Dallas: The city the housing crisis skipped over.

Home prices have increased, nationally, on a month-to-month basis for the third month in a row, according to the July Case-Shiller home price index released today.

In our area, home prices rose 1.8 percent in  from June to July—so we're faring a bit better than the national average of 1.6 percent, according to the Washington Business Journal. Of course, prices are still down nearly ten percent here when compared to July 2008's numbers. But, hey, at least we're not among the hardest hit, as detailed by Frank Ahrens on washingtonpost.com.

-Detroit: down 24.6 percent (Self-explanatory.)

- Las Vegas: down 31.4 percent. (The overbuilt Sun Belt has been hit hardest by home price drops.)

- Phoenix: down 28.5. (Again, Sun Belt.)

- Tampa: down 18.4 percent.

Then again, it sure would be stress-free to reside in Dallas. Home prices there have dropped less than two percent in the last year.

Image by Deherrera_96, Flickr Creative Commons

Fewer Washingtonians are willing to lower their home asking prices, according to a new report out by Trulia on Friday. The amount of price reductions has dipped 17 percent in the region's housing market, comparing June 2009 to August 2009 numbers.

Here are some other cities experiencing the trend:

• Dallas, TX – 42% fewer price reductions
•  Las Vegas, NV – 33% fewer price reductions
• Louisville, KY – 33% fewer price reductions
• Los Angeles, CA – 19% fewer price reductions

In the DC area, the average reduction—when it does occur, which is roughly a quarter of the time—tends to be around 10 percent, according to the report. 

Image by TheTruthAbout..., Flickr Creative Commons

Standing on the edge of the Pacific last week, overlooking gorgeous cliff bluffs protruding into the ocean, I found myself discussing a subject I vowed to leave in DC during my vacation: The high cost of living in Washington.

Specifically, I was referring to rental costs. Sure, it could be worse. I've never had to erect a cardboard wall to "create" another "private" room, like some people do in New York City. And San Fran, where I was last week, isn't known for its cheap living. But rents in DC seem ridiculously high—without the ocean breeze, humidity-free air, and citywide vistas—and seem to only be getting worse. (See this recent post I did on group house rents.)

But a recent report by the Center for Economic Policy Research and the National Low Income Housing Coalition provides an odd reality check: Home prices in the DC-Area are still dramatically inflated compared to rental prices. (Hat tip to Urban Turf for spotting the report first.)

Over the past 15 years or so, "home prices shot up while rents continued to move in line with inflation." The report compares rental prices to home sales prices by looking at this ratio:

Where the ratio of median sales price to median annual rent had hovered close to 15 to 1 in recent decades (i.e. it took $150,000 to buy a house that would rent for roughly $10,000 per year) at the peak of the bubble in 2007, it went above 25 to 1 in many inflated markets.

For purposes of analysis, this paper treats a home price that is 15 times the annual rent of a comparable home for rent as being at an equilibrium sale price,3 and defines a bubble market as one in which the ratio of price to annual rent exceeds 18 to 1.

In our area, in April 2008, the price-to-rent ratio was 20.8. By this past April, the price-to-rent ratio was 21.5.

A lot of other cities are still looking at bubble-like ratios. But some cities' ratios are going down, unlike ours. Los Angeles, for example, went from 28.1 to 21.5 from April 2008 to April 2009.

Image by umjanedoan, Flickr Creative Commons

Remember 2003: The invasion of Iraq? Martha Stewart's indictment? Arnold Schwarzenegger's election? Beyonce and Jay-Z's "Crazy In Love?"

It feels like a while back, and yet, not so terribly long ago.

Well if 2003 reminds you of the year you went house-hunting, then 2009 should feel vaguely reminiscent. According to an analysis out today by IHS Global Insight, home prices, nationally, now resemble prices from six years ago.

As for the local angle, D.C.'s doing better than most cities. In total, eight cities witnessed small price hikes in May (today's report reflects May data.)

Washington D.C.'s prices rose 1.31 percent in May from April, according to the Washington Business Journal. Here's a little more:

The D.C. area's home price strength is also visible in longer term comparisons. In the last three months prices in the Washington area rose 3.5 percent, compared to a national decline 0f 8.8 percent. Washington had the third best gain of the four cities that recorded price gains in the last three months, behind only Cleveland, up 19 percent, and Dallas, up 15.7 percent. Charlotte prices advanced 2.9 percent in the last three months and Boston prices were unchanged.

Image by D_vdm