Dunhill Homes Expands Footprint With Two New Communities in Dallas/Fort Worth

Dunhill Homes has successfully launched 7 new subdivisions in the Dallas and Houston markets in the last five months. In an economic environment marred by disappointing news, Dunhill Homes' expansion is refreshingly optimistic. The homebuilder has been on an expansionary spree in Texas after successfully launching two master-planned communities in Las Vegas. In July 2011 Dunhill added two new communities to its portfolio – The Retreat at Craig Ranch in McKinney and Ridgeview Farms in Northwest Fort Worth.

The Retreat at Craig Ranch is located within the master-planned community Craig Ranch in McKinney, Texas. This exclusive enclave allows residents a luxurious lifestyle with access to world class amenities and low maintenance homes. Residents of The Retreat have exclusive access to their own pool and a 9,000 sq. ft., 2-story clubhouse. Residents also enjoy the benefits of living within the Craig Ranch masterplan; social membership to the famous Craig Ranch TPC Golf Club and access to the Cooper Fitness Center & Spa. The Retreat, located at the intersection of Custer and Stacy Road, offers a wide range of plans starting in the low $200s.

Dunhill Homes' second community, Ridgeview Farms, is located in Northwest Fort Worth, adjacent to the booming Alliance Corridor and minutes from four major highways. Homeowners enjoy the luxury of a private amenity center with a playground, swimming pool and cabana. Dunhill Homes is offering several one and two story floor plans that range from 1,400 to over 3,000 square feet and start in the $140s.

All Dunhill homes are designed to surpass the industry standard on energy efficiency with features such as continuous air barrier and sealing, optimal HVAC with programmable thermostat, internal moisture management, soffit and static roof venting, and air pressure balancing. Each home is then inspected by an independent consultant or organization and assigned a HERS (Home Energy Rating System) rating.

Dunhill Homes is owned by Winchester Carlisle Companies which also launched another new home brand, Nathan Carlisle Homes, in July. Nathan Carlisle focuses on building exclusively for active adult homebuyers.

55+ Builders More Optimistic About Multifamily Rentals than New Home Sales

Builders in the 55+ housing market are significantly more optimistic about production and demand for multifamily rental units than they are for sales of single-family homes or multifamily condos, according to the latest 55+ Housing Market Indices that are compiled quarterly by the National Association of Home Builders (NAHB).

All of the components measuring production and demand for 55+ multifamily rental units increased significantly in the second quarter of 2011 compared to the same period a year ago.

In comparison, the 55+ Housing Market Indices for single-family units and multifamily condos were largely unchanged with increases from 12 to 13 and from 7 to 8, respectively.

“Like those in other age groups, many people in the mature-market sector are hesitant to buy,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. “Among the factors keeping prospective home buyers on the sidelines are ongoing uncertainty about the economy and concerns about selling their existing homes. Low appraisals and tighter mortgage lending criteria are also constraining the market.”

The 55+ Housing Market Indices (HMI) for single-family homes and multifamily condos measure builder sentiment based on current sales, traffic of prospective buyers and expected sales six months in the future.

The 55+ Multifamily Rental indices measure current production, expected production six months in the future, current demand for existing rental units and expected demand six months in the future. In all of the 55+ Housing Market Indices, a number greater than 50 indicates that more builders view conditions as good than poor.

The 55+ Multifamily Rental indices showed increases from 15 to 28 in current production, from 16 to 29 in expected production six months in the future, and from 31 to 43 in current demand for existing units.

“Multifamily rentals are the strongest segment of the 55+ housing market at present,” said Nielsen. “The largest increase in a 55+ Multifamily Rental index was in expected demand six months in the future, which rose from 30 to 44,” he said. “An increase in demand is always good news, but this could also foreshadow a shortage of rental units in the future. Demand is already running ahead of production, and the continuing difficulty in obtaining credit to finance new construction could result in shortages down the road.”

