RE/MAX DFW Associates Sets All-Time Record

RE/MAX DFW Associates set a new record in 2015, closing in excess of $1.67 billion in sales volume, up from $1.5 billion in 2014.  The average home sales price at our firm topped over $306,000 up from $278,000 in 2014.   Thanks to our agents for helping make 2015 a banner year.  Final numbers will be forthcoming.

2015 was the best year ever recorded for real estate in the Dallas-Ft Worth market

Expecting a great 2016!

A New 39-story Condo High Rise in the Arts District

      

The new 39-story condo next to Museum Tower    David Weekley InTown at 3 Locations

A New 39-story Condo High Rise in the Arts District

A 39-story tower planned for downtown Dallas’ Arts District will contain luxury apartments, artist lofts and retail space at Flora and Olive streets.   Developers will build a 39-story residential tower on one of the last vacant sites in the downtown Dallas Arts District.  The project at Flora and Olive streets is right next door to the Museum Tower and a block south of Klyde Warren Park.    The development will have 370 luxury apartments, 39 artists’ lofts and about 12,000 square feet of ground-floor retail space on the one-acre site between the Nasher Sculpture Center and the Meyerson Symphony Center.  “It’s a dense, urban project,” said Dallas architect Graham Greene, one of the partners in the project. “We took our inspiration from what has been done in New York, Los Angeles and San Francisco in their downtowns.   “It helps complete the Arts District — we have storefront retail all along Flora,” Greene said. “It adds a population of 400 to 500 residents, which is huge.”   Construction begins fourth quarter 2015.

-          Dallas Morning News, February 25, 2015

DFW Home Prices Rise 9.1% in October

CoreLogic: DFW Home Prices Rise 9.1% in October

Dallas-Fort Worth area home prices increased 9.1. percent in October year-over-year, outpacing the national average, according to the latest CoreLogic report releasedTuesday.   Overall, the country's home prices have been slowing down in the past few months and has only grown at moderate levels, according to economists.  "Home price growth is moderating as we head into the late fall and is currently running at half the pace it was in the spring of 2014," said Sam Khater, deputy chief economist at Corelogic, in a statement. "However, there are still pockets of strength, especially in several Texas markets, especially Dallas and Houston and other markets with strong economic fundamentals."   Based on CoreLogic projections, economists expect home prices to continue to rise, with home prices in over half of the United States to reach or surpass levels seen at the height of the housing bubble sometime in mid-2015.

-          Dallas Morning News, December 2, 2014

Can Shadow Inventory Help Relieve Price Pressure?

By Lawrence Yun, Chief Economist, NATIONAL ASSOCIATION OF REALTORS®

Home prices grew at the fastest pace in seven years in 2013. This is good news for property owners, both homeowners and landlords, as they witnessed, on average, a $32,000 gain in housing equity over the past two years.  The equity increase is an immediate financial gain for many.  For others, it marks only a partial recovery.  That is, at the depth of the downturn there were about 12 - 13 million underwater homeowners.  Now, that figure has been essentially slashed in half. 

There is however some bad news along with the quickly rising home values.  Rising home values make it more difficult for first-time homebuyers to make a purchase.  The conditions will be exacerbated by the near-certain case of a rising interest rate environment in the coming years.  In order to lessen the upward price pressure, more inventory is clearly needed.  Homebuilders are raising production, but too late and at too small increments.  Though the most recent housing starts of a 1.1 million annualized pace in November was a solid 30 percent increase from the prior year, the pace is still insufficient.  For all of 2013, housing starts look to finish at 930,000. The long-term, 50-year annual average is 1.5 million housing starts each year.  So the recent past six consecutive years of less than one million new housing units was bound to make an impact on the market.  Existing home inventory is at a 13-year low while newly constructed home inventory is at a 50-year low. 

However, can shadow inventory then save the day in pumping out more homes available for sale?  There are still 2.3 million mortgages that are seriously delinquent (more than 90 days late) or already in the foreclosure process.  This is not counting underwater homeowners, but people who are not paying their mortgage.  Surely, the majority of these distressed mortgages will not ever be made current.  They will instead become REO properties at some point.  Unfortunately, even though 2.3 million seriously delinquent mortgages sound large, they are significantly smaller than what the number had been.  Four years ago, there were 4.3 million in a similar state.  Just one year ago, there were 2.9 million delinquent mortgages.  The bottom line is that we should expect less of an increase in shadow inventory turning into visible inventory. 

