Dallas Real Estate News, Housing Trends, Home Prices, Home Tours, Candy Evans, DallasDirt Blog D Magazine » Drastic home price reductions

Did Dallas Miss Out On The World’s Biggest Real Estate Boom?

Candy Evans — Thu, 30 Jul 2009 15:32:37 +0000

Wick poses the question over on Frontburner, with this colorful chart. I think we need to keep in mind that the purple line that represents Dallas real estate values is an overall average of everything from Preston Trails to Oak Cliff. There are parts of town –Park Cities, Preston Hollow, Lakewood — that, if graphed, I think would look more like Seattle. Real estate is about as local a story as you can get. And I wish I had bought more real estate in 1999.

Dallas Home Sales

Candy Evans — Tue, 09 Jun 2009 06:15:31 +0000

Here’s a real shocker: Dallas home sales are down from last year — but prices down just an itty bit. But wait. Didn’t Trulia just say that Dallas has one of the highest price reduction rates in the country? When I saw that story, first thing came to mind: how in the Beejesus does Trulia know anything about anything in an undisclosed price state? Beats me. As we told you in last week’s Real Estate Round Table, that $8000 first-time home-buyer’s credit – you have to have not owned a home for at least three years and must earn less than $120,000, although higher salaries can be pro-rated — is really getting first time home buyers off the fence, into the homeowner’s pool. I’ve been interviewing a few first time home buyers to gather thoughts — stay tuned.

Steve Brown’s Pain Comes In The Nick Of Time

Candy Evans — Fri, 24 Apr 2009 14:57:20 +0000

My husband just called and told me to copy and laminate Steve Brown’s Real Estate Report in today’s DMN. (Our neighborhood values, he says, have declined almost 30%.) Why laminate? Because next Friday, the Dallas County Appraisal District will be mailing out thousands of notices of valuation on all our properties. My sources tell me they are going to have to enlarge the parking down at DCAD offices: it’s going to be a bloodbath. As for Browns’ reporting, he’s right on: what’s moving, if anything, are first time home buyers in starter homes — less than $100,000 to $300,000, spurred by the $8000 first time home buyer credit. (Stay tuned.) Homes above $500,000 to $2.5 million are sitting. Cannot move. Cannot get loans unless you have near perfect credit (”Nothing less than 620,” says Barbara Meager at Granite Mortgage) and big time equity. (Credit scores are the new SAT.) But what Steve didn’t tell you is that over the $2.5 to $3 million dollar mark, the mega homes are moving under the radar, off MLS, as I’ve told you on this blog and elsewhere.

D Sale of the Week: Two Green Acres in Lakewood

Candy Evans — Thu, 23 Apr 2009 05:13:31 +0000

Not only is 7130 Alexander Dr. a deal, but it’s now a steal–just reduced to $1,250,000 from $1,395,000, with an original listing price of $1.7 million. The owner, Coldwell Banker agent Lou Alpert, is also an author and Renaissance woman who no longer needs 6,135 square feet on almost two acres of prime property plus creek bridge, pool, and cabana. A true family home, the main structure is comfortable and sprawling, with three living areas, six bedrooms, five and a half baths, formals, and state-of-the-art kitchen with stainless appliances and granite counters. Truth be told, the bathrooms do scream 1977, when the home was built, but that’s nothing a little Ann Sacks tile couldn’t fix. This is a home that housed a large blended family and those who just crashed–teenage friends, rescue dogs, even a pet chinchilla. “We found some very interesting stashes in the crawl space whenever the workmen started tearing up floors,” says Alpert.

There’s great low-key drive up appeal on Alexander Drive, while the back of the house affords views 0f the lush treed acreage and vine-covered bridge to the swimming pool and cabana, which are separate from house and extremely private, if you get my drift. The third living area can be re-converted back to a three-car garage. It’s a perfect entertainment home, and given the value of the rare lot size plus reduced price, you are practically getting the home for free.

$1,250,000

Lou Alpert for Coldwell Banker Residential Whiteside Group

214.738.0062

Open Sunday 1-3 pm

State Of The Dallas Market: We May Not See Mega Leverage For 50 Years

Candy Evans — Tue, 21 Apr 2009 06:01:07 +0000

W. Michael Cox is the Director of the O’Neil Center for Global Markets and Freedom at the Cox School of Business at SMU, and a Chief Economist for the Federal Reserve Bank of Dallas for the past 25 years. Cox, appraiser Brad Edgar, and economist Britt Fair (Hexter-Fair Title Company) spoke to a group of Realtors today about the Dallas market. Couple highlights:

No inflation is going on right now, the government is trying to stop de-flation. Almost all the experts agree that we may see eventual inflation because of the economic stimulus — that money pumping into our systems. We may have a window of about 12 to 16 months before interest rates will have to rise to control it. The Fed can and will monitor inflation tightly 24/7 and may in fact want to see a bit of inflation, say 2 to 4%, anything but hyperflation or deflation.

