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
Friday, January 28, 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
Tuesday, November 9, 2010
Mortgage Rates Return to Record Low
Mortgage rates revisited record lows this week, with the average rate on the benchmark conforming 30-year fixed mortgage rate returning to 4.42 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.
The average 15-year fixed mortgage hit a new low of 3.81 percent, and the larger jumbo 30-year fixed rate did as well, sinking to 5.04 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM falling to 3.57 percent and the average 7-year ARM retreating to 3.87 percent. Mortgage rates fell back into record low territory this week. The Federal Reserve has announced another injection of $600 billion over the next 8 months, but it remains to be seen if this is enough to push Treasury yields and mortgage rates lower, and if so, by how much. Even if the Fed is successful in pushing rates lower, it doesn't alter the fact that many would-be borrowers are upside-down, living on a reduced income, or concerned about a lack of job security.The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.42 percent, the monthly payment for the same size loan would be $1,003.89, a savings of $238 per month for a homeowner refinancing now.
SURVEY RESULTS
30-year fixed: 4.42% -- down from 4.51% last week (avg. points: 0.37)
15-year fixed: 3.81% -- down from 3.90% last week (avg. points: 0.28)
5/1 ARM: 3.57% -- down from 3.67% last week (avg. points: 0.34)
30-year fixed: 4.42% -- down from 4.51% last week (avg. points: 0.37)
15-year fixed: 3.81% -- down from 3.90% last week (avg. points: 0.28)
5/1 ARM: 3.57% -- down from 3.67% last week (avg. points: 0.34)
(Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.)
Source: RISMEDIA 11/9/10
Thursday, October 14, 2010
HUD Awards $100 Million in Grants
WASHINGTON – For the first time ever, the U.S. Department of Housing and Urban Development (HUD) is awarding nearly $100 million in new grants to support more livable and sustainable communities across the country. HUD Secretary Shaun Donovan today announced that 45 regional areas will receive funding through a new initiative intended to build economic competitiveness by connecting housing with good jobs, quality schools and transportation.
In Texas, groups in Austin and Houston-Galveston are finalists for awards of $3.7 million.
HUD’s new Sustainable Communities Regional Planning Grant Program will support State, local, and tribal governments, as well as metropolitan planning organizations, in the development and execution of regional plans that integrate affordable housing with neighboring retail and business development. Many of the grants will leverage existing infrastructure and all reward local collaboration and innovation.
“Regions that embrace sustainable communities will have a built-in competitive edge in attracting jobs and private investment,” said Donovan. “Planning our communities smarter means parents will spend less time driving and more time with their children; more families will live in safe, stable communities near good schools and jobs; and more businesses will have access to the capital and talent they need to grow and prosper. In awarding these grants we were committed to using insight and innovation from our stakeholders and local partners to develop a ‘bottom-up’ approach to changing federal policy as opposed to ‘top-down.’ Rather than sticking to the old Washington playbook of dictating how communities can invest their grants, HUD’s application process encouraged creative, locally focused thinking.”
These grants are part of the Obama Administration’s Partnership for Sustainable Communities, which brings HUD, the U.S. Department of Transportation, and the U.S. Environmental Protection Agency together to ensure that the agencies’ policies, programs, and funding consider affordable housing, transportation, and environmental protection together. This interagency collaboration gets better results for communities and uses taxpayer money more efficiently. Coordinating federal investments in infrastructure, facilities, and services meets multiple economic, environmental, and community objectives with each dollar spent. The Partnership is helping communities across the country to create more housing choices, make transportation more efficient and reliable, reinforce existing investments, and support vibrant and healthy neighborhoods that attract businesses. At a time when every dollar the federal government invests in jumpstarting the economy is critical, the President’s plan ensures that all these agencies are coordinating efforts and targeting resources with precision. Reflecting this new collaboration, these grants were judged by a multidisciplinary review team, drawn from eight federal agencies and from partners in philanthropy.
