May 2008 housing numbers are not as bad as it would seem if you're paying too much attention to the national press lately.
That's not to say things are rosy either, but by and large North Texas continues to remain strong. Builders have reduced inventory and existing home sales are clipping along. I ran the previous 12 month numbers this a.m. for my principal market which includes N. Dallas, Richardson, Garland, Sachse, Rowlett, Plano & Wylie areas. Total sales numbers are down about 12% but the average sale prices have continued upward 1.9% for the one year period from May '07 to May '08 as compared to May '06 to May '07.
About the same rates as I calculated 6 months ago. Total existing home sales during the past year in these areas was 11,065 homes...and that doesn't include pending sales which pushes it up a good bit. So, all things considered, we're doing well, just on the slower side of the market cycles. The number of sales reduction is mostly indicative of the tightening mortgages in the higher risk segments that have been curbed, which will be a plus to somewhat limit the inventories. As invenories of new homes shrink or slow, then the values of existing homes will progressively get stronger as supply and demand become more balanced. Add to that, a slow down of first time and move-up buyers has been the result of fears by the nat'l numbers and media attention.
All things considered the northeast metro area continues to grow well, albeit slower than in previous years, and that generally indicates a brighter future to come!