Restate prices during the second quarter of 2011 indicate strength in the Texas market: The median price was $150,400, 1% higher than the same quarter of 2010. The average price in 2011-Q2 was $201,288, 4.6% higher than 2010-Q2.
The increase in the average price of Texas homes indicates more activity among higher priced homes. Buyers of higher priced homes have been less affected by tightened mortgage lending standards, and real estate has been an attractive investment vehicle due to instability in other investments, such as securities.
Another important market indicator is the inventory of homes available for sale compared with the demand to buy homes. Measured in months, Texas had 8.1 months of inventory in the second quarter of 2011 compared to 7.2 months in Q2-2010. This is still fairly balanced, with some of the additional inventory believed to be banks resuming foreclosure proceedings.
Thursday, August 4, 2011
Thursday, July 21, 2011
Homes Sales Slip, Prices Stabilize
Existing-home sales eased in June as contract cancellations spiked unexpectedly, although prices were up slightly, according to the National Association of Realtors®.
Sales gains in the Midwest and South were offset by declines in the Northeast and West. Single-family home sales were stable while the condo sector weakened.
Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 0.8 percent to a seasonally adjusted annual rate of 4.77 million in June from 4.81 million in May, and remain 8.8 percent below the 5.23 million unit level in June 2010, which was the scheduled closing deadline for the home buyer tax credit.
Lawrence Yun, NAR chief economist, said this is an uneven recovery. “Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month,” he said. “The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year.”
Yun cited other factors in the sales performance. “Pending home sales were down in April but up in May, so we may be seeing some of that mix in closed sales for June. However, economic uncertainty and the federal budget debacle may be causing hesitation among some consumers or lenders.”
The national median existing-home price for all housing types was $184,300 in June, up 0.8 percent from June 2010. Distressed homes – foreclosures and short sales generally sold at deep discounts – accounted for 30 percent of sales in June, compared with 31 percent in May and 32 percent in June 2010.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.51 percent in June, down from 4.64 percent in May; the rate was 4.74 percent in June 2010.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said home sales should be higher. “With record high housing affordability conditions thus far in 2011, we’d normally expect to see stronger home sales,” he said. “Even with job creation below expectations, excessively tight loan standards are keeping many buyers from completing deals. Although proposals being considered in Washington could effectively put more restrictions on lending, some banking executives have hinted that credit may return to more normal, safe standards in the not-too-distant future, but the tardiness of this process is holding back the recovery.”
Phipps added that lower mortgage loan limits, due to go into effect on October 1, already are having an impact. “Some lenders are placing lower loan limits on current contracts in anticipation they may not close before the end of September. As a result, some contracts may be getting cancelled because certain buyers are unwilling or unable to obtain a more costly jumbo mortgage,” he said.
Total housing inventory at the end of June rose 3.3 percent to 3.77 million existing homes available for sale, which represents a 9.5-month supply4 at the current sales pace, up from a 9.1-month supply in May.
All-cash transactions accounted for 29 percent of sales in June; they were 30 percent in May and 24 percent in June 2010; investors account for the bulk of cash purchases.
First-time buyers purchased 31 percent of homes in June, down from 36 percent in May; they were 43 percent in June 2010 when the tax credit was in place. Investors accounted for 19 percent of purchase activity in June, unchanged from May; they were 13 percent in June 2010.
The balance of sales was to repeat buyers, which were a 50 percent market share in June, up from 45 percent in May, which appears to be a normal seasonal gain.
Single-family home sales were unchanged at a seasonally adjusted annual rate of 4.24 million in June, but are 7.4 percent below a 4.58 million pace in June 2010. The median existing single-family home price was $184,600 in June, up 0.6 percent from a year ago.
Existing condominium and co-op sales fell 7.0 percent to a seasonally adjusted annual rate of 530,000 in June from 570,000 in May, and are 18.0 percent below the 646,000-unit level a year ago. The median existing condo price5 was $182,300 in June, up 1.8 percent from June 2010.
