One of the biggest worries for today’s homebuyer is the continued drop in home prices.
While cheaper housing costs are appealing, many consumers fret that prices will keep falling after they buy.
Dallas residents should not be concerned about losing equity in their homes, according to a study by the Center for Economic and Policy Research and the National Low Income Housing Coalition.
They analyzed 100 of the largest U.S. home markets, and they report that Dallas Metro homes are more likely to retain their value over the next four years.
In fact, life appears to be better in Texas. Dallas, Houston, San Antonio metros are among the top 5 targets for strong home purchase values.
The study, relative to Dallas, is based on purchases of homes priced at about $150,000. For analysis, the home purchase is assumed to be financed at between 6 and 8 percent interest.
By 2012, the Dallas home purchaser may find more than $80,000 in equity in their home, the researchers predict.
“It confirms that there never was a price bubble in any Texas city, and consequently the likelihood of equity increase is higher,” Dr. Dotzour said. “I find it interesting that their policy decision is to recommend that government allow prices to continue to fall.”
Median home prices, which remained low throughout the nationwide housing growth, have only fallen 2-3% in North Texas since June 2007. By comparison, over the past year, collective nationwide home sales prices have declined over 15%.
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