The banks still aren’t lending, what will it take to move them? Maybe higher interest rates. Cox doesn’t think you can pass laws forcing banks to lend money.

“When the risks and rewards are in balance, they will lend,” he says.

Our day of reckoning for the stimulus package will be when we convince China and Japan that treasuries are worth buying.

Why are the banks doling out TARP funds to the “troubled” banks rather than the solid banks, so the solid banks could lend the funds?

Good question, said Cox.

Unemployment is starting to affect everyone, even in the higher net worth classes. Though Texas thankfully lags the nation in unemployment, layoffs may not be over yet. Two solid businesses now: healthcare and education.

And these men think Americans’ spending habits have changed dramatically, maybe forever for a generation. Just as they did after the Great Depression, people are tightening their belts. Whether they keep them tight and how many years they live lean depends on how affected they are by this economic downturn, how long it lasts. We may not see mega leverage for another twenty years.

Higher taxes may force people out of states like New York and California, and we could see another wave of sunbirds heading here for our sensibly valued homes. Watch: commercial real estate failings. Be glad we live in a city that continues to attract business and generate jobs as well as technology (intelligent medical systems being developed at Texas Instruments) and varied corporate headquarters. Buffalo, New York was home to the largest number of wealthy individuals in the U.S… once upon a time.

Mortgages Below 4%: Would Someone Please Do This In Dallas?

Candy Evans — Wed, 18 Mar 2009 19:29:02 +0000

From Inman News, reports of a bank in the Great Northwest offering, for a limited time, mortgages below 4% in an effort to help struggling builders. What a great idea — why doesn’t somebody try this in Dallas? I spoke with a Dallas builder yesterday who tells me how hard it is to move million dollar properties outside the Bubbles (Preston Hollow, Park Cities). Problem is that builders have discounted their wares so much in the Bubbles, folks will snap those up no matter how shabby, no matter if they are on the busiest of streets, just to “get in”. That leaves the million dollar plus props in places like Bluffview, Lake Highlands, Lakewood, still very much available. So, he says, it’s not foreclosures hurting them, it’s over-supply. Jumbo loans — that is, loans for more than $417,000, require at least 20% down plus superior credit. And yet we hear reports that builders added 583,000 new homes in February.

Update: my wish may come true: the Fed is buying $300 billion of long-term treasury securities.

What Price Home Does An Annual Salary Of $250,000 Buy?

Candy Evans — Thu, 26 Feb 2009 17:31:23 +0000

I’m just saying here — looking ahead to how much house someone who earns $250,000 a year will be able to buy as we re-distribute the wealth. Not saying it shouldn’t be re-distributed, not saying it should. (Thain’s should.) OK, $250,000 in the 28% income tax bracket. That leaves $180,000. Or a monthly income of $15,000. Lots of money. We had a car lease of $1,000 on that Beamer, and maybe a little college loan out there. We are down to $13,000. We charge about $4500 a month — we pay that off. We donate and/or fritter another $1000. Did I forget anything? That leaves us $7500 for PITI — house payment, taxes and insurance.

I ask you: what price range home can you afford with $7500 a month?�

House Porn: The Meadows

Candy Evans — Wed, 25 Feb 2009 23:00:23 +0000

Nice master with fireplace, doesn’t look like 1963 to me. But then, change out that mantel, make it sleek, and next thing you know you’ll be wearing a beehive!

Deal Of The Week/House Porn: Musing In The Meadows

Candy Evans — Wed, 25 Feb 2009 22:56:01 +0000

Dealbook Deluxe: 2008 list price: $515,000, now $379,000. Located in the Meadows, a couple streets south of the home where the Geis tragedy took place, the neighborhood is getting very hot and the home has true sixties sensibilities. Not that I’m trippin’ or anything, but I can see Twiggy in her micro-mini, hear the psychedelic music on the intercom. Memories of avocado and orange-shagadelic carpet whisper from the walls. This street was the 1963 Parade of Homes. What may be keeping her from being a bride: four levels, backs to Walnut Hill Lane, outdated kitchen, grandmotherly knick knacks. Let’s think outside the box here: the knick knacks can go to the Salvation Army and net you a nice deduction, plant some junipers across the rear yard fence, and go get some granite asap. There — any other questions?