Regionally, existing-home sales in the Northeast fell 5.2 percent to an annual pace of 730,000 in June and are 17.0 percent below June 2010. The median price in the Northeast was $261,000, up 3.1 percent from a year ago.
Existing-home sales in the Midwest rose 1.0 percent in June to a pace of 1.04 million but are 14.0 percent below a year ago. The median price in the Midwest was $147,700, down 5.3 percent from June 2010.
In the South, existing-home sales increased 0.5 percent to an annual level of 1.86 million in June but are 5.6 percent below June 2010. The median price in the South was $159,100, down 0.1 percent from a year ago.
Existing-home sales in the West declined 1.7 percent to an annual pace of 1.14 million in June and are 2.6 percent below a year ago. The median price in the West was $240,400, up 9.5 percent from June 2010.
The National Association of Realtors®
Sales gains in the Midwest and South were offset by declines in the Northeast and West. Single-family home sales were stable while the condo sector weakened.
Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 0.8 percent to a seasonally adjusted annual rate of 4.77 million in June from 4.81 million in May, and remain 8.8 percent below the 5.23 million unit level in June 2010, which was the scheduled closing deadline for the home buyer tax credit.
Lawrence Yun, NAR chief economist, said this is an uneven recovery. “Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month,” he said. “The underlying reason for elevated cancellations is unclear, but with problems including tight credit and low appraisals, 16 percent of NAR members report a sales contract was cancelled in June, up from 4 percent in May, which stands out in contrast with the pattern over the past year.”
Yun cited other factors in the sales performance. “Pending home sales were down in April but up in May, so we may be seeing some of that mix in closed sales for June. However, economic uncertainty and the federal budget debacle may be causing hesitation among some consumers or lenders.”
The national median existing-home price for all housing types was $184,300 in June, up 0.8 percent from June 2010. Distressed homes – foreclosures and short sales generally sold at deep discounts – accounted for 30 percent of sales in June, compared with 31 percent in May and 32 percent in June 2010.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.51 percent in June, down from 4.64 percent in May; the rate was 4.74 percent in June 2010.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said home sales should be higher. “With record high housing affordability conditions thus far in 2011, we’d normally expect to see stronger home sales,” he said. “Even with job creation below expectations, excessively tight loan standards are keeping many buyers from completing deals. Although proposals being considered in Washington could effectively put more restrictions on lending, some banking executives have hinted that credit may return to more normal, safe standards in the not-too-distant future, but the tardiness of this process is holding back the recovery.”
Phipps added that lower mortgage loan limits, due to go into effect on October 1, already are having an impact. “Some lenders are placing lower loan limits on current contracts in anticipation they may not close before the end of September. As a result, some contracts may be getting cancelled because certain buyers are unwilling or unable to obtain a more costly jumbo mortgage,” he said.
Total housing inventory at the end of June rose 3.3 percent to 3.77 million existing homes available for sale, which represents a 9.5-month supply4 at the current sales pace, up from a 9.1-month supply in May.
All-cash transactions accounted for 29 percent of sales in June; they were 30 percent in May and 24 percent in June 2010; investors account for the bulk of cash purchases.
First-time buyers purchased 31 percent of homes in June, down from 36 percent in May; they were 43 percent in June 2010 when the tax credit was in place. Investors accounted for 19 percent of purchase activity in June, unchanged from May; they were 13 percent in June 2010.
The balance of sales was to repeat buyers, which were a 50 percent market share in June, up from 45 percent in May, which appears to be a normal seasonal gain.
Single-family home sales were unchanged at a seasonally adjusted annual rate of 4.24 million in June, but are 7.4 percent below a 4.58 million pace in June 2010. The median existing single-family home price was $184,600 in June, up 0.6 percent from a year ago.
Existing condominium and co-op sales fell 7.0 percent to a seasonally adjusted annual rate of 530,000 in June from 570,000 in May, and are 18.0 percent below the 646,000-unit level a year ago. The median existing condo price5 was $182,300 in June, up 1.8 percent from June 2010.
