December 2009

According to the latest data, troubled homeowners are finding more success in restructuring their mortgages. The Wall Street Journal reports,

Some 18.7% of loans modified in the second quarter of 2009 were at least 60 days past due three months later, according to the report, by the Office of Comptroller of the Currency and the Office of Thrift Supervision. That compares with a redefault rate of 30% or more after three months for loans modified in the previous four quarters.

What has caused the improvement? Approximately 80% of loans restructured in the 2nd and 3rd quarters of 2009 resulted in lower monthly payments — helpful adjustments that weren’t being made in earlier quarters. The Obama administration, whose foreclosure-prevention strategy centers around affordibility, is encouraged to see that monthly payments have dropped an average of 35% for borrowers in the Obama program.

Despite the declining redefault rates, borrowers with good credit have been increasingly unable to pay their mortgages, resulting in more 3Q troubled loans.

For further information, visit WSJ.com.

Dallas is known for its wonderful neighborhoods, many of which come alive with lights during the holiday season. Ride a carriage through Highland Park, ice skate around the Galleria’s massive indoor tree, or visit the trains at Northpark, and you’re sure to find that holiday cheer is abundant in Big D. Click to watch a beautiful compilation of  festive photos from around town.

This morning Steve Brown of the Dallas Morning News gave a detailed report of the local housing market, noting that Dallas is poised for a bounce-back in 2010. What makes him think so? Here is a quick overview of his data:

• Sales of pre-owned homes have increased significantly from year-ago numbers
• Home price declines have slowed and almost stopped
• Median home prices have inched up from their bottom in February
• North Texas housing inventory has fallen to the lowest level since 2007
• Home buyer demand is up, which will lead to more building starts in 2010

Brown reports that foreclosures are “unlikely to ease” in 2010. George Roddy, president of Foreclosure Listing Service, commented that even when the economy rebounds in North Texas, the foreclosure market will lag.

Nonetheless, economist David Berson of the PMI Group remains confident: “We expect the Texas economy to perform better than the national average over the next year.”

For further details, visit dallasnews.com.

WSJ’s MarketWatch ranks Dallas the ninth best city to do business. Ninth out of 101 — not bad! Click the image to play with the interactive map.

November’s new-home construction rebounded from a 6-month low, a sign that the housing recovery is continuing. According to the Commerce Department, applications for building permits rose 6% and construction of new homes and apartments increased 8.9%.

David Crowe, chief economist at National Association of Homebuilders, noted that  builders are still feeling rather cautious, but he has hope for the future. “We’re in a bit of a lull, but the new (extended) credit will have an impact as we move into 2010 and consumers plan for that credit availability, and builders begin to answer expected demand in the spring.”

Many builders are indeed ready to increase new-home inventory in preparation for the spring market, but are encountering difficulty getting production credit from the banks. This obstacle could slow the current momentum toward market stabilization of new-home supply and demand.

For more information, visit cnnmoney.com or read the official Department of Commerce release.

The Federal Open Market Committee meets today and tomorrow for the last time in 2009. A component of the Federal Reserve System, this group is charged with the key responsbility of making decisions about interest rates and the growth of our nation’s money supply through the buying and selling of government securities.

In 2010, the Fed will likely reign in their current government securities investments, which will result in higher interest rates. As the interest rates have already started to rise, many Americans are asking the question: “Is now a good time to refinance my mortgage?” Watch the video below for some insight from cnnmoney.com.

We have been in a buyer’s market for a while now, but the November price reduction statistics indicate that the tables are turning. Trulia.com reports that in the month of November only 22% of homes had seen their price reduced at least once, which is the lowest level seen since April of this year. Trulia began tracking price reductions in early 2009.

Visit wsj.com for more information.

What makes a home historic? According to Katherine Seale, executive director of Preservation Dallas, the answer lies in memories. “Historic houses are wonderful sanctuaries! They are more than just decoration and design; they are witnesses to life’s important moments – kitchen secrets, homework reports, family dinners, and holiday gatherings.  Historic houses are a reflection of hundreds of thousands of memories that just can’t be captured in a new house,” Ms. Seale said. 

