21Oct
Some time ago I wrote about HD Homes; and wondering what this new entity was all about. As far as I could HD was simply a branch of Village Homes.
Turns out HD Homes has an identifiable plan. It looks like they are taking existing VH lots and moving them in a direction towards sub $350,000 prices. All of this being under their new brand of course.
This is a smart move for several reasons. The first one being that the areas of town they are aiming towards could use some new sub $350,000 properties. The second reason being that this is the market that IS moving. And the third reason is pure marketing, Village won’t chip away at their high end brand equity.
I personally think that Village was getting a little optimistic on their pricing for what they saw as entry level homes. This move proves that the company does have some great vision. Monticello real estate could use some of these more price-palatable residences, but I would also probably develop on the other side of Camp Bowie as well.
16Oct
Ladies and Gentlemen, the foreclosures are mounting. Is the picture relatively stable in the Dallas Fort Worth area? Yes, for the time being. But as much as I try to paint with rose-colored glasses here, the glass is not half full.
The United States is about to enter a period of inflation and recession. This will be a peak and valley roller-coaster beyond what we have experienced in the past. Real estate is no longer a solid asset (in the US at least). More importantly are commodities. Metals, like copper, and oil will define the best holdings of the age we are now embarking upon. As unsettling as it may seem the currency of the United States is losing its luster and will continue to do so. I don’t care to go into the particulars, but the dollar is a terrible asset. Stocks are not a decent alternative either.
I hate to sound so drab, but I have spent my entire life in commodities and I see the problems at hand. If you are a real estate agent you should probably consider making a switch while you can. Interest rates will soon (maybe 2 or 3 years) kill your business, similar to the phenomena of the 1980’s. If you work elsewhere and you are not worried about your job, you should probably begin to think otherwise. Unemployment isn’t going to be alleviated any time soon and you can rest assured that we are not going to have a quick recovery.
The paradigm is shifting. The government is spending to much money and the rest of the world no longer trusts our currency. The idea that you can continue to live your American suburban fantasy is only a fallacy. The world is simply changing.
14Oct
I had no idea that Crescent was building the Ritz-Carlton development in Dallas. I guess I don’t keep up with Dallas. The Real Estate Channel says 23 story tower is a $300 Million Dollar project. Unit prices are $700,000.00 to $8 Million. I don’t know what that is per square foot, but I am not sure I really care to know.
If I was going to burn through $8 Million I don’t think it would be on a Condo. But I am glad that the developer is based in Fort Worth anyway.
13Oct
The DFW market is showing some seriously erratic behavior. There doesn’t seem to be a lot of correlation between the pricing and sales movements in different areas of town. Arlington for the most part is down; both in numbers of sales and in prices. Certain parts of Central Fort Worth, on the other hand, have risen in both of these departments.
The only clear trend that I can see is that the markets focused more on city center remain strong. That is to say that those markets around downtown, like the TCU area, have performed better than the areas farther removed. I suspect that we will continue to see this trend.
For several decades now the US has nurtured a culture of suburbanization. Those daily may certainly be coming to an end. The best investments will most likely be the ones that equate into short commutes. I see this study as proof of that happening.
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