Regionally, existing-home sales in the Northeast fell 5.2 percent to an annual pace of 730,000 in June and are 17.0 percent below June 2010. The median price in the Northeast was $261,000, up 3.1 percent from a year ago.
Existing-home sales in the Midwest rose 1.0 percent in June to a pace of 1.04 million but are 14.0 percent below a year ago. The median price in the Midwest was $147,700, down 5.3 percent from June 2010.
In the South, existing-home sales increased 0.5 percent to an annual level of 1.86 million in June but are 5.6 percent below June 2010. The median price in the South was $159,100, down 0.1 percent from a year ago.
Existing-home sales in the West declined 1.7 percent to an annual pace of 1.14 million in June and are 2.6 percent below a year ago. The median price in the West was $240,400, up 9.5 percent from June 2010.
The National Association of Realtors®
Friday, June 3, 2011
Dallas Mortgage Fraud Ringleader Sentenced to 11 Years
DALLAS BUSINESSMAN, ERIC RULACK FARRINGTON,
SENTENCED TO 11 YEARS IN FEDERAL PRISON, FOR ORCHESTRATING
MULTI-MILLION DOLLAR MORTGAGE FRAUD SCHEME
Farrington is Last Defendant to Be Sentenced in Case
News Station Investigation: Farrington Fraud: MyFoxDFW.com
DALLAS — Eric Rulack Farrington, 58, of Irving, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to 132 months in federal prison for largely orchestrating a multi-million dollar mortgage fraud scheme in the Dallas area, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Judge Lindsay also ordered that Farrington pay approximately $2.5 million in restitution and forfeit approximately $1.2 million to the U.S. Farrington, along with seven other defendants, were convicted in April 2010, following a nearly two-month long trial on various felony offenses related to the fraud scheme that they operated in the Dallas area from March 2002 until January 2006. He is the last defendant in this case to be sentenced and was ordered to surrender to the Bureau of Prisons on September 6, 2011.
The jury convicted Farrington on all 32 counts of the superseding indictment, including: one count of conspiracy to commit wire fraud, one count of bank fraud and aiding and abetting, 15 counts of wire fraud and aiding and abetting, 10 counts of money laundering and aiding and abetting and five counts of engaging in a monetary transaction with criminally derived property and aiding and abetting. Farrington was the president of Eric Farrington Seminars, Inc. and Prestige Capital Corporation, which did business as Farrington Mortgage Group. He was also a manager of EFC Investments, LLC, which did business as EFC Management Company. All were located in Dallas.
Farrington’s former fiancé, Janice Little Shepherd, 51, of Irving, Texas, a mortgage broker who did business as EFC Capital Mortgage Company, was sentenced yesterday by Judge Lindsay to five years in prison and ordered to pay $1,564,498 in restitution and forfeit approximately $1.2 million to the U.S. She was convicted at trial on one count of conspiracy to commit wire fraud, 11 counts of wire fraud and aiding and abetting and four counts of engaging in a monetary transaction with criminally derived property and aiding and abetting. She was also ordered to surrender to the Bureau of Prisons on September 6, 2011.
Other defendants convicted and sentenced in the scheme include:
∙ Regis Lamont Williams, 45, of Dallas, was a Texas certified real estate appraiser who did business as Executive Certified Appraisal. He was convicted on one count of conspiracy to commit wire fraud, one count of bank fraoud and aiding and abetting, nine counts of wire fraud and aiding and abetting and five counts of engaging in a monetary transaction wtih criminally derived property and aiding and abetting. He was sentenced on April 28, 2011 to 46 months in prison and ordered to pay approximately $1 million in restitution and forfeit approximately $1.2 million to the U.S. In addition, the U.S. Attorney’s office will send a copy of his judgment order to the Texas Appraiser Licensing and Certification Board for whatever action they deem appropriate.