Among the components of the 55+ Single-Family index, present sales were unchanged at 12, and expected sales increased one point from 17 to 18. Traffic of prospective buyers increased from 12 to 13.

The 55+ Multifamily Condo index components showed a slight increase – from 7 to 8 – in current sales. Expected sales six months in the future were unchanged at 10, and traffic of prospective buyers increased slightly from 5 to 7.

Active Senior Living

The Senior Cohousing Handbook, 2nd Edition: A Community Approach to Independent Living

Realtors Say Home Prices Took Another Hit

San Antonio, Texas

Median existing-home prices declined modestly in the second quarter with 27 percent of metropolitan areas experiencing price gains from a year ago, while state home sales declined from the second quarter of 2010, according to the latest quarterly report by the National Association of Realtors.

The median existing single-family home price rose in 41 out of 151 metropolitan statistical areas1 (MSAs) in the second quarter from the same period in 2010, including four with double-digit increases; one was unchanged and 109 areas showed price declines. In the first quarter, 34 metro areas had posted gains from a year earlier.

Lawrence Yun, NAR chief economist, said home prices have been moderating. “Median home prices have been moving up and down in a relatively narrow range in many markets, which shows a stabilization trend,” he said. “Markets showing consistent price stability or increases are those with solid labor market conditions, such as in Washington, D.C.; San Antonio; or Fargo, N.D.”

Yun noted the median price measurement reflects the types of homes that are selling during the quarter and can be misleading at times. “The level of foreclosures, which can artificially depress median prices, can vary notably in given markets. The annual price gauge smoothes out the quarterly swings and has shown fairly stable price trends in most markets.”

He added the housing market should be stronger. “With home prices in a broad trough and historically low mortgage interest rates, high housing affordability conditions and rising rents could stimulate a more rapid sales recovery if banks get back into the business of lending to more creditworthy borrowers,” Yun said.

NAR’s Housing Affordability Index stood at 176.6 in the second quarter, the third highest on record after the first quarter of 2011 and fourth quarter of 2010. The index measures the relationship between median home price, median family income and mortgage interest rates; the higher the index, the greater household purchasing power. Record keeping began in 1970.

The national median existing single-family home price was $171,900 in the second quarter, down 2.8 percent from $176,800 in the second quarter of 2010. The median is where half sold for more and half sold for less. Distressed homes,2 typically sold at a discount of about 20 percent, accounted for 33 percent of second quarter sales, down from 39 percent in the first quarter; they were 32 percent a year earlier.

Total state existing-home sales, including single-family and condo, declined 5.4 percent to a seasonally adjusted annual rate3 of 4.86 million in the second quarter from 5.14 million in the first quarter, and were 12.7 percent below a 5.57 million pace during the second quarter of 2010. June 2010 was the closing deadline for the home buyer tax credit.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the key to healthy housing is credit access. “It’s frustrating for many creditworthy potential home buyers to realize that when they’re ready to make a move, banks remain risk averse,” he said. “People with good jobs, long-term plans and who are willing to stay well within their means deserve an opportunity to realize their American dream of home ownership. When banks return to normal and safe but sensible lending standards, housing will be able to contribute its traditional share to economic growth.”

Yun clarified the point on economic growth. “The direction of the economy will be determined principally by the housing market recovery, and indications now are pointing toward only a modest recovery,” he said.

The share of all-cash home purchases was 30 percent in the second quarter, up from 25 percent in the second quarter of 2010. Investors, who make up the bulk of cash purchasers, accounted for 19 percent of second quarter transactions, up from 14 percent a year ago.

First-time buyers purchased 35 percent of homes, down from 46 percent in the second quarter of 2010. Repeat buyers accounted for a 56 percent market share in the second quarter, up from 40 percent a year earlier.

In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $169,200 in the second quarter, which is 3.5 percent below the second quarter of 2010. Fourteen metros showed increases in the median condo price from a year ago and 40 areas had declines.