RE: Just So We Don’t Blame Bush

Candy Evans — Wed, 25 Feb 2009 20:48:37 +0000

Vital point from a commenter:

“Regardless of political mudslinging, the crux of the discussion is this section
“Under Fannie Mae’s pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a
conventional, 30-year fixed rate mortgage of less than $240,000 — a rate that currently averages about 7.76 per cent. If the borrower makes
his or her monthly payments on time for two years, the one percentage point premium is dropped.”

So Candy, how many of the current defaulters used that program? I am sincerely asking the question. Is it 1% of the current defaulters, 10%, 50%, 0%? What is it?

Don’t go pointing fingers without having some answers.”

Anyone have the answers?

Real Estate Downturn: The End (Of The Bottom) Is In Sight

Candy Evans — Wed, 18 Feb 2009 23:50:26 +0000

Using old-fashioned supply and demand, not algorithms, some experts are peeping up from the ground with word that the end of the real estate bottom may be in sight. As I noted earlier today, we have reports that home construction nationally is way down. We know it is down in Dallas. Finally we have breathing room to absorb the inventory… if anyone is lending money…

Steve Brown: DFW Average Home Prices Near 2001 Levels

Candy Evans — Thu, 12 Feb 2009 16:47:51 +0000

News that housing prices have dipped is making the financial world all jittery today. I don’t know why this should be such a eureka — we have been saying for months now — homes that are moving are reasonably priced and buyers with cash in hand or financing are asking for deals. Everyone wants a deal. Even former presidents.

“Last month’s median house sales price, $129,000, was the lowest since early 2001.”

PRE 911. OK, but look at this:

“There are 37,224 homes offered in the Realtors’ Multiple Listing Service, meaning the area has about a six-month supply, which is considered a healthy inventory.”

Knock knock, Appraisal District, who’s there? 2001 home values…

Attention All Real Estate Shoppers Who Bought In 2006

Candy Evans — Wed, 04 Feb 2009 16:08:44 +0000

Zillow tells us that nationally, home values have slid 17.5 % from their values in 2006, which most experts agree was pretty much the peak year of the market. According to Zillow’s tabulations for the Dallas/Fort Worth area, our prices are — up 1.5 % ? Is that what this is saying?

Need A Painting Contractor?

Candy Evans — Wed, 21 Jan 2009 23:56:53 +0000

Times are tough. The stock market is going deeper than the toilet. So maybe we need a painter without the frills? My favorite part about this contractor is the hand-painted line: “If You’re Piky Please Dont Call”

(Thanks to Ebby Southlake Realtor Patti Moore for sending me the photo).

Debbie Downer Is Alive And Depressed In New York City

Candy Evans — Thu, 08 Jan 2009 06:45:48 +0000

You haven’t heard from me because I spent half the day with travel delays –it’s cold and rainy in NYC, which matches the mood perfectly at this year’s Inman News Real Estate Connect. I tootled in just in time to hear Bob Shiller, the famed Yale economist who creates the benchmark SP/Case Shiller Housing Report. The heads — Bob Shiller wants to see us trade real estate securities like stocks, thinks the government should subsidize financial advisers for every family, and made liberal use of the D word — depression:

To understand how we got into this trillion dollar financial mess, Shiller said we had a number of merging factors: rare events, complacency, over reliance on conventional wisdom, herd behavior, and more respect for sophisticated methods rather than substantial evidence. (”Quantitative technology?”) Finance and real estate have become much more sophisticated disciplines, but data we used didnt include historical episodes such as The Great Depression. Since the 1929 crash, we had 3 major stock dips — 1929, 1987 and 2008. Shiller thinks this latest episode is more like 1929 than 1987, and he doesn’t think recovery will be rapid. But for the first time in our economic history, we had a real estate bubble. Americans went gaga about real estate as an investment. In Miami, for example, housing prices were stable from 1987 to 2000. 2001 to 2007 prices tripled — the Miami condo market overbuilt by hundreds of thousands of units. We got carried away: irrational exhuberance, herd mentality. Long term solution? Market transparency, better information, but as Shiller pointed out, you can present buyers with all kinds of warnings — sometimes people just don’t pay attention or figure it out. Very interesting comment: what if, he asked, medical professionals did not exist and all we had were drug company sales reps telling us which drug to take? (Would the Wellbutrin folks would tout the benefits of Prozac or push their product?) Shiller believes every family needs a financial physician that the government should subsidize. (Reality check: the government does provide health benefits for some through Medicaid and Medicare, but both programs reimburse physicians at minimal rates and are teetering financially.) These advisors would vow to not take commissions or other distractions to affect the advice they give their clients.

