Browsing the archives for the Home Buyers category.

Let the Sales Season Begin

City of Dallas, Dallas Real Estate, East Dallas, Economic Outlook, Home Buyers, Home Sale Statistics, Home Sellers, Real Estate, Real Estate Finance, Resources

In a recent article in the Dallas Morning News, Real Estate writer Steve Brown notes:

  • North Texas home prices were up 2 percent in February from 2013.
  • North Texas home sales prices jumped by 13 percent in February.
  • But sales of homes in the area struggled to rise above last year’s levels.
  • The number of pending home sales for March – properties under contract but not yet sold – is down 8 percent from last year.

So why the drop in Home Sales? The cold weather not only slowed down construction, but general market activity, as fewer folks were out looking at houses. In addition, the drop in February home sales is a reflection of a shortage of properties on the market.  At the current inventory levels, it is very much a sellers market and with high demand and low inventory, prices will go up.   Year over year, median home prices in North Texas have seen a 10% increase.

According to the National Association of Realtors®, the Existing-home sales fell in January to the lowest level in a year-and-a-half, but ongoing inventory shortages continue to lift prices in much of the U.S.

Dr. Jim Gaines, an economist from Real Estate Center at Texas A&M University, noted in a recent podcast that there are a few other factors to consider that have contributed to a fundamental shift in the market. At the state level, a  higher proportion of sales activity has shifted to the upper median high to high end  of the market, north of $300K.  Furthermore, in some markets the sales activity in the under $150K price range has declined.  Due to the upward shift into the higher end market, the statistics reported in the MLS will also cause a upward shift in home values.

This shift in the consumer market is a result of a tight credit market. Today’s buyers must have higher FICO scores, higher down payments,  and meet stricter underwriting conditions.  The continued Job growth in TX will continue to  contribute to above median income levels.

Housing markets to watch:
Up-Markets – Major Urban Markets
Houston  – driven by the energy sector
Austin  – driven by the  technology
DFW, San Antonio , and Chorpus Christi
These markets are doing well and will continue to do well. Population and economic growth with continue.

For more details you can listen to the housing market update with Dr. Jim Gaines here.

As always, if you are thinking of buying or selling a home, or have a property question in general, please do not hesitate to contact me.

Franceanna@CampagnaRealtors.com
972-588-8863
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Happy New Year!

City of Dallas, East Dallas, Economic Outlook, Home Buyers, Home Sale Statistics, Home Sellers, Investors, Lakewood, Real Estate, Real Estate Finance

Happy New Year to all! The year 2013 was one of continuous growth, both for our company and the Dallas Economy.   In 2013 the Texas economy continued to outperform the national average.  On an annual basis, Texas jobs increased by 2.5% in 2013.   This population growth, fueled by the robust job market, spurred an increase in home sales and helped drive prices up.

In 2013 the Dallas median sales price increased by +15% from $147,000 to $170,000.   According to NTREIS data, in the 75214 zip code where the average sold value is $472,000,  40 homes sold in December 2013, at an average SOLD price of $185 sq foot.  This was a 2.7% increase in $/sq ft, year over year.

As the Dallas economy thrived, Campagna and Associates picked up the pace to keep up with the booming market.  We added a new office manager, Sharon Boland, whose exception organizational and planning skills, and fabulous sense of humor, keeps are office running smoothly.

In 2013 we helped a number of people, buy, sell and lease property. The selling season began earlier in the spring and lasted longer into the summer. It was a year of multiple offers, offers above list price, and “hip” pocket listings.  While a great deal of our business in the Lakewood, M-Street, White Rock Lake and Lake Highlands areas of East Dallas, we also helped a number of clients in Collin County, including Wylie, Sachse and Plano. As the population continues to grow, the popularity of suburban areas will continue to gain more attention, and our business will continue to meet the needs of our clients.

So what should we expect in 2014? I predict the strong economy and job market, will continue to promote DFW as a great city for new business opportunities and an affordable housing market will make DFW a top destination for relocation.  The population growth will continue to drive up home prices and sales activity and 2014 will be just as busy if not better.

If you are looking to buy or sell a home in the DFW area, it is important to connect with an experienced Real Estate Agent.  We are here and committed to helping you reach your financial goals for 2014. Here is wishing you and yours health, happiness and prosperity in the New Year!

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Is Now a Good Time to Buy?

Economic Outlook, Home Buyers, Investors, Real Estate, Real Estate Finance

 

I received an email earlier today from a friend moving back to Dallas! Welcome Back! You know who you are.

My friend asked, Is now a good time to buy home? And what about those interest rates? How long will they last?!

