Dallas Real Estate Feeling The Pain? Or Gain?

As I write this, Congress has hammered out the record-setting $700 billion bailout so unreal I always have to check to see if it’s really a “b” for billion. Steve Brown reports today that million dollar plus home purchases in Dallas are off by about 12 percent — this a market that has been invincible until just this year. As I reported earlier this week, Texas A&M’s Real Estate Center reported an overall 3.3 % drop in Dallas home prices compared to last year. Ellen Terry dropped the price of 3415 Beverly by a full million dollars, while Andrew-Merrick raised the price of 3500 Beverly to $17.9 million (check that m) because of cost increases in the final elegant finish-out. But what I don’t see anywhere in his column is that in 2007, the Dallas market was pretty much on steroids. So don’t go getting all gloom and doom-y on us. As for those higher jumbo rates, here’s a question: higher interest rate, higher tax deduction, lower home price — will it balance? I am starting to see more builder homes — those potential tear-downs — with “for sale or lease” signs out front and what Steve says about builders is true: most now won’t start a spec home without a solid buyer in hand or even better, embrace! As for the condo market, let’s not go there although… although Ritz says their sales have been Superman strong (see jump). Most properties in all price ranges have dropped prices or priced reasonably. When I spoke to the agents at Keller William’s Turtle Creek office no one minced words — it’s a tough market. Price the homes right, and if you want your home to sell sooner rather than later, it had better be darn special, have a “wow” factor. (I think I said as much in the October D Home, our Real Estate report.) But some Realtors tell me they are busier than ever — perhaps because there are fewer agents, and because interest rates were down for conventional loans. Terry Cook at Briggs Freeman has 6515 Northaven under contract. If any market is going to be hot to trot, it’s home leasing: Rogers Healy will soon launch Big D Renting.com because, in his opinion, it’s going to be tougher for some people to buy homes, so more folks will be leasing. He has the facts to prove it: area 11, 2005 — 139 total leases ranging from $475 to $7000 a month. Area 1, since January 1, 2008: 212 leases already up to $7500. Looking at Highland Park, there were a total of 123 leases ($525 to $12,000 per month) in 2005. This year, we are at 143 leases already, $595 to $9000 a month. Could that translate to higher rents?

DRAMATIC SALES INCREASE FOR THE TOWER RESIDENCES AT

THE RITZ-CARLTON DALLAS

DALLAS – September 23, 2008. In what many have called a summer drought for Dallas-area real estate, The Residences at The Ritz-Carlton, Dallas have experienced exceptionally strong sales since July.

As of mid-September 2008, 31 of the 95 Tower Residences remain available for pre-purchase, down from 35 residences available as recently as July 2008.

Currently under construction adjoining The Ritz-Carlton, Dallas hotel and on-schedule for planned completion next summer, the Tower Residences may represent Dallas’ only top-end luxury high-rise hotel residences to be offered between now and 2010. Similar top-end luxury high-rise hotel projects have been delayed or cancelled, with a resulting count of fewer than 35 such new Uptown residences available for reservation or purchase in the next 18 months. Subsequent such offerings are also anticipated to come in at significantly higher pricing due to construction cost increases.

Transaction momentum has been noted not only for the new Tower Residences under construction in the neighborhood’s second building but also for re-sales within The Residences’ sold-out first phase. Total sales, including the re-sales, are over 20 Residences since the beginning of 2008.

An added indication of project momentum, “topping out” of The Tower Residences is scheduled for October 10, 2008. This milestone event for the developer, Crescent Real Estate Equities Co., and for The Tower Residences’ 200-plus project workers signifies that the building’s major concrete work is finished with completion of the concrete roof deck. An announcement of the topping off ceremony time will follow.

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