In this country, we have failed to manage real estate risk, which is devastating to familes. Shiller proposes a futures market for single family homes. We need more hedging of real estate risk, something he is focusing on in his company, Macroshares. We need to think creatively about our mortgage institutions. Why are we so married to 30 year conventional mortgages? (And why was the wheeled suitcase only invented in 1972?) Why can’t a work-out be built into a mortgage — in case of default, safety measures would kick in to prevent foreclosure. Why not have home equity insurance? Livelihood insurance? Payroll deductions for mortgages that would adjust up or down with the market? Harvard’s Elizabeth Warren has proposed a Financial Product Safety Commission to protect consumers from financial products, much like the Consumer Product Safety Commission protects consumers from concrete products.

We are living in very uncertain times, says Shiller. To people close to retirement or living off equities, be careful — the market could fall in half again this year. Job creation did not drive the housing boom — credit did. And it’s going to take much more than just a finger-snap to get us out of it.

November Home Sales: The Picture Isn’t Pretty

Candy Evans — Tue, 06 Jan 2009 20:35:35 +0000

Today’s report on home sales may have us all pining for the New Year’s hangover headache, or bring on a new one: November national home sales plunged to their lowest rate since the National Association of Realtors have been keeping records. Lawrence Yun, NAR’s chief economist, says a home sales stimulus plan is sorely needed. I am off tomorrow morning bright and early to Inman Real Estate Connect in NYC where Robert Shiller will be speaking — as well as Mr. Yun. Coming on the heels of this downer report, it ought to be a very interesting meeting and I will keep you posted. Also at Inman: unveiling of new company launches such as Dwellicious, a social bookmarking site to help buyers search for their next home.

Second Home Market Sucking (Super Cold Yellowstone Club Type) Bad Air?

Candy Evans — Thu, 18 Dec 2008 06:41:22 +0000

This story says there are bargains to be found in the Hampton’s — that is, if you think a $1.537 million second home is a bargain. (Here’s former Lehman Brothers president Joseph Gregory’s $32.5 million Bridgehamton vacation pad.) I have an idea: turn this place into a fractional ownership for those of us who lost money with Lehman. Any legal minds out there want to litigate this?

Meantime, Tamarack in Idaho is under, while Credit Suisse is fighting to hang onto first lien status with uber-exclusive Yellowstone Club, which is just a mess , bankrupt and smarting from bad press due to the nasty divorce of it’s great-looking founders, Tim Blixeth and his ex (?), Edra. Also pulled in: luxury second home big boys Discovery Land Co. Interim lender CrossHarbor Capital Partners is trumping and may end up owning the joint because Credit Suisse apparently could not cough up enough cash for a debtor-in-possession loan:

“While it is highly unusual for a major lender to be pushed out of the first lien position in a bankruptcy, Credit Suisse may turn out to be too late with its latest plan.”

About this time last year I tried phoning YC to write up properties as Hot Props in D Home — they acted as if I needed a security clearance and was trying to find the president’s war-time bunker. We ended up in Big Sky.

But Dallas Addison, who develops second home properties in east and south central Texas, as well as Hawaii, tells me the second home market is still pretty strong. (Posting his story soon: Dallas tells me that Hawaii’s Big Island gets so crowded with residents’ private jets they have to haul them off to other islands for parking.) Glad to hear it: I haven’t been on a Lear in forever.

Swapping Spouses, Houses?

Candy Evans — Wed, 17 Dec 2008 08:06:52 +0000

A friend in Massachusetts told me about a couple-swapping ring going on at their country club — how risque! This I can handle: the DMN ran a cool story on house swapping. I understand house-swapping is a trade, an ”I agree to buy your house, you agree to buy mine” transaction. Like consensual swingers, potential home swappers post pictures (”House Porn”) and descriptions of their homes online, hoping to attract other homeowners looking to trade. (Do they fudge on details, like 6500 square feet and oceans of granite when really those are 12 by 12 granite tiles?) Ideally, they buy each other’s property and even better, no STDs!

