The first quarter of 2011 delivered some bad news for the residential real estate market. Pre-owned home sales dropped 13 percent from a year ago, while new home sales fell 5 percent in the Dallas-Fort Worth area. The difference in home sales from the first quarter of 2010 is partially because of the rise in home sales last year resulting from first-time homebuyer tax credits that ran out in April of 2010.
The hardest hit homes in the first quarter of 2011 were priced under $200,000. In fact, lower-priced homes accounted for 90 percent of the decline in sales, Ted Wilson, an analyst with Residential Strategies told the Dallas News. In some areas, such as North Dallas and Park Cities, higher-priced pre-owned home sales were up three and four percent, respectively.
In addition, the Texas Association of Realtors' Texas Quarterly Housing Report noted home values throughout the state increased slightly from March 2010 to March 2011, despite the fewer overall home sales.
Foreclosures Still Slowing Growth of Home Sales
In 2010, Texas had the second most foreclosures of any state in the country, with an average foreclosure price of $124,216.00, according to the National Association of Realtors. In 2011, the foreclosure rate was down to one in every 644 homes, which put Texas outside of the top 10 in overall foreclosures, and is much better than the one in 92 homes foreclosed on in Nevada, the worst-hit state in the nation. While the housing market has yet to recover to pre-recession levels, some experts believe increasing job growth may soon help the market recover.
Still Potential for Investment
Despite the recent numbers, there are opportunities for investors and potential homeowners. Short sales and foreclosures, when navigated correctly, can provide investors and homeowners with great properties at low prices. If you are considering investments in real estate, consult an experiences real estate attorney to further explore your options.
