Saturday, March 29, 2008

Good News -- Bad News.

Larry Wright / Detroit News

The good news is that the Dallas and Fort Worth area saw an increase of 160,000 people in the last ten years; the product of a good local economy, sunny weather, and relatively low real estate prices. Number 1 for growth of all United States metro areas. That projects to over one and one-half million in 10 years. That's a lot of folks.

The bad news is that real estate prices in Fort Worth are down 14% from their peak and are expected to fall another 7%, at least, before an upturn. How do you get an increase in population and a decrease in home values? Because you still have more sellers than buyers due to tighter credit, lower credit scores, and the psychological deterrent of buying into a sinking market. People are jittery about the economy.

Old friend, John Mauldin, has an excellent, chart-filled, assessment of the real estate markets on his website (free, by the way):

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