Economic and Market Watch Report - NTREIS · Economic and Market Watch Report 1st Quarter, 2006 *Click on a County to view economic and real estate information at the county and zip

Economic and Market Watch Report

1st Quarter, 2006

*Click on a County to view economic and real estate information at the county and zip code level

© 2006 North Texas Real Estate Information Systems, Inc. andNATIONAL ASSOCIATION OF REALTORS®

Reproduction, reprinting, or retransmission in any form is prohibited without writtenpermission.

North Texas Real Estate Information Systems, Inc.

Index

North Texas Real Estate Information Systems, Inc. (NTREIS) is a real estate information and technology solution provider serving the real estate community in a coverage area exceeding 16,000 square miles in North Texas, including the Dallas Fort Worth Metropolitan Area.

NTREIS provides information management services to over 16,000 MLS subscribers of its 18 shareholder REALTOR Associations, including over 3,000 real estate offices.

In addition to its information management platform; NTREIS researches, develops and delivers various technology products and services through strategic alliances, utilizing a sales and distribution network which includes its shareholder REALTOR Associations.

Economic and Market Watch Report

Local ReportOklahoma

1 Bryan County ...............................................................................................................Texas

2 Bosque County .............................................................................................................3 Cherokee County .........................................................................................................4 Collin County ...............................................................................................................6 Comanche County .......................................................................................................7 Cooke County ...............................................................................................................8 Dallas County ...............................................................................................................

11 Delta County ................................................................................................................12 Denton County .............................................................................................................14 Eastland County ..........................................................................................................15 Ellis County ..................................................................................................................17 Erath County ...............................................................................................................18 Fannin County .............................................................................................................20 Franklin County ..........................................................................................................21 Freestone County .........................................................................................................22 Grayson County ...........................................................................................................24 Hamilton County .........................................................................................................25 Henderson County .......................................................................................................26 Hill County ...................................................................................................................27 Hood County ................................................................................................................28 Hopkins County ...........................................................................................................29 Hunt County .................................................................................................................30 Jack County .................................................................................................................31 Johnson County ...........................................................................................................33 Kaufman County .........................................................................................................34 Lamar County ..............................................................................................................

35 Montague County ........................................................................................................36 Navarro County ...........................................................................................................37 Palo Pinto County ........................................................................................................38 Parker County .............................................................................................................39 Rains County ................................................................................................................40 Rockwall County .........................................................................................................41 Smith County ...............................................................................................................42 Somervell County ........................................................................................................43 Stephens County ..........................................................................................................44 Tarrant County ............................................................................................................47 Van Zandt County .......................................................................................................48 Wichita County ............................................................................................................49 Wise County .................................................................................................................51 Wood County ...............................................................................................................52 Young County ..............................................................................................................

53 Others ...........................................................................................................................

54Trends ...............................................................................................................................................55Chief Economist's Commentary* ...................................................................................................57Local Forecast ..................................................................................................................................59Economic Monitor* .........................................................................................................................

*Reprinted from Real Estate Outlook: Market Trends and Insights. ©2006 NATIONAL ASSOCIATION OF REALTORS ®.Used with permission. Reproduction, reprinting, or retransmission of this article in any form (electronic media included) is prohibited without permission. For subscription information please call 1-800-874-6500.

Local Report

Bryan County, OK

1 2 3 4 5 Seller's Market

Buyer's Market

Employment increased by 371 jobs in Bryan County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 3.7% for the fourth quarter to 3.8% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06

$220,000Average Price $110,000

4# Homes on the Market * 6

1# Homes Sold ** 1

10# New Homes Built 6 ***

89Avg # of Days on Market 108 * Available as of Mar. 31, 2006.

*** During the first two months of 1st quarter. ** May not add to total of zip codes.

Zip Code Average Price Price Change****

Total #Homes Sold

(Quarter)

% Change in #Homes Sold

****

Average Dayson Market

% of Asking Price(Sold/List

Price)

Data by Zip Codes for Q1 2006

74729 $110,000 - 1 - 95.7%108

1**** % Change of current quarter compared to the same quarter to year ago.

Local Report

Bosque County, TX


Buyer's Market

Employment declined by 234 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.4% in the fourth quarter to 4.8% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Bosque County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



19# Homes Sold ** 11

NA# New Homes Built NA ***




Total #Homes Sold

(Quarter)


****



Price)


76634 $140,800 -40.09% 3 200.00% 93.0%16976649 $102,500 - 1 - 89.1%15376671 $122,900 98.55% 4 33.33% 97.4%8576689 $74,500 - 1 - 94.1%4176690 $49,000 - 2 - 100.5%114


Local Report

Cherokee County, TX


Buyer's Market

Employment declined by 578 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 5.4% in the fourth quarter to 5.7% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Cherokee County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



1# Homes Sold ** 1





Total #Homes Sold

(Quarter)


****



Price)


75785 $340,000 - 1 - 87.4%289


Local Report

Collin County, TX


Buyer's Market

Employment increased by 11,120 jobs in Collin County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4% for the fourth quarter to 4.1% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06


3,709# Homes on the Market * 6,371

3,190# Homes Sold ** 2,836

3,150# New Homes Built 2,018 ***




Total #Homes Sold

(Quarter)


****



Price)


75002 $192,700 9.61% 290 17.89% 96.5%7075009 $233,100 -3.88% 31 -18.42% 96.9%11175013 $292,000 15.10% 100 -8.26% 97.4%7375023 $165,500 4.55% 171 4.27% 98.3%6175024 $271,500 1.46% 83 -10.75% 97.2%4875025 $242,100 5.77% 189 6.78% 97.4%5175034 $340,100 10.28% 129 2.38% 97.5%6275035 $215,900 6.99% 250 21.36% 97.8%5775069 $247,500 9.18% 93 22.37% 95.3%8175070 $221,900 11.12% 357 5.93% 97.5%64


Local Report

Collin County, TX


Total #Homes Sold

(Quarter)


****



Price)


75071 $200,800 24.33% 136 0.74% 97.0%6975074 $164,600 14.86% 100 -9.91% 97.6%6375075 $184,400 7.40% 93 9.41% 98.3%5275078 $351,100 61.06% 32 18.52% 97.4%8875093 $471,900 9.67% 145 -8.23% 97.4%5475094 $279,400 3.98% 77 -12.50% 95.8%8775097 $262,500 - 2 - 90.7%4975098 $164,900 9.93% 174 10.13% 96.7%7975164 $118,400 40.95% 4 300.00% 98.7%5675166 $214,600 8.99% 4 -50.00% 97.8%5575173 $168,000 29.23% 7 -56.25% 105.9%10475252 $329,200 21.03% 56 -11.11% 96.7%8275287 $318,000 -0.72% 39 0.00% 98.0%6075407 $128,200 27.94% 38 40.74% 96.5%7875409 $132,100 -1.49% 82 90.70% 95.8%10275424 $104,000 5.69% 4 -33.33% 99.5%9675442 $219,400 69.55% 11 -42.11% 97.7%9975454 $234,200 80.02% 29 38.10% 94.4%124

OTHER $221,200 -6.23% 110 -5.17% 97.6%66


Local Report

Comanche County, TX


Buyer's Market

Employment declined by 564 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.1% in the fourth quarter to 4.9% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Comanche County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



3# Homes Sold ** 2





Total #Homes Sold

(Quarter)


****



Price)


