Let’s Not Discuss Dallas Real Estate Values Today

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, Houston, San Antonio Home Equity A-OK

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?

Plop Me At The Ritz-Carlton Residences, II

The bedroom. Who would want to leave? Wait, it’s San Francisco.

Plop Me At The Ritz-Carlton Club and Residences

Little marble around the tub for soaking.

Note To Kids: My Time To Go, Plop Me At The Ritz-Carlton Club and Residences, San Francisco

This article about how Marie-Dennett McDill, an east coast socialite, spent her last days on earth at the Carlyle Hotel, nearly made me cry. So much I called our attorney and re-drafted our will. When it’s my time to go, I want my kids to plop me at The Ritz, preferably in my San Francisco fractional ownership. Cannot get closer to heaven on earth. (more…)

Unemployment Will Peak in November, 2009

Texas A&M Real Estate Center’s Dr. Mark Dotzour spoke to a crowd of 1,000 in Houston, at the national convention for Commercial Real Estate Women yesterday, and outlined what it will take to bring investors back into the market. Quickie take-away — unemployment will peak in November, 2009, about a year from now. Commercial real estate needs to hit the bunkers for about two years. Then, it’s Miller Time.

Dallas Best Market For Real Estate Investing: SimplifyEm

So reports the Dallas Business Journal today, quoting Dallas-based HomeVestors of America, Inc. — the people behind the “We Buy Ugly Houses” slogan/signs. (So tempting to carry those in the back of my car!) I have heard this from others outside the state, including Narinder Sandhu, President/Founder of TreXglobal. Narinder, a Silicon Valley software engineer, was a VP at Intuit responsible for product strategy and development for Intuit’s payroll biz –one of their fastest-growing segments, he says. Narinder’s company, TreXglobal.com, has created a fabulous software program in SimplifyEm.com to save property owners hours of book-keeping headaches. (Let’s face it, when you own rental units as opposed to stocks, you don’t have to help foot the bill for the company’s $400,000 retreat prior to the stock’s flush down the commode.) Narinder, who owns rental properties in Dallas, says we have become a Real Estate darling for investors who are pulling out of places like Phoenix, Vegas and Florida… or who (whoops) maybe got burned there. In any case, his program makes it easy-peasy to track expenses. Easier even than Quicken. (Way easier than Quickbooks.) Takes less than a minute to set up and come tax time, just click and print off that schedule E.

Since I have investment properties, I am going to try SimplifyEm.com and will soon offer a review.

Jonas Woods W Condo Sales Price

As you know, Texas is an undisclosed sales price state. But a little birdie in the know tells me the 9285 square foot unit sold for $5.8 million. Impressive reduction, but still a great net. Carolyn Shamis brought the buyer (name not yet know, stay tuned) and here’s how she did it: Carolyn heard that another agent was looking for a home for a client in Preston Hollow with land, tennis court and pool. In other words, a spread. She got on a program “where you can look at people’s backyards,” she told me, and narrowed the search down to 12 properties with the necessary criteria. Then she wrote nice letters to all twelve of those estate owners: “Dear Trophy Property Owner, I have a bazillionaire client seeking a multi-acre estate in your beautiful area up to $15 million who wishes to pay cash. Don’t be an idiot, Wall Street melted, call me.” She sent the letter out Monday, got some downright nasty responses by Friday. (”How dare you contact me! My estate is NOT for sale.”) But on Saturday — and these stories are literally why I wake up in the morning — she gets an email from one of the twelve letters who ended up being the buyer of Woods’ penthouse. And by the way, that W pad is now this buyer’s weekend home.

$9 Million Penthouse Sale at The W: Adios, Jonas Woods

His 11,000 square foot penthouse (listing link no longer works) closed September 24, was on market 232 days, last list price $9,950,000, sales price undisclosed, listing agent Allie Beth Allman, Carolyn Shamis brought the buyer. 