I’ll give you the quick 411:

Home prices have gone up due to the shortage of inventory. There’s a lot of buyers in the market and not enough sellers. This is leading to an increase in home prices and a very competitive market. Gone are days of “lowball” offers.   The spike we have seen in price per sq ft for some areas is due largely to the lack of inventory and we will eventually see a market correction.  This should not deter you from considering a purchase. Interest rates are at an all time low.

The low  interest rates are an artificial low, as a result of the fed pumping money into the economy.  No clue how long it will last – but it can’t last forever. While I believe the mortgage rates should be low through the end of the year, they can only go up from here.

The first and most important step to becoming a home owner is: Talk with a lender.  Get pre-qualified. This will give you an idea of how much you qualify for, and how much you would be putting down. In addition, it will show to a seller you are a motivated and serious buyer.

So, is it better to wait to sell or buy? NO! History has proven that this bubble won’t last forever, interest rates will go up, and housing prices will fluctuate up and down accordingly.  Take advantage of the market. If you are a buyer take advantage of those low interest rates.  You have more purchasing power right now!

There are still some really great loan options for first time home buyers.  Please let me know if you need lender references.

My friend offered to buy me drinks / dinner in return for my time.  While I am Italian and will never turn down an offer for good food, there is no consulting fee.  I am your source for free information. I believe in educating my clients so they can make financially sound decisions.

If you are a first time home buyer or savvy investor (looking to buy or sell), please feel free to contact me.

What if I am a home seller, you ask?  Don’t wait! I’ll explain more in my next post: Is now a good time to Sell?

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March 2013 East Dallas Real Estate Market Review

City of Dallas, East Dallas, Economic Outlook, Home Buyers, Home Sale Statistics, Home Sellers, Lakewood, Real Estate

 

Below are the March 2013 Single Family Home statistics for East Dallas (MLS Area 12)

East Dallas: 218 single family homes sold which is a 5.3 % increase from March 2012. The Median Sale Price of $250,00  is a 12.1% increase  from March 2012. The average days on market is recorded as 57, reflecting a 45.6% decrease. The amount of inventory is 2.6 months, reflecting a 54% decrease from March 2012.

75214: Single Family Closed Sales: 64, which is a 1.6% increase from March 2012. Median Sales Price was $337,500 showing a 10.0% decrease from March 2012.  And a decreased average of 34 Days on Market, down 54.9%.

Price Range: $158,000 – $850,000

Below $200,000: 3 closed sales

$240,000 – $299,000: 22 closed sales

$300,000 – $399,500: 20 closed sales

$405,000 – $499,000: 4 closed sales

$510,000 – $595,000: 5 closed sales

$679,000– $850, 000: 10 closed sales

75206:  Single Family Closed Sales March 2013: 36, which is 23.3% increase from March 2012. Median Sales Price was $322,000, showing a 2.5% decrease from Jan 2012. The average days on market decreased 68.4% to 50 DOM.

Price Range: $164,000 – $740,000

$164,000 – $198,000: 2 closed sales

$222,500 – $299,900: 11 closed sales

$312,500 – $399,995:  8 closed sales

$400,000 – $585,00:  9 closed sales

$509,000 –  $537,000:  4 closed sales

$656,00  – $740,000: 2 closed sales

If you don’t see your zip code included above and would like to know what home values are doing in your neighborhood, please feel free to email me at: Franceanna@CampagnaRealtors.com

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January 2013 East Dallas Real Estate Market Review

City of Dallas, East Dallas, Economic Outlook, Home Buyers, Home Sale Statistics, Lakewood, Real Estate

The Dallas Morning News reported that the Dallas-Fort Worth area hit a record high in 2012, and that D-FW home sale prices were up 7.5% from fourth quarter 2011.

The real estate market right now in Dallas is definitely a seller’s market.  Low inventory, multiple offers, and a frenzy of showings indicates that the supply level right now can’t keep up with the demand.  However, the averages don’t reflect the market as a whole.

 

Below are the January 2013 Singe Family Home  statistics for East Dallas.

East Dallas: 142 single family homes sold which is a 58% increase from January 2012.  The Average Sale Price of $216,057 Price was down 9% from Jan 2012.  The average days on market as 84, reflecting a 9% decrease.  The amount of inventory 2.5, reflecting a 53% decrease from Jan 2012

 

75214:  Closed Sales: 24, which is a 20.7% decrease from January 2012.   Median Sales Price was $324,000 showing a 6.2% decrease. And an increased average of 128 Days on Market, up 12.7%.

 

PriceRange: $160,000 – $1,079,000

 

Below $200,00:               2 closed sales

$215,000 – $282,000:     8 closed sales

$305,000 – $383,500:     7 closed sales

$420,000 – $675,000:     5 closed sales

$950,000 – $1,079,000:  2 closed sales

 

75206: Closed Sales: 22, which is 175% increase from January 2012. Median Sales Price was $358,125, showing a 2.4% decrease from Jan 2012.  The average days on market decreased 28% to 91 DOM.