76442 $70,000 -17.55% 1 0.00% 92.2%9876455 $74,300 - 1 - 96.4%16


Local Report

Cooke County, TX


Buyer's Market

Employment increased by 614 jobs in Cooke County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 3.9% for the fourth quarter to 4% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76238 $215,000 - 1 - 95.6%2376240 $136,800 16.33% 76 61.70% 94.3%9076250 $167,300 8.21% 2 -33.33% 91.9%1476272 $162,800 -24.49% 8 14.29% 97.1%158

OTHER $122,300 11.18% 4 300.00% 95.1%104


Local Report

Dallas County, TX


Buyer's Market

Employment declined by 15,014 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 5.4% in the fourth quarter to 5.7% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Dallas County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



5,420# Homes Sold ** 5,144





Total #Homes Sold

(Quarter)


****



Price)


75001 $316,700 42.79% 19 46.15% 99.6%5675006 $156,300 6.69% 97 -8.49% 98.2%6575019 $268,300 4.48% 129 -12.24% 97.7%5975030 $115,000 - 1 - 95.9%1075038 $626,600 5.43% 24 41.18% 96.4%12375039 $480,000 - 1 - 96.0%5775040 $109,000 -2.42% 155 -3.73% 98.6%7075041 $97,600 -0.61% 63 -3.08% 97.1%5875042 $103,600 -0.19% 80 33.33% 98.0%7175043 $129,000 6.44% 136 -8.11% 97.7%70


Local Report

Dallas County, TX


Total #Homes Sold

(Quarter)


****



Price)


75044 $173,200 17.50% 102 -17.07% 98.2%6675048 $174,400 15.57% 52 -16.13% 97.8%6875050 $105,000 3.55% 50 19.05% 98.2%7575051 $85,300 -4.26% 55 -11.29% 98.5%8475052 $146,300 17.32% 163 9.40% 97.7%8375060 $117,300 9.93% 81 -1.22% 98.9%7975061 $128,700 6.98% 65 20.37% 98.1%7875062 $137,500 -7.35% 99 22.22% 98.0%7375063 $279,000 7.76% 94 -12.96% 97.4%5675080 $161,000 7.84% 104 11.83% 98.7%6275081 $158,600 6.44% 77 4.05% 98.3%6675082 $185,200 2.89% 9 -25.00% 96.4%11175088 $148,800 7.51% 79 19.70% 97.9%7275089 $161,500 -3.75% 128 12.28% 98.2%6475104 $149,100 3.11% 182 -1.09% 98.5%7375115 $157,000 5.23% 172 -2.27% 98.3%9875116 $109,800 2.81% 40 -4.76% 98.6%7275134 $114,600 2.05% 59 20.41% 97.5%9175137 $138,000 16.65% 50 -29.58% 100.0%9375141 $71,400 -34.91% 3 -50.00% 93.2%17875146 $113,100 -2.84% 40 -11.11% 98.2%8075149 $103,200 8.52% 164 -10.87% 98.3%6975150 $101,000 -4.99% 105 -10.26% 98.7%7375159 $95,500 3.80% 39 21.88% 97.3%8975172 $31,000 -8.55% 2 100.00% 92.0%5475180 $82,400 -1.55% 57 21.28% 100.0%6875181 $147,800 5.72% 124 10.71% 98.0%8475182 $279,700 7.45% 13 18.18% 96.7%9375203 $71,200 -38.51% 12 500.00% 101.5%4075204 $286,100 18.17% 10 0.00% 96.9%6575205 $1,552,200 18.36% 53 -31.17% 97.4%5175206 $323,100 19.98% 102 22.89% 97.9%6175208 $220,300 -3.67% 61 7.02% 97.9%8075209 $536,400 19.39% 82 12.33% 96.9%6475210 $29,900 0.34% 1 -50.00% 100.0%9275211 $99,100 1.12% 69 -11.54% 98.4%5875212 $98,600 30.25% 22 57.14% 100.8%44


Local Report

Dallas County, TX


Total #Homes Sold

(Quarter)


****



Price)


75214 $348,500 0.69% 148 -1.33% 96.6%6275215 $56,700 10.53% 13 62.50% 92.9%13975216 $52,600 -3.66% 71 26.79% 96.0%8175217 $75,800 8.13% 133 10.83% 97.5%8775218 $253,800 29.36% 95 14.46% 95.7%6475219 $378,100 6.39% 10 0.00% 99.0%8275220 $317,200 -34.33% 50 -24.24% 97.3%7775223 $219,100 7.51% 20 0.00% 97.1%6075224 $85,000 -7.00% 48 29.73% 97.1%7675225 $1,097,600 25.57% 72 12.50% 98.1%6275227 $91,000 -3.09% 90 -10.89% 97.2%7075228 $116,600 1.92% 145 19.83% 98.0%8575229 $375,800 6.64% 107 12.63% 98.1%7475230 $647,300 15.92% 84 -19.23% 95.0%6375231 $282,400 4.09% 22 -24.14% 96.0%7075232 $88,800 0.79% 47 -2.08% 97.5%8775233 $113,400 0.35% 27 35.00% 98.5%7675234 $155,900 16.60% 52 1.96% 98.8%6475235 $163,800 4.13% 18 38.46% 96.2%8275236 $112,400 13.42% 12 9.09% 100.2%4775237 $107,200 18.85% 9 50.00% 100.7%7875238 $209,800 6.01% 83 20.29% 97.5%5775240 $268,300 -44.35% 15 -28.57% 98.1%8475241 $83,800 16.07% 59 13.46% 97.0%7475243 $211,300 1.93% 68 -1.45% 97.2%6875244 $262,100 -0.38% 28 -15.15% 95.9%6275248 $274,000 -12.52% 73 -5.19% 96.8%7875249 $122,400 12.40% 56 7.69% 99.1%8375253 $90,000 2.74% 16 23.08% 99.8%6775254 $435,000 -28.28% 22 22.22% 92.7%99

OTHER $200,900 0.10% 126 32.63% 98.1%60


Local Report

Delta County, TX


Buyer's Market

Employment declined by 18 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.6% in the fourth quarter to 5.4% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Delta County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



4# Homes Sold ** 8





Total #Homes Sold

(Quarter)


****



Price)


75415 $102,000 - 1 - 88.7%075432 $112,500 - 6 - 94.5%133

OTHER $76,700 - 1 - 103.0%39


Local Report

Denton County, TX


Buyer's Market

Employment increased by 5,978 jobs in Denton County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4% for the fourth quarter to 4.1% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



2,583# Homes Sold ** 2,206





Total #Homes Sold

(Quarter)


****



Price)


75007 $184,400 5.25% 144 -17.24% 98.4%5675010 $213,500 6.59% 81 8.00% 96.8%7575022 $358,800 16.87% 96 -11.93% 95.8%4875028 $227,800 7.25% 200 -1.96% 98.0%5775056 $189,800 13.79% 192 23.87% 97.1%7475057 $123,200 23.45% 13 18.18% 97.9%7775065 $177,700 17.45% 52 62.50% 97.8%7475067 $146,500 7.64% 138 -4.83% 98.7%5375068 $159,700 8.86% 174 -5.95% 95.8%8275077 $233,200 3.55% 138 -9.80% 98.2%67


Local Report

Denton County, TX


Total #Homes Sold

(Quarter)


****



Price)


