Make your house look bigger without removing walls...

Instead of just asking me to help with his kitchen remodel, my friend made me an offer I couldn't refuse: Want to come over and knock down a wall?

While that's one way to make your house feel bigger, it's probably not the best option if you're putting your house on the market. Here are a few easier ways to add a sense of space.

Cut the clutter
Everyone knows they should do this, but few people go far enough. Don't put books and magazines in neat piles-get rid of them. Put knickknacks in storage, and pare down your furniture. It's better to have a few large pieces than several small ones.

Take a walk
Every house has natural paths, from the kitchen to the dining room or from the living room to the bathroom, and these walkways must be clear. You may not mind detouring around a large sectional to get from the TV room to the kitchen, but buyers will think your TV room isn't big enough.

Look around
Related to clear walkways are clear views. Keep tall furniture like bookshelves away from doorways, and pull back the shower curtain to expose the entire bathroom. Don't block any part of windows, sliding glass doors, or French doors.

Pick the right paint
If you plan to repaint some rooms, choose colors that feel cool, such as light blue or light green.

Add light
Not only will light colors create a sense of openness, actual light helps, too. Open curtains or blinds to let in sunlight, and consider adding a lamp to dark corners.

When you're done with these changes, ask for objective feedback from your Texas REALTOR®. He or she will know what buyers will focus on when they enter your house and which rooms might need more work.

DFW-Area Homes Gain $55 billion in Value in 2015

With the big price gains, Dallas-Fort Worth area homes have increased about $55 billion in value this year, according to a new report by Zillow.com.  A just-released study by the Internet home marketing firm estimates that DFW homes are worth $411 billion – up from $356 billion a year ago. That’s a gain of more than 15 percent. Nationwide, Zillow estimates that the U.S. housing stock is worth $28.5 trillion, up from $27.5 trillion at the end of 2014.  “This reminds us of the large role housing plays in the overall economy,” said Zillow Chief Economist Svenja Gudell. “Total home value growth slowed this year, but there was still a significant increase in overall value, and many markets are more valuable than they’ve ever been.  “Americans are spending a lot of money on housing, and that will make affordability an important issue next year.”

-          Dallas Morning News, December 30, 2015

DALLAS UPTOWN: High Property Prices

High Uptown Property Prices Pushing Dallas Development

to New Urban Neighborhoods

Is there life after Uptown for real estate developers?  For the last decade, the district north of downtown has been the hottest development market in Dallas.  But with prime land prices soaring past $200 per square foot and fewer empty lots to build on, commercial property companies are looking at nearby neighborhoods.

West Dallas, the Design District, the Farmers Market, South Side and near East Dallas are now at the top of apartment builders’ shopping lists.  “It is getting very difficult to justify dirt cost in Uptown, if you can even find a site,” said Ryan Miller of apartment builder Wood Partners. “With higher dirt prices, escalating construction costs and concern for rents capping out, it makes Uptown more and more risky.  ”We have been targeting alternative submarkets that are just as close to jobs and nightlife with dirt at a lower basis, which means we can keep our rents in check,” Miller said.

Wood Partners has rental communities under construction at the Farmers Market, in West Dallas and in the Medical District on Maple Avenue.  Most of these are neighborhoods that developers wouldn’t have crossed the street to look at a decade ago.  “We’ve done an incredible job in Dallas of pushing successful development into unproven areas,” said Greg Willett, vice president of Carrollton-based apartment consultant MPF Research. “We’ve done it with the Knox-Henderson area and the Design District.  “And I’m optimistic about the development that’s going to these other areas,” including West Dallas and the Farmers Market area, Willett said.   With average apartment rents for new units now running $1,800 a month in Uptown and downtown, Willett said it’s important for developers to offer locations with slightly lower prices. “If there is any concern about how much we are building, it’s how expensive it is and if we are going to run out of people who can afford the rents,” he said.

In the suburbs, retail and restaurants usually follow new rooftops.  But in booming West Dallas and north Oak Cliff neighborhoods, new housing is following successful restaurants and shops that have made residents comfortable with the areas.  “Sometimes the customer doesn’t know they want to be there because the product hasn’t been there before — you have to give them the product,” said Dallas developer Michael Ablon, who’s played an important role in turning the Design District into a popular restaurant and apartment address.

