Browsing the archives for the Real Estate Finance 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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FHA Changes Coming Soon

East Dallas, Real Estate Finance, Resources

I recently received an update from one of my preferred lenders.   FHA has made some changes and the first change will begin on April 1, 2013.  There are several changes but there are two primary changes home buyers need to be aware of:

Changes coming soon to FHA Loans1.Beginning on April 1 the monthly mortgage insurance premium will go up to 1.35% (from 1.25%) for 30 year and 15 year loans with a loan to value of more than 95%.

2.  Effective June 3, 2013, FHA will collect this monthly mortgage insurance premium for the life of the loan, yes even when the balance falls below 78%.

What does this mean for you?  If you plan on purchasing a home using FHA financing, you will save a lot of money if you get a contract soon.

Feel free to forward or share this with anyone you think it will help and as always, if you have questions be sure to contact me.

If you have any financing questions, give Les a call.

 

Les Tuttle #313115
Cendera Funding #179242
214-221-4008
www.lestuttle.com

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The New 3.8% Tax Rate

City of Dallas, Economic Outlook, Governmental Affairs, Investors, Lakewood, Multi-Family Property, Property Management, Real Estate, Real Estate Finance, Resources

Here is a report by the National Association of Realtors that explains the New 3.8% Tax Rate. When the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.

To get you up to speed on the new tax legislation, the National Association of Realtors has prepared an informational resource. Click HERE to read.

As always, feel free to contact me with questions. You can also find more info on my website: www.CampagnaHomeSales.com

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East Dallas Crime Watch Meeting

City of Dallas, Crime Watch, East Dallas, Neighborhood Events, Real Estate Finance

The Old East Dallas Renaissance Coalition [OEDRC] will be meeting at the Meadows Foundation Center for Community Cooperation, 2900 Live Oak Street, Dallas TX 75204, 214.821.0911 on Thursday, May 3, 2012 at 8AM.

Advise your neighborhood groups of this meeting, bring your code enforcement concerns (PLEASE BRING STREET ADDRESSES OF NOTED PROPERTIES), report anything you think is a problem to 311 and get a SR number.

For further information call Ed Zahra, 214.688.1255. Please pass this email notification to anyone that would be interested.

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Mark Dotzour Economic Outlook (Video)

Economic Outlook, Governmental Affairs, Real Estate, Real Estate Finance

It actually exits, an economists with a sense of humor.   He is one of the best! See the link below for a video.   He tells it like it is.  No filter on this guy.  It is entertaining and startling all at the same time.

From COLLEGE STATION (Real Estate Center) – Center Chief Economist Dr. Mark Dotzour shared his “Economic Outlook for Investors and Business Decision Makers” last week at the 2012 Land Investment Expo in Des Moines, Iowa.

The 42-minute video  includes Dotzour’s observations on the outlook for job growth, government policies, farmland and commodity prices and global investment trends. He also discusses what policies he thinks need to be adopted to restart the U.S. housing market.

 

Peoples Company Land Expo Keynote Speaker Dr. Mark Dotzour

 

 

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Economic Forecast 2012: What you need to know!

Home Sale Statistics, Investors, Lakewood, Real Estate, Real Estate Finance, Resources

Last week I attended an economic forecast presented by DFW MetroTex Board of Realtors.

 http://www.dfwrealestate.com/forecast2012presentations

Here’s what you need to know.  Economists predict moderate job growth for 2012.

We are in a unique recession.  In the past, economic recovery has been lead by the housing market.  However, due to high unemployment rates, a lack of consumer confidence, and continued credit contraction, the demand for housing remains low.  Unless congress creates the policies to encourage businesses to hire we will see at best modest job growth. It appears that major business investment decisions will be postponed until after 2012 election, resulting in sluggish job growth into the first quarter of 2013.

The good news: Texas as a whole has outperformed the national average.  We lagged into the recession.  While real estate values are location specific, DFW did not experience the boom and bust that affected the Sand States.  Our economy has continued to grow at a rate above national levels, and the projected job growth and expected increase in population is an indicator that we will lead in the national recovery.

Here’s the best news!  There has never been a better time to purchase Real Estate! Interest rates remain low.  FHA has first time home buyer programs allowing buyers to finance a home with 3.5% down.  And a high volume of foreclosures causes distress in the market place that will continue to affect sellers’ values and provide plenty of options to the deal seekers.

 

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Dare to Soar! NARPM 2011 Opening Day

East Dallas, Home Maintenance, Investors, Multi-Family Property, Property Management, Real Estate, Real Estate Finance

It was great to see so many of our Dallas Chapter Members at the opening of the Convention today. There is some great programming scheduled for the rest of this week. And there is still plenty of room and an opportunity for you to register on site. Below is the link for Thursday and Friday’s Schedule.

http://www.narpm.org/conferences/annual-convention-trade-show/schedule.htm

Today’s Business Leader Development was fantastic! We got a dose of Disney, from Dennis Snow who shared his lessons from the Mouse. It was an excellent seminar focusing on the development of world class customer service. By creating a positive powerful experience in which your customers/clients feel valued, you can cultivate intense customer loyalty.

After a brief get together in our hospitality room – #726 – we all headed to the Opening Session. Our Keynote speaker, Linda Larson, challenged us all to elevate our thinking, visualize positive opportunities and improve our communication skills – and improve out bottom line.

It’s now a little after 9pm and I can promise you several of our Chapter Members are still at Chaucer’s off of Beltline in Addison, watching the game and entertaning our Property Management friends.

The Trade Show is now open and tomorrow morning you can stop in and grab breakfast with the exhibitors 7.15am – 8.45am.

At 9.00 am, Dr. Mark Dotzour, from Texas A&M University, will be there tomorrow morning to give us an update on our current economic environment and how it will impact our business. Following the Economic Forecast, it is your choice of open workshop sessions.

If you are a Dallas NARPM member, you should definitely come out for the day. It is money well spent on your business development.

 

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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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