The September issue of the Allie Beth ALLMANAC is out, with interesting news and statistics on the DFW real estate market. Ready to read some GOOD news?
The Great Recession is over, stated Richard W. Fisher, president, Federal Reserve Bank of Dallas. The U.S. economy is no longer in free fall and a healing process has begun, he said, adding that consumers are more confident and housing is showing positive signs. His remarks echoed U.S. Chairman Ben Bernanke’s statement on the national economy that the prospects for growth in the next year appear good.
In two recent reports, Dallas home prices reflected positive news, rising 2.7% from May to June to the highest level since last September, according to the Standard and Poor’s Case-Shiller index. The Case-Shiller study showed residential values in Dallas bottomed out in February and have risen about 6% since then. It was the fourth consecutive month of gains for Dallas index prices. And the Federal Housing Finance agency also said Dallas prices were up slightly in the second quarter.
First American Core Logic, in its most recent study of housing in metro areas, showed the strongest performers nationwide were Houston, Dallas and Austin. The Houston Association of Realtors is now the largest local association in the U.S. with 23,354 members. The Conference Board recent report showed consumer attitudes improved in August after two months in decline. Consumer expectations of where the economy will be in six months rose to almost 76%, highest since the recession began in December, 2007.
Sales of existing homes in July jumped at the fastest rate in 10 years, sending stock prices up. The NAR says sales of single family homes increased 7.2% in July, the largest monthly increase since 1999 and marked the fourth monthly consecutive rise. Sales were also up 5% from July, 2008, the first such yearly gain since November 2005.
Housing affordability remains just over 72%, near an 18 year high during the second quarter, according to Moody’s Economy.com. Three years ago, that figure would have been about 5%. Senators Chris Dodd, D/Ct, and Johnny Isakson, R/GA, have introduced legislation to extend the first time buyers tax credit, increase it from $8,000 to $15,000 and make it available to all buyers, not just first-timers.
The sales rate of newly-built single family homes rose almost 10% from June to July, according to the U.S. Census Bureau. The slowpace of newhome constructionmeans the inventory of newhomes continues to shrink, another positive sign.
Direct home and site construction costs are down 11% - 15% from peak, according to almost 300 home building executives.
An index that measures changes in the price per square foot of homes for 25 metro areas posted a monthly increase of 3% in June, according to Radar Logic, one of the largest gains since 2000.
A new Homeowner Confidence Survey shows 81% of homeowners believing their homes’ values will not decline in the next six months, the highest response since 2008.
I'M HAPPY TO SEND YOU A COMPLETE COPY OF THE ALLMANAC--just email me: will@alliebethallman.com
Wednesday, September 2, 2009
Monday, July 6, 2009
Interesting news on the high end market in Manhattan
from J.W. Elphinstone of the Associated Press on July 2nd:
Manhattan Condo and Co-op Prices Fall
Condo and co-op prices in pricey Manhattan fell for the second quarter in a row, according to data from Prudential Douglas Elliman, one of the city’s largest real estate firms.
Expensive properties were the hardest hit with the median sales price of a luxury apartment – those in the top 10 percent of sale prices – falling 17 percent to 26 percent with the number of sales reduced by half.
About 61 percent of all sales were below $1 million, down from 49 percent a year ago, according to Miller Samuel Inc., which analyzed the number for Prudential.
Meanwhile, the average time it took to sell a property rose 48 percent from a year ago to 129 days with the number of price cuts doubling, according to a report from StreetEasy.com.
"It's the beginning of the new reality that 2007 and 2008 were not the norm, but the peak," says Pamela Liebman, CEO of The Corcoran Group.
Manhattan Condo and Co-op Prices Fall
Condo and co-op prices in pricey Manhattan fell for the second quarter in a row, according to data from Prudential Douglas Elliman, one of the city’s largest real estate firms.
Expensive properties were the hardest hit with the median sales price of a luxury apartment – those in the top 10 percent of sale prices – falling 17 percent to 26 percent with the number of sales reduced by half.
About 61 percent of all sales were below $1 million, down from 49 percent a year ago, according to Miller Samuel Inc., which analyzed the number for Prudential.
Meanwhile, the average time it took to sell a property rose 48 percent from a year ago to 129 days with the number of price cuts doubling, according to a report from StreetEasy.com.
"It's the beginning of the new reality that 2007 and 2008 were not the norm, but the peak," says Pamela Liebman, CEO of The Corcoran Group.
Wednesday, July 1, 2009
Tip from Will On Submitting an Offer
My mother used to say that an invitation sets the tone for a party. The look of it and the way it's written represent the kind of event a host is planning. Without the benefit of other information, one dresses and conducts himself according to the impression left by the invitation.
