As housing sales slow down in the Dallas/Fort Worth metroplex, Fort Worth Realtors suggest that there's no housing bubble while low rates keep homebuying so favorable.

"Is Tarrant County's housing bubble about to pop?" asks Realtor Sharon Mays. "This seems to be all I'm reading about in both national and local news - the housing bubble."

She continues, "Nationwide, the 6.3 percent gain in home prices in 2001 was the highest in 14 years, according to figures from NAR. But the association forecasts that home prices will end 2002 up 5.5 percent over last year. In 2003, NAR expects home prices to rise 4.5 percent.On average, Tarrant County area homes sold for 15 percent more in June 2002 than they did in January 2000, according to an analysis of figures from NTREIS(North Texas Real Estate Information Service.)

"Across the metroplex in June, home sales were down 1 percent from June 2001, according to NTREIS," says Mays. "Generally, home prices are rising 2 percent to 3 percent compared with the same month a year ago. In the prime spring selling months last year, Metroplex home prices were rising 6 percent to 9 percent. So, with buyers being more picky, home prices are rising at a slower rate. But that doesn't mean that there is a housing bubble out there about to pop. The median price of homes sold in the Ft. Worth-Denton area for June was $136,411."

Says Realtor J.C. Cunningham, "Listings are increasing in almost every area and we have a large supply of homes in almost all price ranges. Buyers are snapping up the homes that are priced attractively in regards to their competition. Sellers that showcase their homes by insuring that the paint is fresh, the carpet is new or just cleaned and removing the clutter enjoy a faster sale than those that figure that the buyer can do all that."

Advises Cunningham, "Don't neglect the yard while you are at it. I sold a house the other day based on a drive by. My buyer saw the yard and insisted on seeing the inside. While priced $10,000 above what she wanted to pay, she fell in love with it and promptly negotiated a contract. Well-maintained homes that are priced right are still selling within days. Homes with potential but not showcased well are taking a little longer. Homes that need help sit on the market for weeks and generally sell for much less than they should if at all.

"Homes over $150,000 are moving a little slower and homes above $200,000 may take a while to sell. This is understandable as there are fewer buyers who can afford homes in this price range. I am working with more buyers who want a home over $200,000 than I have in a long time so that is encouraging for you sellers. Home prices overall continue their upward trend, which is to be understood with the continued increase in the cost of labor and materials driving the price of new homes upward. This in turn pulls the value and price of pre-owned homes upward."

Cautions Cunningham, "Interest rates have stabilized again luring Buyers into a false sense of security. Remember rates wont stay down forever. Look at your credit card rates. Many are still in the upper teens and quite a few are above 20 percent. They charge those rates because they can get away with it. Mortgage companies will do the same when they can. Higher rates mean higher profits. Don't get caught. A small jump in interest can cost you thousands of dollars over the life of your loan."

Agrees Realtor James Martone, "Some areas with low inventories have seen significant increases in price, while the time on market has been generally less than 50 days. Buy now while mortgage interest rates are low!"

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Published: August 19, 2002

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