Ablon said many potential renters are being priced out of Uptown.  “They only product you can build in Uptown is the upper echelon — you can only do apartments at the premium price point,” he said.  But low land costs alone can’t be the basis for new urban neighborhoods, Ablon said. “In some of these other areas, I have a hard time knowing who really wants to be there,” he said.  Longtime Dallas real estate broker Newt Walker said Uptown is still ground zero for urban development in Dallas.  “If you build it in Uptown, they will come,” said Walker. “A lot of developers are crossing the Trinity River, but it’s still somewhat uncharted waters.  “The question is, what’s the depth of the market there?”

Apartment builders are betting that proximity to the central business district and postcard skyline views will bring young, professional apartment renters to nearby neighborhoods.  “People are excited again by the inner city and want a more urban lifestyle,” said Doug Chesnut, one of the founders of Dallas-based development firm StreetLights Residential. “We are running out of land — affordable or unaffordable — in Uptown, so we must continue to expand our geographic footprint.” 

StreetLights, which has built an Uptown apartment tower and has a second under construction, has contracted to purchase a former industrial site on Singleton Boulevard in West Dallas where it plans hundreds of new apartments and homes.  “The Calatrava bridge and Trinity Groves opened a new gateway to the west, just as other gateways are opening to new areas east and south of the central business district,” Chesnut said. “People are moving to North Texas, whether we like it or not, and we need to provide housing and amenities for those people.”

-          Dallas Morning News, September 19, 2014

New Report Shows DFW is a Top Market for Home Sellers

New Report Shows DFW is a Top Market for Home Sellers

Dallas-Fort Worth is ranked as one of the best markets in the country to sell a house, according to a new study. Zillow Inc. said the D-FW area is the fourth best place in the country for home sellers.  “Sellers in the Bay Area, Seattle and Dallas have the most negotiating power, with final sale prices largely at or above asking,” Zillow’s report says.  Zillow said that overall home prices in D-FW were up 5.8 percent in August from a year ago and there were about 5 percent fewer houses on the market.  U.S. home values will continue to rise during the year ahead, but at a slower rate than last year, according to Zillow.  D-FW home prices are forecast to increase by about 4 percent in the next 12 months.

-          Dallas Morning News, September 19, 2014

Dallas Home Prices Growing Faster Than the Nation

Dallas Home Prices Growing Faster Than the Nation

Dallas-area home prices are growing faster than the nationwide rate, according to the latest study by CoreLogic Inc.  Dallas prices rose by 9 percent from a year ago in July, according to CoreLogic’s new report.  That’s ahead of the 7.4 percent nationwide increase.  The largest increases were in Riverside, Calif. (13.8 percent) and Houston (11.8 percent).  CoreLogic forecasts that nationwide home prices will grow by almost 6 percent over the coming year.  “Home prices continued to march higher across much of the U.S. in July.  Most states are reaching price levels not seen since the boom year of 2006,” Anand Nallathambi, president and CEO of CoreLogic, said in a statement. “Our data indicates that this trend will continue, with more states hitting new all-time peaks this year and into 2015 as the recovery continues.”

-       MetroTex News, September 2, 2014

-        

Plano Approves Legacy West, Toyota, Fed Ex

Dallas Cowboys Development                   Legacy West with Toyota, Fed Ex, Renaissance Hotel

Dallas Cowboys Development Began Wednesday

Work began Wednesday on the future home of the Dallas Cowboys in Frisco, city officials confirmed.   Mass excavation is expected to start the week of July 7.   The city, the Cowboys and Frisco ISD have partnered on the development, which will include the team’s headquarters, outdoor practice fields and a 12,000-seat multi-use event center at the northwest corner of Warren Parkway and Dallas North Tollway.   The city and the school district have pledged $115 million for the public portion of the 91-acre site. Any costs above that will be paid by the Cowboys’ ownership. About 66 acres at the site will be developed separately by the Blue Land companies owned by Cowboys owner Jerry Jones and his family. That acreage will include retail, restaurants, office space and a hotel.  The indoor stadium and training facilities are expected to be completed in late summer 2016. The stadium will be used not only for Cowboys training but for high school football games and other events.   A ceremonial groundbreaking is planned sometime in August.

