THINGS ARE TURNING AROUND!

The September issue of the Allie Beth ALLMANAC is out, with interesting news and statistics on the DFW real estate market. Ready to read some GOOD news?

The Great Recession is over, stated Richard W. Fisher, president, Federal Reserve Bank of Dallas. The U.S. economy is no longer in free fall and a healing process has begun, he said, adding that consumers are more confident and housing is showing positive signs. His remarks echoed U.S. Chairman Ben Bernanke’s statement on the national economy that the prospects for growth in the next year appear good.
In two recent reports, Dallas home prices reflected positive news, rising 2.7% from May to June to the highest level since last September, according to the Standard and Poor’s Case-Shiller index. The Case-Shiller study showed residential values in Dallas bottomed out in February and have risen about 6% since then. It was the fourth consecutive month of gains for Dallas index prices. And the Federal Housing Finance agency also said Dallas prices were up slightly in the second quarter.
First American Core Logic, in its most recent study of housing in metro areas, showed the strongest performers nationwide were Houston, Dallas and Austin. The Houston Association of Realtors is now the largest local association in the U.S. with 23,354 members. The Conference Board recent report showed consumer attitudes improved in August after two months in decline. Consumer expectations of where the economy will be in six months rose to almost 76%, highest since the recession began in December, 2007.
Sales of existing homes in July jumped at the fastest rate in 10 years, sending stock prices up. The NAR says sales of single family homes increased 7.2% in July, the largest monthly increase since 1999 and marked the fourth monthly consecutive rise. Sales were also up 5% from July, 2008, the first such yearly gain since November 2005.
Housing affordability remains just over 72%, near an 18 year high during the second quarter, according to Moody’s Economy.com. Three years ago, that figure would have been about 5%. Senators Chris Dodd, D/Ct, and Johnny Isakson, R/GA, have introduced legislation to extend the first time buyers tax credit, increase it from $8,000 to $15,000 and make it available to all buyers, not just first-timers.
The sales rate of newly-built single family homes rose almost 10% from June to July, according to the U.S. Census Bureau. The slowpace of newhome constructionmeans the inventory of newhomes continues to shrink, another positive sign.
Direct home and site construction costs are down 11% - 15% from peak, according to almost 300 home building executives.
An index that measures changes in the price per square foot of homes for 25 metro areas posted a monthly increase of 3% in June, according to Radar Logic, one of the largest gains since 2000.
A new Homeowner Confidence Survey shows 81% of homeowners believing their homes’ values will not decline in the next six months, the highest response since 2008.

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