∙ Kevin Ray Sanderson, 36, of Irving, Texas, was a business associate of Farrington and the vice president of Farco Construction, Inc., Dallas, which also did business as Farrington Mortgage Group. He was convicted on one count of conspiracy to commit wire fraud, one count of bank fraud, four counts of wire fraud and aiding and abetting and one count of money laundering. Earlier this week he was sentenced to 57 months in prison and ordered to pay $762,983 restitution, and forfeit approximately $1.2 million to the U.S.
∙ James Edward Jones, 45, of Dallas, was a real estate agent. He was convicted on one count of conspiracy to commit wire fraud and two counts of wire fraud and aiding and abetting. On August 27, 2010, he was sentenced to 30 months in prison and ordered to pay $624,414 restitution and forfeit approximately $1.2 million to the U.S.
∙ Edwin Terrence Bell, 44, of Fort Worth, Texas, was in the real estate management business and was the president of Togetherness, Inc. Bell also did business as The Togetherness Group and TTG, Inc. He was convicted on one count of conspiracy to commit wire fraud, five counts of wire fraud and aiding and abetting and two counts of engaging in a monetary transaction with criminally derived property and aiding and abetting. On August 27, 2010, he was sentenced to 41 months in prison and ordered to pay $442,604 in restitution and forfeit approximately $1.2 million to the U.S.
∙ Micheal (sic) Lewis Andrews, 51, of Plano, Texas, was chief executive officer of Second Chance Mortgage, Inc. and did business as 2nd Chance Mortgage. He was convicted on two counts of wire fraud and aiding and abetting. He was sentenced last week to 24 months in prison and ordered to pay $108,659 in restitution.
∙ Robert John Mason, 56, of Oak Leaf, Texas, was an employee of Prestige Capital Corporation. He was convicted of two counts of wire fraud and aiding and abetting. He was sentenced in July 2010 to 30 months in prison and ordered to pay $463,722 in restitution.
Prior to trial, Marcus Allen Parker, 36, of Rowlett, Texas, who was an associate of defendant Kevin Ray Sanderson, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced in July 2010 to three years probation.
The scheme was largely orchestrated by Farrington - a motivational speaker and author of a real estate book who had an infomercial on making money in real estate that ran on late night television. The defendants located single-family residences for sale in the Dallas area, including distressed and pre-foreclosure properties, and negotiated a sales price with the seller. They created surplus loan proceeds by inflating the sales price to an arbitrary amount substantially more than the fair market value of the residence, many times using inflated appraisals. In some cases, they would create a bogus outstanding mortgage lien to be discharged. They recruited individuals with high credit scores to act as borrowers and falsely represented to them that the property would be managed by the defendants and rented by a suitable tenant; that the mortgage, interest, taxes, insurance and property maintenance would be paid from the rental income; and the purchasers/borrowers would have no expenses. The borrowers had no intention to live in the property and did not have sufficient income to repay the loans. They said they relied on Farrington.
The defendants prepared and submitted fraudulent loan documents showing inflated incomes in the names of the borrowers and obtained loans in inflated amounts based on these fraudulent loan documents. Then they used the fraudulently obtained surplus loan proceeds to pay the sellers kickbacks, to conceal the fraud, and distributed the bulk of the proceeds among themselves. They would then allow the loan to go into foreclosure after a few payments were made on the loan.
Some of the residences used in the scheme include:
1420 Travis Circle South, Irving, Texas
6231 Azalea Lane, Dallas
7730 Cliffbrook Drive, Dallas
10907 Cinderella Lane, Dallas
7617 Arborgate Drive, Dallas
13735 Ashridge Drive, Dallas
6824 Winterwood Lane, Dallas
6840 Winterwood Lane, Dallas
6915 Winterwood Lane, Dallas
7012 Creek Bend Road, Dallas
1509 Appalachian Drive, Allen, Texas
Mortgage fraud is a major focus of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
U.S. Attorney Jacks praised the investigative efforts of the FBI and Internal Revenue Service - Criminal Investigation and the cooperation of several state agencies including the Texas Department of Savings and Mortgage Lending and the Texas Appraiser Licensing and Certification Board. Assistant U.S. Attorneys Joseph Revesz and Walt Junker prosecuted the case.