-          Dallas Morning News, June 24, 2014

Plano Approves Legacy West, Toyota, Fed Ex

The Plano City Council approved a rezoning request Monday that paves the way for a 205-acre mixed-use project near the J.C. Penney headquarters. The council approved the request to rezone the  undeveloped land, located at the southwest corner of State Highway 121 and the Dallas North Tollway, from commercial employment to central business to allow for greater development flexibility.  Developers plan to break ground after the first of the year on the project that’s part of the Legacy West development, which will surround J.C. Penny’s corporate headquarters. Legacy West will also include Toyota’s new North American headquarters and the new FedEx office building.  The development will include hotel, commercial, retail, office buildings and residential.

-          Dallas Morning News, June 24, 2014

Next Portion of LBJ Freeway (I-635) Dallas, TX Expansion to Open July 12

Next Portion of LBJ Freeway Expansion to Open July 12

The second phase of LBJ Freeway’s massive, $2.7-billion expansion will open July 12, developers announced today. This is the portion that includes LBJ’s interchange with Interstate 35E. If you’ve driven 35E lately, you’ve seen the new lengthy bridges that will be tolled and will connect that thoroughfare with LBJ. The interchange will feature the dynamic toll pricing that goes into effect on LBJ at midnight tonight.

-          Dallas Morning News, June 11, 2014

AFFORDABILITY OF U.S. CITIES FOR FIRST TIME HOME BUYERS

New Listings Reaching Normalcy
The increasing amount of new listings over the past 60 days in the DFW Metro market is showing signs that we are reaching a normal market for new listings. However, the huge inventory of buyers well exceed the supply of listings and all indications are that our strong seller’s market will continue for the next two to three years, with a continual increase in home prices. Approximately 18,900 homes came on the market in May 2014, compared to 17,468 new listings in May 2012. That is a healthy 9% increase. It was in May 2012 when the DFW Metro market made a significant correction, with May the last month of a buyer’s market to August 2012 when the region had become a seller’s market.

AFFORDABILITY OF U.S. CITIES FOR FIRST TIME HOME BUYERS
A starter home in San Francisco is $679,800, but in Cleveland it is only $102,100. But it takes a hefty income of
$137,129.55 in San Francisco to purchase the starter home. Dallas now ranks 16th in most expensive housing markets,
a huge change over the last many years when Dallas was always one of the most affordable cities.
CITY
Income Needed
Starter Home
Price Change from 2013
1. San Francisco
$137,129.55
$679,800
14.50%
2. San Diego
$98,534.22
$483,000
17.10%
3. New York City
$89,788.69
$388,900
5.60%
4. Los Angeles
$85,964.88
$406,200
17.60%
5. Boston
$79,820.01
$363,200
9.30%
6. Washington, DC
$78,503.56
$358,900
2.90%
7. Seattle
$73,851.06
$339,900
8.70%
8. Portland
$60,307.71
$271,900
10.30%
9. Denver
$59,892.46
$288,400
10.40%
10. Miami
$59,734.23
$259,000
15.10%
11. Sacramento
$58,113.87
$255,800
22.20%
12. Baltimore
$53,078.51
$224,500
-0.90%
13. Chicago
$52,866.88
$176,900
11%
14. Philadelphia
$50,546.25
$201,800
2.10%
15. Houston
$49,036.60
$184,600
12.80%
16. Dallas
$47,708.77
$174,800
9%
17. Minneapolis
$45,732.39
$188,200
10.30%
18. San Antonio
$44,506.00
$169,300
8%
19. Orlando
$43,243.95
$178,000
18.70%
20. Phoenix
$41,308.74
$194,300
15%
21. Tampa
$36,437.56
$145,000
7.40%
22. Atlanta
$34,183.44
$141,900
23.30%
23. Detroit
$32,250.30
$110,750
35.60%
24. Cincinnati
$31,850.18
$121,700
0.06%
25. St. Louis
$31,275.49
$120,500
8.60%
26. Pittsburgh
$30,177.78
$120,000
-1.80%
27. Cleveland
$29,788.67
$102,100
1.10%