Terrell Owens Owns $2.5 Million In Dallas Real Estate

I knew he had two units at the Azure, didn’t know about the townhouses near Fair Park. His FA, Jeff Rubin, says it’s all investment property (even, we presume, his Azure units). You go, T.O, but be careful. Ask me today if I’d rather have $35,000 in Dallas Real Estate or 500 shares of AIG, guess what the answer is.

Homes That Can’t Be Built in Little Forest Hills

You may have heard the rumblings as far north as Preston and LBJ: the battle for a conservation district in Little Forest Hills. Come November, the City Plan Commission will scrutinize the plan, which goes to the City Council for a vote in December. Very hot issue. If the plan passes as proposed, here is a list of homes that can’t be built in Little Forest Hills including one we shot for our newest issue of D Home.

Always A Bridesmaid, Never A Bride: Why Won’t This House Sell?

Reduced $100,000 from $1,495,000, over 5000 square feet of new solid construction,  and I think it’s adorable. Great street, great ‘hood, great look — Hill Country chic. So the builders want to know what gives. Similar props have sold like hotcakes in Lakewood. OMG, is Lakewood hotter than Preston Hollow? I don’t know. What do you think? (P.S. Dear President and Mrs. Bush — this is your style!)

Beach House Porn, Reduced: Cute Emerald Coast Only $695K

I just love the northern Gulf Coast of the Florida panhandle, and this darling three bedroom, one level WaterColor getaway built in 2006 can be snatched up for less than $700,000. Some good bargains out there…

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?

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Townhome Living, Pomme Frites On Speed Dial

Ok, if you could pick the perfect place to downsize, and don’t want people living on top of you, what might you want? Yeah yeah yeah, smaller square footage but all the amenities of your primary home –large kitchen, master, closets. Solid construction with high energy efficients, check. Zero maintenance but some landscaping so you can breathe in plants and conifers, not concrete; low home association dues in a place where you can ditch the cars in the two-car garage and walk to some of the best dining and shopping in town not to mention hike, bike or jog the Katy Trail.

Try Highland Gates on Katy Trail. Buyers are flocking to the open town homes at 4608 Abbott Avenue at Knox Street, 2400 to 3200 perfect square feet priced from $850,000 to $995,000. And they are selling. I know they are selling. Each unit is a three-story town home with soundproof firewall in-between, 26 units planned for the corner property that backs right up to the Katy Trail and Toulouse, which will undoubtedly be happy to deliver a few orders of those famous fries toute suite! Run up the stairs, run on the Katy, and eat as many pomme frites as your heart desires: life at Highland Gates is healthy. Marketed by Kyle Crews & The Urban Team for Allie Beth Allman.

Texas Sales: August Numbers In

The Real Estate Center at Texas A&M University reports 22, 587 homes were sold in Texas in August, 18% less than August 2007. The median price dropped less than one percent (0.7%) and the average time on market was seven months. Get this: median prices actually INCREASED in Bryan/College Station, San Antonio (my property was on the market for 60 days, I leased), Houston, Victoria, Lubbock and Marshall. Nationally, Case-Shiller, which is owned by Standard and Poors, reported a 16% drop in prices from July 2007 but singled out Atlanta, Boston, Dallas, Denver and Minneapolis for “positive (or flat) returns”. Jump for RECON’s numbers: 

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Palomar: Repriced, Realistic, Ready to Rock and Roll

This lunch for Realtors only: the Palomar has immediate occupancy and condo prices starting in the $300K’s.

Calling George and Laura: Here’s The Perfect Listing For Your Needs!

We could be neighbors. PS: Great security patrol!

Conversation With A Home Builder

The cover story in this month’s Conde Nast Portfolio is a must-read: Bob Toll, mega builder and founder of Toll Brothers, a Pennsylvania-based luxury home builder that reported nearly $16 billion (yes, billion) in revenue during the boom. The article says that between December 2004 and September, 2005, Toll made $323 million by selling company stock shares, those sales now part of a federal shareholder lawsuit. Anyhow, I talked to a Dallas home builder yesterday who is mulling the construction of a 10,000 plus square foot contemporary home on a one-acre lot in Preston Hollow. In other words, a serious spec home done up right — no corners cut. He is concerned that the current economic climate may not be conducive to selling such a home. What do you think, is the party over? Is it time to go home to our 1500 square foot apartments?

