According to the National Association of Realtors, pending home sales increased 6.3% in December as more buyers took advantage of the more affordable conditions. NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas Fort Worth real estate market, said the rise in contract signings is encouraging. “However, housing activity remains weak compared with potential demand, and the market is fragile given the economic backdrop,” he said.
To land this nationally over-taxed, under fueled plane into the North Dallas market, sales indicators are remaining flat. (This is a good thing) Overall, according to highly unconfidential market information, the Dallas/Ft. Worth area saw about a 3% decline from 2007 to 2008. This includes some laggards such as Lancaster (16%) and Duncanville (13%). To translate this in comparison to say California….yes the Great Recession has finally caught up to us here, but North Dallas and Collin County residents chose not to drink most of the koolaid (i.e. bad mortgage loans). Banks have joyously handed out these approvals as easily as the free gift your child receives when opening a new saving’s account. Even more so, according to a home price gauge released by the PMI Group, the Dallas area including Mckinney, Allen and Frisco has the lowest risk of any real estate market in the country of having lower median home prices in two years. Hooray for the cowboys and the women who love them!
Moving forward, in case you don’t have TV, Internet, Radio, or know other people …..at all, mortgage rates are at an all time low, so we have that going for us. To put things in mathematical perspective for all the passionate math lovers out there, here is an example of the current interest rate environment. In the Dallas area, a one point drop in your house’s interest rate equates to roughly 15% to 20% of the price you bought it for. With that savings, you can build that underground shelter you’ve been talking about when the end of the world comes, or if it doesn’t come any time soon. You can hold cocktail parties for your neighbors and your real estate agent for the time being. We will bring the wine.