Dallas Home Inventory Low; Demand, Prices High in Q3
The Texas housing market is showing remarkable signs of growth even as 2013 draws to a close with demand and home prices through the roof thanks in part to historically low inventory levels.
The Texas Quarterly Housing Report from the Texas Association of REALTORS® revealed that the third quarter of 2013 saw historic highs in demand prices and historic lows in inventory.
“In the fall, Texas REALTORS® usually start to catch their breath as the summer selling season draws to a close, but not this year,” said Shad Bogany, chairman of the Texas Association of REALTORS®. “Demand for Texas homes remains strong and prices are increasing, keeping buyers and sellers in the market, and Texas REALTORS®, busy.”
Additionally, a total of 80,105 single-family homes were sold in the Lone Star State in the third quarter this year, which was nearly 19 percent higher when compared to the same quarter last year and the second straight quarter where the highest volume of homes were sold since the inception of the association’s report in 2009.
Helping spur demand was a low housing inventory. Jim Gaines, economist at the Real Estate Center at Texas A&M University put it in perspective as some of the larger Texas markets, Dallas included, featured remarkably low figures in terms of months required to sell off remaining inventory. Of the 47 markets surveyed, 10 have less than three months of inventory remaining.
New home building into 2014 should curb some of the declines seen in the inventory in Dallas and other parts of North Texas. This will also help spur housing activity as buyers will have more options to choose from when new home shopping.
Everyone knows that the mortgage plays an integral part of the home buying process. Our team of experienced Dallas mortgage professionals would love to assist you on your journey. Contact us today.
Texas Popular Among Overseas Investors
It’s been well documented that Texas is a much sought-after destination for individuals from other parts of the country, but a new report from the Texas Association of Realtors reveals that the Lone Star State is also incredibly attractive to international buyers.
The Texas International Home Buyers Report found that international home buyers spent more than $6.13 billion in the Texas economy between March 2012 and March 2013. Taking a look at more housing specific data, the report found that international buyers comprised 6.3 percent of total U.S. home sales during that year with Texas counting for 9 percent, or $6.13 billion of that sales volume.
“International home sales are a key component to the Texas real estate industry and our economy,” said Shad Bogany, chairman of the Texas Association of Realtors. “In recent years, we’ve seen increasing interest in international real estate opportunities, both international homebuyers purchasing property here in the U.S. and Americans purchasing property internationally.”
Bogany added that with international home sales on the rise in Texas, the Texas Association of Realtors is doing its part to ensure that there are greater educational opportunities for property owners in the state when it comes to international markets.
International interest in U.S. properties has been a hot topic ever since the economic downturn and housing recession, with overseas buyers interested in snatching up ultra low-priced homes and flipping them for a profit. Now that the housing market and economy are well on their way toward recovery, these international investors are interested in Texas property for the purpose of living there as a primary residence or a second home.
Whether you’re from Texas, another state in the country or are from overseas, we understand why you’d like to call the Lone Star State home and would like to make your dream of living here come true. Contact us today to learn more about North Texas and Dallas real estate opportunities.
Texas Attracting New Home Buyers from Other States in Droves
The Texas housing market has benefited from affordable home prices and cost of living compared to the rest of the nation, but it’s also a great place for business, driving many corporations to relocate headquarters and establish new office locations in the Metroplex and Dallas areas.
The Texas Association of Realtors recently issued its Texas Relocation Report, which found that Texas leads the nation in relocation activity and could even be described as a “domestic migration destination.”
“Data from the Texas Relocation Report shows that the continued growth of the Texas housing market is not a housing bubble but a genuine surge in demand fueled by job and population growth across the state,” said Shad Bogany, chairman of the Texas Association of Realtors. “People are moving, and they’re moving to Texas. Clearly, Texas is a domestic migration destination.”
Taking a closer look at the numbers we see that the Lone Star State experienced a net gain of 9,100 households moving into its boundaries when compared to Texas households moving to other states.
Drilling down further on the state map, Dallas County was listed as one of the most desirable of Texas counties in terms of mobility, ranking second as the most mobile Texas county. I don’t exactly know how they come up with this, but as a Dallas county resident, I will happily accept the 2nd place ranking.