DALLAS FARMER'S MARKET

Farmers Market

“This is one of the best ideas this city has ever done.”  And with those strong words, Mayor Mike Rawlings picked up a red-tipped shovel and helped break ground on the new-and-improved Dallas Farmers Market, which officially began its $65-million makeover just nine months after a private group took the keys from Dallas City Hall.  Mayor Mike Rawlings introduced the new market with some very high expecations.   The redevelopment will consist of four new restaurants, a grocery store that will serve the southeast portion of downtown Dallas, approximately 300 more apartments and lofts, and a dazzling new Farmer’s Market.  It will be a showplace for Dallas.

-          Dallas Morning News (excerpts), March 28, 2014

Tapering Signals Year-End Economic Strength Indicators Point to Greater Recovery for 2014

Tapering Signals Year-End Economic Strength Indicators Point to Greater Recovery for 2014 The big "will-they or won't they" ended last month with the Fed's mid-December announcement that it would begin tapering its economic stimulus efforts. Federal Reserve Chairman Ben Bernanke's decision to scale back on Bond and Treasury purchases by $10 billion signaled that the economy has showed sufficient ability to play on its own, albeit, on a kid leash. The Fed's ambivalence towards tapering dominated central banking discussions and created market volatility for most of 2013. Janet Yellen, the Fed's current vice chairman and President Barack Obama's nominee to succeed Bernanke, voted in favor of the policy action, which was bolstered by promising figures in the labor and housing markets. The Year in Housing Housing gained traction in 2013 amid job gains and rising stock values. Residential construction starts soared in November to a five-year high, explaining why builder optimism last month matched its highest level since 2005. Despite robust new construction, sales of previously-owned homes declined for the third consecutive month in November to the lowest level this year, as rising home loan rates and a limited supply of existing properties discouraged homebuyers. Rates could rise even further with Fed tapering. Purchases overall dropped 4.3 percent to a 4.9 million annual rate, in a mid-December report from the National Association of Realtors. The report also showed that the median price of an existing home rose 9.4 percent to $196,300 from $179,400 one year ago. The group still projects 2013 will be the best year for the industry in seven years, with an estimated 5.1 million properties sold. Rising prices and borrowing costs may have put homes out of reach for many first-time buyers and the partial federal government shutdown in October may have delayed some purchase decisions. The Year in Jobs A five-year low in unemployment and a boost in job hirings helped prompt Fed tapering. In what was largely typical year-end activity, applications for U.S. unemployment benefits rose in early December to an almost nine-month high, according to the Labor Department. Gains in payrolls on the other hand lifted consumer confidence and prospects for retailers during the holidays. The U.S. Automotive industry is also hiring, with sales at their best pace since 2007, according to data from Ward Automotive Group. All in all, home loan rates still remain attractive compared to historical levels. If you have any questions about your personal situation or would like to inquire about housing and home loans, please don't hesitate to contact me. I hope you enjoy this month's issue of YOU Magazine.

NEW YEAR CHILE

2 28 oz can crushed tomatoes
1 16 oz can tomato sauce
1 lb lean ground beef
1 lb hot spicy ground pork
2 onions, chopped
4-5 cloves of garlic
1/2 lemon juiced
1/4 cup Dijon mustard
1 red or green bell pepper, chopped
1 jalapeno, chopped
4 beef bouillon cubes
2 cups water
1/2 cup chili powder
2 tbl spn cumin
2 tsp oregano
1 tbl spn basil
2 tsp sea salt
1 tbl spn black pepper
1 tsp white pepper
16 oz beans cleaned and soaked over night or according to directions.
I used black eyed peas for New Years chile.  Also pinto or black beans.


Saute the pork and beef in nonstick skillet until brown.  Transfer to a large stockpot.

Add onion, garlic, bell pepper and jalapeno to skillet and saute until the onions are slightly translucent.  Add to stock pot.

Add tomatoes and tomato sauce, bouillon cubes and 2 cups of water to the stock pot.

Mix together the spices in a bowl then add water to create a thin paste. Add to stock pot.

Drain and rinse the beans.  Add to the chili.

Simmer for 3-4 hours.