Due to differing foreclosure processes, however, some states have a much larger overhang of shadow inventory than others.  In places like Arizona, a homeowner is quickly evicted for being delinquent.  In other places, principally the judicial foreclosure states, the court system has the final say and the overall process tends to drag out for a long time – with a 2 - 3 year time span not uncommon.

What are the judicial states with continuing, plentiful shadow inventory that can hit the market?  Interestingly, they are in states where inventory shortage is not a problem.  Home-price growth has been sluggish and these states still have a shadow looming over their market.  [Price data used is from the NATIONAL ASSOCIATION OF REALTORS®] The following table shows the serious delinquency rates now and at peak (usually in 2008 or 2009, ranked by the latest home price appreciation for each of the 50 states). 

As one can see, where the inventory would be most welcome, there appears just not enough shadow inventory to help relieve home prices.  The top three, fastest-appreciating states of Nevada, California, and Arizona have reduced seriously delinquent mortgages by roughly 60 - 80 percent.   On the opposite end of those states where seriously delinquent mortgages have been cut by only a little (to the tune of 10 percent or so) - namely New Jersey, New York, Vermont, Delaware, Connecticut, and New Mexico – home price growth has been sluggish.  There are few exceptions to the rule.  Washington D.C., for example, has made only slight progress in reducing seriously delinquent mortgages, yet home price growth has been strong, no doubt due to the stronger employment conditions and from the fact that it already had a relatively low delinquency peak figure.

Lawrence Yun is the chief economist for the NATIONAL ASSOCIATION of REALTORS®. He will be sharing his insider insights on the national and regional housing markets in this new, exclusive column for the Power Broker Report.

Dallas Cowboys to Bring $23.4 Billion to Frisco, Texas

Dallas Cowboys to Bring $23.4 Billion to Frisco

Elizabeth Morris, CEO for Insight Research, recently presented to the Frisco City Council how the Dallas Cowboys mixed use development would impact the region.

Here are the details of the 91 acre project:

• This section alone will add around 400,000 square feet of new commercial space and 50,000 square feet of new restaurant space

• 2 Hotels plan to be developed

• An addition of 4,500 jobs by full development in 12 years which is the year 2026

“The Economic Impact she projected was 23.4 Billion in 30 years!”

She also mentioned that the tax revenue alone will bring the city of Frisco 1.2 Billion in the next 30 years!

Who are the Middle Class?

Who are the Middle Class?

Many economists define the middle class as those adults whose annual household income is between two-thirds and twice the national median – today, that means roughly $40,000 to $120,000.   .  By this standard, according to the Pew Research center, the middle class is significantly smaller  than it was.   In 1971, America had the following make-up:

·         14% - Upper Class

·         61% - Middle Class

·         25% - Lower Class

Four decades later in 2011, the middle class share has declined, with the following results:

·         20% - Upper Class

·         51% - Middle Class

·         29% - Lower Class

-          Wall Street News, August 7, 2013

Obama Administration to “Social Engineer” Neighborhoods

Obama Administration to “Social Engineer” Neighborhoods

In a move some claim is tantamount to social engineering, the Department of Housing and Urban Development is imposing a new rule that would allow the feds to track diversity in America’s neighborhoods and then push policies to change those it deems discriminatory.   The policy is called, "Affirmatively Furthering Fair Housing."  It will require HUD to gather data on segregation and discrimination in every single neighborhood and try to remedy it.  HUD Secretary Shaun Donovan unveiled the federal rule at the NAACP convention in July.   "This is just the latest of a series of attempts by HUD to social engineer the American people," said Ed Pinto, of the American Enterprise Institute. "It started with public housing and urban renewal, which failed spectacularly back in the 50's and 60's. They tried it again in the 90's when they wanted to transform house finance, do away with down payments, and the result was millions of foreclosures and financial collapse.”

-          Fox News, August 7, 2013

20 City Case/Shiller report

As Interest Rates Rise…… …Those Low FHA & VA Interest Rate Loans Are Assumable ……….and Valuable

As Interest Rates Rise……

…Those Low FHA & VA Interest Rate Loans Are Assumable

……….and Valuable

Not many buyers have assumed a mortgage in the past 25 years. Most people think it was because FHA and VA in the late 80’s began to require that buyers qualify for the assumptions. Not having to qualify for a mortgage would certainly benefit certain buyers. 

If a homeowner must qualify for an assumption like a new loan, they'll generally choose the mortgage with the lower interest rate.  Over the past 25 years, rates have been trending down but it appears that rates have bottomed out and will gradually increase.   As they continue to rise, the lower rates on the FHA and VA loans created in the last few years will appeal to buyers even if they do have to qualify for the assumption.