76201 $122,900 18.06% 23 -4.17% 97.8%7276205 $169,700 -12.12% 33 17.86% 97.4%8676207 $148,000 3.71% 25 -16.67% 96.5%8276208 $172,600 -3.95% 63 23.53% 96.1%10676209 $108,300 4.13% 65 20.37% 98.0%6976210 $179,100 10.28% 186 1.09% 98.3%7676226 $286,800 7.21% 57 -20.83% 97.4%9576227 $163,400 6.24% 111 101.82% 96.4%7976247 $128,800 9.99% 48 17.07% 98.1%6076249 $134,100 7.62% 21 75.00% 96.9%7976258 $249,300 24.90% 7 -46.15% 96.1%12176259 $127,800 22.77% 10 25.00% 97.8%4676262 $197,900 -8.12% 70 29.63% 97.7%7976266 $157,300 21.66% 35 -5.41% 98.4%82

OTHER $324,100 10.65% 224 -11.11% 96.6%77


Local Report

Eastland County, TX


Buyer's Market

Employment declined by 734 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.2% in the fourth quarter to 5% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Eastland County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



3# Homes Sold ** 3





Total #Homes Sold

(Quarter)


****



Price)


76437 $39,500 - 1 - 94.0%3476454 $92,500 2.78% 1 0.00% 95.9%9176470 $38,000 - 1 - 100.0%107


Local Report

Ellis County, TX


Buyer's Market

Employment increased by 1,010 jobs in Ellis County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.7% for the fourth quarter to 5.2% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06


762# Homes on the Market * 1,203






Total #Homes Sold

(Quarter)


****



Price)


75119 $137,100 -2.49% 35 -14.63% 96.0%9475125 $89,000 12.94% 5 -28.57% 95.3%22675152 $104,300 -8.91% 10 -16.67% 98.3%13775154 $151,100 13.52% 66 -26.67% 98.2%8775165 $151,300 20.94% 95 -5.94% 98.5%7875167 $203,600 17.21% 26 100.00% 99.5%11276064 $164,700 14.06% 7 0.00% 98.7%6876065 $181,300 15.26% 101 50.75% 97.7%8676651 $96,900 -18.91% 8 33.33% 99.8%7276670 $82,500 -6.78% 1 -50.00% 100.0%16


Local Report

Ellis County, TX


Total #Homes Sold

(Quarter)


****



Price)


OTHER $148,300 89.16% 6 50.00% 99.4%101


Local Report

Erath County, TX


Buyer's Market

Employment declined by 1,438 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 3.3% in the fourth quarter to 4% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Erath County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76401 $133,300 31.85% 45 -11.76% 96.5%8376446 $84,100 8.38% 12 200.00% 93.0%157

OTHER $40,000 -46.67% 1 0.00% 80.2%22


Local Report

Fannin County, TX


Buyer's Market

Employment declined by 191 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 6% in the fourth quarter to 6.2% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Fannin County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75413 $80,000 - 1 - 100.0%075418 $114,800 23.84% 27 -10.00% 98.4%12275438 $29,900 - 1 - 100.0%27375439 $95,000 -12.84% 1 -50.00% 97.4%23475443 $54,500 -9.17% 1 0.00% 94.8%11075446 $70,100 42.77% 5 150.00% 92.6%7075447 $101,500 21.12% 4 100.00% 89.3%7675449 $64,700 - 3 - 98.2%23375452 $99,000 -16.53% 4 -60.00% 100.3%7775476 $90,000 50.00% 1 0.00% 103.4%24


Local Report

Fannin County, TX


Total #Homes Sold

(Quarter)


****



Price)


75479 $79,700 - 3 - 100.5%33975488 $68,700 -57.06% 3 200.00% 88.8%19775490 $125,400 -4.13% 11 10.00% 98.0%9475492 $290,900 - 1 - 97.3%223


Local Report

Franklin County, TX


Buyer's Market

Employment declined by 106 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.2% in the fourth quarter to 4.4% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Franklin County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



3# Homes Sold ** 1





Total #Homes Sold

(Quarter)


****



Price)


OTHER $89,500 - 1 - 94.2%92


Local Report

Freestone County, TX


Buyer's Market

Employment increased by 6 jobs in Freestone County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 3.7% for the fourth quarter to 4% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



3# Homes Sold ** 9





Total #Homes Sold

(Quarter)


****



Price)


75859 $204,200 41.71% 9 350.00% 92.2%105


Local Report

Grayson County, TX


Buyer's Market

Employment declined by 2,014 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.6% in the fourth quarter to 5.1% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Grayson County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75020 $88,000 -1.57% 54 -1.82% 94.8%10375021 $87,700 -8.46% 19 35.71% 93.7%7675058 $205,600 0.88% 4 -55.56% 98.8%3275076 $231,300 46.49% 30 -9.09% 92.0%16275090 $95,400 -3.25% 39 -11.36% 98.8%7475092 $101,300 -18.31% 54 -20.59% 95.1%9675414 $111,600 -2.70% 4 -66.67% 105.6%5975459 $108,700 -18.94% 10 0.00% 97.3%10275489 $175,300 81.47% 2 -50.00% 97.7%7675491 $100,500 -14.25% 3 -40.00% 98.1%26


Local Report

Grayson County, TX


Total #Homes Sold

(Quarter)


****



Price)


75495 $165,700 -4.55% 28 154.55% 94.4%13776233 $81,500 3.69% 3 -57.14% 96.1%10976245 $71,700 40.31% 5 25.00% 94.2%8876264 $217,700 -5.35% 3 200.00% 96.1%10876268 $65,700 -27.80% 2 100.00% 86.5%11676271 $97,100 3.30% 4 0.00% 100.0%6576273 $99,800 -15.35% 15 -16.67% 96.9%72


Local Report

Hamilton County, TX


Buyer's Market

Employment declined by 739 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 3.7% in the fourth quarter to 4.8% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Hamilton County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



1# Homes Sold ** 5





Total #Homes Sold

(Quarter)


****



Price)


76457 $99,000 38.08% 5 66.67% 88.2%193


Local Report

Henderson County, TX


Buyer's Market

Employment declined by 636 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.8% in the fourth quarter to 5.1% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Henderson County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75124 $179,300 -16.21% 2 100.00% 91.0%15175148 $305,900 954.83% 3 50.00% 95.2%16275156 $169,600 58.06% 26 30.00% 95.9%9775163 $281,700 76.28% 3 50.00% 96.8%15275751 $108,800 -1.09% 5 150.00% 96.6%11075752 $80,000 -78.67% 1 0.00% 91.0%9875758 $40,000 -30.92% 2 100.00% 84.7%5675778 $137,000 - 1 - 98.2%41

OTHER $135,800 20.93% 18 63.64% 91.9%130


Local Report

Hill County, TX


Buyer's Market

Employment declined by 80 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 5.3% in the fourth quarter to 5.7% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Hill County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76055 $312,500 - 2 - 92.7%20076621 $45,500 - 2 - 100.1%2876627 $50,500 -36.88% 2 0.00% 89.9%5676636 $139,500 - 1 - 93.3%12176645 $69,000 -28.57% 12 0.00% 94.1%9076648 $161,600 330.93% 5 400.00% 100.2%18776660 $29,500 - 1 - 85.5%7576692 $92,700 0.65% 32 3.23% 94.9%104

OTHER $55,000 -42.29% 1 -50.00% 93.2%547


Local Report

Hood County, TX


Buyer's Market

Employment declined by 1,589 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.1% in the fourth quarter to 4.7% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Hood County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76035 $99,000 - 2 - 101.6%3476048 $175,200 20.00% 81 17.39% 96.9%8676049 $182,400 7.48% 117 17.00% 95.4%8476462 $61,400 -31.24% 4 100.00% 95.4%2176476 $121,200 - 3 - 98.1%87

