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.