Regionally, the median existing single-family home price in the Northeast rose 2.0 percent to $245,600 in the second quarter from a year ago. Existing-home sales in the Northeast declined 4.6 percent in the second quarter to a level of 763,000 and are 19.9 percent below the second quarter of 2010.

The median existing single-family home price in the Midwest fell 5.4 percent to $139,800 in the second quarter from the same period in 2010. Existing-home sales in the Midwest were down 3.1 percent in the second quarter to a pace of 1.05 million and are 18.3 percent below a year ago.

In the South, the median existing single-family home price declined 2.7 percent to $153,000 in the second quarter from a year earlier. Existing-home sales in the South fell 3.4 percent in the second quarter to an annual rate of 1.89 million and are 9.9 percent below the second quarter of 2010.

The median existing single-family home price in the West declined 3.1 percent to $218,000 in the second quarter from the second quarter of 2010. Existing-home sales in the West dropped 10.8 percent in the second quarter to a level of 1.16 million and are 6.2 percent below a year ago.

Feds Want to Make Fannie and Freddie Foreclosures Rental Properties

The Federal Housing Finance Agency (FHFA), in consultation with the U.S. Department of the Treasury and Department of Housing and Urban Development (HUD), announced a Request For Information (RFI), seeking input on new options for selling single-family real estate owned (REO) properties held by Fannie Mae and Freddie Mac, and the Federal Housing Administration (FHA).

The RFI’s objective is to help address current and future REO inventory. It will explore alternatives for maximizing value to taxpayers and increasing private investment in the housing market, including approaches that support rental and affordable housing needs.

The RFI calls for approached that meet a number of objectives including "strategies through which REO assets could be used to support markets with a strong demand for rental units and a substantial volume of REO."

“As we continue moving forward on housing finance reform, it’s critical that we support the process of repair and recovery in the housing market,” said Treasury Secretary Tim Geithner. “Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets, and support neighborhood and home price stability.”

HUD Secretary Shaun Donovan said in the press release the move could also alleviate the strain on the affordable rental market. 

Downtown Dallas Getting Third New Hotel

A former Railroad and later insurance office building will become a Homewood Suites Hotel. Build for the Texas and Pacific Railroad, the building at 1025 Elm Street has been purchased by Irving-based Lowen Hospitality Management. We're wondering if the facade, modernized by the United Fidelity Life Insurance Company in the 1959 will be restored to its 1918 appearance.

Downtown Dallas will also soon be home to a new Omni and Nylo hotel.

Despite Recent Declines, Home Prices Expected to Stabilize Across U.S. by Early Next Year

Fiserv, Inc. recently released an analysis of home price trends in more than 380 U.S. markets based on the Fiserv Case-Shiller Indexes. The indexes are owned and generated by Fiserv, the leading global provider of financial services technology solutions, and data from the Federal Housing Finance Agency (FHFA).

The double-dip drop in home prices that began last year continued into the first quarter of 2011, with prices falling in 302 out of 384 metro areas tracked by Fiserv Case-Shiller. The decrease, an average of 5.1 percent as compared to the first quarter of last year, was expected, as housing demand settled to a lower level following last summer's expiration of the home buyer tax credit. Price declines in the recent quarter were also driven by a jump in foreclosure sales, which were temporarily stalled by loan processing issues that surfaced at the end of 2010.

David Stiff, chief economist at Fiserv, noted that continued economic weakness and uncertainty continue to weigh on markets. "The stabilization of housing markets depends greatly on household confidence in the strength of the economic recovery," he said. "Unfortunately, recent economic news has done little to build confidence. Weak job growth numbers in May and June, political wrangling over the Federal government debt ceiling, and the ongoing debt crisis in Europe have all increased pessimism. Households will not become more optimistic about housing markets until they are convinced that the job market is improving and that politicians will not allow debt problems to become new economic catastrophes."