Serve with Fritos, scallions, cheddar cheese and sour cream

Texas Market has Massive Influx of New Residents

Texas Market has Massive Influx of New Residents

The Texas housing market is reacting to the massive influx of new residents spurred to move to the Lone Star state in search of high-paying energy and professional service jobs, as well as low cost of living.  As more residents move to Texas from other states with higher median home prices, the housing markets in Dallas, Houston and Austin have been bolstered by rising home prices of double-digit year-over-year growth, according to technology-based real estate brokerage firm Redfin's latest report.  About 2.5 million people relocated to Texas between 2008 and 2012 in search of jobs from more costly regions of the nation, the report stated.  In Dallas, the median list price was $192,500 in October, compared with $389,450 on Long Island and $495,000 in Los Angeles, according to the data.

-          Dallas Business Journal, November 28, 2013

Market Update! For the week of September 30, 2013

Keeping you updated on the market! For the week of  September 30, 2013

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MARKET RECAP Lower Mortgage Rates Prevail Mortgage rates can be as difficult to forecast as the flight path of a butterfly, but forecast we do. Last week, we said we expected to see the 30-year fixed-rate mortgage fall after the Federal Reserve announced there would be no tapering of quantitative easing. Our forecast was for the rate on the 30-year loan to fall below 4.5%, and possibly trade in the 4.25%-to-4.5% range for the near future. It looks like we got it right. Bankrate.com's latest survey shows the 30-year loan averaged 4.47% nationally. Of course, some local markets didn't see quite that much reduction, while others saw more. But all in all, we are seeing rates lower than we've seen in the past four months. We expect the 30-year loan to hold near today's levels. The fact is that economic growth remains sluggish. The latest and final revision of 2 nd quarter gross domestic product (GDP) shows less growth than expected. The consensus estimate was for GDP to grow at a 2.7% annualized rate, but the final number shows a 2.48% growth rate. Sluggish GDP growth gives the Federal Reserve reason and room to continue buying $40 billion worth of mortgage-backed securities (MBS) each month. In addition, concerns over a looming federal government shutdown, due to political wrangling over the debt ceiling, will keep interest in Treasury notes and bonds high. Investors are also pondering what impact the Affordable Healthcare Act (Obamacare) will have on businesses when it's implemented next month. In short, there's a lot of uncertainty that will keep investors interested in haven securities like Treasury notes and bonds and MBS. Their interest should help hold mortgage rates at these lower levels. To be sure, we see little impetuous for mortgage rates to move much high. But keep an eye on next Friday's employment report. Should that come in stronger than expected, rates could temporarily spike. On the flip side, if the employment report comes in weaker than expected, rates will move lower. The past couple employment reports have disappointed, so it's likely most economists have proffered less-optimistic predictions. Our crystal ball points to job growth meeting or slightly exceeding exceptions. In that case, we could see an uptick in mortgage rates at the end of the week. But with all the other uncertainties baked into the credit markets, we doubt rates would move meaningfully higher. So we see an extended opportunity to take advantage of lower rates. Keep in mind, though, the long-term bias – an eventual tapering and higher inflation – points to higher mortgage rates down the road. The risk, as we've said so often, remains in procrastinating.

Economic Indicator	Release Date and Time	Consensus Estimate	Analysis
Construction Spending (August)	Tues., Oct. 1, 10:00 am, ET	0.6% (Increase)	Important. Gains in residential spending slowed in recent months, but commercial spending is moving higher.
Mortgage Applications	Wed., Oct. 2, 7:00 am, ET	None	Important. Purchase applications jumped to their highest level since July, which points to strength in underlying home sales.
Factory Orders (August)	Thurs., Oct. 3, 10:00 am, ET	0.3% (Increase)	Moderately Important. Orders remain subdued, thus reflecting sluggish economic growth.
Unemployment Situation (September)	Fri., Oct. 4, 8:30 am, ET	Unemployment Rate: 7.3% Payrolls: 180,000 (Increase)	Very Important. Another month of sluggish job growth and low-employment participation ensures continued quantitative easing.