Thursday, June 2, 2011
In Texas, Tighter Restrictions on Eminent Domain
Texas legislation tightens restrictions on state and local governments' ability to invoke eminent domain authority to convert private property for public use.
The legislation, Senate Bill 18, requires government entities to make reasonable purchase offers to landowners for their property, allows landowners to buy their land back at the original price 10 years later if it isn't used by then, and adds criteria that agencies must meet before declaring eminent domain over private property.
The Texas Association of Realtors has actively supported eminent domain reform for years. Chairman Dwight Hale explained, "The exercise of eminent domain, while considered a necessary tool of government by some, has been argued to have been expanded and used in improper ways by others. We commend Governor Perry for closing loopholes that have allowed for eminent domain abuses in the past and strengthening property owners' rights for the future."
SOURCE Texas Association of Realtors
The legislation, Senate Bill 18, requires government entities to make reasonable purchase offers to landowners for their property, allows landowners to buy their land back at the original price 10 years later if it isn't used by then, and adds criteria that agencies must meet before declaring eminent domain over private property.
The Texas Association of Realtors has actively supported eminent domain reform for years. Chairman Dwight Hale explained, "The exercise of eminent domain, while considered a necessary tool of government by some, has been argued to have been expanded and used in improper ways by others. We commend Governor Perry for closing loopholes that have allowed for eminent domain abuses in the past and strengthening property owners' rights for the future."
SOURCE Texas Association of Realtors
Thursday, May 19, 2011
Home Sales by Foreign Buyers Surge
The U.S. continues to remain a top destination for foreign buyers as international purchases surged by $16 billion this year, one of the highest increases in recent years. This is according to the National Association of REALTORS®’ 2011 Profile of International Home Buying Activity.
According to the survey, total residential international sales in the U.S. for the past year ending March 2011 equaled $82 billion, up from $66 billion in 2010. Total international sales were split evenly between non-resident foreigners and recent immigrants, while combined total domestic and international existing-home sales in the U.S. reached $1.07 trillion.
Recent international buyers came from 70 different countries, up from 53 countries in 2010. For the fourth consecutive year, Canada was the top country of origin, with 23 percent of sales to foreigners. China was the second most popular country of origin, with nine percent of international sales this year. Tied for third were Mexico, the U.K., and India. Argentina and Brazil combined reported an increase in foreign sales with five percent, up from two percent in 2010. The top five countries of origin accounted for 53 percent of international transactions in 2011.
The average price paid by an international buyer was $315,000 compared to the overall U.S. average of $218,000.
The four states with the heaviest concentration of international buyer activity have remained the same over the past five years. Florida had 31 percent of total international transactions this year, the most of any state. California had 12 percent, Texas had nine percent, and Arizona rounded out the top four with six percent of international transactions.
Source: National Association of REALTORS
According to the survey, total residential international sales in the U.S. for the past year ending March 2011 equaled $82 billion, up from $66 billion in 2010. Total international sales were split evenly between non-resident foreigners and recent immigrants, while combined total domestic and international existing-home sales in the U.S. reached $1.07 trillion.
Recent international buyers came from 70 different countries, up from 53 countries in 2010. For the fourth consecutive year, Canada was the top country of origin, with 23 percent of sales to foreigners. China was the second most popular country of origin, with nine percent of international sales this year. Tied for third were Mexico, the U.K., and India. Argentina and Brazil combined reported an increase in foreign sales with five percent, up from two percent in 2010. The top five countries of origin accounted for 53 percent of international transactions in 2011.
The average price paid by an international buyer was $315,000 compared to the overall U.S. average of $218,000.
The four states with the heaviest concentration of international buyer activity have remained the same over the past five years. Florida had 31 percent of total international transactions this year, the most of any state. California had 12 percent, Texas had nine percent, and Arizona rounded out the top four with six percent of international transactions.
Source: National Association of REALTORS
Wednesday, May 18, 2011
Gas Prices Influence Home Buying Decisions
The rise in gas prices is influencing buyer decisions as they shop for a new home, causing more buyers to make short commutes and home offices a top priority, according to a new survey of more than 1,000 of its real estate professionals about buyer trends.