Despite the weakness in housing markets, which remain a problem in nearly every region, Fiserv continues to project that home prices remain on track to stabilize by the end of 2012.

Stiff pointed to several positive trends. "Mortgage delinquency rates have been falling for more than a year. Foreclosure rates have started to decline. The flood of bank-owned sales, which has swamped many markets, will finally begin to recede this year as fewer houses enter the foreclosure pipeline. Meanwhile, housing affordability has nearly returned to pre-bubble levels," said Stiff. "Relative to family income levels, the average U.S. home is now only 5 percent more expensive than it was in 2000."

According to Fiserv and Moody's Analytics, these factors, when combined with economic growth forecast for the coming quarters, point to a broad-based recovery for housing that will begin in early 2012. Between the first quarter of 2012 and the first quarter of 2013, homes are projected to increase by an average of 2.7 percent, with gains in 365 out of 384 metro areas.

Other highlights from the latest Fiserv Case-Shiller Indexes include:

• Eight of the 10 worst performing markets in the 2011 first quarter had unemployment rates higher than the national average.
• Five of the 10 best performing housing markets in the last five years are in Texas, where the Midland and Odessa Metropolitan areas have seen house prices grow 42 percent and 30.3 percent, respectively, from the 2006 first quarter to the 2011 first quarter.
• The outlook for Florida is a study in contrasts. Four of the 10 metro areas where home prices are projected to grow the most between the first quarter of 2012 and the first quarter of 2013 are in Florida (Ocala; Palm Coast; Panama City-Lynn Haven-Panama City Beach; Palm Bay-Melbourne-Titusville). But the state is also home to six of the 10 markets projected to suffer the biggest home price declines over the same time period (Miami-Miami Beach, Kendall; Fort Lauderdale-Pompano Beach-Deerfield Beach; Naples-Marco Island; Crestview-Fort Walton Beach-Destin; Gainesville; Orlando-Kissimmee-Sanford).
• Four metro areas in Washington State (Tacoma; Kennewick-Pasco-Richland; Spokane; Olympia) are in the 10 markets projected to experience the highest home price increases for the 2011 first quarter to 2012 first quarter period.
• Six of the 10 markets that have suffered the greatest price declines from peak to the first quarter of 2011 are in California (Merced; Modesto; Salinas; Stockton; Vallejo-Fairfield; Bakersfield-Delano).

Zillow Reviews Bumpy Road Toward Stabilization

Home values in the United States fell 0.4 percent from the first to the second quarter of 2011, the smallest quarterly decline in more than four years, according to Zillow's second quarter Real Estate Market Reports. The Zillow Home Value Index fell 6.2 percent year-over-year to $171,600. Home values have fallen 28.8 percent since they peaked in June 2006.

Regionally, home values fell on a year-over-year basis in 142 of the 154 metropolitan statistical areas (MSAs) covered by Zillow and were flat in eight. In the short term, however, nearly two-thirds of MSAs (94 of 154) experienced home value appreciation, with the Zillow Home Value Index rising from the first to the second quarter.

Negative equity fell slightly to 26.8 percent of single-family homeowners with mortgages in the second quarter, down from 28.4 percent in the first. A homeowner is in negative equity when they owe more on their mortgage than their home is worth.

Meanwhile, the rate of foreclosure re-sales declined from its peak in March 2011, when 21.4 percent of all sales were foreclosure re-sales. In June, 19.7 percent of sales were foreclosure re-sales.

"While there are many positive signs in the second quarter, and it is clear the post-tax credit free-fall of home values is over, we're not out of the woods yet," said Zillow Chief Economist Dr. Stan Humphries. "It is very encouraging that two-thirds of markets in our report experienced home value appreciation, but we have to remember that this is coming on the heels of one of the worst quarters since the housing recession began.

"We expect a bumpy road ahead. There will be many ups and downs in home values before this is over, and we continue to expect a true bottom in 2012, at the earliest. There are still hazards in the form of a full foreclosure pipeline, high negative equity and fluctuations in demand."