OTHER $235,000 27.72% 1 0.00% 98.0%117


Local Report

Hopkins County, TX


Buyer's Market

Employment increased by 131 jobs in Hopkins County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.2% for the fourth quarter to 4.4% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75433 $97,500 -3.85% 2 -50.00% 90.1%12675437 $76,500 -15.00% 1 -50.00% 96.2%16075471 $50,000 - 1 - 102.0%1375482 $89,400 -31.02% 49 44.12% 94.4%95

OTHER $72,400 -9.39% 2 100.00% 95.0%117


Local Report

Hunt County, TX


Buyer's Market

Employment declined by 327 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.7% in the fourth quarter to 5.3% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Hunt County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75135 $150,600 25.50% 13 30.00% 101.0%8475401 $77,400 25.65% 23 0.00% 94.8%14675402 $123,000 41.71% 46 64.29% 94.6%10775422 $109,400 337.60% 4 300.00% 94.8%15075423 $58,600 -79.79% 2 100.00% 99.0%7175428 $91,700 71.40% 15 400.00% 95.5%10575453 $131,900 -41.19% 6 100.00% 92.7%26775458 $185,000 - 1 - 97.4%11175474 $103,000 8.42% 31 19.23% 96.0%102

OTHER $155,900 27.58% 14 -39.13% 98.0%125


Local Report

Jack County, TX


Buyer's Market

Employment increased by 137 jobs in Jack County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.1% for the fourth quarter to 4.5% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



1# Homes Sold ** 1





Total #Homes Sold

(Quarter)


****



Price)


76458 $40,000 - 1 - 105.5%31


Local Report

Johnson County, TX


Buyer's Market

Employment increased by 984 jobs in Johnson County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.2% for the fourth quarter to 4.6% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76009 $75,500 -16.67% 44 10.00% 96.6%6376028 $141,600 5.91% 114 18.75% 98.2%7576031 $101,800 11.75% 34 21.43% 96.9%7076033 $103,800 2.27% 78 -17.02% 97.9%10576044 $128,300 -1.61% 9 80.00% 99.8%12476050 $134,500 -29.77% 12 20.00% 97.9%6176058 $115,400 30.69% 46 15.00% 98.1%7176059 $97,200 2.86% 10 100.00% 95.5%13176084 $70,300 51.18% 8 -42.86% 95.6%6476093 $88,700 5.85% 5 150.00% 102.0%101


Local Report

Johnson County, TX


Total #Homes Sold

(Quarter)


****



Price)


OTHER $110,100 -14.78% 24 140.00% 97.7%53


Local Report

Kaufman County, TX


Buyer's Market

Employment increased by 926 jobs in Kaufman County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.9% for the fourth quarter to 5% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75114 $105,000 -2.14% 6 -66.67% 96.5%7975126 $165,000 11.19% 119 -4.80% 98.1%10575142 $124,700 15.14% 29 -14.71% 97.6%7975143 $84,400 -49.28% 6 50.00% 101.7%11875147 $153,500 -0.32% 4 300.00% 94.2%19475158 $183,700 76.63% 5 -44.44% 97.6%20875160 $131,900 12.93% 55 -12.70% 96.0%10475161 $93,800 4.80% 11 37.50% 100.7%121

OTHER $187,300 148.08% 4 33.33% 93.8%94


Local Report

Lamar County, TX


Buyer's Market

Employment declined by 759 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 5.3% in the fourth quarter to 6.2% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Lamar County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



6# Homes Sold ** 14





Total #Homes Sold

(Quarter)


****



Price)


75411 $120,000 - 1 - 94.5%15275460 $59,400 - 7 - 95.1%9375462 $137,600 -18.29% 6 0.00% 95.6%150


Local Report

Montague County, TX


Buyer's Market

Employment increased by 172 jobs in Montague County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4% for the fourth quarter to 4.2% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76230 $117,300 - 3 - 92.5%23776239 $39,000 -53.74% 1 -66.67% 100.0%1776255 $52,400 -43.23% 6 -40.00% 88.5%19276265 $147,000 - 4 - 98.2%58


Local Report

Navarro County, TX


Buyer's Market

Employment increased by 14 jobs in Navarro County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 5% for the fourth quarter to 5.4% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75102 $59,900 - 1 - 100.0%8975109 $232,600 32.69% 3 -66.67% 95.6%11075110 $99,300 -1.29% 51 21.43% 94.6%8875144 $89,200 93.91% 3 200.00% 100.6%4175153 $51,500 -65.64% 2 100.00% 101.1%13175155 $130,200 129.23% 3 0.00% 102.9%8676626 $94,100 - 2 - 96.8%5876641 $37,400 - 2 - 84.0%7476679 $82,500 -16.24% 3 0.00% 94.1%72

OTHER $390,000 - 1 - 97.7%122


Local Report

Palo Pinto County, TX


Buyer's Market

Employment increased by 623 jobs in Palo Pinto County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.3% for the fourth quarter to 4.6% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76067 $78,200 4.69% 23 -25.81% 93.8%6576449 $254,900 31.19% 4 -20.00% 94.0%2376453 $85,000 -38.18% 3 50.00% 92.9%23076475 $65,000 -74.49% 1 0.00% 86.8%4376484 $141,700 118.00% 3 200.00% 92.4%46

OTHER $179,700 35.42% 5 66.67% 94.4%168


Local Report

Parker County, TX


Buyer's Market

Employment increased by 599 jobs in Parker County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4% for the fourth quarter to 4.4% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76008 $280,000 1.30% 72 63.64% 96.9%9676082 $109,800 22.82% 50 6.38% 98.8%8176085 $141,300 -14.42% 20 -4.76% 97.7%7576086 $104,200 -1.98% 59 0.00% 96.5%7076087 $197,000 3.63% 77 -7.23% 96.7%9076088 $177,000 22.92% 37 27.59% 97.6%10676487 $60,500 0.83% 2 0.00% 94.9%88

OTHER $205,800 0.44% 24 -33.33% 98.2%93


Local Report

Rains County, TX


Buyer's Market

Employment increased by 216 jobs in Rains County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.1% for the fourth quarter to 4.4% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75440 $130,900 -21.43% 11 37.50% 95.8%8275472 $115,500 40.51% 6 0.00% 96.3%161

OTHER $69,000 - 2 - 82.1%70


Local Report

Rockwall County, TX


Buyer's Market

Employment increased by 1,355 jobs in Rockwall County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 3.8% for the fourth quarter to 4.1% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75032 $263,600 19.82% 129 -6.52% 98.2%9275087 $208,500 1.61% 103 17.05% 96.6%9075132 $175,200 0.57% 8 -50.00% 96.7%14475189 $139,500 -9.30% 93 82.35% 97.3%88

OTHER $148,200 4.29% 61 177.27% 95.5%80


Local Report

Smith County, TX


Buyer's Market

Employment declined by 711 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.4% in the fourth quarter to 4.6% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Smith County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75703 $165,000 - 1 - 97.3%1675707 $221,500 - 1 - 97.4%22075708 $79,200 - 1 - 105.8%4975771 $140,300 - 13 - 97.3%68


Local Report

Somervell County, TX


Buyer's Market

Employment declined by 321 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.3% in the fourth quarter to 5.5% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Somervell County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76043 $235,000 73.95% 13 18.18% 93.6%12076070 $266,000 - 1 - 97.8%56


Local Report

Stephens County, TX


Buyer's Market

Employment increased by 128 jobs in Stephens County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.4% for the fourth quarter to 4.7% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06

NAAverage Price $122,500

NA# Homes on the Market * 4

NA# Homes Sold ** 2


NAAvg # of Days on Market 303 * Available as of Mar. 31, 2006.



