According to D.W. Skelton, Dallas appraiser, we haven’t hit bottom on property values. Currently properties are appraising at or near their 2004 values. He believes we have another 12 to 24 months of a downward slide. Despite this forecast, Mark Dotzour, chief economist at the Real Estate Center, Texas A&M believes today is a once in a lifetime opportunity to buy real estate. He feels area home prices will remain stable, inventories are at 6 month levels, and mortgage rates are at historic lows. Mr. Dotzour also said that Texas created 40% of all jobs created in the US in the past year.
Everyone always likes to hear the appraisers weigh in on specific values in certain areas. D.W. recently indicated that land values in Park Cities are down. At the peak, a 70 foot lot on Caruth, in the 3600-3800 block, would sell, day in and day out, at $1.5 M. Those lots are now selling for $1M. Dirt values in Preston Hollow peaked at $45.00 a foot and are now running about $34.00 a foot.
Some D.W. trivia…..the city taxes the property owner with a lot 150 x 125 more than the property owner with a lot 100 x 190. They tax on lot frontage, not square footage. I did not know that. Oh, and at least one high-end builder is looking for lots. Their plan is to build smaller homes. About time!