. Dallas/Ft. Worth, Texas
  8. Washington D.C./Arlington/Alexandria
  9. McAllen, Texas
  10. Seattle, Washington

The Contingency Factor


The Contingency Factor

Acive_Contingent

Back a few years ago it was rare to find a contingent listing status.  Usually it meant the buyer had to sell another property first before they could purchase another home.  Today you find them often and they have different meanings.

Let’s start with first things first – What’s a contingency status?  By definition it means the sale is dependent on something else from certain things occurring to certain facts identified.  It is most widely used when a seller of a property has not sold there home first but wants to make sure they have a place to go when they do. Makes Sense? They other seller can accept a contingency, however it does take your home off the market.  But you can accept other offers if one comes along and that is dependent on the original contingency addendum agreed upon.

Now let’s take the market today, there are 16 contingent status home in West Plano.  For buyers these home are good for back up offers because many of them will fall through.  Why? Because some of these are short sales and require lender approval on the price and terms, so the process is long, say 3 to 6 months to close. Most buyers get tired and won’t wait or find something else.  Another factor is financing approval for the buyer.

What we are finding is even though you might be pre-qualified, say a month or so ago, when the loan goes to under writing the programs might no longer exist or sold out, full filled the quota for that particular program.  Also the qualifications might change depending on the lender, for example you might need more of a down payment, credit score is lower so you don’t qualify or a job loss could or has occurred.

So instead of a listing agent marking a property active option, it will be marked contingent first based upon the above scenarios which vary greatly but it’s a tool being used now to let buyers know that a back up offer will and can be taken if a better offer comes around.  Based on the economy and housing market searching for a home should include looking at all status changes on properties, you just never know and more than likely your dream home still might be available. Real Estate is fun, isn’t it?

Remember to ask about those contingency contracts.

The BIG Picture – Dallas Real Estate Results


Dallas Real Estate Results

Dallas_Market_Overview

Here’s an at a glance view of the total Dallas Real Estate Market, for past 3 months and year to date.

Not too bad considering other states in the nation. As soon as market activity resumes, this time of year is typically slower in real estate anyway, you will see closed sales, pendings (listings under contract) and closed sales correct sooner rather than later.

All other barometers show a healthy market waiting for the rebound. Monthly indicator links have been updated on the right along with other area information, take a peek and see results for November and year to date. All data is from the MLS and is deemed reliable but not guaranteed.

Good Economic News for North Texas


Something to be Thankful For…

The country might be in a recession, but we’re not! Or at least fairing much better…read on…

Here’s a direct quote from the U..S. Bureau of Labor Statistics (BLS):

“The largest over-the-month gains in the level of employment occurred in Texas (+23,000)”.  That’s for one month, October 2008.  Annualized, that comes to 276,000.  DFW, larger than the Greater Houston/  Galveston area,  should receive the bulk of that. The unemployment rate in the U.S. is 6.5%; here it is 5.6%. To compare, in October 2003, DFW unemployment was 6.2%, according the BLS.We are projected to continue this growth pattern.”

We appear to be one of the healthiest economies in the country.

This was sent out by our broker, quite contrary to what you hear on main stream media.

Have a great Thanksgiving and enjoy family and friends!

What Normal Home Appreciation looks like


Historical Dallas Home Appreciation

Dallas_Normal_Appreciation

It’s good to be an affordable city!

Normal_Appreciation_Year_to_date

Dallas Real Estate Update – Sales Down 13% for Oct.


Dallas Real Estate Market is still Chugging Right Along
home_sale

Here’s the broad scoop for the month of October for Single Family Homes in the Dallas Real Estate Market:

  • Sales down 13%
  • Dollar Volume down 10%
  • Average Price up 3% ($194,441)
  • Median Price up 2%  ($146,000)
  • Price Per Sq Ft up 3% ($90.00)
  • Days on Market up 7% (75 Days)
  • Pending Sales down 13%
  • New Listings down 5%
  • Active Listings up 4%

Although this this an accurate picture of the current market – each sub area needs to be looked at separately.