Total #Homes Sold

(Quarter)


****



Price)


OTHER $122,500 - 2 - 81.9%304


Local Report

Tarrant County, TX


Buyer's Market

Employment increased by 1,470 jobs in Tarrant County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.8% for the fourth quarter to 5% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



5,284# Homes Sold ** 4,688





Total #Homes Sold

(Quarter)


****



Price)


76001 $141,000 -2.56% 86 -10.42% 98.7%6476002 $143,200 8.40% 148 29.82% 98.5%7076006 $242,200 -20.28% 29 45.00% 96.1%6576010 $84,300 14.07% 57 -32.94% 97.1%7476011 $138,700 -0.36% 21 110.00% 97.5%6176012 $165,800 -2.81% 60 46.34% 97.3%7576013 $146,400 4.72% 43 -10.42% 97.5%6876014 $92,200 4.77% 65 -5.80% 98.6%5176015 $131,000 12.64% 26 -40.91% 92.5%9876016 $155,700 2.98% 117 23.16% 98.9%83


Local Report

Tarrant County, TX


Total #Homes Sold

(Quarter)


****



Price)


76017 $130,400 -2.03% 146 -11.52% 98.5%7476018 $114,700 5.62% 113 16.49% 99.7%6376020 $141,200 -17.67% 45 0.00% 95.8%9276021 $163,700 1.43% 84 -24.32% 98.1%6276022 $122,000 8.44% 32 10.34% 98.2%5876034 $463,600 4.86% 72 -22.58% 98.0%7376036 $147,400 9.75% 61 38.64% 98.9%7376039 $159,300 2.12% 71 18.33% 98.3%5876040 $136,300 2.48% 62 47.62% 98.5%7276051 $216,800 3.73% 135 7.14% 97.6%5676052 $185,400 3.29% 73 4.29% 94.6%8076053 $118,500 -4.13% 59 -4.84% 99.2%6776054 $216,400 14.38% 46 17.95% 97.8%4576060 $173,900 -13.22% 16 33.33% 95.8%10276063 $194,600 10.76% 211 -1.40% 97.3%7276092 $556,300 8.27% 109 -12.10% 98.1%5976103 $88,900 17.13% 33 0.00% 97.2%9576104 $68,400 48.70% 16 14.29% 100.9%5476105 $39,300 -11.29% 9 -35.71% 91.7%5876106 $70,500 16.53% 23 -8.00% 98.4%10076107 $212,700 -7.48% 58 -1.69% 95.0%9076108 $110,800 5.22% 84 -11.58% 99.2%7776109 $309,400 32.22% 51 18.60% 96.5%6176110 $133,700 5.19% 46 2.22% 96.1%8076111 $72,700 -8.90% 30 0.00% 97.3%7076112 $105,000 -5.58% 64 -17.95% 97.4%9076114 $74,700 -0.66% 51 54.55% 100.3%7576115 $69,500 19.62% 14 -6.67% 100.8%7376116 $136,300 7.83% 83 -2.35% 96.2%7076117 $86,400 15.51% 63 -12.50% 98.1%6776118 $126,800 10.74% 38 -26.92% 100.1%6176119 $56,900 1.97% 42 16.67% 98.3%5576120 $174,300 62.44% 22 29.41% 95.2%11676123 $135,800 2.41% 135 -0.74% 97.9%8476126 $168,700 -1.40% 60 30.43% 98.1%7776131 $138,600 9.05% 114 31.03% 95.1%8576132 $327,300 2.31% 38 11.76% 97.0%120


Local Report

Tarrant County, TX


Total #Homes Sold

(Quarter)


****



Price)


76133 $98,600 4.89% 146 -6.41% 97.1%7776134 $91,400 -0.54% 50 -16.67% 98.7%6276135 $131,500 12.49% 66 40.43% 97.0%6776137 $131,200 4.88% 229 15.66% 98.5%7476140 $102,400 6.78% 73 1.39% 98.3%7476148 $98,000 3.70% 113 21.51% 98.7%7776177 $190,000 - 2 - 98.2%8676179 $150,100 6.08% 186 27.40% 96.2%9376180 $175,100 10.54% 187 18.35% 97.6%6276248 $218,300 6.75% 364 -11.44% 97.4%68

OTHER $278,000 84.11% 211 -4.09% 97.5%89


Local Report

Van Zandt County, TX


Buyer's Market

Employment declined by 31 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.3% in the fourth quarter to 4.6% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Van Zandt County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75103 $121,300 50.87% 24 -17.24% 94.2%11175117 $93,500 0.86% 13 18.18% 97.9%5275140 $104,400 90.86% 4 -33.33% 96.9%4875169 $102,500 -6.99% 24 20.00% 96.4%11875754 $70,000 80.41% 1 0.00% 94.7%375790 $102,500 5.67% 3 0.00% 99.1%132

OTHER $85,700 54.41% 7 250.00% 93.8%102


Local Report

Wichita County, TX


Buyer's Market

Employment declined by 1,090 jobs in January, February and March. The job losses brought about an increase in the average monthly unemployment rate from 4.2% in the fourth quarter to 4.7% for the three months of the first quarter. Despite the job losses, the job situation still remains strong in Wichita County. Combined with favorable low mortgage rates, home sales should continue at a strong pace.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



1# Homes Sold ** 1





Total #Homes Sold

(Quarter)


****



Price)


76305 $30,000 - 1 - 82.2%173


Local Report

Wise County, TX


Buyer's Market

Employment increased by 79 jobs in Wise County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 3.8% for the fourth quarter to 4.2% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


76023 $130,000 14.24% 6 20.00% 95.4%13376071 $275,000 266.67% 1 0.00% 89.4%1476073 $156,200 30.60% 17 142.86% 99.3%11476078 $143,700 17.50% 30 42.86% 98.6%9176225 $206,100 46.17% 9 350.00% 82.0%9576234 $190,900 45.50% 33 26.92% 97.1%7476246 $60,700 - 1 - 98.1%11876267 $124,000 16.43% 1 0.00% 103.4%10676426 $193,900 101.35% 23 35.29% 94.9%12476431 $146,400 19.61% 5 -16.67% 99.4%109


Local Report

Wise County, TX


Total #Homes Sold

(Quarter)


****



Price)


OTHER $109,900 0.55% 16 45.45% 99.5%91


Local Report

Wood County, TX


Buyer's Market

Employment increased by 329 jobs in Wood County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 4.6% for the fourth quarter to 4.8% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06








Total #Homes Sold

(Quarter)


****



Price)


75410 $33,500 -77.67% 1 0.00% 100.0%12075494 $78,000 5.26% 12 33.33% 94.0%11575497 $106,000 -62.08% 3 50.00% 101.3%13375773 $195,300 118.21% 5 25.00% 94.9%9975783 $70,600 42.63% 3 200.00% 95.9%124


Local Report

Young County, TX


Buyer's Market

Employment increased by 35 jobs in Young County during January, February and March. However, the number of job seekers also increased. The combined effect of these two trends was an increase in the average monthly unemployment rate from 3.7% for the fourth quarter to 4.3% in the three months of the first quarter. The solid job growth may provide strong home sales, while low mortgage rates should continue to spur sales.

