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)

DFW Average Sold Prices are Up

Just the Facts

		AVERAGE SOLD PRICE CHANGE
			MAY 2013 vs. MAY 2012
	CITY			% CHANGE		May-13		May-12
	ALLEN			7.10%		$272,120		$254,053
	CARROLLTON/FB			6.50%		$201,460		$189,043
	COLLEYVILLE			-2.50%		$486,743		$489,984
	COPPELL			9.60%		$345,917		$315,563
	FAR NORTH DALLAS			1.00%		$307,353		$304,958
	FLOWER MOU / LV			5.50%		$254,027		$240,764
	FRISCO			6.70%		$327,312		$306,663
	GRAPEVINE			-3.70%		$258,273		$268,143
	IRVING			3.50%		$232,701		$224,770
	KELLER			3.90%		$353,187		$340,076
	McKINNEY			13.60%		$248,823		$218,728
	PLANO			14.20%		$315,097		$275,998
	PROSPER			13.60%		$337,328		$296,962
	RICHARDSON			8.20%		$192,250		$177,758
	SOUTHLAKE			8.40%		$603,996		$556,993
	THE COLONY			26.30%		$176,098		$139,399
	TROPHY CLUB/WESTLAKE			2.80%		$433,150		$422,294

Buying beats Renting in 6% of Metro Areas

MAY 17, 2013

Zillow: Buying Beats Renting in 64% of Metros After 3 Years...

Buying a home is more affordable than renting in nearly two-thirds of metros after three years of paying for a mortgage, according Zillow.

For its calculation, Zillow considered costs associated with buying and renting, such as upfront payments, closing costs, insurance, utilities, and maintenance. Then, the online marketplace looked at historic and anticipated home value appreciation rates, rental prices, and rental appreciation rates to determine how many years would need to pass before buying becomes less expensive than renting.

According to Zillow, in 64 percent of U.S. metros, buying is more affordable than renting if homebuyers plan to stay in their home for at least three years.

“Locally high home value appreciation in many areas, combined with historically low mortgage rates and low home prices relative to recent peaks, has made buying a home a more advantageous financial decision than renting for many would-be buyers,” said Dr. Stan Humphries, Zillow’s chief economist.

In several large metros, it would only take around two years before a buyer reached what Zillow called the “breakeven horizon,” or the time it takes for buying to become more financially advantageous than renting.

Out of the 30 largest metro areas, Zillow found Miami and Detroit had the shortest breakeven timeline of just two years in the first quarter.

In Phoenix, the breakeven horizon was 2.1 years, while Riverside, California and Dallas followed closely behind at 2.2 years and 2.3 years, respectively.

In other large metros, buyers would have to hold onto their homes for a much longer period of time before buying is more affordable.

In New York, buyers would need to stay in their homes for 5.2 years before reaching the breakeven horizon. Other metros with longer timelines included Boston (4.1 years) and San Jose (3.7 years).

Zillow also provided breakeven horizons on the ZIP code and neighborhood levels within cities.

According to the report, in New York, the breakeven horizon could be as low as 2.5 years in the Parkchester neighborhood in the Bronx, but could be as high as 11.9 years in the Carnegie Hill section of Manhattan.

In several ZIP codes, the breakeven horizon was as low as 1 year, including areas within Dallas, Philadelphia, Detroit, Riverside, St. Louis, and Tampa. One the other extreme, the breakeven horizon for a Los Angeles ZIP code was 12.9 years.

To find the specific breakeven horizon in one’s city, Zillow has an interactive tool.

“The decision to buy or rent should always take into account a number of factors, one of which is how long a buyer or renter plans to stay in a property. Even in areas with relatively low breakeven horizons, buyers should resist the temptation to buy and sell properties based only on short-term goals. And renters in these areas should never feel compelled to stretch themselves to buy if it is currently beyond their means,” Humphries advised.