The National Association of Realtors does not track swap sales, but a number of house-swapping websites have popped up in the last couple of years, most reporting steady increases in online swap postings, like Craigslist, which reported a 30 percent increase in house-swap listings in 2008 over last year.

So I wish I had asked our teacher about this in school. Vitally, what is the role of the Realtor? I would imagine it would be business as usual for Texas agents, but since out-of-state agents are considered “foreigners” here until they obtain a Texas license, wonder if you have to use an agent or an attorney if the swapper is in another state? And I imagine there are some horror stories out there — about the houses, not spouses — anyone?

PS: Another trend agents tell me we are going to be seeing more of: owner financing. Stay tuned.

Mortgage Rates: What’s The Story, Glory Or Gory?

Candy Evans — Wed, 17 Dec 2008 06:27:40 +0000

My prediction: glorious low rates in 6 months. Today was my last full day of class at Champion School of Real Estate before my elective and then — I take the state exam! I am getting my real estate license to be a better real estate reporter for the D Empire and our forthcoming new website. Learned a ton – have TOTAL new respect for agents and brokers. From remembering intermediary to sub agent to IABS forms always need to be in size 10 type to HB 489 to independent contractor status to TRELA and TREC, ostensible authority and agency by estoppel, MLS to agent with appointment, without appointment, all I know is HOW DO YOU AGENTS DO IT? And I need an appointment with a glass of wine!

But, while I was ensconced in academia, history was made in the interest-rate realm. Here a couple of takes on that, jump for one from Philip Walker, one of my favorite agents at Keller Williams Turtle Creek, who brought lunch to recruit the A-plus students. Mortgage rate comments are on and the meter is running:

Fed Funds Cut Again To A Historical Low! What does this mean? Great Talking Points!

In our commitment to be the “Go To” source for market information, we felt that this important information could not wait until the end of the week. As you may be aware, the Fed Committee created today a new target range for its Fed Fund rate so that it will hover between an unprecedented 0-.25 percent (which means the target decreased .75-1.00)! That dramatically lowers the Fed’s targeted rate, called the federal funds rate, which had stood at 1 percent.

The bold move surprised economists, most of whom were predicting the Fed would cut the funds rate in half to 0.50 percent. The funds rate is the interest banks charge each other on overnight loans (and is a daily moving target). With the Fed’s key rate dropping to rock-bottom levels, the central bank is moving into uncharted territory. The cut of .75-1.00, (to a new target rate of 0-.25), makes this a historical move and the lowest Fed Fund Rate- ever. Our phones (and yours) will start ringing, so what do these numbers mean for the consumer?

First a little history (ok, don’t glaze over- it is important that you know how to explain this to your clients who ask- and it is also great conversation to throw out at your next Christmas party ).       The Fed Funds Rate is the rate banks charge each other to borrow money or the “wholesale” cost to borrow money. The rate is short term & is often referred to as the “overnight lending rate.” It changes daily and is a sensitive indicator of general interest rate trends. The Federal funds rate is one of the two interest rates controlled by the Fed (the other is the Discount Rate- what banks borrow overnight from the Fed). It is important to note also here that the Discount Rate was decreased to .50 today (another unprecedented and historical decrease of .75)- which again is the lowest ever in the history of our economy.

So, when you hear that Fed Chairman Bernanke has “lowered (or raised) interest rates”, they’re talking about the Federal Funds Rate. The Federal Open Market Committee (FOMC) meets eight times per year wherin they set a target for the federal fund rates (although they can – and have- changed it outside the scheduled meetings)   Other rates, including the Prime Rate (typically @ 3% higher than Fed Fund), derive from this base rate.

The Fed’s most important role is to fight inflation, deflation, recession & keep the economy on track. How do they do this? They do this by influencing the cost to borrow money with the Fed Funds Rate. This historical move is to attempt to loosen credit lines so that businesses and individuals can obtain short-term credit again and so that more people will be prone to purchase.   This should simulate more inventory selling, and hopefully more jobs available so that the employees can then purchase more (and the cycle goes on). In addition, this historical move is further triggered by the announcement today that the Consumer Prices dropped more in November than any other month on record (ever!), due in large part to falling gas and energy prices. Based on these numbers, inflation is almost non-existent and now shifts thinking towards fears of deflation. Also today, housing starts for November came in at their lowest level since records began in 1959, and building permits were reported at record lows.   These types of numbers is the effect of the “food-chain” economy- people are scared so they don’t purchase, then companies lay off because their goods are not purchased, then their laid off employees cant purchase… and the circle of recession goes on and on.   With this historical cut, the Feds are hoping to infuse confidence. So far, though, the Fed’s aggressive rate reductions have failed to stabilize the economy- hopefully this cut will be one that does the job (we really cant go any lower than 0.00)!