My New Baby Calf

Not really, of course, because Mom is very protective and won’t let me near her though I offered to babysit. This angel is about 4 days old and the newest arrival at The Preserve at Walnut Springs.

Attention All Property Investors: Toilet Bowls and Knob and Tube Wiring

In case you wonder where fearless Real Estate reporter has been, I was up to my elbows in toilets, wiring, bush and tree trimming and general rental home maintenance the last few days. (Every time I heard the financial news about evaporating investments, I scrubbed those commodes just a wee bit harder!) And while I was working on San Antonio House II, the tenant in Dallas House I was calling to complain that the toilets are “noisy”. Question for you veteran property owners out there: how do you discourage tenants who call for every little bitty pesky item?

Nicky and Eleanor Strike Back At The IRS

E-Residential LLC, a Texas Corporation owned by Eleanor Sheets and Michael Campbell, has filed a civil action in the United States District Court for the Northern District of Texas seeking an injunction against the IRS for its wrongful levy on the LLC’s funds because of another party’s security interest in those funds. All the legal mumbo-jumbo makes my head spin, so here, go read for yourself…

House Porn: Love At First Sight

5406 Ridgedale, Greenland Hills, $475,000, can you get absolutely any cuter than this?

The Day The Housing Market Turns Up

We will have much to celebrate this New Year’s Eve, when the national housing market might be close to being wheeled out of ICU and into a regular HMO hospital room. (No private suites – too many ailing roommates on that policy – Bear Stearn, Lehman Brothers.) Alan Greenspan tells us we have to wait until 2009 for the national housing market to stabilize — stabilize meaning the patient is no longer on death’s doorstep, not meaning patient is jogging across the ICU floor. An article by James J. Cramer, co-founder of TheStreet.com. in last week’s issue of New York Magazine, targets the market-pick-up date as June 30, 2009. Personally, I think they are both taking Happy Pills.

Greenspan gets a lot of heat for the mess we are in, but I think he tried to make homes affordable for more Americans, particularly the influx of immigrants that our nation needs, immigrants the current administration has tried to keep out. (Cramer says it doesn’t matter who wins the election, both Obama and McCain will be more immigrant friendly than Bush has been. As the grandchild of immigrants, I have always thought it was dumb to try and “close the door”. We need immigrants, we just need to screen for terrorists better than we do. But illegal immigrants do overload our healthcare system, the next ICU patient.) It is not Greenspan’s fault that greedy mortgage brokers and even greedier Wall Street financiers made slippery loans, pocketed their fees, and then sold the packages to the next unsuspecting investor. Like a game of hot potatoe, these were passed to the last person holding the bag with the most subprime loans. 

How Mr. Cramer can decide on a specific date is interesting. I hope he’s right: since Dallas hasn’t been hurt as much as other parts of the nation, that is only good news for us. June 30 will be the time next year’s spring market starts revving up, the key turning over about March. Maybe he means people will dip their toes in the water in April, May and June and find out the water’s not too bad. So everyone will dive in, much like they did five years ago. Some folks trusting enough to get back in the mortgage business would help. June 30, 2009? Let’s see what happens this week as more poo poo comes down… enough poo poo perhaps to maybe push interest rates down further?

(Cannot wait for New Year’s Eve!) 

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Interesting Correspondences

We get some very interesting emails here at D as a result of the blogs, but I think this one takes the cake — this reader’s solution to upper level management who plays too much golf:

“The best way to treat those so-called upper level management doing nothing other than playing golf and took a great sum of money is to take them to the Japanese restaurant. Not for feeding them food, but have the sushi chef slices them like a sushi. It sounds bad but that’s what they deserved”.

Now what about husbands who play too much golf?