DFW Urban Realty

January 31, 2008 -

The Federal Reserve Board approved another .5% discount rate cut for Richmond, Minneapolis, and Dallas. Effective immediately the discount rate will descrease from 4% to 3.5%. Homeowners, including new purchasers and those refinancing, are hoping this will have an indirect effect on mortgage rates bringing the 30 year mortgage rate even lower surpassing rates from the boom in 2001-2005.

Federal Reserve Monetary Policy Releases

Senator Dodds in seeking a $10 billion to $20 billion dollar program to bail out distressed borrowers. Under this temporary program, the government would purchase distressed mortgages at discounts and finance them at 30 year fixed rate mortgages. This approach would also strengthen the Federal Housing Administration's role in mortgage lending by insuring loans converted from outstanding mortgages. The Bail Out Plan also calls for additional lending regulations and required disclosures.

With over 2 million home owners still expected to loose their homes in the near future, many agree that a government bailout is the only choice. Without a bailout, some fear additional pressure on the housing and mortgage industry will trigger a recession.

Senator Dodds - $20 Billion Homeowner Bailout Plan

Dallas Fort Worth Real Estate
Dallas Real Estate

Opinions vary concerning the outlook for the 2008 housing market, but the bottom line is very clear, the housing market is experiencing a downtown and the buyer's market is here to stay for awhile. The new Moody's Economy survey has revealed some disturbing projections for 2008-2009 with forecasts of record losses. Metro areas are expected to have lossess of 20% or more the national median price on homes falling 13% through first quarter 2009.

Since the housing downtown began in summer of 2006, prices have continued to fall and inventory has continued to grow. Home Builders hoping for a turnaround, continued to build even with reports of a weak housing market, and are now left with record high inventory, empty properties, and revolving debt.

The worst hit markets according to the Moody Report were Ocean City, N.J., with home prices expected to fall 24.9%, Stockton, California at 31.6%, Modesto, California at 31-.3%, Fort Walton Beach, Florida at 30.4%, Naples Florida at 29.6 %, St. George, Utah at 21.8%, Grand Junction, Colorado at 18.9%, Atlantic City, New Jersey at 18.6% and Washington D.C. at 18.4%.

In the Dallas Real Estate Market, new construction builders of urban condos, lofts, townhomes, and highrises are also struggling to move inventory and are slashing prices up to 25% in order to close the deal. Anticipating a weak market that is going to get worse over the next several months, Dallas home builders have also resorted to other strategies to bridge the gap and survive the housing downturn. Many home builders are now considering renting as opposed to selling to generate some type of income to ease carrying costs through the housing slump.

Problems in the housing market are expected to have a significant impact on the economy as a whole, with forecasts of a decrease in gross domestic product by more than 1.5% in 2008. If you're a buyer, your timing couldn't be better to take advantage of some of the best purchase options on homes seen in years around the nation. If you're a seller, brace yourself for a rough ride over 2008.

For More information and to read full article posted by Leslie Christie with cnnmoney.com visit:

2008 Housing Market Outlook - CNNMoney.com

Dallas Fort Worth Real Estate
Dallas Real Estate