I suppose I was a little bit off in estimating that the financial crises has taken property values back a year or so. The Dallas Morning News says that it actually may have taken us back to the 1990’s. A scary proposition.
The article suggests that without adjusting for inflation property values are down to about 2002 levels. Relative to inflation, however, we have time traveled back to about the late 1990’s. So about an 18% loss in pure numbers, and about a decade in real values over time.
Still, having seen recent comps, I find this assessment hard to believe. The overall trends seem to suggest only about a 4% loss. I admit thought that my own knowledge may be limited to particular market sectors. Higher end homes are not moving quickly these days for instance, and neighborhoods typical to risky loans may not be moving at all. (I would like to insert here that it is hard to pin down a risky loan neighborhood, I would imagine some of those middle class Dallas area’s are occupied by some with very risky credit).
Any way you cut it, when we start talking in terms of lost decades… It aint good.
June 24th, 2009 at
[...] http://fortworthrealestateonline.com/blog/2009/06/23/dfw-home-values-tumble/So about an 18% loss in pure numbers, and about a decade in real values over time. Still, having seen recent comps, I find this assessment hard to believe. The overall trends seem to suggest only about a 4% loss. … [...]