HUD’s inaugural grants under this program will support metropolitan and multi-jurisdictional planning efforts that incorporate housing, land use, economic development, transportation and infrastructure. This holistic planning approach will benefit diverse areas across the U.S. including $25.6 million split evenly between regions with populations less than 500,000 and rural places (fewer than 200,000 people). HUD is reserving $2 million to help all of these areas build the needed capacity to execute their plans.
The grants are awarded through one of two categories. One category of grants will assist regional planning for sustainable development where such plans do not currently exist. A second category of funding will support the implementation of existing sustainability plans.
Shelley Poticha, the director of HUD’s new Office of Sustainable Housing and Communities said, “The response to this program is huge. We were inundated with applications from every state and two territories – from central cities to rural areas and tribal governments. This program was designed by people from local government, and incorporated local input at every stage.”
View a complete list of finalists here.
In Texas, groups in Austin and Houston-Galveston are finalists for awards of $3.7 million.
HUD’s new Sustainable Communities Regional Planning Grant Program will support State, local, and tribal governments, as well as metropolitan planning organizations, in the development and execution of regional plans that integrate affordable housing with neighboring retail and business development. Many of the grants will leverage existing infrastructure and all reward local collaboration and innovation.
“Regions that embrace sustainable communities will have a built-in competitive edge in attracting jobs and private investment,” said Donovan. “Planning our communities smarter means parents will spend less time driving and more time with their children; more families will live in safe, stable communities near good schools and jobs; and more businesses will have access to the capital and talent they need to grow and prosper. In awarding these grants we were committed to using insight and innovation from our stakeholders and local partners to develop a ‘bottom-up’ approach to changing federal policy as opposed to ‘top-down.’ Rather than sticking to the old Washington playbook of dictating how communities can invest their grants, HUD’s application process encouraged creative, locally focused thinking.”
These grants are part of the Obama Administration’s Partnership for Sustainable Communities, which brings HUD, the U.S. Department of Transportation, and the U.S. Environmental Protection Agency together to ensure that the agencies’ policies, programs, and funding consider affordable housing, transportation, and environmental protection together. This interagency collaboration gets better results for communities and uses taxpayer money more efficiently. Coordinating federal investments in infrastructure, facilities, and services meets multiple economic, environmental, and community objectives with each dollar spent. The Partnership is helping communities across the country to create more housing choices, make transportation more efficient and reliable, reinforce existing investments, and support vibrant and healthy neighborhoods that attract businesses. At a time when every dollar the federal government invests in jumpstarting the economy is critical, the President’s plan ensures that all these agencies are coordinating efforts and targeting resources with precision. Reflecting this new collaboration, these grants were judged by a multidisciplinary review team, drawn from eight federal agencies and from partners in philanthropy.
HUD’s inaugural grants under this program will support metropolitan and multi-jurisdictional planning efforts that incorporate housing, land use, economic development, transportation and infrastructure. This holistic planning approach will benefit diverse areas across the U.S. including $25.6 million split evenly between regions with populations less than 500,000 and rural places (fewer than 200,000 people). HUD is reserving $2 million to help all of these areas build the needed capacity to execute their plans.
The grants are awarded through one of two categories. One category of grants will assist regional planning for sustainable development where such plans do not currently exist. A second category of funding will support the implementation of existing sustainability plans.
Shelley Poticha, the director of HUD’s new Office of Sustainable Housing and Communities said, “The response to this program is huge. We were inundated with applications from every state and two territories – from central cities to rural areas and tribal governments. This program was designed by people from local government, and incorporated local input at every stage.”
View a complete list of finalists here.
Wednesday, October 13, 2010
Friday, October 8, 2010
Bank of American Stops Foreclosure Sales
Bank of America just announced it will stop the sales of foreclosure properties in all 50 states. If you are under contract to PURCHASE a foreclosed property, it would be prudent to seek legal counsel.
http://news.yahoo.com/s/ap/20101008/ap_on_bi_ge/us_foreclosure_mess
http://news.yahoo.com/s/ap/20101008/ap_on_bi_ge/us_foreclosure_mess
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