Labor Market :

Housing Market :

(Forecast)Q4' 05 Q1' 06 Q2' 06



2# Homes Sold ** 1





Total #Homes Sold

(Quarter)


****



Price)


76450 $57,500 -72.49% 1 0.00% 100.0%35


Local Report

Others


Total #Homes Sold

(Quarter)


****



Price)


74728 $192,000 - 1 - 103.8%3075126 $110,000 - 1 - 95.7%775455 $32,000 -52.94% 1 0.00% 86.7%20975501 $41,000 - 1 - 102.5%1076380 $55,000 - 1 - 96.7%11876802 $96,000 - 1 - 105.6%3477656 $52,000 - 1 - 93.0%6378249 $82,000 - 1 - 91.2%53


54

Trends

The Rising Tide of Mortgage RatesBy Ken Fears, Economist

After a brief respite in the middle of January, mortgage rates continued their climb past the 6.0% mark thisspring. The average mortgage rate for the 30-year fixed rate contract reached 6.24% in the first quarter of2006. Unfortunately, mortgage rates will only rise from here. But the news isn’t all bad. While prices are atrecord highs and mortgage rates are on the rise, employment and incomes are also on the rise.

Housing affordability depends on a number of factors: mortgage rates, home prices, and incomes. Asmortgage rates rise, affordability falls. The same is true of home prices. In both cases, as these factors rise,the size of the required monthly payment also rises. However, as incomes rise, the amount that an individualcan spend per month rises, and the monthly payment is really the crucial factor.

Over the last few years, people have been amazed that home prices continued to rise. However, what thistrend has shown is that the monthly payment is what really matters to the homebuyers. For instance, if ahome is priced at $200,000, then the monthly payment for this home if mortgage rates are 10% (assuming20% down) is $1,468. However, if mortgage rates fall to 5%, the monthly payment becomes $955.Affordability rises in this case, so people can buy a larger home, or save the difference. Over time demandwill rise and the price of the home will be bid up until the monthly payment on it is nearly the same as beforethe rate change. The new price is roughly $308,000, or a 50% increase in the home price for a 50% declinein rates.

The one factor that is closest to set-in-stone in the purchase equation is the percentage of buyer’s income thatshe will devote to housing, which is roughly 28%. But rising incomes will increase the monthly payment thatbuyers can afford. For example, a person with an annual income of $50,000 can afford a monthly payment of$1,167. If their income were to grow 4.0%, then the monthly payment that the homebuyer could afford risesto $1,202, an increase of $35. While this may not sound like much, it is important to note that real disposableincome rose 12.9% from 2000 to 2005. In this example, that would increase the feasible monthly payment to$1,317, or an increase of $150.

First Quarter

Average Home Price

Average Rate on 30-Year FRM

Monthly Payment

2000 $152,687 8.26% $ 976 2004 $171,338 5.61% $ 867 2005 $178,976 5.75% $ 918 2006 $188,921 6.24% $1,013

In the area covered by North Texas Real Estate Information Systems, we’ve seen an increase in the averageprice of roughly 23.7% since 2000. The average monthly payment has risen by roughly $37. But what doesthis mean for the future? How will buyers continue to afford homes as prices rise? Luckily, the growingeconomy continues to create more jobs and grow incomes. NAR® Research expects job growth to continueat a healthy clip, rising 1.6% in 2006 and 1.4% in 2007. More importantly, incomes, which grew 1.5% lastyear, are expected to increase 3.7% in 2006 and 4.0% in 2007. Rising employment will help to increase thepool of persons looking for housing, while rising incomes will help to offset the eroding power of risingmortgage rates.

The booming economy continues to create healthy drivers for a more stable, long-term real estate market.Rising incomes will help to soften the landing for the real estate market as a whole as it transitions to anenvironment of higher mortgage rates.

Chief Economist’s Commentary

55

A Tale of Two (types of) Citiesby David Lereah, Chief Economist

Well, the boom is over and most of our nation’s hot housing markets are cooling. Home sales are off 5 to 20percent in some markets that were once setting annual sales records. But there have been no signs ofbubbles bursting as of yet. Real estate activity began slowing about six months ago, and – perhaps withsome fingers and toes crossed – our nation’s housing industry is managing a soft landing. And quite nicely,thank you. It is true, some of those “hot hot hot” markets are experiencing more of a cooling down than areothers, but there is also a silver lining to that: some of America’s non-boom markets are showing signs oflife.

During the real estate boom’s five-year run (2001 to 2005), about 65 of the 135 metropolitan areas onwhich the National Association of REALTORS® tracks price data experienced robust price appreciation.The households living in – and investors investing in – those 65 boom markets during those five yearsenjoyed substantial equity gains on their properties and no doubt engendered the envy of non-boomhomeowners and investors. Indeed, to the dismay of the remaining 70 metro areas, the boom seemed todiscriminate as it passed over them. But today, the housing coin has flipped – sales are softening in (former)boom cities and gaining momentum in non-boom cities. It appears the haves and the have-nots havereversed places.

What is driving that reversal of fortune? The answer is: affordability. Quite simply, affordable metros are infavor and unaffordable metros are experiencing a correction. Let’s look at both situations.

Affordable MetrosThe recent real estate boom seemed to have bypassed Denver, Salt Lake City, Houston, and Albuquerque,New Mexico; now those markets are raising some eyebrows. In recent months, they have shown a pick upin sales activity. What all four of these metros have in common is a healthy local economy (evident in theirjob creation figures) and affordable housing prices. It is becoming increasingly clear that in the aftermath ofthe boom, households are now seeking affordable property to purchase (and live in). For example, there arecases where households living in pricey northern California neighborhoods (such as San Francisco) aremoving from an area where the median home price is a lofty $730,000 to areas with substantially lowermedian home prices. Denver and Salt Lake City – as well as some still-hot markets like Las Vegasand Phoenix – could be the fortunate recipients of that trend.

Another way of viewing a healthy housing market is to look at the direction of months’ supply of homesavailable for sale (the housing inventory). The top ten metros ranked by the largest year- over-yeardecrease in months’ supply in February, reveals that nine out of those ten areas are affordable markets. Ledby Austin, Texas, which experienced the largest decrease (falling from a 5.0-months’ supply in February2005 to 4.3-months’ supply in February 2006), the remaining nine metros were Houston, San Antonio,Raleigh-Cary, Albuquerque, Mobile, Fort Myers-Cape Coral, Kansas City, Beaumont-Port Arthur, Texasand Baton Rouge. Only Fort Myers-Cape Coral, Florida experienced the real estate boom and has amedian home price higher than the national median home price.

Again, all of these metros share the two characteristics that are attracting future home buyers – a healthylocal economy and a relatively low median home price. I expect these metros as well as other affordableand healthy metros to exhibit slow- to moderate growth during the remaining months of this year.

