Tuesday, July 29, 2008

DFW Housing Market Crystal Ball

David Fair with Hexter Fair Title Company came to our office last week and shared his opinions on the North Texas real estate market. Here are some of the highlights....

DFW home sales have slowed across all price ranges and geographic area. Why slower?

Comparison period (1st half of 2007) was all-time record.
Chaos in the mortgage market
Inflation-especially in oil and food creates uncertainty
Negativity (national real estate data) is scaring buyers

The Good News....

All 4 reasons are "temporary"
DFW economic fundamentals remain strong

Real Estate Sales Update....

Active inventory of homes for sale is down 10% versus the end of June 2007.

Existing home inventory in DFW is the 2nd lowest (next to Austin) of all the major metropolitan area in the United States.

The "over-correction" in lending underwriting guidelines should start to correct in a few months.

New home starts likely to remain low until late 2008. Rebound date dependent on each neighborhood's supply & demand.

Positive impact from the Foreclosure Rescue Plan just passed by Congress.

Texas is different from any other state-Our job growth will continue upward-thanks mostly to our most unique asset-The Barnett Shale.

The negative impact of the current mortgage uncertainty, oil prices, and the election rhetoric should be reduced in the next few months.

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