Predictions: The Economy Impacting Texas (Dallas, Arlington: for sale, real estate, foreclosures)

[Robzherenow]

Thoughts on where the economy is headed from this point on and how it will affect Texas home prices, foreclosures, cost of living, etc?


Has anyone witnessed their house prices depreciating due to the amount of homes for sale in their neighborhood?

Does anyone know of homes in your neighborhood selling these days?

[killer2021]

Well since the fed is printing money like crazy (all these bailouts) the cost of living will go up. Your house will probably adjust for inflation. Foreclosures probably won't spike unless unemployment rises. I don't see that happening due to texas's business friendly climate.

Dallas market is doing pretty good actually. It should be interesting to see what happens in the coming months. My take is that dallas will have little impact compared to other areas like CA where unemployment is skyrocketing and real estate is basically in free fall.

[loves2read]

tighter credit for people who come here and want to buy a home or start a business
smaller businesses that are profitable will find it harder to get loans to grow or cover their receivables...

banks are keeping the cheap Fed money for themselves and still making money on low rates they pay in CDs or higher ones they charge for mortgages...not to mention their ever-increasing fee schedules...some banks are doing very well...

some banks here will close/morph when they are bought out -- like WaMu or maybe Wachovia
would be surprised if banks like Frost close but they could be takeover targets for their deposits...

What DFW needs to worry about are two things--fall in energy prices which has effect on companies like Exxon (in probably very small %) and the natural gas companies like XTO and Chesapeake and Devon
if their drilling plans slow then it might be possible--unlikely but possible--they would trim back on their personnel and drilling money which has brought some real prosperity to Tarrant Co...

development deals for strip malls and other commercial construction could be stalled or like the city of arlington getting stung on refinancing Cowboy Stadium for Jerry Jones--they are hit with much higher fees--so the taxpayers of Arlington will be on the hook for that mistake in their planning...
fiscal projects for roads and other infrastructure will be more expensive

govt agencies like cities, school boards could find themselves needing to raise tax rates to cover increased costs of doing business...

higher taxes certainly in next years both locally and on national level

if McCain thinks he can get through this round of lending by the Fed to shore up financials (necessary or not depending on your personal view--it was done)... without raising taxes
he really does not understand that pay it forward can only exist for so long before it just topples...
if he and the Republicans really meant what they said about cutting govt spending and fiscal responsibility then this debacle would not have happened in the first place...
Phil Gramm is the one who took the control of CDS away and let banks and other financial lenders like CountryWide just go nuts...

[austinnetx]

Originally Posted by loves2read

tighter credit for people who come here and want to buy a home or start a business
smaller businesses that are profitable will find it harder to get loans to grow or cover their receivables...
nuts...

You obviously don't negotiate lines of credit for businesses. Loans are plentiful for businesses in DFW.

People with good credit ratings and a decent down payment can buy homes within their means at a very good interest rate in all markets of the country. There are some tremendous buys in the Bay area right now.

As for the broader nation, all indicators have bottomed out recently and the recovery has begun.

As for the Mortgage mess itself, McCain, Greenspan and Bush tried to reign in Fannie/Freddie starting in 2003 and going into 2006, but FNMA bought off the Democrats and their allies while the top managers ( who were democrats) pocketed hundreds of millions in salaries.

The Mortgage mess is a seperate issue from the other economic issues that we have - the price of energy being the most pressing. $40 oil would do more for the poor people in the USA than any other issue, but the Democrats are blocking drilling.

[austinnetx]

Originally Posted by loves2read

refinancing Cowboy Stadium for Jerry Jones--they are hit with much higher fees--so the taxpayers of Arlington will be on the hook for that mistake in their planning......

The City of Arlington limited its exposure to $600 million. Jerry Jones has had to eat the rest of it and has - and to his credit has not whined at all.
The cost of money is a seperate issue that all cities would have to face regardless.