October will be the first month where HOT Areas south of LBJ have felt substantial decreases, take a look at N. Dallas and Park Cities.

North Dallas

  • Sales down 13%
  • Average Price up 30% ($1,039,006)
  • Median Price down 7% ($589,000)
  • Price Per Sq Ft up 15% ($257.00)
  • Days on Market up 3% (74)
  • Pending Sales down 8%
  • Active Listings up 12%
  • Months Supply up 24% (8.2)

Park Cities

  • Sales down 26%
  • Average Price up 38% ($1,150,893)
  • Median Price down 13% ($805,000)
  • Price Per Sq Ft up 16% ($329.00)
  • Days on Market up 43% (75)
  • Pending Sales down 8%
  • Active Listings up 13%
  • Months Supply up 24% (8.2)

Far North Dallas

  • Sales down 26%
  • Average Price down 11% ($341,490)
  • Median Price down 4% ($266,000)
  • Price Per Sq Ft down 8% ($112.00)
  • Days on Market down 5% (63)
  • Pending Sales down 23%
  • Active Listings down 4%
  • Months Supply up flat (5.0)

Plano

  • Sales down 8%
  • Average Price up 5% ($282,865)
  • Median Price down 9% ($220,000)
  • Price Per Sq Ft up 1% ($99.00)
  • Days on Market up 5% (61)
  • Pending Sales down 6%
  • Active Listings up 9%
  • Months Supply up 21% (4.7)

Plano took a big hit a couple of months ago and seems to be weathering the storm just fine – more appreciation to come
faster now.

The Big Shout Out from this is the areas south of LBJ are experiencing a huge adjustment – most resale homes are priced above $500,000 and there is over an 11 month supply on the market once you hit that price level.

North Dallas and Park Cities still show up in all categories by double digits increases – except for sales – that will force a downward pressure in pricing especially for the time of year. (in my opinion) Note: Pending sales are down 8% and that is another disappointing  indicator for Nov. sales.

This does not include builders of new homes and if you’re over the $1,000,000. mark, and have been sitting on the side lines waiting for the right time to buy…This is it!  

Builders will want to get inventory off their books that has been sitting for year(s).  Not kidding…Many builders got caught in speculating before the market changed and it’s lasted longer than they thought.

Many new homes are sitting vacant that would love to have a new family for the holidays and I’m sure the builders would love to sell you. ( I know where some great properties are)….

This also goes for condos and townhomes that are experiencing a huge glut of inventory in areas south of LBJ, including Oak Lawn and Uptown…

source is North Texas Real Estate Information Systems
complied by TX Real Estate Center
as always info is deemed reliable but not guaranteed

Dallas Real Estate Market Update – this week


Dallas Real Estate Market Update

dallas_skyline

This is a little early with the September numbers, officially they won’t be out till early next week.

But with a little input into the MLS you can get a very good idea of the real estate climate locally. Figures are for resales of single family homes.

September will be the largest decrease in sales units we’ve seen, against 2006

Dallas home sales are 33% below 2006 numbers.*
Plano home sales are 27% below 2006 numbers.*
*certain areas on this site*

What’s interesting though –  is price per sq ft is holding.

Dallas:

2006 – price per sq ft – $117. vs 2007 – price per sq ft $136.

Plano:

2006 – price per sq ft – $96. vs 2007 – price per sq ft $99.

So value is still perceived, but for how long?

That’s the question.

Basically, if inventory increases along with days on market then it will take more price reductions to move homes.

Pricing is 90% why a home sells or sits on the market!

Take a look at the market action index –
Market_Action_Index_Dallas

This represents a balance for supply and demand – anything above 30 represents a seller’s market, which was back in March.  Look at what happened this week, a severe drop to 18.  This tells me that prices have to come down more to get things moving or some homes need to come off the market.

The point being is there is too much competition in the market and buyer’s aren’t in a hurry to buy! On the flip side…

Dallas market is a very healthy market compared to some east and west coast cities, we never had the run ups like CA or FL – but adjustments need to happen in any market.

Check back for official stats next week and year to date and have a great weekend!