Boom MetrosPhoenix, Naples, Florida, and Washington, DC all experienced the boom during the past five years, but arenow showing strong signs of cooling. What they all have in common are a history of robust priceappreciation and a healthy local economy. Ranking the top ten metros by the largest increase in months’supply (which is a sign of a “cooling” market) in February reveals that all ten metros were boom metros.From first to tenth are Phoenix, Palm Bay-Melbourne, Florida, Pensacola, Florida, Chicago-Naperville,Hagerstown-Martinsburg, Tucson, Orlando, Boston, Washington DC, and Worcester, Massachusetts.Phoenix experienced the greatest increase, where its months’ supply rose from 1.2 months in February2005 to 5.6 months in February 2006. Sales in all of these metros have also fallen within the past 6 months.

A Happy EndingThe good news is that affordable metros are beginning to expand while boom metros are cooling into a softlanding. There have been no bubbles bursting, as predicted by so many academics and Wall Street analystsduring the past several years. The last time a bubble burst was in Boston in 1990/91.What happened inBoston? It experienced a negative local economic event – a sharp recession. During that time, Boston lost15 percent of its labor force and the months’ supply of homes climbed up to a remarkable 16 months!Something had to give so prices tumbled downward for the next four years. The difference betweenBoston’s experience and today’s cooling metros is the health of the local economy. Boston’s economyexperienced a contraction, while our boom markets all possess healthy, expanding economies. With jobcreation and income growth, households will continue to have the wherewithal to purchase property evenin cooling local markets. That is a perfect recipe for a soft landing.

Want more insights from NAR Chief Economist David Lereah? Visit REALTOR.org to see some ofhis latest comments from press interviews and speeches at www.REALTOR.org/Research.nsf/Pages/housingoverview

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Chief Economist’s Commentary

57

Forecast

The ForecastBy Lawrence Yun, Senior Research Forecaster

Immigration is a not an easy subject to tackle. Should the U.S. have fully open borders and allow anyonefrom any country to come to the U.S. and contribute to and take advantage of American culture andcitizenship? Or, should our nation build a fence around itself to protect it against illegal immigration andpossible entry from potential terrorists? There are passionate feelings displayed by those who support a moreopen borders approach to immigration (such as allowing illegal immigrants to remain in the country), and thosewho would restrict immigration or otherwise suppress activities by those who come here from another county.There are many well-reasoned arguments on both sides. The topic has led to intra-party disunity within boththe Republican and Democratic parties.

But, there is one area where there is a little disagreement. Immigration has helped the housing market.Why? The answer is simple: people need a home in which to live. So it should not be surprising that dynamichousing markets are frequently those in regions that have significant immigrant populations. The fast growingregions of Las Vegas, Phoenix, Washington D.C. and much of Florida have seen strong housing demand –and a significant run-up in home prices – due in no small part because these markets have strong immigrantpopulations.

So, what happens to housing markets when there is no immigration? Here’s an example. Home prices inJapan have been stagnant for the past 20 years. One reason is that the country’s population has beenvirtually unchanged during that same time period. The same stagnation is also present in eastern Germany(where many have left for the better western half). Similar situations can be found in areas of the U.S. likeElmira, New York and Danville, Illinois. What happens to those empty homes when people leave and thereare no new households to occupy them?

An interesting study by the Philadelphia Federal Reserve Bank showed that home prices in immigration-heavyneighborhoods rise much more slowly than other neighborhoods in the local region. That is, the “there goesthe neighborhood” reaction may be at work as established residents flee an area as newcomers move in.However, home prices in any overall metro region with a high number of immigrants in general rose at asignificantly faster clip then those metro regions with little immigration. More people translates into morehousing demand.

The concerns of whether or not the current swelling number of immigrants will eventually assimilate into theU.S. society are an open and legitimate question that needs to be addressed fully. But housing demand willremain healthy — and certainly healthier for the foreseeable years than it would otherwise be in the absenceof immigration. As for 2006, home sales will reach their third best year ever; home prices are projected torise 6.4%. These are both solid figures in a rising interest-rate environment. The national job market alsolooks to perform well in 2006. The best guess for now is for 2.3 million net new jobs. Moreover, the stockmarket has been flirting with a 5-year high, which will translate into higher demand for vacation homes. Theconstruction of these homes, as many in the homebuilding industry will affirm, would not have been possiblewithout immigrants.

As for the local area, the job market has been very positive in recent quarters (3.5% growth in the latestquarter). At the same time, higher mortgage rates have reduced affordability. Home sales, as a result, hasbeing pulling in different directions. Sales were 4.3% higher in the first quarter compared to the year before.Home prices have continued to increase though because few are forced to sale in a job creating environment.Given the strength in the national economy, the local economy looks to catch part of that upward tide by theyear end. Home sales are expected to definitively turn positive once interest rates stabilized while jobs getadded. The forecast is for 4% increase in home sales in 2006 followed by a 12% rise in 2007. Home priceswill increase 7% in both 2006 and 2007.

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Forecast

2007Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2004 2005 2006 2007

U.S. EconomyAnnual Growth RateReal GDP 3.3 4.1 1.7 5.0 3.9 3.6 3.4 3.2 3.1 3.1 4.2 3.6 4.0 3.8Nonfarm Payroll Employment 1.6 1.6 1.2 2.1 1.5 1.8 1.7 1.6 1.2 1.5 1.1 1.6 1.6 1.7Consumer Prices 3.7 5.5 3.2 3.3 2.6 2.5 3.1 2.6 2.2 2.3 2.7 3.4 3.0 2.0Real Disposable Income 0.2 -1.4 6.7 4.4 4.2 4.3 4.4 4.7 3.4 3.4 3.4 1.3 4.6 4.4Consumer Confidence 102 99 96 106 108 107 108 109 110 110 80 100 105 109

PercentUnemployment Rate 5.1 5.0 4.9 4.7 4.8 4.8 4.7 4.7 4.8 4.8 5.5 5.1 4.9 4.7

Interest Rates, PercentFed Funds Rate 2.9 3.5 4.0 4.4 4.9 5.0 5.0 5.0 5.0 4.8 1.3 3.2 4.5 4.53-Month T-Bill Rate 2.9 3.4 3.8 4.4 4.8 4.9 4.9 4.9 4.9 4.7 1.4 3.2 4.3 4.3Prime Rate 5.9 6.4 7.0 7.4 7.9 8.0 8.0 8.0 8.0 7.9 4.3 6.2 7.5 7.5Corporate Aaa Bond Yield 5.1 5.1 5.4 5.5 5.9 6.1 6.2 6.3 6.4 6.4 5.6 5.3 6.0 6.210-Year Government Bond 4.2 4.2 4.5 4.6 4.9 5.1 5.2 5.3 5.4 5.3 4.3 4.3 4.9 5.130-Year Government Bond 4.5 4.4 4.7 4.7 5.0 5.3 5.4 5.6 5.7 5.7 5.1 4.6 5.1 5.2

Mortgage Rates, percent30-Year Fixed Rate 5.8 5.7 5.8 6.2 6.6 6.8 6.9 7.0 7.1 7.0 5.8 5.9 6.5 6.81-Year Adjustable 4.3 4.5 5.1 5.3 5.6 5.7 5.7 5.7 5.7 5.6 3.8 4.5 5.4 5.5

National Housing IndicatorsThousandsExisting Single-Family Sales 7,193 7,180 6,943 6,729 6,669 6,592 6,662 6,674 6,716 6,731 6,784 7,072 6,787 6,821New Single-Family Sales 1,287 1,298 1,286 1,182 1,169 1,122 1,091 1,088 1,086 1,176 1,203 1,282 1,209 1,198Housing Starts 2,044 2,101 2,059 2,139 2,025 1,954 1,890 1,855 1,856 1,857 1,956 2,065 1,936 1,943Single-Family Units 1,693 1,747 1,716 1,757 1,677 1,606 1,537 1,494 1,490 1,488 1,604 1,714 1,600 1,544Multifamily Units 351 354 343 382 348 348 353 360 366 370 345 350 337 399Residential Construction* 599 610 614 626 627 614 600 588 583 584 562 604 607 595