As if the Texas Association of Realtors report wasn’t enough, a corroborating report from U-Haul found similar results as Texas was determined to be the No. 2 state in the country in 2012 when it came to growth.
So what makes the Lone Star State so desirable? There is no state income tax which is a great starting point. Couple that with a strong and growing work force and a centrally located geographic presence for national corporations, you’re looking at a powerful hub to create and attract new business and job growth. The barbecue and Tex-mex may also help….
If you or someone you know is relocating to the Dallas area, we’d love to be a resource. Not only can we help secure a great mortgage loan, but we have great contacts in the state ranging from Real estate, insurance, moving companies, and concierge. Contact me today to learn more about the Texas real estate and mortgage market, 972-499-0454.
NAR Reports Pending Home Sales Rise Year-Over-Year in the South
The National Association of Realtors is reporting that pending home sales slowed some in August, but in the South region, which includes Texas, pending home sales grew 3.7 percent on a year-over-year basis.
“Sharply rising mortgage interest rates in the spring motivated buyers to make purchase decisions, culminating in a six-and-a-half-year peak for sales that were finalized last month,” said Lawrence Yun, chief economist at the NAR. “Moving forward, we expect lower levels of existing-home sales, but tight inventory in many markets will continue to push up home prices in the months ahead.”
However, it’s important to keep in mind that mortgage rates have trended downward over the past several weeks, and since NAR’s data only represents August, these new mortgage trends should have different effects on home prices and sales as 2013 draws to a close.
The end of the year is typically slow buying season both in Texas and elsewhere in the country, but lower mortgage rates could further influence buying activity in the inverse way that rising mortgage rates do. Yun hints that rising mortgage rates motivate potential buyers to make a new home purchase before rates go any higher. However, potential home buyers can also be motivated by low mortgage rates as they are more inclined to make a new home purchase before rates have the opportunity to increase.
Even with a tight inventory and fluctuating mortgage rates, Texas features one of the hottest housing markets in the country, especially in the Dallas metro area. In the Dallas – Plano – Irving market, home prices rose more than 10 percent on a year-over-year basis, showing that mortgage rate trends aside, Texas home buyers are hungry and are not letting anything deter them from making a new home purchase.
If you’d like to learn more about Dallas mortgages, contact me today. I’m a licensed mortgage professional serving the greater Dallas area and would love to show you around.
Dallas Housing Market Heats Up
The Dallas area is a hotbed of housing market activity even as the summer buying season draws to a close, and the result has left area real estate agent scrambling to keep up with burgeoning demand.
“It’s crazy all over the country,” Jay Thompson with online real estate marketing firm Zillow Inc, told The Dallas Morning News concerning the housing market. “What I hear consistently is a lack of inventory, homes going under contract in days and multiple offers. I don’t know if that that’s a healthy market – it’s brutal.”
Part of the growing activity could be attributed to the growing influence of web-based home buying and selling. Now more than ever, interested buyers and sellers are doing their early research and even getting as close as possible to finalizing a deal by perusing web-based listings. In short, they’re not wasting their time visiting homes for sale based on a description or agent pitch, but instead looking at detailed history, photos and layouts of the homes online before taking the next step.
State of the Dallas housing market
The Dallas housing market has reflected the overall national housing market and its growth over the past year with home sales and prices bolstered by diminishing inventory and frenzied demand.
With fewer foreclosed properties on the market, and a limited amount of homes with equity for sale, potential buyers are flooding the market and competing for homes, driving up prices. Also, the employment and overall economic picture is brightening, leading to even more potential buyers.
Some experts predict that this trend will not and can not last for much longer, so it might be best to take advantage of the market now while conditions are ripe, because there’s no telling where the industry will be six months or a year from now.
Contact us today to learn more about your options in the Dallas real estate market.
