A couple weeks ago, we examined some of the dynamics of the Dallas-area housing collapse—specifically, why homes at both ends of spectrum were most prone to foreclosure . Many higher-income folks bought simply too much house, while many lower income homeowners were probably not suitable candidates for home ownership in the first place.

This week, new numbers show that the housing crisis for Dallas homeowners has largely passed for only one of those demographics.

According to The Dallas Morning News :

The housing downturn has lost its hold on the Dallas area’s priciest neighborhoods.

Home sales in the affluent Park Cities area are up 41 percent so far this year – the first year-over-year increase in more than four years.
Sales are also strikingly higher in North Dallas – up 28 percent – and in Westlake, where pre-owned home purchases through the first nine months of 2010 are running a third higher than in the same period last year.

But at the other end of the spectrum, where there’s more affordable housing and lots of distressed properties to pick from, the home sector shakeout roils on. Sales this year are down 25 percent in DeSoto , 17 percent in Cedar Hill and 16 percent in Lancaster .

Two lessons we can draw from these numbers:

If you can afford it, it’s a great time to buy.

As we’ve mentioned over and over again, the market has rarely been better for potential homebuyers—if they don’t have to sell in order to buy, and if they are in financial position (i.e. employed) to do it. Also, an inevitable recovery bounce helps housing remain an at least limitedly attractive investment opportunity (even if we never see a return to pre-collapse growth levels).

“Those that have money are buying because they think this may definitely be the time in terms of pricing. And a lot of people who have money can’t figure out where else to put it,” said Dr. James Gaines, an economist at the Real Estate Center, to the DMN.

Easy access to mortgage loans still matters.

Again, according to the Dallas Morning News:

But buyers looking for low- and moderate-priced homes often don’t have the cash and credit to take advantage of the market, Gaines said. “Some of those buyers are still people having a tough time qualifying for any mortgage money out there,” he said. “They might not have the credit score or the down payment, which is hurting that end of the market.”

Cedar Hill real estate agent Robby Setser, who sells homes in several southern Dallas County markets, says qualifying for a mortgage is an obstacle for some buyers. “It’s still pretty tough, and they are running the borrowers through the wringer,” Setser said. “If you can qualify for a loan, you can get some amazing buys and low payments on your home.

At Texas Lending, we’re devoted to making the homebuying process as easy and painless as possible for potential Dallas homebuyers. And we do it without the shortcuts and shoddy lending practices that helped fuel the housing crisis. We’ll help you clear those hurdles, and end up in house you’ll both love today, and still be able to afford 15 years down the road.

The upshot?

Regardless of reasons why, this recovery is starting at the top. And if you’re a potential homebuyer from that demographic, it might be time to buy. Contact one of our Dallas home mortgage experts to get the process started.

About Kevin Miller

Kevin Miller, Owner & CEO of TexasLending.com. TexasLending.com provides expert service in the field of residential mortgages.

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