Seventy-five percent of those surveyed say the spike in gas prices is influencing their clients’ decisions on where to live. What’s more, if gas prices continue to increase, 93 percent predict that even more buyers will choose to live somewhere closer to their work. Gas prices are topping $4 a gallon and higher, and are up about 30 percent over last year, which is starting to put a dent in many Americans’ pocketbooks.
Additionally, the rise in gas prices is prompting more buyers to look for homes that will allow them to work-from-home. Indeed, 77 percent of those surveyed say that more of their buyers are showing an interest in having a home office compared to five years ago. Gas prices also seem to be spiking a renewed interest in urban living.
More than half of real estate professionals surveyed say they are seeing more buyers wanting to target homes in urban areas compared to five years ago, citing shorter commute times, being able to walk to more places, and being near public transportation as the most likely reasons for the urban-area migration. More buyers are also choosing homes closer to shops and services due to the increase in gas prices, according to the survey.
Source: “In Consumer Behavior, Signs of Gas Price Pinch,” The New York Times (May 17, 2011)
Seventy-five percent of those surveyed say the spike in gas prices is influencing their clients’ decisions on where to live. What’s more, if gas prices continue to increase, 93 percent predict that even more buyers will choose to live somewhere closer to their work. Gas prices are topping $4 a gallon and higher, and are up about 30 percent over last year, which is starting to put a dent in many Americans’ pocketbooks.
Additionally, the rise in gas prices is prompting more buyers to look for homes that will allow them to work-from-home. Indeed, 77 percent of those surveyed say that more of their buyers are showing an interest in having a home office compared to five years ago. Gas prices also seem to be spiking a renewed interest in urban living.
More than half of real estate professionals surveyed say they are seeing more buyers wanting to target homes in urban areas compared to five years ago, citing shorter commute times, being able to walk to more places, and being near public transportation as the most likely reasons for the urban-area migration. More buyers are also choosing homes closer to shops and services due to the increase in gas prices, according to the survey.
Source: “In Consumer Behavior, Signs of Gas Price Pinch,” The New York Times (May 17, 2011)
Tuesday, April 12, 2011
Remodeling Project Return on Investment - Dallas
The Cost vs. Value home remodeling report for 2010-11 is now available. Published by Remodeling magazine, this study lists which home improvement projects in 80 US markets retained their value at resale.
Project types are separated into "Midrange" and "Upscale" and detail the job's cost, resale value, and percentage of cost recouped at the time of resale.
In Dallas, the midrange project with the greatest return is entry door replacement. At a job cost of $1,045 and resale value at $1,415, the cost recouped is 135.3%. The upscale project retaining the most value was a grand entrance redo, at a cost of $6,800, resale value of $5,218 and cost recoup of 76.7%.
Bottom line? First impressions are lasting impressions, and it's worth the money and time to invest in a safe and attractive entrance to your home.
Source: Remodeling 2010-11 Cost vs. Value Report www.costvsvalue.com
Tuesday, March 8, 2011
What Would You Do?
We could all use a little help with a home improvement project! Here's a chance to win $25,000 from Better Homes and Gardens.
Tuesday, March 1, 2011
Small Bath Remodel - Age Appropriate
Here is a step-by-step "manual" for a bath remodel that completely updates the room while staying true to the archictural time period of the home. Note how the use of earthy brown (not usually the average choice for a small bath paint) creates a cozy, relaxing atmosphere!
http://www.lowescreativeideas.com/idea-library/projects/cottage_bath_update_0110.aspx?cm_mmc=email_newsletter-_-realtor_121310-_-num1-_-num
http://www.lowescreativeideas.com/idea-library/projects/cottage_bath_update_0110.aspx?cm_mmc=email_newsletter-_-realtor_121310-_-num1-_-num
Friday, January 28, 2011
2011 Housing Forecasts
What's in store for the housing market in 2011? Since 2006, the number of homes sold has fallen each year in Texas. Sales for 2010, however, hovered closer to 2009 levels. Does this mean the beginning of the end of the market slump? Economists Mark Dotzour and James Gaines from Texas A&M University weigh in.