There are significant advantages to assuming one of these government insured mortgages if the current interest rate on a new loan is higher:

1. Mortgage is further into amortization schedule
2. Lower interest rate loans amortize faster than higher interest rate loans
3. Lower closing costs than a new mortgage
4. Easier to qualify than on a new mortgage
5. No appraisal required

FHA assumptions are only allowed as owner-occupied residents. The borrower must meet current FHA guidelines for borrowers. The total debt ratio including house payment to be assumed cannot exceed 41% of borrowers’ monthly gross income.
VA loans are also assumable with buyer qualification. However, in order for the veteran Seller to have their eligibility reinstated, the buyer must also be a veteran with eligibility.

A 1% difference in the current rates and a lower assumable mortgage rate begins to make it very attractive to assume a mortgage. When the differential becomes even greater, assumptions will become more prevalent than they’ve been in over twenty years.

-          Pat Zaby

Surging Interest Rates Will Not Slow Market

Just the Facts

Rates Will Have to Pass 7% Before Housing Slows

The rise in interest rates may only accelerate the market as buyers on the fence begin to buy, feeling the pressure of rising interest rates.  Major economists agree that rates will have to surpass 7% before there is a slow-down in the real estate market.  And even then with the pent-up demand, the market should continue briskly.   History shows that when rates went from 7% to 18% in 1979-1981, the housing market showed no signs of slowdown until about 12%.

-          Dallas Morning News, June 21, 2013 (excerpts)

Surging Interest Rates Will Not Slow Market

Surging mortgage rates may have little effect on the housing market, at least in the near term, housing experts say.  Mortgage rates rose sharply last week following comments from Federal Reserve Chairman Ben Bernanke that the Fed will begin tapering off its assets purchases later this year if incoming data continues to show the economy is on the mend.  The average cost of a 30-year fixed-rate mortgage loan increased to 4.36% on June 21^st, from 3.94% on June 14^th, and a record low of 3.36% in December according to Bankrate.com.

-          Inman News, June 24, 2013

Which Real Estate Brand Comes to Mind?

The Texas Boom is Here to Stay!

Just the Facts

The Texas Boom is Here to Stay!

Texas Net Job Gain:  1,068,900

The Other 49 States Net Job Gain:   1,244,700

The Texas boon has only begun.  Virtually all economists agree that Texas has so many things going for it that the extraordinary growth of Texas will continue for many years.  Our governor touts the Texas story all over the nation, much to the chagrine of numerous other governors.  But the facts are clear.  Low taxes, low regulation and a balance budget brings jobs, not to mention the pro-business, can-do attitude in Texas.   And jobs bring people.

-          Facebook, June 15, 2013

The Texas Housing Rebound to Continue

The Texas housing rebound shows no sign of letting up, but the rapid rise in home prices could taper off, according to a new report by the Federal Reserve Bank of Dallas.  “Stronger-than-average employment growth and consistent in-migration should continue boosting demand for homes,” business economist D’Ann Peterson said in the Dallas Fed’s Southwest Economy quarterly report.

-          Dallas Morning News, June 15, 2013

DFW Area Gains One Million Every 7 Years

The U.S. Census reports that the DFW Metro, now the 4^th largest in the nation, is set to have a net gain of over one million people every seven years.   This is expected to continue for the next 25 years.

-          U.S. Census

DFW Area Home Resales Set All-Time Record

Just the Facts

Area Home Resales Set All-Time Record

The sale of pre-owned homes in North Texas were up 23% in May from 2012 levels.  Real estate agents sold 9,197 pre-owned single family homes in May – the most ever in one month.  The number of new listings rose 8%.  But the total number of houses for sale in the metro area is still down 22% from May 2012.  “With sales remaining strong and inventory remaining very low, I think we will continue to see increasing prices this year,” said David Brown, president of the Metrostudy Inc. Dallas office.  The median price of pre-owned homes sold by Realtors in North Texas rose in May to a record $180,000.   This 11% increase over May 2012 brings the area’s median price of homes to about 16% higher than the peak in mid-2007, before the Great Recession.

-          Dallas Morning News, June 11, 2013

RE/MAX DFW Associates Up 55%

RE/MAX DFW Associates was up 55% in May, which broken down was a 37% increase in closed units and an 18% increase in average sold price.     According to NTREIS, the North Texas area was up a combined 34%, which was a 23% increase in homes closed and a 11% increase in home sale prices.

