By Maxine Shapiro, KERA 90.1 commentator
Dallas, TX – Last year, the housing market thumbed their nose at the recession making 2001 a record year in housing sales. So what's the buzz for 2002?
I'm Maxine Shapiro with KERA Marketplace Middays. The debate on where the housing market is headed this year ranges from "oh my gosh, there will be a crash," to maybe just a leveling-off. We here in North Texas can bask in the latter group, that according to Neil Siegel, senior marketing analyst for Mortgage Guarantee Insurance Corporation. Mr. Siegel agrees that there is no way the housing industry could continue to grow at the levels it's rejoiced in over the last two years, but, he insists, there will not be a crash. Supported by figures from the Real Estate Center at Texas A&M, Siegel maintains that even though the Metroplex will see new construction fall as permit activity slows, "the number of months inventory" is at a very desirable rate.
My question: what is "the number of months inventory?" As Siegel explained, it's the amount of time it takes to sell the current supply of homes for sale. As of December of 2001, that number for Dallas was 4.4 months, and Forth Worth 4.5 months. He illustrated that when Northern California was in its housing boom and people were offering more for homes than what they were worth, this number was at 3.3 months. The national average is at about 5.5 months.
Maureen Zigler of Republic Title in Dallas also agrees that 2002 will simply see a leveling off. In fact, she believes that even the talk of higher interest rates will stimulate housing sales, forcing those people sitting on the fence to take action.
And if you're looking for one of those high priced homes this year, say a million or more, don't worry about sharpening your negotiating skills. Sales of those homes have slowed significantly. So we can all relax and sleep tonight knowing that the housing industry in North Texas will remain alive and well in 2002. For KERA Marketplace Middays I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 PM.