"You can catch more flies with honey than with vinegar".....
If you are a buyer in this market, you and your Realtor have the ability to set the tone for friendly and productive negotiations, which will benefit your bottom line. If you are submitting an offer, low or high, write a letter of introduction for your Realtor to provide to the seller. Tell the seller a little about yourself and your family, and relate to the seller why you would like to buy their property. Putting a human story with an offer is both courteous and helpful both to you and the seller. For you, it reaffirms why you want the property. For the seller, it provides a human connection that can help ease the stress and uncertainty as they make their decisions on a response. It's just a good thing to do.
There's no need to go overboard, because you will sound artificial. Make it a simple statement about you, your appreciation for the property, AND (very important) your thanks for the seller's consideration of your offer.
In any market, setting the tone for a pleasant transaction is a worthwhile effort.
"You can catch more flies with honey than with vinegar".....
If you are a buyer in this market, you and your Realtor have the ability to set the tone for friendly and productive negotiations, which will benefit your bottom line. If you are submitting an offer, low or high, write a letter of introduction for your Realtor to provide to the seller. Tell the seller a little about yourself and your family, and relate to the seller why you would like to buy their property. Putting a human story with an offer is both courteous and helpful both to you and the seller. For you, it reaffirms why you want the property. For the seller, it provides a human connection that can help ease the stress and uncertainty as they make their decisions on a response. It's just a good thing to do.
There's no need to go overboard, because you will sound artificial. Make it a simple statement about you, your appreciation for the property, AND (very important) your thanks for the seller's consideration of your offer.
In any market, setting the tone for a pleasant transaction is a worthwhile effort.
Tuesday, June 30, 2009
Market Results for April--Dallas Market is a Survivor
from the Dallas Business Journal:
Dallas home prices are down 5 percent when comparing April home price levels to the levels experienced during the same month of 2008, but the city’s home prices have suffered the least in the nation when compared with other U.S. cities, according to data provided in the latest Standard & Poor’s S&P/Case-Shiller Home Price Indices.
Dallas home prices are down 9.6 percent in April 2009 from peak levels reached in June 2007. But the city has suffered the least when considering home prices in cities like Phoenix are down 54.1 percent.
From March to April, Dallas home price levels lifted 1.7 percent, following an overall trend of residential real estate price declines slowing in April. (end)
FRIENDS--rates are still low AND home prices are low. Inflation is on the way, and rates are going to increase. Every family's situation is unique, but it's time to hop down off of the fence and start looking if you're thinking of a move to a new home in the near term.
Dallas home prices are down 5 percent when comparing April home price levels to the levels experienced during the same month of 2008, but the city’s home prices have suffered the least in the nation when compared with other U.S. cities, according to data provided in the latest Standard & Poor’s S&P/Case-Shiller Home Price Indices.
Dallas home prices are down 9.6 percent in April 2009 from peak levels reached in June 2007. But the city has suffered the least when considering home prices in cities like Phoenix are down 54.1 percent.
From March to April, Dallas home price levels lifted 1.7 percent, following an overall trend of residential real estate price declines slowing in April. (end)
FRIENDS--rates are still low AND home prices are low. Inflation is on the way, and rates are going to increase. Every family's situation is unique, but it's time to hop down off of the fence and start looking if you're thinking of a move to a new home in the near term.
Monday, June 22, 2009
Congratulations to Highland Park ISD!
Released by the HPISD administration:
Highland ParkHigh School is listed this month among the top high schools in the nation by Newsweek magazine. Newsweek includes HPHS, ranked number 23, for its students' participation on Advanced Placement exams.
This is the sixth yearHighland Park Texas
Newsweek's article, "America's Best High Schools," compiled a listing of 1,500 high schools, with public schools ranked according to a ratio that divides the number of Advanced Placement, International Baccalaureate or Cambridge tests taken schoolwide by the number of graduating seniors in the school.
Using that ratio,Highland Park
Highland Park
This is the sixth year
Newsweek's article, "America's Best High Schools," compiled a listing of 1,500 high schools, with public schools ranked according to a ratio that divides the number of Advanced Placement, International Baccalaureate or Cambridge tests taken schoolwide by the number of graduating seniors in the school.
Using that ratio,
Wednesday, June 17, 2009
Jumbo Financing...what's up with that?
The news media seems to be turning around and speaking positively about our economic rebound and an upswing in the real estate market nationally. Business Insider (http://www.businessinsider.com/) has an interesting article today about the state of the Jumbo financing market and its subsequent effect on luxury home sales and prices.
To make a generalization, tougher underwriting together with a bearish secondary market for Jumbo loan portfolios has resulted in higher rates for Jumbo ($417,001 to $729,000) and Super Jumbo ($729,001+) borrowers.