Tour the following historic properties – all in the Park Cities – that Briggs Freeman associates are holding open this Sunday from 1 to 3 p.m.:

4405 Belclaire Avenue

Designed in 1938 by Fooshee and Cheek (who designed the Highland Park Village), this elegant home on a 75-foot lot has since been redesigned by Richard Drummond Davis. Within, the five-bedroom, five-and-a-half bath Terrasse home, natural light fills satisfying spaces, defined by wide archways and an easy flow.

4400 Lorraine Avenue

Built in 1935 and respectfully updated, this home is graced with Tudoresque details. Leaded glass windows and half-timbering enhance the white brick façade, which opens to a wide hall and gracious formals. Situated on a wide corner lot, the Terrasse property has three-bedrooms, three-and-a-half-baths and boasts hardwood floors and an updated kitchen.

3606 Lovers Lane

The two-bedroom, two-bath home, situated on a “hidden” lake of which most are unaware, this 1950 mid-century modern home was designed by Todd Dale, an associate of O’Neal Ford’s. Two swans grace the lake waters, filled with bass and catfish. The house is set back on its 150-by-135-foot lot among towering trees. The dining room gives one the feeling of being on a promontory over the water.

3524 Greenbrier Drive

Built in 1938 and steps from Caruth Park, this home boasts timeless charm – and a dining room perfect for Christmas dinner! The first floor comprises a center hall plan, with a downstairs master and a generous family room overlooking the backyard and saltwater pool. We invite you to Visit the four-bedroom, four-bath home with an updated kitchen during the tour.

Click the property photographs for more details about the listing.  To read more about the tour, click here.

The Dallas Business Journal hosted a well-attended Industry Outlook 2010 breakfast and panel discussion at the Westin Galleria Tuesday morning. Moderated by KERA’s Dennis McCuistion, the speaker panel included an impressive group of CEOs from various industries. The overall consensus was that we are fortunate to be in Texas and specifically Dallas. Here is the insight they offered:

Banking:

Elaine Agather said that her bank was lending, but the money was a bit more expensive and many of their clients are more conservative than ever, choosing to remain in cash and waiting for investment opportunities. Her major concerns for 2010 were credit card debt, national debt, and the commercial real estate sector.

Energy:

Jason Few expects that gas prices will remain low, and therefore has no reason to believe that electricity prices will escalate dramatically.  He supports deregulation of his industry, and is confident that Reliant is in a solid position due to technological advances and potential growth in Texas’ nuclear plants.

Pro Sports:

Bill Lively addressed the positive effects that the Super Bowl will have on North Texas’ economy.  Over 280 sponsoring companies have already joined the local effort to make this Super Bowl 2012 the first of many to come.  With Cowboys Stadium’s “50 yard line” location between Dallas and Ft. Worth, Lively foresees that many businesses will benefit from Super Bowl XIV.

Health Care:

Doug Hawthorne astounded the audience with the fact that Texas has the largest uninsured population in the country. Though this issue creates an assortment of problems for Texas hospitals, he reported that Texas Health Resources remains strong.

Retail:

John Menzer spoke positively about Michaels and Aaron Brothers, and is hopeful to keep making modest improvements in 2010. Unemployment certainly has a negative effect on retail, so much of his business’s performance depends on the economy’s continual recovery.

Manufacturing:

A producer of pumps and valves for the energy sector, Mark Blinn does 70% of his business outside of the U.S. in markets such as China and India.  He predicts a positive future for Flowserve, since many foreign countries are beginning to modernize their plants.

While none of the panel speakers were exuberant about the economy in 2010, each had a positive attitude and spoke with a bright glimmer of hope.

For those who missed Steve Brown’s report on Tuesday, here are North Texas’ November real estate numbers:

• Median home sale prices rose 5%, the largest gain in over two years
• North Texas realtors sold almost 5,500 pre-owned homes in November through MLS
• The housing inventory is below a six-month supply – its lowest level in over three years

Compared with November 2008…

• North Texas pre-owned home sales are up 31% and condominium and townhouse sales rose over 60%
• Park Cities’ pre-owned home sales are 81% higher
• Close-in North Dallas sales increased 60%

To read more details, visit dallasnews.com.