The housing market is awful, isn’t it? I mean ghost towns are everywhere, the American dream is dead, and who knows how the few people who can get a mortgage are doing it. Let’s be honest, why would anyone want to work in real estate, let alone purchase a house at this point – I have to be insane to do what I do, right?

women drawing a business growth chart

 

Image: Michal Marcol / FreeDigitalPhotos.net

That paragraph above may seem overly dramatic but it’s a common theme I hear constantly among new home buyers that I meet with. Many are getting their information from national media outlets that are always looking for that next ‘man bites dog’ story.

I certainly don’t have my head in the sand. There are real estate markets in this country that have been hit hard over the past few years. But I also feel the need to help put things into perspective for those regurgitating the “national real estate” market statistics we hear nightly on the news.

Many of you may be surprised to know that in the average price ranges in Richardson, TX it’s actually a seller’s market. Yes, that’s right – a seller’s market. To determine this we look at how many months of housing inventory we have. In Richardson it looks like this:

 

$100,000-$149,999:                        3 months of inventory

$150,000-$199,999:                        3.5 months of inventory

$200,000-$249,999:                        5.2 months of inventory

$250,000-$299,999:                        2.8 months of inventory

 

These numbers show us that there are actually more buyers than homes for sale right now in Richardson, Texas. This isn’t just Richardson either, in Dallas overall we only have 5.8 months of inventory which is a really healthy, neutral market.

Yes there are foreclosures in Richardson, yes there are short sales in Dallas – and yes there are distressed properties everywhere. There will always be some distressed properties everywhere. The point is that contrary to the apocalyptical outlook we get from the media and government, things here in Richardson and Dallas are not that bad.

We all have to be careful when listening to national statistics on housing. Real estate is so hyper-local that price ranges can, and do, vary from street to street let alone from state to state.

Next time you open up the newspaper and you read this:

 

“It hit with the ferocity of an Old Testament plague, wiping out large populations of homeowners in the U.S. Five million of the country's 76 million mortgage holders have lost their homes to foreclosure or lender-ordered short sales since 2006, and an estimated 14 million more owe more on their homes than their properties are currently worth. In all, some $7.4 trillion in homeowners' equity has been destroyed, according to Mark Zandi, chief economist at Moody's Analytics, and more than two million jobs in the home-building industry disappeared.

At year end 2011, the S&P/Case-Shiller National U.S. Home Price Index fell to a record low, 33.8% below the boom peak level, recorded in 2006's second quarter. The descent has been all the more hideous in such once-manic markets as Las Vegas, Phoenix and Miami, which, according to the Case-Shiller 20-City Composite Index, have fallen 61%, 55% and 51%, respectively, from their high-water marks.”1

 

Just remember that rarely does good news sell newspapers and magazines or get high ratings. If you’ve been thinking about buying or selling real estate in Richardson you would be crazy to not get into the game right now.

 

Cheers,

 

Matt Cafrelli

Certified Distressed Investor Agent Specialist

Buyer Agent Specialist

The Todd Tramonte Home Selling Team

 

 

 

1 Laing, J. (2012, March 19). Ready to rebound. Retrieved from

http://online.barrons.com/article/SB50001424053111904797

004577281453828447714.html?mod=TWM_pastedition_1