Over the past several years, the Dallas real estate market has struggled with sluggish activity and declining median sales prices, but over the past year, some neighborhoods throughout Dallas have been showing signs of a recovering real estate market.  However, real estate experts have found it difficult to determine the state of the Dallas real estate as a whole, given that the recent real estate improvements have been evident only in certain neighborhoods.  Some parts of Dallas are posting increases in activity and median prices, some are reporting decreases, and some are reporting fairly stable levels, with little change for the better or worse.  Realtors believe that the consumer confidence is the main obstacle to the overall recovery of the Dallas real estate, and many believe that the coming months will show signs of what’s to come.

According to the Dallas Morning News, 2009 was a strange year for Dallas real estate and local realtors due to the inconsistent fluctuations in the market and the inability of real estate experts to find any trends in the Dallas real estate market.  Several neighborhoods such as Westlake, Richardson, Garland, and Duncanville have posted significant increases in median sales prices, while other communities such as Park Cities, North Dallas, and Lancaster posted declines in the median sales prices by as much as double digits.  Many realtors have noted that the Dallas is currently a good market for buyers, but many are finding that there is very little consumer confidence, despite the discounted home prices, negotiable sellers, and attractive interest rates.  Nevertheless, many realtors are optimistic that consumer confidence will increase in the coming months to allow for the Dallas real estate market to recover.

The Dallas Morning News has also reported that the commercial real estate continues to be sluggish as well, with high vacancy rates and few retail projects planned for the 2010 year.  Dallas is currently experiencing the lowest occupancy rates of the decade, with only 86.4 of shopping center space being leased.  Financial experts also estimate that there are about $4.5 billion worth of commercial real estate considered to be in various stages of delinquency, default, bankruptcy, or foreclosure.  Many experts are also telling people not to expect the normal two-year cycle of commercial real estate corrections, and that the Dallas commercial real estate may not return to previous years’ levels for another year or two, even though it has been more than a year since the onset of the economic recession of 2008.

Although real estate experts expect the Houston real estate market to fare better than it did during the previous year, experts still believe that the real estate activity will be sluggish in Houston due to a lack of consumer confidence, tight credit, and a major concern for job security.  The Houston real estate is said to have hit bottom, so the only direction it can go in is up, but many real estate experts question when that will be.  Many say that the real estate in Houston most likely won’t recover until the economy, financial, and employment markets in Houston improve, and after that the market will probably take several years to grow back.

According to the Houston Chronicle, real estate experts are optimistic that the Houston real estate market will improve throughout the year, faring much better than it did during 2009.  However, at the same time, experts don’t expect to see as significant improvements as many might expect.  Realtors believe that the demand for houses will still be sluggish, and real estate activity will still be well below peak levels. About 18,000 new homes planned for construction during 2010, about the same built during the previous year, but still 63 percent lower than the peak of 2006.  Housing values are expected to remain relatively stable throughout 2010, but realtors are optimistic that the federal tax credit for first-time homebuyers will help spark the real estate market and give it some of the momentum it needs to begin its recovery.

The Houston Chronicle has also reported that the commercial real estate in Houston is expected to perform much like how it did in 2009.  Many landlords have related the current struggles in the commercial real estate to the problems seen during the oil bust.  With approximately 90,000 jobs lost over the past year in Houston, the average office vacancy rate in Houston rose from 11.9 percent to 15.9 percent.  Commercial real estate construction is also almost nonexistent.  Currently, many realtors and landlords are pressuring buyers who are on the fence to stop waiting and invest now.