Contrary to popular belief, the Fed or the Fed funds rate does NOT control the fixed rate for mortgages. The fixed rates are based on the mortgage bonds.    Historically, fixed rates have moved in the opposite direction of a Fed move. When the Fed decreases the Fed Funds rate, it is typically a bad thing for the bonds (fixed rates). So what we see is that many times when the Fed Fund decreases, mortgage rates (fixed rates) actually increase. But wait- there’s more……    J   Along with the announcement today of the Fed Fund historical decrease, the Feds also announced that they will continue to purchase Mortgage Backed Securities (MBSs)- this along with the announcement late last month to buy $600 billion in debt and mortgage-backed securities from mortgage giants Fannie Mae and Freddie Mac should actually push mortgage rates down even lower in the next few days.   We are currently seeing a huge rally in bonds and in stocks. This rally of the bonds is directly from the MBS announcement, NOT the Fed Fund or Discount Rate historical cut.

So, what does the actual Fed Funds Rate directly impact? The Fed Funds rate directly impacts the prime rate (which as stated above is typically @ 3% above fed fund rate and is a lending benchmark), the adjustable rates & many others including credit card rates, consumer loans, etc. However, it is important to note that it may take up to six months to get the full effect of a Fed Fund cut. Let’s hope that this effect is lasting and positive for an economy that desperately needs a boost

RECON Versus Altos Research

Candy Evans — Thu, 11 Dec 2008 02:15:38 +0000

Can someone tell me why today’s story in the Dallas Morning News, which quoted the Real Estate Center at Texas A&M, is all doom and gloom while a report from Altos Research says Dallas home prices actually increased — this from the firm’s latest housing market updates ? Altos says its ten-city composite index was down .8% during November, down 2.4% for the last three months. ASKING PRICES DECLINED IN 19 MARKETS. Viva Las Vegas NOT: November marks the eighth consecutive month that LV has posted the fastest rate of declining home prices among major markets. Cripes, you may have done better at the Black Jack table than in the LV housing market. But here’s the real shocker: prices increased in six of 26 markets with Houston up a strong 2.4% — love me that oil industry — and Dallas up .5% or one-half percent in November. (Rocky Mountain High Denver was up .9%. Must be the altitude.) Dallas, Denver and Houston are now the only markets in the nation showing three months of sequential price increases.

I’m confused.

Dallas Fort Worth “Moderate” Risk of Mortgage Default And Pop Quiz

Candy Evans — Wed, 03 Dec 2008 15:25:06 +0000

As usual, those bad boys of California, Arizona and Florida have major cities all ripe for more mortgage defaults. We are moderate, but look at McAllen-Edinburg-Mission, TX. Did an interview last week with someone who is developing in that area and in a word — HOT!

Pop-quiz: what is the one home market in the world where there is an under-supply of housing and the middle class is buying homes faster than the builders can build ‘em?

Let’s Not Discuss Dallas Real Estate Values Today

Candy Evans — Wed, 19 Nov 2008 16:46:52 +0000

This is not as bad as when you get those monthly stock reports showing that all the money you’ve stashed away for retirement is down by 36%. No sir, not that bad at all. Steve Brown reports a decline in Dallas home prices of just over 2% while some Texas cities have actually seen modest increases. Don’t even ask me about the national outlook: it’s Miller Time for builders — those Dom Perignon days a recent memory. As one local home builder told me: no one is picking up a hammer. Even the Russians are having problems. I am starting my appraisal battle file right now — will keep copies of all these stories so just holler if you need. Listen up DCAD: my property taxes should be LOWERED next year, retroactive to November 19, 2008. Got that?

Dallas Home Prices Nosedive, But But But…

Candy Evans — Tue, 11 Nov 2008 04:58:50 +0000

Remember, we are comparing to last year, one of the hottest sales years in the history of Dallas Real Estate, and maybe the world. The good news is that inventory is dwindling. Realtors have told me that folks who are not serious about selling are yanking up the for sale signs, putting them on ice. Builders are telling me that if they can hold out for about a year, 2010 will be the Comeback Kid and because there are so few housing starts now, there will be very few new homes for sale come 2010. Less inventory, stronger market, better prices. Everyone’s just taking a chill pill. P.S. Clip and save (or bookmark) this article to help fight your tax appraisal next spring.

