Plano Homes in Foreclosure Remain Low

The third quarter statistics for Plano real estate and other Collin County communities show that foreclosures are a small part of the market.  Plano Foreclosures represent only 5.2% of the total available market.  The table below shows the most current information:

                                            Total Inventory         Foreclosures          % of inventory

Plano                                        1433                             75                          5.2%
Frisco                                       1372                             98                          7.1%
Allen                                          513                             33                          6.4%
McKinney                                  967                             66                          6.8%

Foreclosure inventory is down about 19.7 % from a year ago.  In the same period the traditional market inventory has declined by 10.7%.  Demand for homes has been lower this year but the supply of available homes has declined at about the same rate as the demand.  This leaves us in a fairly stable market.  Certain price points are more sensitive to pressure from foreclosures than other price points.  Of the total 1187 foreclosures available in the DFW real estate market  the price point breakdown looks like the following:

Price Point                                              Available Inventory        Change vs. 10/2009
Up to $149,999                                              678                                  -23%
$150,000 to $199,999                                    179                                  -7.3%
$200,000 to $299,999                                    144                                -20.9%
$300,000 to $499,999                                      99                                -34.4%
$500,000 and above                                         87                                +20.8%

Source NTREIS

Plano Area Economy is Improving

Don't look now but the local North Dallas economy is looking better.  No one wants to talk about it but the signs are there.  The local unemployment rate is now in the 7.9% area.  The state as a whole added 154,000 non government jobs for a 1.8% increase.

What this means is that we are continuing to recover although we must be aware that the improvement will be slow.  Consumers represent about 70% of the GDP so we need to see further improvement in the employment numbers to get things really rolling along.  What this means for Plano Real Estate is that prices will likely remain firm at current levels and that we will see  improvement in demand for homes.

Plano Area Home Sale Data for September

Plano area home sales were down in September according to the latest multiple listing service data.  For the  month of September we have sales as follows:
                              Sales       Change from 09/09     Median Price     Avg. Price              
Plano                     206                -27.2%                   $214,450            $254,608
Frisco                    154                -43.0%                   $236,000            $281,332
Allen                       73                -37.1%                   $192,450            $221,372
McKinney             142                -20.7%                   $192,950            $229,760
Richardson              74               -21.3%                    $155,000            $171,859

The lower numbers reflect the fact that there is no first time homeowner tax credit for 2010 as there was in 2009.  We expect the numbers to remain below 2009 levels through November.  The table below shows the price point breakdown for sold homes.

                              0-120,000    120-200,000     200-400,000              400,000 +

Plano                      13%                        33%                 41.6%                 11.5%
Frisco                     1.9%                       30%                 55%                    12.7%
Allen                      10.9%                     42.5%              42.4%                  4.1%
McKinney              6.3%                       45.2%              40.2%                  8.5%
Richardson             29.2%                     41.0%              38.5                     1.4%

Kitchen Remodels in Plano Homes are Going Green

I saw this article in my daily reads.

Kitchen Remodeling: Six Steps to a Green Kitchen

By Stephanie Andre

RISMEDIA, October 1, 2010--While the "green" movement may have slowed down slightly, similar to the economy, it is still alive and well.

More homeowners are opting to stay in their current homes, and many of them are turning to eco-friendly products and contractors for a variety of reasons: some are environmentally conscious while others have allergies or are chemically sensitive.

Whatever the reason for remodeling, almost everyone agrees that lowering their energy consumption and their electricity and water bills is important.

KitchenRemodeling.net offers six ways people can make their homes greener when kitchen remodeling.

1. Choose energy-efficient appliances. When purchasing a new refrigerator, dishwasher or other appliances, choose ones that are certified energy efficient. Use the water and energy-saving settings as often as possible. Plus, some states offer rebates for homeowners who use energy-efficient models.

2. Install energy-efficient lighting. When working on the kitchen remodel design in their new space, homeowners can increase their natural light to cut down on the need for electricity. But some bulbs will be needed. Choose fixtures that are compatible with compact fluorescents (CFLs), which save 75% of the electricity that incandescent bulbs use. These are slightly higher in initial price but last eight times as long and will significantly cut down on energy bills.

3. Purchase green kitchen cupboards and cabinets. There are more eco-friendly kitchen cupboards and cabinets available today than ever before. These are constructed of rapidly renewable resources or recycled materials. People remodeling their kitchen should ask their contractor about wheatboard, bamboo and other green cabinet products. Additionally, they should inquire about water-based adhesives and finishes.

4. Choose green products when kitchen remodeling. For flooring, cork is highly durable, comfortable and an excellent insulator of sound and heat. Cork is also hypoallergenic and environmentally friendly. Concrete is excellent for flooring, countertops and other areas because it does not have harmful fumes, glues or laminates. For countertops and backsplashes, homeowners can choose from a variety of durable and attractive eco-friendly options, such as vertrazzo and recycled glass tiles.

5. Remodel with hypoallergenic materials. These materials are not toxic, like some building materials, and will not lead to harmful indoor air quality. Homeowners should look for low-toxicity finishes and surfaces, and water-based adhesives and finishes without synthetic formaldehyde resins. Paints should have low-VOC or no-VOC (volatile organic compounds).

6. Choose green kitchen remodeling contractors. When a homeowner is getting quotes from contractors, they should inquire about their products and building methods to ensure they are eco-friendly. Increasingly, contractors are becoming more conscious of their materials and methods and will be able to meet a homeowner's needs.

New Home Inventories down in Plano and other communities

The inventory of new homes available for sale in Plano and the surrounding DFW area is at the lowest level since 1999.  New home builders had an available inventory of about 4100 homes at the end of the quarter.  This is down sharply from the 2006 levels when building was at its high and is considerably lower than 2009.  The inventories in 2009 were allowed to rise due to the first time homeowner tax credits.  

Demand for new homes is the strongest for homes price at $200,000 and below.  Economists for the National Association for business economics believe that home prices have seen the bottom in most markets and that we will see a gradual improvement in both prices and offtake.  The association thinks that home prices will increase about 1.2% in 2011, but the increase may lag broader measures of inflation.

The Dallas Fort Worth Metroplex will be one of the leaders in the recovery.  Plano real estate prices have remained fairly steady in spite of the weak national economy.  Area unemployment remains lower than the national average and the general condition of the Plano economy continues to be relatively healthy.