Laws of Economics Still Work Higher prices bring in more supply; more supply leads to lower prices. This is how things are shaping up in the new-home market. Sales jumped 7.9% to an annual rate of 421,000 units in August. The number of new homes for sale rose 6,000 for the month. Supply stands at five months, a considerable improvement over the 4.6-month supply that prevailed a year ago. More supply – more new homes – means pricing pressure. The median new home price slipped 0.7% to $254,600 in August, marking the fourth-consecutive monthly decline. This follows the news on existing-home sales, which showed a slight downtick in the median price to $212,100. Over the past couple months, we've been warning that price appreciation will likely slow. The latest data from the S&P/Case-Shiller Home Price Index support our contention. Case-Shiller's 20-city index shows price growth slowed to 0.6% in July, down from 0.9% in the prior two months. Trends don't last in perpetuity, so a slowdown in price-appreciation was (is) inevitable. Because trends don't last in perpetuity, we pounded the table hard in 2010 and 2011 for buyers to get in the game. We were adamant back then because we expected the downward price trend to soon reverse course, which it did. We expect price-appreciation growth to continue to slow. More supply will come to market, because more sellers will see slowing price growth and will want to capture gains. In turn, their actions will further slow price-appreciation growth. That said, if anyone is waiting for slow-to-no price growth, he or she needs to keep in mind that any money saved on a purchase price could easily be offset by higher financing costs.

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!

Rising home prices in DFW brings influx of new listings

Rising home prices in DFW brings influx of new listings

Dallas-Fort Worth's rising home prices -- reaching double-digit increases year-over-year -- have prompted more homeowners to put their houses on the market.   The North Texas area increased its new listings by 18 percent year-over-year in July to 10,176 listings, after the median home prices rose 14 percent in the same time period. The median home price in Dallas was $192,500. In the U.S., the number of new home listings rose 14 percent, with a median home price of $282,034.  Dallas-Fort Worth area homes sold at an average 98.7 percent of list price, compared with the national average of 99.1 percent of list price, according to the data.  With the new listings and an increase in inventory, home prices will moderate in coming months, but the housing market shows no signs of stopping.

-          Dallas Business Journal, August 12, 2013

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

As Interest Rates Increase, Housing Market to Remain Hot

Just the Facts

Frisco May Get Dallas Cowboys

The Dallas Cowboys reportedly are in final talks to move from Valley Ranch to Frisco.   Irving has been the Cowboys home for 28 years, but Frisco has the space and financial incentives to move the team north.   It appears the new facility will be part of the Frisco Station project, on the northwest corner of Warren Parkway and Dallas North Tollway.  Houston-based Hines Development recently unveiled plans to develop office, shopping and residential on the 317-acre site.  Preliminary indications are the Cowboys would make the move before the start of the 2016 season.

-          Dallas Morning News, July 23, 2013

Stellar Year for Home Sales in DFW

Dallas needs more housing as the market continues to be very tight.   Over 104,000 jobs have been created in the DFW area in the past 12 months, and based on that number new construction should be double what it currently is.   All of this makes for continued home price increases and quick turnaround of inventory.   The three hottest markets in North Texas based on the shortest time to sell continue to be The Colony, 32 days; Coppell 36 days; and Grapevine 37 days.    When calculated for only the moderate price ranges in Coppell and Grapevine, the time to sell drops below 21 days.

-          Dallas Morning News, July 19, 2013

As Interest Rates Increase, Housing Market to Remain Hot

Economists are not worried that higher interest rates will undercut the housing recovery.  Mortgage rates are still at historically low levels, and home prices remain relatively affordable despite the price increases of the past year.  In addition, higher mortgage rates will encourage potential buyers to come off the sidelines and purchase homes before rates rise further.

-          Dallas Morning News, July 23, 2013

First Time Homebuyers Drop to 28% of Market

For the last several years during the Great Recession, first-time homebuyers typically made up 40% of all buyers, peaking in 2009 at 50% of buyers.   With the improving market that percentage has changed considerably.  As more repeat homebuyers are now selling their homes and buying a larger home, the move-up buyer is now the largest segment of the housing market – for the first time since 2006.   The first-time homebuyers are still strong, and in fact their numbers have not dropped.  It is just that the increased number of buyers have come from the move-up demand.

-          Dallas Morning News, July 23, 2013

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

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