Coronavirus News

COVID-19's effect on Dallas real estate market will benefit the suburbs

Head to the suburbs.

Photo by fstop123/Getty Images

Editor's note: Terry Tremaine is the 2020 President of The MetroTex Association of Realtors is the largest Realtor association in North Texas and sixth-largest real estate association in the U.S.

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COVID-19 has disrupted lives with health concerns, financial struggles, and restrictions on activities. Amidst this uncertainty, real estate professionals, buyers, sellers, landlords, tenants, and investors are trying to figure out the best course forward.

According to Dr. James Gaines, chief economist for the Real Estate Center at Texas A&M University, sales of existing homes in Texas fell in May to their lowest level since 2012.

"The month of May marked the housing market's deepest decline thus far during the ongoing COVID-19 pandemic," Gaines says in a release. "Texas' existing-home sales plummeted 32 percent year over year on top of a 22 percent slide in April."

Single-family homes performed better than condominiums and townhomes.

I recently listened to Dr. Gaines on a webinar regarding the coronavirus crisis and what it means to consumers. Here are a couple of takeaways I found very important.

Home sales on hold
Three things have a positive effect home sales — low interest rates, job growth, and inventory — and right now, only one of those is guaranteed.

Interest rates are anticipated to stay low for an indefinite period of time. It's been proven in the past that there is no better way to come out of a recession than "cheap money."

Job growth is a challenge. Gaines worries that there won't be enough jobs for those who were furloughed or laid off.

Inventory is down. Active listings in May 2020 were down across the board:

11.8 percent down in Dallas County
15.2 percent down in Tarrant County
22.3 percent down in Denton County
10.7 percent down in Rockwall County

Active listings need to rebound, but buyers and sellers are on pause.

Suburbs trending
The suburban market is going to have a lot more demand than we've seen in the last decade. The same is true for communities within 40 minutes of a major urban area.

As managers and business owners have gotten comfortable with remote work, there are more opportunities for people to live 40 minutes away and get their job done remotely.

We may have changes on the horizon, but as we have proven before, North Texas is resilient and in the end, we will come out of this with stronger communities and neighborhoods.

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A version of this story appeared on Candy's Dirt.

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House For Sale

Dallas house for sale from the '50s is still in original condition

Courtesy

9203

There's a house for sale in East Dallas that's increasingly hard-to-find: a well-preserved home from the '50s for sale that's in nearly original condition.

The house is located at 9203 Lindaro Ln., just outside Loop 12 and walking distance to Bishop Lynch High School, in a stable neighborhood of homes build in the mid 1950s.

The listing by Bryant Nieves of Elite Real Estate Texas calls it a "beautifully preserved Mid-Century gem" with original hardwood floors in the downstairs bedrooms, a recently installed roof, a modern sprinkler system, and an upgraded AC unit.

There are multiple living spaces with a formal living & dining area, eat-in kitchen, and family room which includes an office nook with built-in desk. It has both a carport and attached 2-car garage, as well as a fully fenced yard.

Most of the homes in this neighborhood are 1,200 to 1,600 square feet, and priced from $250,000 to $350,000.

This house was built in 1957, but it differs in that it has a second-floor add-on over the garage — making it roomier at 2,202 square feet, with 5 bedrooms instead of the usual 3.

The two bathrooms are in original condition with '50s tile, both in good shape. The main bathroom has pale warm tan tile, almost flesh colored; the second bathroom, off one of the bedrooms, is a little prettier, with white tile and green-tile edging. Both are far superior to granite-look ceramic.

While both bathrooms merit admiration, this house is more about the wood. There are

original hardwood floors, all in great shape
wood doors including closet doors
wood paneling in the family room, with wood bookshelves and a build-in wood desk

There's also an odd wooden bookshelf that serves as a divider of sorts in the stacked formal living room.

The only room that looks unoriginal is the kitchen, which boasts white-washed '80s cabinets. It looks clean and functional, even if it does not match modern tastes.

Courtesy

Facade of 9203 Lindaro is pleasing, thanks to the unpainted brick.

It sits on a 7,535 sqft lot and the asking price is $395,000 — a bit optimistic, even if they find the rare buyer who sees value in an untouched '50s home.

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