	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

Home Prices Jump 9.3% Nationally in One Year

Just the Facts

Sometimes you just have to be politically incorrect.

Home Prices Jump 9.3% Nationally in One Year

Home prices are rising at the fastest rate in years, with some communities seeing double-digit gains, as buyers are returning to a market where the number of properties for sale is in short supply.  Prices increased 9.3% in February from a year earlier.  In some of the hardest hit markets, the gains have been particularly heady.  Home prices rose 23% from one year ago in Phoenix and 18.9% in San Francisco.  Nationally, the median home price in March stood at $184,300, up from $154,600 in January 2012.

-          Wall Street Journal, May 1, 2013

Dallas Business Journal Names 3 Best New Communities

The annual DBJ review of best new neighborhoods announced are significant because each of them are large master-planned communities.

·         Light Farms in Celina, 2,700 new homes, lots open in May.  Eventually 8,300 people will call Light Farms their home.

·         Windsong Ranch in Prosper, 3,100 new homes, first phase opening in 2014.  Some 9,500 people will call Windsong Ranch their home.  The development includes 3 school sites, 4 amenity centers and a 150-acre mixed use commercial development.

·         Harvest in Argyle and Northlake, 3,000 new homes, eventually 9,000 residents.   The first phase opens later this year.  It is located in Northlake and Argyle ISDs.

-          Dallas Business Journal, April 26, 2013

America’s Highest Earning Cities

Survey of 562 cities, population over 50,000

Congratulations to Flower Mound, Frisco and Allen

There are 16 cities in the United State with populations over 50,000 where more than 50% of the households in the city earn more than $100,000 per year.  California and Texas dominate this list of high-earners.  Most of these cities are well-to-do suburbs of large metro areas, including Dallas-Ft Worth, San Francisco, Atlanta and Chicago.

Rank	City/CDP	Larger metro area	Percentage of households making over $100,000	Percentage of households making less than $100,000	Percentage of households making $100,000 to $149,999	Percentage of households making $150,000 to $199,999	Percentage of households making $200,000 or more
1	San Ramon, California	San Francisco	63.50%	36.50%	22.10%	16.40%	25.00%
2	Flower Mound, Texas	Dallas-Fort Worth	62.80%	37.10%	28.30%	15.90%	18.60%
3	Pleasanton, California	San Francisco	59.80%	40.00%	22.80%	14.70%	22.30%
4	Yorba Linda, California	Los Angeles	58.80%	41.20%	23.50%	16.70%	18.60%
5	Carmel, Indiana	Indianapolis	58.40%	41.60%	20.90%	14.30%	23.20%
6	Palo Alto, California	San Francisco	57.80%	42.10%	17.70%	11.90%	28.20%
7	Newton, Massachusetts	Boston	55.40%	44.60%	18.00%	11.70%	25.70%
8	Naperville, Illinois	Chicago	54.80%	45.10%	18.50%	13.50%	22.80%
9	Frisco, Texas	Dallas-Fort Worth	53.70%	46.30%	25.70%	14.70%	13.30%
10	The Woodlands CDP, Texas	Houston	53.40%	46.70%	24.70%	13.40%	15.30%
11	Johns Creek, Georgia	Atlanta	52.10%	48.00%	21.20%	10.40%	20.50%
12	Ellicott City CDP, Maryland	Baltimore	51.70%	48.30%	16.80%	16.40%	18.50%
13	Allen, Texas	Dallas-Fort Worth	51.20%	48.90%	24.50%	16.10%	10.60%
14	Lake Forest, California	Los Angeles	50.70%	49.30%	26.70%	13.70%	10.30%
15	Highlands Ranch CDP, Colorado	Denver	50.50%	49.40%	25.60%	12.70%	12.20%
16	Arlington CDP, Virginia	Washington, DC	50.30%	49.80%	18.10%	12.90%	19.30%

Data was obtained from the U.S. Census. 562 cities were included in this analysis.

-          NerdWallet, April 29, 2013