An Uneven Economic Recovery in the Real Estate Market

April 28, 2011 by · Comments Off 

By Brad Namdar

Many Americans are homeowners, and their home is their biggest asset. That being said, the current real estate climate reflects directly on how the country is doing financially altogether.

Texas residents are concerned about the current real estate market. Though, the national sales of existing-homes rose this passed March and demonstrate an uneven economic recovery from July 2010.

According to the National Association of Realtors, “existing-home sales rose 8.2 percent to an annual level of 1.99 million in March but are one percent below March 2010.”

In Dallas-Ft. Worth, existing-home sales dropped 2.1 percent and sales went down 12.3 percent compared to a year ago, bringing the average home sale value to $141,600.

When comparing the national home median price to Texas, the national price is $18,900 more than the average Texas home. Also, the national home sales average dropped 6.9 percent compared to last year, as opposed to Texas, that dropped12.3 percent.

“The current real estate business in Dallas could be better,” said Hossein Sharyar, North Texas real estate agent. “The problem is with the manufactures, the banks, the new laws that have been passed. Its harder for people to get loans, pay loans, its harder for people to pay their employees, and with new government regulations, its harder for people to get money.”

When consumers can’t get loans from the banks, and with stricter government regulations on the economy, prices may drop, but demand does not go up. “There is too much supply and not enough demand,” said Sharyar.

“Living in North Dallas is great. Even though we experienced a decrease in home prices, it’s still difficult to sell houses here because people don’t have money to spend or can’t get loans. My mothers home has been on the market the passed 3 years, and were not going to sell it 30 percent below market value,” said Julie Biegel a resident in North Dallas.

When looking to the future, you have to look at the past. National home sales declined in February 9.6 percent, according to the National Association of Realtors.

Now, in March compared to February, according to the National Association of Realtors, “National Single-family home sales rose 4.0 percent to a seasonally adjusted annual rate of 4.45 million in March from 4.28 million in February.”

This demonstrates some promise, though there are other factors to consider as well, such as, the unemployment rate.

Texas shows signs of heading in the right direction and economic recovery, particularly in the unemployment rate. In March, the Texas unemployment rate was at 8.1 percent as opposed to February 8.2 percent. This is an all time low for 50 consecutive months.

While, there are changes in the economy and real estate, it’s very hard to predict the future. “Its hard to tell at this time, if there is someone who can predict the future correctly they would be a very wealthy person. Though, I think that hopefully as our unemployment rate drops, more people will have money to spend, the economy will get better, and so will real estate,” said Sharyar.