Dallas Home Values Continue to Trend Up
For those hoping to secure a Dallas mortgage loan, it should be accepted that this is one of the hottest real estate markets in the nation. Dallas home values have been trending up all year, thanks largely to low inventory rates, huge buyer demand and great Dallas mortgage rates for much of the year that have had the market in somewhat of a feeding frenzy. To further break down just how valuable getting a Dallas mortgage loan can be, a look at recent trends might give some insight as to the direction of this vastly upward-trending real estate market.
Data from an August 2 report from California-based real estate tracking company Altos Research saw the median home list price for Dallas home at $337,912. This number has been climbing since February of this year, and is up enormously from about $270,000 at the beginning of 2013. Yes, Dallas homes have become a remarkably solid investment over the past year.
The market action index (MAI) is also indicative of how well Dallas homes are performing, with Dallas’ MAI of 37.9 also trending up as of that report and clearly indicating a seller’s market. As for what this number means, it’s a reflection of supply and demand for Dallas homes, with any number below 30 representing a buyer’s market and any number above 30 representing a seller’s market.
Dallas home inventory has remained relatively flat over the past few months since trending downward at the beginning of the year, making Dallas homes more in-demand. With Altos listing 2,452 properties on the market for its August 2nd report, it’s clear that those looking to secure a Dallas mortgage loan could benefit greatly from the assistance of a Dallas mortgage professional in this intense seller’s market.
Additionally, findings saw days on market (DOM) for Dallas homes at a fairly stable level over the past few months, with the current DOM at 120. This is down, however, from about 160 as recently as March, indicating that homes are being absorbed more quickly.
If you’d like to hear more about Dallas mortgage options, please contact our team of Dallas mortgage professionals. It would be our pleasure to assist you.
Plano and Dallas Housing Markets on the Rise
For those with Plano and Dallas homes, things may have just went from good to better in terms of the value those homes have netted during the 2012-2013 real estate boom. A recent report in the Dallas Morning News saw Plano home values rising tremendously, and pretty much the rest of the Dallas area also performing quite well in the single-family home sector.
Findings in the article included the fact that most Dallas neighborhoods have seen home prices go up by 10 percent or more in 2013 alone—not even taking into account how much those values rose when the market began to heat up in mid-2012. Also, pre-owned Dallas home sales are 20 percent higher year-over-year, marking a record for North Texas gains over a six month period.
Beyond this, a piece of extremely reassuring news is that analysts cited in the article predicted that Dallas home values should continue to increase through the end of 2013, regardless of what is happening with Dallas mortgage rates. These same analysts also said they did not think worry about a housing bubble bursting was a legitimate concern at the moment.
As for the aforementioned growth in the Plano home values, the Texas A&M Real Estate Center and North Texas Real Estate Information Systems reported that 1,886 Plano homes sold in the first six months of 2013. Pitting that number against last year’s postings for the first half of the year, the Plano home market saw a whopping 24 percent increase.
The Plano home market also saw a $249,850 median list price, which was up 9 percent from last year, and is way above the market average in the Dallas area, according to the Dallas Morning News. On top of this, the 1.7 months of inventory reported in Plano could suggest a buyers’ market, the paper reports. Overall, the ability to find a great Plano home or net huge profits on your Plano home both seem like available options at the moment.
Interested in hearing more about Dallas mortgage loans or mortgage plans in the Dallas area? Please contact our team of expert Dallas mortgage professionals. It would be our pleasure to assist you in finding the best available mortgage plan for your unique needs.
National Home Values Continue to Climb
In a trend that should be a pleasant surprise to all those with a Dallas mortgage loan or those looking to make their Dallas homes for sale, a recent study saw national home values increasing through May of 2012. For anyone who took out a mortgage on a Dallas home during the worst of the recession, the real estate boom of the last year could mean extreme net profits in your Dallas home’s value, and with inventory rates low, this also bodes very well for those looking to put their Dallas home on the market.
The S&P/Case-Shiller home price index is one of the most trusted sources around when it comes to real estate trends and values, and its recent report saw national home prices in May at 12.2 percent higher than during the same month a year ago. This is also up from April, when the year-over-year home value gain was up 12.1 percent. But what’s most important about this recent finding is that the 12.2 percent gain in May is higher than at any time since March of 2006 in terms of year-over-year gain on monthly home values.