While nearly two-thirds of markets showed appreciation from the first to the second quarter of 2011, far fewer have recorded a longer period of stabilization. Only 25 of the 154 MSAs covered in Zillow's Real Estate Market Reports showed two consecutive quarters of appreciation. Among those MSAs were Washington, D.C., where the median home value increased 1.7 percent from the first to the second quarter after increasing 0.2 percent from the fourth quarter of 2010 to the first of 2011; and Pittsburgh, where home values increased 2.8 percent from the first to the second quarter, and increased 0.1 percent from the fourth to the first quarter.

Fed To Keep Interest Rates Near Zero

The Federal Reserve Announced today it would seek to keep interest rates near zero into 2013.

The Fed says economic growth so far this year has been slower than expected, there's been a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Moreover, household spending has flattened out, investment in nonresidential structures is still weak, and the housing sector remains depressed.

In addition, downside risks to the economic outlook have increased. The Federal Open Market Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.

The Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee reports it currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.

Dallas Real Estate Rebounds

Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems report pre-owned home sales were up 18 percent in July. The increases occured in both higher and mid-range neighborhoods including northwest Dallas, up 71 percent; northeast Dallas up 68 percent and Coppell, up 59 percent. Read more in the Dallas Morning News.

Fannie Mae Survey Finds More Americans Will Rent

Fannie Mae's July national consumer attitudinal survey finds that Americans' attitudes about the economy, household finances, and homeownership are growing more pessimistic – with 70 percent of Americans believing that the economy is moving in the wrong direction, while only 23 percent think the economy is moving in the right direction. Key indicators show that more consumers across the country have diminished expectations for home prices and their personal finances, more are thinking about renting as a next step, and twice as many are reporting significantly higher expenses than incomes.

“The impact of recent financial market volatility on household wealth has been a setback to consumer confidence, which we’re seeing in our survey results and in Americans’ continued restraint in their willingness to take on additional financial commitments,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Our overall July survey data, beyond the eleven indicators we present this month, show that most Americans think the economy is on the wrong track – the highest level of pessimism to date for this topic. The sluggish pace of job growth, coupled with this economic uncertainty, is clearly having an impact on consumers’ attitudes toward the housing market and their own personal financial situations.”

The survey found on average and consistent with June, Americans believe home prices will decline slightly over the next year. Only 11 percent of respondents say it is a good time to sell one’s home (similar to May and June 2011 survey results). Despite Americans’ expectations that rental prices will go up in the next 12 months, fewer Americans say they would buy their next home (down 5 percentage points) and more of those surveyed say they would rent (up by 3 percentage points).

S&P Downgrades Fannie and Freddie

Standard & Poor's has downgraded mortgage giants Fannie Mae and Freddie Mac from AAA to AA+ citing the company's reliance on the U.S. The S&P action also included 10 of 12 federal home loan banks. government. Fannie and Freddie were taken over by the government in 2008.

New High Rise Could Grace Turtle Creek

The Dallas Morning News reported this morning that a vacant lot at Cedar Springs and Turtle Creek could see construction of a new residential and office high rise development. The six-acre parcel has been purchased by Hillwood Real Estate, owned by Ross Perot Jr. The parcel had been owned by Classic Residence by Hyatt. According to the article there are no immediate plans to develop the site.

Sunday is for Dim Sum

It turns out there is a Chinese restaurant that serves Dim Sum on the scale of what you find in San Francisco or New York. Of course it's in Richardson and occupies a large space near Central Freeway and the DART red line. I am not sure there is a DART stop near the restaurant, however. 

If you go and don't know what dim sum is, it's basically small food portions served in small metal trays. There's a lot of shrimp and pork, a rice soup called congee. My personal favorite is the fried taro ball. Sunday is the most popular day to go, but the prices are reduced on weekdays.

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