JOB GROWTH
According to Dotzour and Gaines, Texas needs at least a 2% job rate increase to stimulate new households and encourage buyers to the market.
PRICES
The median home price in Texas did well in 2010 compared to the rest of the country. Dotzour and Gains predict that median will increase slightly by the end of 2011.
INTEREST RATES
Rates should stay relatively low to stimulate economic activity. As the year rises, though, we should notice a rate increase. If buyers expect rates to increase, they may feel pressure to buy sooner rather than later.
LOCAL MARKETS
There is little risk of overemphasizing that real estate is a local market. Even within Texas, housing has performed differently. When looking at the DFW area, many neighborhoods have fared better than others during the past few years. It's important that as a buyer or seller, you seek reliable data from a real estate professional who is well acquainted with the sales performance of your particular neighborhood. Foreclosures and distressed sales have significant impact on price per square foot, as does new construction.
BUYER EXPECTATIONS
Consumer attitude plays a substantial role in housing. Today's buyer expectations are as fragile as our recovering economy. Whether realistic or not, buyers' views on pricing, condition, interest rates, and loan availability will ultimately determine the 2011 market.
In Dallas, expect modest increases in home sales and prices. Economic indicators point toward a slow overall improvement in the economy and relatively stable interest rates. Home ownership has always proved beneficial in the long run.
Source: Texas Realtor Jan/Feb 2011
JOB GROWTH
According to Dotzour and Gaines, Texas needs at least a 2% job rate increase to stimulate new households and encourage buyers to the market.
PRICES
The median home price in Texas did well in 2010 compared to the rest of the country. Dotzour and Gains predict that median will increase slightly by the end of 2011.
INTEREST RATES
Rates should stay relatively low to stimulate economic activity. As the year rises, though, we should notice a rate increase. If buyers expect rates to increase, they may feel pressure to buy sooner rather than later.
LOCAL MARKETS
There is little risk of overemphasizing that real estate is a local market. Even within Texas, housing has performed differently. When looking at the DFW area, many neighborhoods have fared better than others during the past few years. It's important that as a buyer or seller, you seek reliable data from a real estate professional who is well acquainted with the sales performance of your particular neighborhood. Foreclosures and distressed sales have significant impact on price per square foot, as does new construction.
BUYER EXPECTATIONS
Consumer attitude plays a substantial role in housing. Today's buyer expectations are as fragile as our recovering economy. Whether realistic or not, buyers' views on pricing, condition, interest rates, and loan availability will ultimately determine the 2011 market.
In Dallas, expect modest increases in home sales and prices. Economic indicators point toward a slow overall improvement in the economy and relatively stable interest rates. Home ownership has always proved beneficial in the long run.
Source: Texas Realtor Jan/Feb 2011
Thursday, January 27, 2011
Want to Buy and Refurbish a Home?
It's still possible to obtain financing to purchase and then renovate a home. Here are some highlights from a program available from one lender--
One-Time Close Renovation/Mortgage Loans
-Convenience--one application, one approval, and one closing for both the renovation and the permanent loans
-Convenience--one application, one approval, and one closing for both the renovation and the permanent loans
-Cost savings--only one set of closing costs
-Tax benefits--interest paid during the life of the loan may be tax deductible
-Loans up to $1,000,000 or more
-Extended rate lock for up to 18 months
-Loans available for primary or secondary residences
Please call Alan at BBVA Compass for information: 214-695-9546
Thursday, January 20, 2011
Let's Wrap About Insulation
Insulation, while not glamorous, plays an important role in your home's overall energy efficiency and value. Buyers will look in the attic to see if your home is properly insulated.
The type of insulation recommended for your attic and wall spaces depends on your home's construction and location.
Here is an excellent webpage to use as a resource: http://www.costhelper.com/cost/home-garden/insulation.html
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