Do Walmart or Target Stores Affect Home Values? Yes.

Research has shown that homes situated near a Trader Joe’s or Whole Foods see significant increases in value. Can big-box retailers have a similar effect?

According to an analysis by housing data leader RealtyTrac®, homes near a Target store see higher home value and appreciation than those near Walmart—but homeowners near Target pay higher property taxes.

Of homeowners who sold last year, those near a Target saw an average 27 percent increase in price since they purchased their home (an average price gain of $65,569); those near a Walmart saw an average 16 percent appreciation (an average price gain of $24,900). Homeowners who own near a Target pay an average of $7,001 in property taxes, which is 123 percent more than the $3,146 average paid by homeowners who own near a Walmart.

Homes near a Target also have a higher value: $307,286, on average. This is 72 percent higher than the $178,249 average value for homes near a Walmart.

Comparatively, the average price appreciation nationwide is 22 percent (an average price gain of $40,626), the average property tax nationwide is $4,283, and the average home value nationwide is $215,921.

Source:  Housecall

What's a Buyer to Do in Dallas?

We have issues in Dallas.  Housing supply issues.  Steady economic growth, low interest rates, and rising rents should have sale prices escalating to record levels.  Low housing inventory is driving up prices and making buyer competition fierce, and bringing the number of sales to record lows.  

This morning, both the Wall Street Journal and USA Today reported on "gridlock" in the housing market that's preventing first-time homebuyers and current homeowners who would like to trade up from realizing their housing goals.

Current entry and mid-level home owners are unable to move up due to soaring prices of both mid-tier and luxury homes.  Although it is a great time to sell, many current homeowners simply cannot afford to trade up now.  Families who would be trading up to a larger home in a "normal" market are, instead, digging in their heels and remodeling to extend the appeal of their current homes.  Since those homeowners aren't selling, hopeful buyers have more limited choices than ever for finding modestly priced preowned properties.

Tight inventory presents an opportunity for new home builders, but those builders are having to purchase land far from the city, even into areas where there aren't sufficient neighborhood schools to handle the influx of families.  Prices for new homes aren't all that appealing for first-time buyers, either.

The bottom line for home buyers is that there are homes available for purchase, but the selection is limited and prices aren't going down any time soon.  Buyers need to adjust their housing expectations to more modest levels and understand that list prices are a mere starting point in this market.  Fierce competition from other buyers means that multiple offers and above-list-price offers are the new normal.  

In 2014, the average home price in Dallas was $365,506. In 2015, the average price rose to $388,460.  So, waiting a year to buy a home cost the average buyer $23,000.*

With home prices expected to continue their escalation well into 2017, waiting to save for a higher down payment or in hopes that the market will cool down could cost thousands in home price a year from now.  Rental prices are soaring, too, so buying a home at a fair price now to live in for a few years is a buyer's best strategy, even if it means settling for something that is not a "perfect" dream home for now.

*Source:  NTREIS

Who's Buying What...a Generational Breakdown

Just 17% of buyers under the age of 35 closed on urban residences, down from 21% a year earlier, according to a recent National Association of Realtors® report on generational trends in home buying and selling.

The luster of urban life may be fading—for some, anyway—due to skyscraper-high prices in top markets. Suburbs exerted a strong pull on buyers of all age ranges. About 51% of millennial home buyers scooped up residences in the suburbs or a subdivision compared with 58% of Generation Xers (ages 36 to 50); 51% of baby boomers ages 51 to 60; 53% of boomers ages 61 to 69; and 42% of the Silent Generation (70 and older).

More information here:  http://www.realtor.com/news/real-estate-news/generational-home-buying-trends/?cid=soc_20160311_59182086&adbid=10154068277097871&adbpl=fb&adbpr=35368227870