Dallas Foreclosures for Sale Hinders Full Market Recovery

by Donald Hanz on cities

Dallas foreclosures for sale continue to clog the market, dragging down home prices and values. Recent data showed that home prices drop slightly by 1.2 percent in August from the same month last year.

But despite deep discounts on the costs of properties, home sales remained lackluster. Industry experts said that the growing number of job losses in North Texas, which totaled 65,000 so far, is severely affecting the housing market. They explained that when people do not have jobs, they do not buy houses. Furthermore, the lack of employment opportunities in one area means fewer people coming in which would not result to a housing demand.

But what is causing great concerns to industry experts is the growing number of Dallas foreclosures for sale. They predicted that over 60,000 households will receive foreclosure filings in 2009. The numbers are significantly higher than the total home sales for this year and five times higher than new-home starts.

Statewide, foreclosure filings rose by 11 percent in the third quarter compared with the previous quarter and 9 percent higher from July to September of 2008. In September alone, foreclosures jumped by 17 percent to 13,216 from August and 44 percent higher compared with September last year.

And relative to the foreclosure problem of the state is its escalating unemployment rate which hit 8.2 percent in September.

However, industry analysts are optimistic that home prices in the Dallas-Fort Worth region are about to make a turnaround in the summer of 2010. They predicted that home prices not just in the region but in the whole country, would start to bottom out by next spring.

Analysts predict that in the region, prices would be higher by 0.21 percent August of 2010. This is an achievement considering that home prices dropped by 0.12 percent for a year-to-year basis ending August of this year.

Analysts said that the turnaround in North Texas’s residential values, which is expected to happen next year, coincides with other forecasts by economists. Many of them are expecting that home prices will bounce first on the market before it would really take off for a sustained recovery.

They said that even if the area were able to stabilize and strengthen home prices, some institutional and economic factors will work against the housing market’s aim to achieve sustain recovery.