NAR Week, 2008 Sales Downgraded

Candy Evans — Fri, 07 Nov 2008 23:09:55 +0000

The National Association of Realtors is meeting in Orlando — believe Catherine is there — and the trade group reports altered sales expectations for the rest of this year. Of note is how powerful housing is to our entire nation’s economy — at least according to NAR economist Lawrence Yun:

“The depth of the recession depends entirely on housing — with sufficient housing stimulus, the recession will be shallow. If government actions stay focused on housing, the cost to the Treasury would be much less that the potential losses in the nation’s output and income in a severe recession.”

Dallas, Houston, San Antonio Home Equity A-OK

Candy Evans — Fri, 31 Oct 2008 15:19:48 +0000

So says Steve Brown today, citing the Center for Economic and Policy Research and the National Low Income Housing Coalition. I guess folks are concerned that if they buy homes, even cheaper homes, prices may fall after they sign on the dotted. Reminder: Real Estate is for the long term, not a three-month flip. The study says basically that Texans will have more home equity long term, and the worst is yet to come in areas that had huge bubbles, such as the so-called “sand belt”. See, Real Estate is such a local story… what do you think?

Time To Change Texas Foreclosure Laws?

Candy Evans — Fri, 24 Oct 2008 20:55:59 +0000

Texas AG Greg Abbott says yes, give homeowners 45 days rather than the current 20 to cure (legal lingo for figure out a way to pay) a loan default before the notice of sale. Meantime, 80,000 Californians have lost their homes to foreclosure in the last three months, prompting an emergency change in California law: lenders must give borrowers 30 days before initiating foreclosure proceedings, which has helped lower default notices. Swear those adjustable rate mortgages should be illegal.

Foreclosures: They Put Feces On Doornobs?

Candy Evans — Mon, 20 Oct 2008 05:33:43 +0000

Oh yuck. Think I’m going to be sick. Finally got around to reading Daniel McGinn’s story on foreclosure properties in last week’s Newsweek, where he interviewed agents on the hazards of selling foreclosures. One example: a house with an indoor (filthy) swimming pool. ‘Tis true: whenever we hear the word “foreclosure” a few neurons do the Neimans Last Call dance in our brain: a bargain, something for (almost) nothing. But the truth is, many foreclosure properties are a mess and may not be such a bargain. (I mean, who would be dumb enough to build an indoor swimming pool without a proper ventilation system?) You want a Money Pit? Buy a foreclosure. Tell us what you’ve seen in Dallas foreclosures — I haven’t seen that many, but having just received Roddy’s Foreclosure List, I’m going to be hunting and posting. Meantime, will someone please tell these Realtors back east to carry Lysol wipes, not Purell?

Housing Starts Lowest In 17 Years

Candy Evans — Fri, 17 Oct 2008 14:17:25 +0000

That’s the national news helping to squeeze the stock market today, but I say, why is that bad? Fewer homes for sale equals less inventory, this is a good thing to stabilize prices. Even Steve Brown agrees. And maybe next year, when Steve compares 2009 sales to 2008, those headlines won’t be quite so dramatic. Meantime, what agents are telling me is that every buyer is going in about 10% under asking price.

It’s A Blue Light Special Over At Coldwell Banker ‘Till October 19

Candy Evans — Mon, 13 Oct 2008 07:08:30 +0000

Kind of an unusual price slash unlike any seen before: Coldwell Banker Real Estate LLC is running a time-sensitive sales promotional during which participating sellers who have listed their homes through a CB agent can voluntarily drop their asking price by up to 10 percent from October 10 through 19.

If you think that sounds like an auto sales marketing event, it sure does is.

Obvi this is designed to get home buyers moving and off the fence. Jeff Sprick promises to get back to me after the 19th so we can tally the sales. Who knows, if this works, we may see more programs just like it!

