By Troy Corman, www.t2realestate.com
Will 2012 be the year that the Dallas - Fort Worth housing market bounces back in a big way? Better national employment numbers and local housing sales in December paint reasons for optimism. In fact, Dr. Mark Dotzur, a Texas ATM Real Estate Center economist, thinks that the economy is spring-loaded and ready to explode. Corporate balance sheets are loaded with cash, as are many individual money market accounts. He thinks that if more pro-business and pro-growth folks replace current politicians, the economy could soar. Whether that's in 2012 or 2013, is anybody's guess.
Charles Lieberman, (in video above) chief investment officer at Advisers Capital Management, thinks that housing is already in rebound mode. Home sales and new home construction have been anemic for years, yet the population and housing demand continue to expand, especially in the Texas metroplex, as folks migrate in from the high-tax, debt-laden states like California and Illinois. I've recently witnessed this in the north Dallas area, as there is very little move-in ready, new home inventory. As you can see below, courtesy of the Texas ATM Real Estate Center, Dallas home sales in 2011 and 2010 were below 1999 levels - so pent-up demand continues to build!
The biggest risk to both the local and national US real estate market are the European recession and the ramifications of their failed cradle-to-grave entitlement programs. If I were Germany, I would demand deeds to land and buildings in Greece and other bankrupt Euro countries, in exchange for continued bailouts.
The other risk is that US politicians follow Europe's lead and continue to expand our own country's debt burdens. If that continues, they'll destroy the value of the dollar, and the price of land and real estate could skyrocket. If you need help, or answers to any real estate questions, feel free to reach me at 214.690.9682.
Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.