In the Press

10 Years After The Housing Crash, Dallas-Fort Worth Experiencing Consequences Of Policy Failures

10 years after the housing crash and the Great Recession that nearly brought the world economy to its knees, the adults in the room are still pretending that everything is normal. If you read the Dallas Morning News and the spin of many professional economists, the DFW real estate market has emerged from the wreckage 10 years ago relatively unscathed. With DFW home prices at record highs, most housing pundits are eager to suggest everything is awesome. Apparently the recent rise in home inventories is just blip in an otherwise normalization of the formerly red [...]

New Home Builders Clipped By Weak Order Growth

New home builders had a relatively rough week with several major publicly-traded builders experiencing some nasty haircuts in their stock prices. With the exception of DR Horton, it wasn't a good week for home builder stocks. While Facebook and Twitter were seeing record drops in their share prices, new home builders were also experiencing a hangover from weak growth in new home orders. The Dow Jones Home Construction Index has trended lower for most of the year, down almost 18 percent year-to-date. It doesn't take a rocket scientist to understand why the index peaked just [...]

Foreign Buyers Purchasing Fewer U.S. Homes In 2018

The latest 'Profile of International Transactions in U.S. Residential Real Estate 2018' shows that foreign buyers were purchasing fewer U.S. homes and for lower average prices compared to the same 12-month period. The latest survey from the National Association of Realtors covers April 2017 through March 2018. Some of the highlights include A decrease in purchases from $153 billion to $121 billion A unit decrease from 284,500 properties to 266,800 An average price decrease from $536,900 to $454,400 Texas accounted for 9 percent of foreign purchases of homes, behind Florida (19%) and California (14%) For [...]

RECenter A&M Economists Still Wasting Texas Realtors’ Money

RECenter at A&M economists and data junkies are still wasting the dues of Texas Realtors that pay a good chunk of their salaries. It seems the Real Estate Center at Texas A&M economists are phase-locked in a myopic pursuit to somehow rationalize or justify the status quo situation with Texas housing. "Intellectual Phase-Locking is a condition that results when dogmatic 'scientific' assumptions inhibit further inquiry." Rupert Sheldrake Last year I wrote about some of the interesting details on the Real Estate Center at Texas A&M and their funding. I have also clued readers in on the [...]

Dallas Morning News Real Estate Desk Still Missing The Boat

Dallas Morning News' real estate editor, Steve Brown, seems to be waking up to the fact that the DFW real estate market is cooling. He's still off the mark when it comes to the recent peak in DFW home sales, but at least he acknowledged the sales decline last month.  DFW home sales fell for the month of June. See, that wasn't so hard. After successive years of abnormal price growth, the DFW area saw a reported 3 percent decline in home sales in June. I say "reported", because as I detailed in a previous [...]

Zero-Down Mortgages Return With New Names

Surprise! Zero-down mortgages are back! Just when you thought we had learned the lessons of the subprime mortgage meltdown nearly a decade ago, along come new twists on an old formula. The recipe is pretty simple, and the inevitable outcomes are fairly predictable, yet that won't deter some people from making irrational decisions when it comes to the fear of missing out (FOMO). The latest strategies to put cash-strapped buyers into homes they probably can't afford are similar to crowdfunding. HomeFundMe is an example of one such program where buyers can solicit donations for a [...]

All Roads Still Point Toward Yield Curve Inversion

With the Federal Reserve's balance sheet normalization process set to kick into a higher gear next month, all roads still point toward a yield curve inversion. While govt officials and the Fed's pie-in-the-sky economists continue to was about a robust economy with unemployment levels hovering near cycle lows, there are some widening cracks appearing in the global QE Ponzi scheme. Yesterday the Fed found some "widespread and critical deficiencies" in Deutsche Bank's capital planning controls. You don't say! The stock of Germany's largest bank, a toxic time bomb of opaque derivatives, continues to plumb news [...]

Autopsy Report For Affordable Housing In Dallas Fort Worth

An autopsy report for affordable homes in Dallas-Fort Worth reveals the steady evaporation of affordable housing inventory in the DFW area. Recent data show that housing prices in the U.S. are currently at their least affordable levels since the financial crisis. The latest numbers on existing home sales showed that the median price of a home hit a new all-time high. So how did this all happen? Was it an accident? Is it due to our smashingly great economy? Let's find out. As investors and speculators have gobbled up lower-priced homes across the country to [...]

The 9 Percent DFW Home Sales Gain That Didn’t Happen

The Dallas Morning News continues to allow real estate editor Steve Brown some serious latitude with the truth when it comes to DFW home sales. In the latest article on May home sales Mr. Brown would apparently have you believe that "11,302 preowned single-family homes" traded hands in May. Unfortunately that didn't happen! You would think that Dallas' largest newspaper would have the resources to fact-check the rubbish Mr. Brown is printing in the digital edition of the paper, but apparently that is asking too much. The Dallas Morning News real estate desk is quoting [...]

Sears At Golden Triangle Mall In Denton TX Closing In September

Sears Holdings announced a new batch of store closings and it appears the long anticipated closure of the Golden Triangle Sears location is finally here. After reporting dismal first quarter results, Sears announced a new batch of 72 Sears and KMart locations that will be shut down in September. According to the latest press release from Sears Holdings, the auto center at the Golden Triangle Denton TX location will shut down in early June. In addition to the Denton Sears closure, three other DFW stores will also be shut down in early September. Those Sears [...]

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