The last three years will go down  in history as the years when the residential real estate bubble popped and Americans got real about their home buying habits.  Look what is happening right before our eyes.  Some economists are forecasting more foreclosures in 2010 than 2009 as subprime loans reset dates come up.  But Prosper foreclosures appear to have already peaked.  Most folks that should not have bought homes in the first place(100% mortgages) are losing them and going back to apartments.  And, these are not necessarily low priced  homes.  I run across  short sales and foreclosures in upscale subdivisions right here in Prosper as well as Frisco, McKinney and Plano.  Everything I read says that we in north central Texas are among the very best sections of the USA for recovery and that is primarily due to the fact that home prices did not skyrocket like they did in other states such as California and Florida.  However, if you are out of work or can’t make your house payment it doesn’t matter.

Prosper home prices were down less than 3% in 2009 compared to 5% in  Plano and 7.6% in Frisco. Prices now are stablizing and will begin to go up soon.  Home inventories are coming down in every Collin County city and the absorptions rates ( number of listed homes divided by the most current month’s number of closed sales) are transitioning from a buyers market to a normal market which is a 4 – 6 months supply.  Prosper is still a little high… slightly above 6 months supply.  34 homes were sold in December and currently there are 190 homes for sale plus some unlisted  new ones. 

Steve Brown who writes for the DMN had a great article last week on home trends.   According to the National Association of Home Builders, 2009 was the first year in 30 years that the average new home size declined!  Now, that is getting real.  We have been living in a dream world with all these  big houses.  Who needs them?  Who wants them?  And, who can afford them?  Downsizing means lower prices.  Mortgage rates are near record lows.  This will mean that homes are becoming more affordable.  According to James Gaines at the Real Estate Center at Texas A & M,  the Texas Housing Affordability Index (THAI) is one of the lowest in the country at 1.55 compared to 1.95 nationally.

Other “getting real” trends include not having to have glitzy options like granite counter tops, media rooms, outdoor kitchens and stainless steel appliances.  Of course, those that afford expensive  homes may still want these but the truth is that they are unnecessary.  Lets face it; this steep recession the past three years has forced home buyers and builders to focus on ”needs” and not “wants”. People now are more interested in money saving options such as energy-efficient homes.  But the surveys say they still want lots of storage space and if possible they like the 3 car garages.

Who would of thunk buyers would opt for a radiant barrier over granite counter tops?

Prosper TX Homes for Sale            Frisco TX Homes for Sale

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