The State of Dallas Real Estate: September/October 2009

In June, new home sales in Dallas rose 11 percent. Texas had more homebuilding permits than California and Florida combined, and Standard and Poor’s Case-Shiller report informed us that national home prices rose half a percent from April to May, the first monthly increase since 2006. But I am not pouring the Moët just yet. Homes are selling in many cases because sellers are slashing prices. Local residential prices today more closely resemble those in 2005. If you are a buyer with large cash reserves and near perfect credit scores, loans are flowing. Go for it! First-time home buyers are also well-positioned, though the $8,000 stimulus ends soon. Not to be Debbie Downer, but spring is like Christmas for the real estate industry. Most people who need to buy or move do so in spring and early summer, usually families who want to get settled as soon as the kids are out of school. I think the real test is what’s happening now. School is back in. Inventory sits. This is the time when people come in and swoop up the bargains, especially toward the end of the year. Let’s hope for a December surprise.