Sales of existing single-family homes in North Texas slid 11 percent in January, or so everyone is reporting, but here’s the good news: the median home price rose 8 percent, this from the Texas A&M Real Estate Center said Tuesday.I think we need to keep our eye on that ball.
In January 2011, 3,073 homes were sold in the 29-county region, down from 3,330 in January 2010, the Center said. But remember that January 2010 number was inflated by the first-time homebuyer’s program.
So it was the eighth straight month that home sales were down from a year earlier, but I see that as no cause for concern other than to ask, again, why are the banks not loaning out money? In fact, instead of another first-time homebuyer’s program, why don’t we have a first-time home borrower program? I hear story after story of wealthy people with great credit who cannot get loans simply because they do not have a W-2. We bailed out the banks, but here we are, two plus years into this recession, still no loosening of the loan strings.
On a very positive note, I think, the median home price was up 8% in January to $140,010 from January 2010. That may have happened because of a flux of high-end home sales, such as that of the Jonas Brothers K2. The best case scenario is that if we can hold home values steady for a few years ’till the banks loosen up, people will get loans and then start buying all over.