The S&P/Case-Shiller also reported that as recently as a year ago, the index had shown a 12-month drop in prices, and things were looking beyond grim for the Dallas home market and the national market at large. But shortly after, prices took off thanks in part to low Dallas mortgage rates, and ever since June of 2012 prices have increased each month over the past month. This is a fantastic gain for the Dallas home market, and is indicative of the economic rebound that can be seen not just in the real estate market, but in the job market and across the Dallas metro area.
Are you interested in finding a great Dallas mortgage plan? Our team of Dallas mortgage professionals would be happy to assist you with all your Dallas mortgage needs. Please contact us so that we can go over all the mortgage opportunities available for your unique homeowner situation.
Second Quarter Dallas-Fort Worth Home Building Hits Five-Year High
The Dallas-Forth Worth area has seen home prices rise greatly in the first half of 2013. One of the lead contributors to the rising home prices has been a lack of available home inventory. Much like other areas of the country, the Dallas and Forth Worth homes for sale continue to sell in a matter of days with prices moving higher. The demand for homes has greatly outpaced supply, marking nearly the entire Metroplex as a decided seller’s market. In spite of rising prices and low inventory, home builders are doing their best to keep up with the pace as a new market report by Metrostudy saw a record number of home starts for the second quarter of 2013.
In the 11-county area of Dallas-Fort Worth, Metrostudy reported construction on 5,937 homes between April and June. This is the most homes started in a quarter since the 5,971 in the second quarter of 2008. The regional director at the DFW office of Metrostudy confirmed and explained the trend, saying, “Home builders continued to report strong year-over-year gains in net sales during the quarter. Builders responded by starting more new homes during the second quarter than any time during the last five years.”
A great deal of this activity came specifically in the area of north Fort Worth, with 668 home starts there in the second quarter—up 59 percent from the same time in 2012.
In related news, the Dallas-Forth Worth home market also saw a large number of homes closed upon by buyer’s in the second quarter, signaling why developers are feeling so comfortable with these new home-building projects. Dallas-based Residential Strategies reported that a 25 percent increase on new home closings had occurred in the area in the second quarter, taking down the amount of available finished homes in the area to a current count of 2,653, down from 3,141. “Most builders carry a very limited supply of speculative homes these days,” said Ted Wilson of Residential Strategies. “Finished homes are moving quickly today.”
To hear more about how you can leverage home trends in the Dallas-Fort Worth area through a mortgage plan that fits your unique goals, please contact us today. We are local mortgage professionals and would be happy to assist you.
What are Home Buyers Looking for in Your Dallas Home?
As the older generation retires, generations X and Y are entering the real estate market and changing the game. There will always be timeless necessities of a house, but the younger generations searching for real estate currently have different needs and are accustomed to a different, more high-tech lifestyle than the older generation. If you’re looking to selling your Dallas home, you may consider making some renovations to accommodate this new high-tech lifestyle. According to FOX News, first-time home buyers are shifting from being mostly recently married couples to single professionals and a large percentage of people working from home. Here are some features you can expect to see requested more frequently by home buyers in the coming years.
- Technology has boomed significantly in the last 20 years. Everything is either getting faster, smaller, thinner or more automated. This young generation is particularly tech-savvy, according to Better Homes and Gardens Real Estate, and are not only using this new technology to aid them in the search for their new home, but expect to use this technology in their homes as well. Home buyers of the younger generations have reported that they would rather have a media room with a high-definition television and surround sound than a dining room, as well as “smart” features around the rest of the house to control door locks, the temperature and monitor the house and family.
- A topic that has sparked some debate over real estate investors and buyers is the prospect of adding a home office. On one side of the fence, adding a home office with built-in shelves and a large desk can put off buyers by taking away a space that could have been an extra bedroom or a room used for other means. On the other side, the percentage of people working from home is growing and many home buyers have reported that they would like a dedicated space for their computing needs. In fact, the number of people working from home has increased by 41% in the past decade, according to CNN.
For more on mortgage questions in the Dallas area, feel free to get in touch with us. We are a team of mortgage professionals who would be happy to assist you with all your buying and selling needs.