Percent Change -- Year AgoExisting Single-Family Sales 4.7 6.5 0.9 -3.0 -7.3 -8.2 -4.1 -0.8 0.7 2.1 9.7 4.2 -4.0 0.5New Single-Family Sales 7.0 11.5 3.5 -5.3 -9.1 -13.5 -15.2 -8.0 -7.1 4.8 10.8 6.6 -5.7 -0.9Housing Starts 6.3 6.4 4.3 2.7 -0.9 -7.0 -8.2 -13.3 -8.3 -5.0 5.2 5.6 -6.2 0.3Single-Family Units 5.9 6.9 5.9 2.8 -1.0 -8.1 -10.4 -15.0 -11.2 -7.4 6.6 6.4 -6.7 -3.5Multifamily Units 8.6 4.2 -2.6 2.1 -0.8 -1.6 3.0 -5.7 5.2 6.1 -0.9 1.4 -3.7 18.5Residential Construction 6.1 7.2 7.6 7.2 4.5 0.7 -2.3 -6.1 -7.0 -5.0 10.3 7.6 0.4 -2.0

National Home PricesThousands of DollarsExisting Home Prices 209.3 216.3 214.7 209.6 222.3 227.1 224.6 219.0 231.8 236.9 185.2 209.1 219.7 228.1New Home Prices 230.2 236.6 239.5 235.2 238.7 246.3 250.3 246.0 249.7 258.1 221.0 237.3 245.2 256.3

Percent Change -- Year AgoExisting Home Prices 13.3 14.2 13.4 10.1 6.2 5.0 4.6 4.5 4.3 4.3 8.5 12.9 5.1 3.8New Home Prices 6.3 10.5 5.2 2.3 3.7 4.1 4.5 4.6 4.6 4.8 3.9 7.4 3.3 4.5

Local RegionPayroll Jobs (in thousands) 2756.3 2775.8 2818.9 2801.0 2841.7 2861.8 2909.1 2896.2 2941.2 2964.9 2698.2 2764.6 2853.4 2959.0Home Sales 24310 25123 19942 18311 25019 25627 21168 20031 27747 28782 79441 86932 90126 101401Home Prices (in thousand $) 192.0 191.0 192.1 190.6 204.1 204.2 206.5 204.3 218.4 218.1 180.6 189.4 202.0 215.3

Percent Change -- Year AgoJobs 2.3% 2.7% 2.9% 3.5% 3.1% 3.1% 3.2% 3.4% 3.5% 3.6% 1.2% 2.5% 3.2% 3.7%Home Sales 6.3% 12.6% 6.0% 4.3% 2.9% 2.0% 6.1% 9.4% 10.9% 12.3% 13.4% 9.4% 3.7% 12.5%Home Prices 3.4% 4.9% 8.1% 5.6% 6.3% 6.9% 7.5% 7.2% 7.0% 6.8% 2.4% 4.9% 6.6% 6.6%

Quarterly figures are seasonally adjusted annual rates.* Billion dollarsSource: Forecast produced using Macroeconomic Advisers quarterly model of the U.S. economy.Assumptions and simulations by Dr. David Lereah and Dr. Lawrence Yun.

Economic and Housing Market Outlook: Second Quarter 2006

2005 2006

Mortgage Rates The 30-year fixed-rate mortgage edged up inMarch to6.32% – an increase of seven basis points fromFebruary’s level.Mortgagerates are expected to rise further asconcerns on inflation put upwardpressure on interest rates.The one-year adjustable rate increased eight basispoints inMarch to 5.42%.Existing Home Sales rose 5.2% in February to a seasonallyadjustedannualized rate of 6.91 million units – ending five con-secutive months ofdeclines.Home prices continued to showstrength,with the median price of anexisting home rising 10.6%from February 2005 to $209,000.The inventoryof homes forsale rose by 150,000 in the past month to 3.03 million – a5.3months’ supply at the current sales pace.New Home Sales In February,new home sales posted 1.08 mil-lionseasonally adjusted annualized units.The sales pace representsa 10.5%decrease from January’s revised figure of 1.21 millionunits,and is 13.4%below the level in February of 2005.Inventoryof newly constructed homesincreased to 548,000 – a 6.3-months’ supply at the current sales pace.

Housing Starts declined in February to 2.12 million seasonal-ly adjustedannualized units after soaring to their highest levelin over 30 years inJanuary.Both single-family and multifamilystarts posted declines.But thecurrent construction pace is stillvery robust.The 1.8 million single-familystarts is higher thanthe last year’s record of 1.7 million.Employment The economy added 211,000 jobs in March –stronger thanthe 190,000 most analysts had anticipated.BothFebruary and Januaryemployment numbers were revised down-ward to 225,000 and154,000,respectively.Unemploymentdecreased to 4.7% – its lowest level in4 1/2 years.Purchase Applications The Mortgage Bankers Association’spurchaseindex inched up to 407.6 in March.While the housingmarket beginscooling in most markets with both new andexisting home sales expectedto soften due to rising mortgagerates,the index level is still considerablystrong and will remainhealthy this year.Housing Affordability NAR’s housing affordability index rose0.8% inFebruary to 117.6.Last month’s index was revised upwardslightly.Goingforward,the affordability index should hover at sim-ilar levels for theremainder of the year as moderating homeprices somewhat offset risingmortgage rates.Inflation The consumer price index (CPI) rose 0.1% inFebruary.Twosectors – fuel and apparel – fell sharply,whichhelped to minimize theincrease in the core index which rose0.1%.The CPI should continue togrow at a projected averagemonthly rate of 0.3% for the next threemonths.

Economic Monitor This table reflects data available throughApril 10, 2006.

Jan 6.15Feb 6.25Mar 6.32

Expanding globaleconomy putsupward pressure onrates

Monthly IndicatorForecastRecent

Statistics

Likely DirectionOver the Next

Six Months

Dec 6,750Jan 6,570Feb 6,910

Higher rates cuttinghome sales,particularly in high-priced markets

A huge rise inunsold inventory

Mostly down, butaffordable jobcreating regionsmay buck the trend

Two million netnew jobs on tap for2006

Will be a difficultyear for mortgagebrokers

Home prices rosefaster thanincome over thepast five years

Inflation at theupward end of thecomfort zone

Notes: All rate are seasonally adjusted. New home sales, existing home sales, and housing starts are shown in thousands. Employment growth is shown asmonth-to-month change in thousands. Inflation is shown as the month-to-month change in the Consumer Price Index. Sources: NAR, Bureau of theCensus, Bureau of Labor Statistics, Freddie Mac, and the Mortgage Bankers Association

59

Dec 1,275Jan 1,207Feb 1,080

Dec 1,989Jan 2,308Feb 2,120

Jan 154Feb 225Mar 211

Jan 452.7Feb 406.6Mar 407.6

Dec 117.0Jan 116.7Feb 117.6

Dec -0.1%Jan 0.7%Feb 0.1%

Documents

Economic and Market Watch Report - NTREIS · Economic and Market Watch Report 1st Quarter, 2006 *Click on a County to view economic and real estate information at the county and zip