As the 2007 Real Estate Market comes to an end, forecast for 2008 show signs of life.  The National Association of Realtors is forecasting existing home sales and prices to stabilize in the second quarter of 2008 and rise throughout the second half of the year.  This is good news to both real estate professionals and buyers/sellers alike.  Owners have been struggling to capture home buyers in the pre owned market and dealing with high DOM (days on market) averages, increasing new home construction competition, and depreciating home prices.  The latest options for sellers have been to take a loss and sell at a price that is at best a breakeven point, or hold steady, incur additional carrying costs and gamble in 2nd quarter of 2008.  Existing home prices are expected to rise from -1.7% and level off at 0% by 4th quarter 2008.  Existing home sales are expected to remain stable and close around 5.7 million for 2008, which offers owners considering selling in the near future some confidence their struggle might be met with a more positive reception.

The New Construction sector is expected to experience an ongoing increase in inventory throughout 1st and 2nd quarter of 2008 with sales dropping from 796,000 to 693,000 by end of 4th quarter, according to the National Association of Realtors.  As for home buyers, with increasing home builder inventory in Homes, Condos, Townhomes, and Lofts and the mortgage fallout in the 2nd throught 4th quarter of 2007, timing couldn't be better to cash in on some outstanding incentives and instant equity as builders pile on incentives with hope to reduce their inventory and bottom line.  There are still niche markets such as areas in Downtown Dallas that continue to show signs of growth and find ways to build while still earning a profit.  Areas such as Downtown Dallas, including West Village, Uptown, M Streets, Oak Lawn, and Turtle Creek continue to be in high demand.  Sales in the Downtown Urban Districts are driven by out of state investors as well as owners in stable pre owned niches that have been able to at least breakeven on their current home investment.  Market conditions are optimal for investment around the Nation which is also helping fuel to real estate engine and stablize the industry and economy as a whole.  Consumer Confidence is also expected to increase by 2nd quarter 2008, which will only assist in reaching  or exceeding 2008 forecasted homes sales. 

The Mortgage Market is also expected to recover and stabilize in 2008.  Buyers should have ample financing available compared to 2007 when the lending market tightened and loans were harder to come by towards 3rd quarter due to problems in sub prime mortgage defaults and write-offs.  Anticipating governmental reform passed by Congress, economists believe FHA is expected to help fuel the mortgage market and possibly reach gains in market share as high as 20%, which was last achieved in 2000. 

All signs are pointing to light at the end of the tunnel for 2008.  The road to recovery for the real estate and mortgage market is underway, although it may not be reached until 2009.

Dallas Fort Worth Real Estate
Dallas Real Estate