NEWS RELEASE

Media Inquiries: Jeff Sprick

Communications Manager

972-582-9155 (office)

214-727-3820 (cell)

jeff.sprick@cbdfw.com

For Immediate Release

COLDWELL BANKER RESIDENTIAL BROKERAGE – DALLAS/FORT WORTH will participate in NATIONAL 10-DAY SALES EVENT

Local Sellers Will Reduce Home Listing Price By Minimum of 5 Percent; They Will Join Thousands of U.S. Home Sellers Who Reduce Their Listing Prices Between Oct. 10-19

Majority of Coldwell Banker Sales Associates Surveyed Nationally Say a Modest Reduction in Listing Prices Will Help Bring More Home Buyers and Sellers Together

(IRVING, TX – October 6, 2008) – Coldwell Banker Residential Brokerage – Dallas/Fort Worth (CBDFW) is bringing home buyers and sellers together in North Texas by joining a bold national Coldwell Banker initiative to help jump-start the U.S. real estate market. Starting on October 10, 2008, the nation’s most established residential real estate brand will kick-off its first-ever national “10-Day Sales Event” – during which participating home sellers from across the United Stateswill reduce the listing prices of their homes. The national Coldwell Banker 10-Day Sales Event will run through October 19, 2008.

“Here in Dallas/Fort Worth, the 10-Day Sales Event is especially timely. Our participating home sellers feel that a home priced properly to sell will generate much more interest,” says Sue Meyer, president and chief operating officer of CBDFW. “We’re seeing other signs of market improvement, such as stable home prices in North Texas. Our home values have held steady compared to other areas of the country thanks to our robust Texas economy and housing market. Plus, we’re hearing loud and clear from many of our sellers that they’re comfortable with lowering their listing prices if it means getting offers and selling quickly.”

Ms. Meyer pointed out that participating sellers who listed their home with CBDFW will drop their listing price down during the 10-Day Sales Event.

“We applaud home sellers in Dallas/Fort Worth for their participation,” says Ms. Meyer.

“Despite the difficult headlines regarding our overall economy, the residential real estate market has been showing several positive signs over recent months that could be signaling a tipping point,” says Ms. Meyer. “Because of higher inventory, buyers have more homes to choose from and they can take advantage of near historically low interest rates and affordability levels that are the best they have been in years. The recent housing and economic recovery legislation also provides first-time home buyers with the added incentive of a $7,500 tax credit.

“Yet our research and discussions with our managers and sales associates shows that in many markets sellers remain reluctant to list their homes at the proper prices necessary to attract buyers,” continued Ms. Meyer. “It’s our hope that the Coldwell Banker 10-Day Sales Event will move buyers off the sidelines and into the market. We are embarking on this initiative – which has never been done before on a national basis – because we believe it is critical for Coldwell Banker, as an industry leader, to help serve the needs of those individuals listing homes with a Coldwell Banker broker and to help move the U.S. real estate market in the right direction.”

In a recent survey of 3,379 Coldwell Banker real estate professionals in markets across the United States, 56 percent said that listing prices in their market remain above where they need to be to attract qualified buyers. Additional findings from the survey include:

77 percent agreed that the majority of sellers in their market still have unrealistic expectations regarding the initial listing price for their homes
79 percent agreed that homes in their market that are priced appropriately are attracting more buyers and moving more quickly
76 percent feel that a 10 percent or less reduction in listing prices in their area is all it will take to help push these homes over the “tipping point” to a sale

“Our managers and sales associates agreed that, even in the current climate, it will not take much movement to attract those buyers who have been watching and waiting,” noted Ms. Meyer. “Depending on the market, a price reduction at a minimum of 5 percent just may make the difference in both satisfying sellers and bringing buyers to the table.”

Sellers participating in the 10-Day Sales Event will have added promotional power from the Coldwell Banker brand behind their listing. Those sellers’ listings will be specially promoted through national and local radio, print and Web advertising. Coldwell Banker D/FW’s Web site cbdfw.com and coldwellbanker.com will feature participating listings throughout the nation. Home sellers will also have the option to maintain the reduced listing price for their properties following the 10-Day Sales Event.

For more information on the Coldwell Banker 10-Day Sales Event, please call any of the 19 offices of CBDFW or visit cbdfw.com.

About Coldwell Banker Residential Brokerage – Dallas/Fort Worth

The Coldwell Banker system has approximately 3,600 residential and commercial real estate offices and 110,000 sales associates in 47 countries and territories. Coldwell Banker Residential Brokerage – Dallas/Fort Worth (www.CBDFW.COM), with 19 locations and 1,100 associates and staff, is a leading residential real estate company in Texas, and is owned and operated by NRT LLC, the nation’s largest operator of residential real estate companies. Coldwell Banker Real Estate LLC and NRT LLC are subsidiaries of Realogy Corporation, one of the preeminent and most integrated providers of real estate and relocation services in the world.