 

PriceRange: $170,000 – $665,000

 

$170,000 – $285,000:     10 closed sales

$350,000 – $381,000:     4 closed sales

$409,000 – $468,000:     4 closed sales

$500,000 – $529,500:     3 closed sales

$685,000                         1 closed sale

 

If you don’t see your zip code included above and would like to know what home values are doing in your neighborhood, please feel free to email me at: Franceanna@CampagnaRealtors.com

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2013 Predictions for the Dallas Real Estate Market

City of Dallas, East Dallas, Economic Outlook, Home Buyers
Dallas Real Estate

Find me a home

There always seems to be gloom and doom on the national horizon:  “Fiscal Cliff”, “Debt Ceiling” “High Un-Employment Rates”, “State and local government budget cuts”, “Big Banks unwillingness to lend”. And it looks like Washington will continue to muddle through their mess creating uncertainty and a general lack of confidence.  On my New Year’s trip to Las Vegas, I had a family friend say to me: “That’s it! We are moving to Texas! We say it all the time.  If things get any worse, we may actually mean it!” TEXAS, this beautiful Lone Star State, continues to outperform the national average and we have reason to be optimistic, especially here in Dallas.

Largely driven by the energy sector – oil and petrochemicals – Texas Job growth continues to outpace the national rate.  And in 2012, Jobs in the Dallas area increased by 2%.   This increase in area jobs, drives relocation and the population growth in Dallas is stronger than ever.  This means a DEMAND for housing.

In 2012, the number of home sales in Dallas was up by 18% from the previous year.   In addition, Dallas Home Prices increased by 22% with a median price of $215,000, compared to the median home price of $176,000 in 2011. (These statistics are based upon Single Family Home Sales in the city of Dallas, as recorded by North Texas Real Estate Information Systems / MLS).

New Construction is rebounding, but still has a ways to go.  In 2012, Dallas area Single Family home Building Permits were up 15% – 20%.  Home builders are still offering incentives!

Dallas is a thriving real estate market.  The combination of economic and business growth, affordable home prices and the continuing low interest rates makes 2013 a great time for qualified buyers to purchase a home!  And a great time for investors too!

As always, if you have questions about purchasing a home, or if you would like to know what your home is worth, send me an email or give me a call.  I am always available to provide you the most current market information.

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New Loan Limits are Now in Effect

Home Buyers, Investors, Real Estate, Real Estate Finance, Resources, Uncategorized

There were a few mortgage loan program changes that went into effect onOctober 1, 2011.   I contacted local loan officer, Les Tuttle, to outline the new conforming loan limits and to discuss what role they play in our market place.

Essentially there were no changes to the FHA program, so things there stay the same.   However the USDA program will increase a buyer’s’ monthly payment since monthly mortgage insurance has been added.  And with the changes made to the VA program,   buyers will benefit by having a lower funding fee that is rolled into their mortgage.

If you look at the chart below, you will see Les has included the loan limits for properties with up to 4 units.  These can be financed on an FHA note, and would require 3.5% down, with an average interest rate of 4%.  What a great way for a first time buyer to begin building their investment portfolio!

 The following is a list of the changes:

  1. Conforming and FHA loan limits have been lowered in some parts of the country.   The conforming loan limit is the maximum loan amount Fannie Mae and Freddie Mac will purchase and the FHA loan limit is the maximum loan amount HUD will insure.  The good news for all of us in the DFW area and inTexasis the loan limits have remained the same so if you hear the amounts have been changed you will know that in our area they have not changed.  The limits vary from 1 unit properties to 4 unit properties and the limits are as follows:

Conventional                                       FHA

1 unit               $417,000 maximum                            $271,050 maximum

2 units             $533,850 maximum                            $347,000 maximum

3 units             $645,300 maximum                            $419,425 maximum

4 units             $801,950 maximum                            $521,250 maximum

2.   USDA has changed the guarantee fee.  There was always a 3.5% guarantee fee that was rolled into the loan amount and there was no mortgage insurance premium paid in the monthly payments.  Now the upfront fee is 2.0% but there is a monthly premium of .3%.  If the property qualifies and the borrowers qualify this is still an excellent program because there is no down payment.

 3. VA has changed the funding fee.  A qualified Veteran with less than 5% down payment (a veteran can put 0% down) using the benefit for the first time will see the funding fee drop from 2.15% to 1.4%.  This funding fee is rolled into the mortgage and there is still no monthly mortgage insurance premium.  This is an excellent benefit for our veterans.

 

As always, you can contact me with any questions.  Also feel free to contact Les Tuttle.

Visit my blog:              www.realestatemarbles.com/lestuttleblog

Visit my website:        www.lestuttle.com

Office phone:              214-221-4008

Email:                          les@priorityapproves.com

 

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Better Than Gold??

