Rumor has it that everything is bigger in Texas. From hair, to cars to McMansions, the nations’ second largest state is known for being the land of the large, and the current state of the local real estate market is proving the point. In the state, the areas most predominate city, Dallas, is experiencing a spike in foreclosure activity in the largest home value price range.
Dallas Luxury Home News
Data provided by Foreclosure Listing Service (based in a Dallas suburb) has indicated that foreclosure activity in large, luxury homes priced at over $1,000,000 has increased by 27 percent. The information was garnered by comparing foreclosure public auction postings from January-October over the same time period of last year. Over the past 10 months, 513 homes exceeding the $1 million market received notices of default as compared to the 403 properties that were affected last year.
Typically, when foreclosures affect owners of affordable housing (categorized by being under $200k in the Dallas market) financial distress and lack of choice are the reasons for the default. However, when it comes to luxury housing, the well to do make conscious decisions to walk away from their loans. Earlier this year, the Wall Street Journal reported "... that nearly one in five mortgage defaults through the first half of 2009 were 'strategic,' where borrowers who appeared to have the capacity to pay their mortgages stopped doing so." That conscious decision may account for the spike in activity in the local market.
Dallas Rental Market
Not all is gloom and doom in town, as some sectors are experiencing growth. One such niche is the multifamily unit sector as the local pace of renting activity has increased in town. Dallas based real estate consultants Witten Advisors, have noted that half of people under age 35 are renters, and nationally in 2010 973,000 new jobs were created for young adults over age 20. The economy fueled by high unemployment rates has been cited in holding back a housing market recovery, and those no longer affected by the crisis are breathing new life into the rental sector.
Final Word on Dallas
Although there is indeed some growth in the Dallas real estate and job market, the economy is still not up to speed. According to Harvey Rosenblum, executive vice president and director of research at the Federal Reserve Bank of Dallas, slow growth is preventing the area from feeling relief from the recession. Earlier this month economists from the National Bureau of Economic Research announced that the recession officially ended in June of 2009, but the country is still not out of the economic weeds. Consumer confidence is low as future earnings continue to be uncertain and fears of a double dip recession in the housing sector linger on.
While some Dallas residents are still feeling the affects of the recession, others have steady incomes, good credit histories and are poised to scoop up amazing deals on housing opportunities. In Dallas and the surrounding metro regions, consumers can get great bargains on either new or previously owned homes, real estate owned properties and single family units. The time for consumers who have wanted to pursue the American Dream of homeownership is now, as low mortgage rates may quickly become a thing of the past. Mortgage Marvel is the web's best resource for finding current Dallas mortgage rates in real time and without requiring your private information.