[austinnetx]

Originally Posted by loves2read

he really does not understand that pay it forward can only exist for so long before it just topples...
if he and the Republicans really meant what they said about cutting govt spending and fiscal responsibility then this debacle would not have happened in the first place...
Phil Gramm is the one who took the control of CDS away and let banks and other financial lenders like CountryWide just go nuts...

Last time I looked, Congress was composed of almost equal numbers of Democrats and Republicans. Trying to pin the blame on one person is infantile.

The real blame is the mindset by Congress that it does not serve the people. We've been in a meltdown on the Mortgage market and in the nergy costs and nothing has been done. In the past, Congress set policy, but now its the Fed that is doing it while Congress goes on book tours or worries about reelection.

You can slow the spending increases to be less than the revenue increase. In time, the revenue will exceed the expenditures. This can be programmed into the budget at local and national level. Just set the budget growth to be a % of the actual revenue growth.

[Lakewooder]

Originally Posted by austinnetx

The City of Arlington limited its exposure to $600 million. Jerry Jones has had to eat the rest of it and has - and to his credit has not whined at all.
The cost of money is a seperate issue that all cities would have to face regardless.

However, Hicks cannot get financing for Glory Park, so it is 86ed for the nonce.

[austinnetx]

Originally Posted by Lakewooder

However, Hicks cannot get financing for Glory Park, so it is 86ed for the nonce.

He'll make it work in time.

Remember how bad it looked for the development of the land by the AA Center when he first started?

He had to buy the Mavs first.

[rb4browns]

Originally Posted by loves2read

tighter credit for people who come here and want to buy a home or start a business
smaller businesses that are profitable will find it harder to get loans to grow or cover their receivables...

banks are keeping the cheap Fed money for themselves and still making money on low rates they pay in CDs or higher ones they charge for mortgages...not to mention their ever-increasing fee schedules...some banks are doing very well...

some banks here will close/morph when they are bought out -- like WaMu or maybe Wachovia
would be surprised if banks like Frost close but they could be takeover targets for their deposits...

What DFW needs to worry about are two things--fall in energy prices which has effect on companies like Exxon (in probably very small %) and the natural gas companies like XTO and Chesapeake and Devon
if their drilling plans slow then it might be possible--unlikely but possible--they would trim back on their personnel and drilling money which has brought some real prosperity to Tarrant Co...

development deals for strip malls and other commercial construction could be stalled or like the city of arlington getting stung on refinancing Cowboy Stadium for Jerry Jones--they are hit with much higher fees--so the taxpayers of Arlington will be on the hook for that mistake in their planning...
fiscal projects for roads and other infrastructure will be more expensive

govt agencies like cities, school boards could find themselves needing to raise tax rates to cover increased costs of doing business...

higher taxes certainly in next years both locally and on national level

if McCain thinks he can get through this round of lending by the Fed to shore up financials (necessary or not depending on your personal view--it was done)... without raising taxes
he really does not understand that pay it forward can only exist for so long before it just topples...
if he and the Republicans really meant what they said about cutting govt spending and fiscal responsibility then this debacle would not have happened in the first place...
Phil Gramm is the one who took the control of CDS away and let banks and other financial lenders like CountryWide just go nuts...

God forbid the government just not spend so much money instead of taking more out of our pockets.....

[rb4browns]

Originally Posted by austinnetx

You obviously don't negotiate lines of credit for businesses. Loans are plentiful for businesses in DFW.

People with good credit ratings and a decent down payment can buy homes within their means at a very good interest rate in all markets of the country. There are some tremendous buys in the Bay area right now.

As for the broader nation, all indicators have bottomed out recently and the recovery has begun.

As for the Mortgage mess itself, McCain, Greenspan and Bush tried to reign in Fannie/Freddie starting in 2003 and going into 2006, but FNMA bought off the Democrats and their allies while the top managers ( who were democrats) pocketed hundreds of millions in salaries.

The Mortgage mess is a seperate issue from the other economic issues that we have - the price of energy being the most pressing. $40 oil would do more for the poor people in the USA than any other issue, but the Democrats are blocking drilling.

Quiet austinnetx, we all know that only Obama and his magic programs he has promised will help the poor.