HOW RISKY IS THE HOUSING MARKET?

According to an article by Steve Brown [email protected] in the Dallas Morning News today, Fort Worth and Dallas are the least likely risk of Home price decline. Great news for the DFW Market!!!

The report from PMI Group (Mortgage Insurance Firm) states that the chances of a house price decline rose in almost four out of five U.S. markets. Dallas and Fort Worth ranked dead last in PMI Group's latest forecast of cities with the biggest chance for a home price shakeout. The analysts estimate that Dallas-Fort Worth has less than a 1 percent chance of marked home price drops in the next two years, while places in California, Nevada and Arizona could have an up to an 80 percent likelihood of declining residential values.

Steve Brown writes...because Texas did not participate in the double-digit home price gains in the first half of the decade, it doesn't have to take the great pain of the areas that are compensating for that now. Home values in North Texas have been relatively flat while they are falling in many other major U.S. cities.

Now that the housing sector is in a slump, home values in North Texas have been relatively flat while they are falling in many other major U.S. cities.

Most Texas cities are outpacing the rest of the country in overall economics and job growth is above the national average.

And other national surveys show that North Texas' housing market is outperforming those in the rest of the country.

Even so, pre-owned home sales were down about 8 percent last year, and sales of new homes fell about 17 percent in 2007.

Foreclosure rates also continue to rise.

Analysts are therefore keeping a close eye on D-FW home prices for signs of deterioration.