What is this doing to the luxury real estate market? Looking at the statistics, the news media is reporting correctly about the real estate turnaround. The government has intervened on the conforming level, and rates are superb. Inventories are falling and prices are rebounding in the lower price brackets, which account for 90% of all residential loans. In the upper brackets, which account for 10% of all residential loans and 30% of loan volume, sales are slow and inventories remain high due to the much discussed lack of Jumbo mortgage funding.
The National Association of Realtors has asked the government to intervene at the Jumbo level as it has at lower levels, but there is little interest in doing so. Joe Weisenthal of Business Insider summed it up very well by saying that the Jumbo market is the only "real" market we have to watch as it has been untouched by government hands. Economists may view that as a positive--but until the Jumbo market makes a turn for the better, inventories will remain high, prices will be low, sellers will be frustrated and buyers will be jubilant (or wringing their hands, depending on their financing options).
Better news--perhaps even "good" news: BUYERS WITH GOOD CREDIT CAN STILL GET AN EXCELLENT RATE ON A JUMBO/SUPER JUMBO LOAN. They just have to shop around. Remember--for the most part, these loans are not subject to government intervention--they are pure market products. There are several banks and brokers right here in Dallas who have access to competitive loan products for this category of financing. The qualifications are a little tighter, the percentage downpayment is somewhat higher (now 20% to 25% is to be expected at a minimum), but the money is there--it's just not "in your face" like it was 2 years ago, and you'll have to buy your own toaster.
Have a chat with these providers:
-Richard Woodward at Envoy Mortgage Pros: 972.661.5136
-Richard Allen at Bank of Texas: 214.346.3978
-Joel Dyke at SMI Lending: 214.295.2928
-Gary Eberhart at NexBank: 972.934.9712
-Gina Jackson, Cornerstone Mortgage: http://www.ginajackson.com/
A little research can result in a great real estate opportunity here at the bottom (or close to it) of the luxury market.
To make a generalization, tougher underwriting together with a bearish secondary market for Jumbo loan portfolios has resulted in higher rates for Jumbo ($417,001 to $729,000) and Super Jumbo ($729,001+) borrowers.
What is this doing to the luxury real estate market? Looking at the statistics, the news media is reporting correctly about the real estate turnaround. The government has intervened on the conforming level, and rates are superb. Inventories are falling and prices are rebounding in the lower price brackets, which account for 90% of all residential loans. In the upper brackets, which account for 10% of all residential loans and 30% of loan volume, sales are slow and inventories remain high due to the much discussed lack of Jumbo mortgage funding.
The National Association of Realtors has asked the government to intervene at the Jumbo level as it has at lower levels, but there is little interest in doing so. Joe Weisenthal of Business Insider summed it up very well by saying that the Jumbo market is the only "real" market we have to watch as it has been untouched by government hands. Economists may view that as a positive--but until the Jumbo market makes a turn for the better, inventories will remain high, prices will be low, sellers will be frustrated and buyers will be jubilant (or wringing their hands, depending on their financing options).
Better news--perhaps even "good" news: BUYERS WITH GOOD CREDIT CAN STILL GET AN EXCELLENT RATE ON A JUMBO/SUPER JUMBO LOAN. They just have to shop around. Remember--for the most part, these loans are not subject to government intervention--they are pure market products. There are several banks and brokers right here in Dallas who have access to competitive loan products for this category of financing. The qualifications are a little tighter, the percentage downpayment is somewhat higher (now 20% to 25% is to be expected at a minimum), but the money is there--it's just not "in your face" like it was 2 years ago, and you'll have to buy your own toaster.
Have a chat with these providers:
-Richard Woodward at Envoy Mortgage Pros: 972.661.5136
-Richard Allen at Bank of Texas: 214.346.3978
-Joel Dyke at SMI Lending: 214.295.2928
-Gary Eberhart at NexBank: 972.934.9712
-Gina Jackson, Cornerstone Mortgage: http://www.ginajackson.com/
A little research can result in a great real estate opportunity here at the bottom (or close to it) of the luxury market.
Thursday, June 4, 2009
Quick Tip for Protesting Property Taxes
Call or email your Realtor and schedule a few minutes to practice your protest. Set a time that gives your Realtor a chance to analyze the most recent comparables in your area beforehand. Get together in person or over the phone and go over your argument, your supporting evidence and your delivery. Realtors defend and contest value every day; a quick study session with a trusted agent can produce great results for you at DCAD.
**If you have 2 hours, you can do it. You don't have to pay somebody to do it for you!
**If you have 2 hours, you can do it. You don't have to pay somebody to do it for you!
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