The Housing Boom is Nationwide

-          65% - percentage of sales in Miami close with all cash, no financing

-          50 offers  – the average number of offers per new listing in San Francisco

-          $100,000 cash – the amount over list in Boston for numerous home sales

It is unprecented in U.S. history.   The housing recovery continues unabated across the nation, and the pent-up demand could last for three years.   What is unique to this housing boom is that it is nationwide – all areas of the nation are seeing rapid home price increases and a dwindling available inventory.

-          New York Times, June 9, 2013

Housing Prices Nationwide Rise 12.1% in April

The housing boom is nationwide.  The monumental change represents the biggest year-over-year increase since February 2006 and the 14^thconsecutive monthly increase in prices nationally.  And on a month-to-month bases, home prices increased 3.2% in April over March.  The western states are averaging 20% or more annually in home price increases, with 24.6% increase in Nevada, 19.4% increase in California and 17.3% in Arizona.

-          RISMedia, June 7, 2013

Are We Headed For Another Bubble?

In Texas, absolutely not.   The home prices in Texas average about 20% less than nationwide due to our expanse of available land.  This housing recovery is sorely needed for Texas and other middle America states so that home prices can rise to appropriate levels.  However, East Coast and West Coast may be a different story.   West Coast has a history of rapidly escalating home prices, and then a free fall when the economy or housing market change.    California seems to be known for the “bubble.”

-          Inman News, May 2013 (excerpts)

	AVERAGE LIST TO SALE RATIO - MAY 2013
		Plano is First City to go over 100% Ratio
	CITY		LIST TO SALE		LIST PRICE		SALES PRICE
ALLEN			98.20%		$276,986		$272,120
CARROLLTON/FB			97.90%		$205,886		$201,460
COLLEYVILLE			97.50%		$499,472		$486,743
COPPELL			98.30%		$351,840		$345,917
FAR NORTH DALLAS			96.80%		$317,647		$307,353
FLOWER/LVILLE			98.00%		$259,243		$254,027
FRISCO			97.30%		$336,449		$327,312
GRAPEVINE			98.30%		$262,787		$258,273
IRVING			97.50%		$238,633		$232,701
KELLER			97.50%		$362,125		$353,187
McKINNEY			98.10%		$253,755		$248,823
PLANO			104.50%		$301,300		$315,097
PROSPER			96.60%		$349,100		$337,328
RICHARDSON			98.80%		$194,860		$192,250
SOUTHLAKE			96.90%		$623,325		$603,996
THE COLONY			98.80%		$178,212		$176,098
TROPHY CLUB/WLAKE			92.70%		$467,365		$433,150
-          NTREIS Stats – May 2013 as of June 2, 2013

Whole Foods opening in Colleyville, Texas

Whole Foods to open next year in former Albertson's in Colleyville

Posted Monday, Feb. 18, 2013 

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A

Map of Texas 26 and Glade Road, Colleyville, TX

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BY SANDRA BAKER

sabaker@star-telegram.com

COLLEYVILLE -- Whole Foods Market will open a 40,000-square-foot store next year in Colleyville, the Austin-based company and property owner said.

Centennial Real Estate Co. in Dallas said the store will go in space formerly occupied by Albertson's in the Village Park at Colleyville shopping center at Texas 26 and Glade Road. The space that has been vacant since 2007.

Mark Dixon, Whole Foods Southwest region president, called the Colleyville shopping center "a desirable location and a perfect fit for Whole Foods Market. With our current store in Arlington and future location in Highland Village, our westward expansion gives more guests a convenient location for natural and organic culinary options."

Centennial said it plans to extensively renovate the center and adapt the space for the new Whole Foods Market store while modernizing other retail areas. The store is expected to open in mid-2014.

"We will construct a prominent storefront and entrance for Whole Foods Market while upgrading the appearance of the entire shopping center," said Steven Levin, Centennial's CEO. "Our plans include unique architectural features that combine new modern design with a concept that is consistent with the culture and setting of Colleyville."

Westlake Ace Hardware, Goody Goody Liquor and Vineyard's Antique Mall are also located in the 190,664-square-foot center.

Marty Weider, Colleyville's economic development director, said the deal to bring Whole Foods to the shopping center has been in the works for about two years. He called the deal a "game changer" for Colleyville and the shopping center, saying the store will attract shoppers from nearby cities and other quality tenants that want to be located near a Whole Foods store.

"It's a huge shot in the arm," Weider said. "We're happy to make this happen. We view this as a phenomenal opportunity for the shopping center to be upgraded. It's tough to keep inline tenants when you don't have an anchor."

