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During the boom the new construction out in Dallas was happening at a rapid rate. With flat cheap land, which is much easier to build on than our south Salem hills, building boomed out here.  You know the end of this story.

Dallas has had one of the most dramatic price drops of the metro cities.  With a 16.6% drop in the average home price and a 15.1% shift downward in the median, buyers are making it clear they want inexpensive homes only.  Just for the curious, Dallas is at 2004 home price averages at the end of 2010.   

One of the ongoing problems for Dallas is the increase in foreclosures.  Unlike Silverton, which had a nice drop in foreclosure notices, Dallas’ notice of defaults increased by 20%.  This means longer prolonged problems for the recovery of the Dallas real estate market and it will be past 2012, at least before this market can start to work through these excessive foreclosures.

Despite the huge average home price drop in Dallas Oregon, home sales were down 18.6%.  With the good foreclosure deals in Salem-Keizer, I think home buyers that normally would have purchased out in Dallas due to affordability are able to purchase in Salem proper as you can get some foreclosures for Dallas Oregon prices.

The Dallas real estate market continues to get hammered.  With this huge plunge in home prices in 2010, honestly, I would be stunned if there was another large correction like that.  I would expect it to continue to decline but at a more moderate pace like 2-5%.  If you want to search for homes for sale in Dallas, you can view foreclosures, or all Dallas homes for sale, on my website.

Data was crunched with information provided by the WVMLS and Fidelity National Title Company.

We’ll have to see how the rest of the small towns faire, but Dallas only experienced a 50% jump in foreclosures notices from 2008-2009.  It’s pretty sad when a 50% increase is good…Now I think part of that is that some of the builders out there were much smaller builders and went into default in 2008 because they couldn’t hold out as long as some of the larger Salem builders could, but I also think that homes there are just more affordable for most people.

Dallas Oregon Foreclosure Rates

This chart shows notice of defaults that were served in Dallas Oregon in 2009, according to Fidelity National Title Co.

In Dallas Oregon, there were 140 notice of defaults served in  2009 compared with the 94 served in 2008.   

How did that translate into the real estate world in Dallas Oregon this year?

Of the homes (regular single family and acreage properties) listed in 2009 according to the WVMLS,  35 were listed as short sales or bank owned homes.  That is 8.1% of listings.  This is one of the lower percentages of distressed properties in the area, and unlike Silverton which had a huge bump in Notice of Defaults served, Dallas’ jump is more proportional with the increase in foreclosure notices.

The future of distressed properties in Dallas Oregon?

Right now distressed properties make up 7.4% of the Dallas Oregon real estate market.  Like all of the metro cities, I would expect this number to rise due to the ongoing unemployment problems in Oregon. Unlike some of the other metro cities where I think the higher end houses will push home prices down, I think just the ongoing supply and demand problems here due to the excessive building (even moderately priced homes) will continue to pull prices down here.

If you are interested in foreclosures or short sales and want to start watching the foreclosure market, just email me to get on the list.

Dallas Oregon, like Silverton, has a 13 month inventory of homes right now.  Also like Silverton, this city has made good gains in cutting that inventory down. Not that 13 months is great by any means, but at least it’s coming down.

Dallas Oregon had a similar problem that Silverton had and that was the overbuilding that occurred.  Now the homes built in Dallas were much more moderately priced than the Silverton homes which is why I think their real estate market is just a tad healthier than Silverton’s…not that that is saying a lot.

In 2009, the listed vs. sold percentage was 50.8%.  This was a nice improvement over 2008′s 37.7% but still off from the early part of the decades 65%.  Going in the right direction…yes, but things still have a ways to go. I don’t think this is a surprise to anyone that reads a newspaper or watches the news.  Real estate is just going to take a bit to recover, like the economy.  It was nice to see fewer listings hitting the market this year than last year in Dallas.  While 14% less homes were listed in 2009 over 2008, that number really needs to get down another 15-20% to correct the supply and demand problem.    So either home sales need to come up or the number of homes listed has to come down.  Personally I don’t see home sales going up a whole lot more next year so the correction will need to come on the supply end. In other words don’t list your house if you don’t have to sell.

Not surprisingly with the supply and demand problem in Dallas, homes are taking longer to sell.  Homes spent 11% more days on the market in 2009 over 2008. I really don’t have anything insightful to say about this so I’ll just move on…

Okay so what happened to home prices in Dallas Oregon?

Obviously they went down.  It will be an earth shattering moment when I get to say that home prices went up.  So the average home price dropped 8.7% to $191,874 from 2008, and the median shifted downward 4.1% to $185,000.  I have to say I’m surprised that the drop wasn’t greater, but I think there is still a bit of denial on the state of the real estate market in Dallas.  Based on the supply and demand problem, large inventory, lending difficulties, and oh yes…our ongoing unemployment rate, I would expect Dallas home prices to correct another 5 maybe 10% over 2010.

P.S.  Statistics used in this post were calculated from the WVMLS.