City of Dallas, East Dallas, Home Buyers, Home Sale Statistics, Lakewood, Real Estate

I think those who buy in the next 12 months are going to be celebrating five years from now and those who don’t are going to look back with regret.  All signs are pointing to a buy indication.  Forget gold, it has already peaked. Housing is the bargain investment! Take a look at the numbers for yourself.

WHY IS THIS THE BEST TIME IN HISTORY TO BUY A HOME??? Here are some Positive Trends for you to track…

1.   Rental vacancy rates are at their lowest since 2003 and still falling, which will drive up rents even faster than the 2-3 percent average annual increase predicted earlier this year. Moreover, with demand outpacing supply, the rent-to-buy equation is turning increasingly favorable in markets across the nation.

2.  National average home prices in June were still 7.9% below a year ago, which was the height of the boom spawned by the tax credit. However,prices are still up 4.1% over the first quarter. Those are the cautionary findings from Clear Capital’s second quarter report, which is based on data from fair market and REO transactions from recorder and assessor’s offices as well as market reports.

3.      The mortgage delinquency rate has fallen for the sixth consecutive quarter, reports TransUnion. The share of borrowers at least 60 days late on their payment fell to 5.82% this spring, compared to 6.67% a year ago.

4.      One of the biggest bright spots in the housing market is housing affordability which is near an all-time high in 2011 according to the National Association of Realtors. Falling prices have made homes affordable. The trade group’s affordability index measured the third-highest on record after the first quarter of 2011 and the fourth quarter of 2010. Record keeping began in 1970.

Contact us today for more information.

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The Investment Alternative

Home Buyers, Home Sale Statistics, Investors, Real Estate, Real Estate Finance

To say the investment market is unsettling is an obvious understatement. The market is down 8% in the last ten days and the news doesn’t give much hope that things are going to get better in the near term.

Preservation of capital is probably today’s most important investment consideration and making a profit would be a bonus. Of all the conventional investment alternatives like stocks, bonds, mutual funds, gold, commodities, CDs and annuities, housing is the best asset class in America.

Homes have had a 30% to 40% price correction in the past four years. Mortgage rates are at near all-time low rates with 30 year terms available for investors. Rents have increased significantly over the past two years while vacancy rates have decreased. People will always need a place to live.

Five year certificates of deposits earn a little over 2% but rental properties are yielding eight to ten times more than that. Income properties are tangible assets that have benefitted dramatically in inflationary times. Cash assets can be devastated by inflation and diversifying into income properties can provide real protection.

Single family homes offer investors the opportunity to borrow large loan-to-value mortgages at fixed rates for long terms on appreciating assets with tax advantages and reasonable control. Investing in rentals can provide stability, safety and a higher rate of return.

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Top 10 FHA Loan Advantages

Home Buyers, Real Estate, Real Estate Finance

Now is a great time to purchase!

Fannie Mae and Freddie Mac underwritten conventional, FHA and VA loans account for the vast majority of mortgages chosen by buyers to finance their home purchase. While buyers have the choice on which product to use, there are some considerable advantages to FHA.

  1. More tolerant for credit challenges than conventional loans.
  2. Lower down payments than conventional loans.
  3. Broader qualifying ratios – total house payment with MIP can be up to 31% of borrower’s monthly gross income and total house payment with all recurring debt can be up to 43%.
  4. Seller can contribute up to 6% of purchase price – this money must be specified in the contract and can be used to pay all or part of the buyer’s closing costs, pre-paid items and/or buy-down of the interest rate.
  5. Self-employed may qualify with adequate documentation – two year’s tax returns and a current profit and loss statement would be required in addition to the normal qualifying and underwriting requirements.
  6. Mortgage Insurance Premium can be released in five years when the balance is 78% of original sales price
  7. Liberal use of gift monies – borrowers can receive a cash gift to assist in purchase from family members, buyer’s employer, close friend, labor union or charity. A gift letter will be required specifying that the gift does not have to be repaid.
  8. Special 203(k) program for buying a home that needs capital improvements – requires a firm contractor’s bid attached to the contract specifying the work to be done. The home is appraised subject to the work being done. If approved, the home can close, the money for the improvements escrowed and paid when completed.
  9. Loans are assumable at the existing interest rate – assumptions require buyer qualification but are actually easier than qualifying for a new mortgage. Closing costs are lower on assumptions than originating a new mortgage.
  10. If the rate on the assumable mortgage is lower than current rates for new mortgages, it could add value to the property.

If you are considering purchasing a new home, let a professional Realtor guide you through the process.  With over 9 years of experience in Residential Real Estate, I have a strong network of real estate professionals including lenders, inspectors and escrow agents, who can help make your home purchase a flawless transaction!   Contact me if you have any residential real estate questions!

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