Whole Foods enters a competitive grocery market in Northeast Tarrant County. Market Street is located just north on Texas 26, at Hall-Johnson Road, Tom Thumb has nearby locations and Central Market is located in Southlake.

Centennial said it assembled the shopping center from three separate owners over the past 18 months, allowing the company to bring in Whole Foods Market and redevelop the existing retail space. Centennial acquired Village Park with partners Gideon Interests, Inc. and Atlantic Creek Real Estate Partners, Llc. ViewPoint Bank provided the debt for the transaction, Centennial said.

In its earnings report last week, Whole Foods said it recently signed 11 new leases. In addition to Colleyville, new stores are scheduled for Toronto, Canada; Canada; Berkeley and Los Angeles, Calif., West Palm Beach, Fla., Lafayette and New Orleans, Louisiana, Westford, Mass., St. Louis, Miss. Cherry Hill, New Jersey and Newport News, Virginia.

Sandra Baker, (817) 390-7727

Star Telegram

Read more here: http://www.star-telegram.com/2013/02/18/4627687/whole-foods-to-open-next-year.html#storylink=cpy

Homes selling for more than List

Just the Facts

New Housing Boom Mantra - Paying More Than List

It all seems long ago now – the casual home shopper, the drives to check out the neighborhood, the luxury of sleeping on the largest decision you’ll ever make.  Trying to buy a home now feels more like being thrust into the trading pit at the Chicago Mercantile Exchange – the frenzied bidding, the need for lightening fast decisions, the packs of serious shoppers at an open house.  In one fraught situation, a home near Union Station in Washington, D.C., drew 168 offers in December and sold for almost twice the asking price. In the tonier neighborhoods of Los Angeles, 20 bids per house is not uncommon, according to real estate agent David Kean. And the speed of deals can be intense. "In the middle of a snowstorm we have seen houses sell in one day," says Sam Schneiderman, owner/broker at the Greater Boston Home Team agency. "At open houses on million-dollar homes you are literally bumping into people, it's that crowded."

A dearth of homes for sale has run smack into a suddenly energized buying crowd egged on by rising values. The National Association of Realtors says the number of existing homes on the market in January -- 1.74 million -- was 25 percent lower than a year ago, and the lowest level since 1999.  Price is obviously the main lever in all deals. What’s particularly important now is to understand how the seller will handle bids. Some collect all bids and immediately choose a winner, typically the highest offer, which is often more than the asking price. Other sellers give the top three or five bidders the chance to make one counteroffer. In those instances, you want to get into the bake-off but leave yourself room to counter.

In today's tight market, some sellers are asking every bidder to counter. That's what happened to a client of Schneiderman's in the recent sale of a house in Newtown Center, Massachusetts, listed for $975,000. The seller got nine offers -- four to nine offers is the norm now, Schneiderman says -- and asked for counter bids on all nine. Schneiderman's client bid $1,016,000 and lost. The seller's agent said the winning bid was "significantly higher."

       -        Bloomberg News, March 1, 2013

RE/MAX DFW Associates Has High Customer Retention

Based on  postings of source of business, the agents at RE/MAX DFW Associates report 40 percent of all home sales are repeat business – clients whom the agents have worked with in the past.  Most importantly, over 80 percent of all RMDFW agents reported a repeat business sale or listing in 2012.  This is an extremely high rate in the industry.  RISMedia Magazine in their surveys report:

1)      Six percent of agents with 3 to 5 years of experience received repeat business last year.

2)      Agents with 6 to 15 years of experience, the number is only 17 percent for 2012.

3)      Only 38 percent of agents with over 16 years of experience received repeat business during the previous calendar year.

Most real estate agents do not make an effort to maintain a solid relationship after the closing.  Yet every closing is a huge opportunity for referrals and future repeat business.

-          RISMedia Magazine, February 28, 2013

Record National Home Sales in January

January posted a 4.5% increase in previously owned home sales in January, and new homes posted a 16% increase.  The only month better than January 2013 in the past six years was April 2010 – the last month of the federal tax credit.   The increase is the latest positive report for the housing market, which began recovering last year after a deep, six-year slump. Steady hiring and nearly record-low mortgage rates have encouraged more Americans to buy homes.  Home prices, meanwhile, rose by the most in more than six years in the 12 months ending in December.  Steady price increases are also contributing to the housing recovery. They encourage more people to buy before prices rise further. Higher prices also build homeowners' wealth, which can spur more spending and economic growth.

       -      Associated Press, February 27, 2013