Archive for February, 2013

Great Article by Nick Timiraos from the Wall Street Journal about the sellers markets we are seeing not just in Texas, but the whole country…

Housing: It’s Becoming a Seller’s Market

ByNick Timiraos
National Association of Realtors

The National Association of Realtors said on Thursday what home buyers in many parts of the United States have known for months: it’s becoming a seller’s market.

The number of homes listed for sale in January fell by 4.9%, leaving 1.74 million properties on the market. That’s the lowest since December of 1999, when there were 1.71 million homes on the market. By contrast, there were 2.91 million homes on the market two years ago at this time.

After adjusting for seasonal factors, home sales rose by just 0.4% in January, to an annual rate of 4.92 million units. Still, that’s up from 9.1% one year ago.

The upshot is that there’s a growing pool of buyers chasing a shrinking supply of homes. If the trend holds, prices will keep going up. At the current pace of sales, it would take just 4.2 months to sell the current supply of homes available for sale, down from a 6.2 months’ supply one year ago.

While inventories typically increase in the spring, the Realtors’ group has expressed growing concerns that sales volumes are being held back by the lack of choice. This is good news for homeowners who have watched home prices drop over the last six years, but it’s bad news for buyers—and for anyone that makes their living selling real estate.

Inventory declines have been the most dramatic in California, Arizona, and other markets that witnessed some of the largest home price declines. Those cities have large numbers of underwater borrowers—people who owe more than their homes are worth—while many others may have equity but aren’t willing to sell because prices have fallen so far.

Investors have also been aggressive in buying up properties that are selling for less than their replacement cost.

National Association of Realtors

Home sales could rise to 5.2 million units this year, an increase of nearly 12% from last year, according to economists at Goldman Sachs . They base their forecast on household formation and demographics, which both suggest rising demand for housing in the coming years, and affordability measures such as mortgage rates and home prices.

But the economists note that there’s a considerable amount of uncertainty that could make those targets hard to hit, particularly if there’s nothing for would-be buyers to purchase.

Follow Nick @NickTimiraos

-lead-generation

– Area home sales started the year at a breakneck pace.

North Texas real estate agents sold 4,733 existing single-family homes last month, the largest January total since 2007 and the second-best selling January in a decade.

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Great Article out of the Dallas Business journal this morning on rising home prices is Dallas.  

This is also great marketing material to potential sellers.  Most people are not in tune to the local real estate market.  Sharing this type of information could spur potential listings.

Click here or see below article by  Staff Writer-Dallas Business Journal

Dallas-Fort Worth area home prices are continuing to climb, which isn’t surprising given North Texas’ low inventory of homes.

There are only about 2.8 months worth of single-family housing inventory on the market, which is less than half the normal six-month supply, Ted Wilson, president of Dallas-based Residential Strategies, told me Tuesday afternoon. Residential Strategies tracks North Texas’ housing market.

“That’s as tight as I’ve ever seen it,” Wilson said, about the 2.8-month supply of homes. “People are not putting their houses on the market right now.”

The reasons: Homeowners could think prices will continue to rise and don’t want to sell too soon. Or credit-poor homeowners can’t move up into larger homes, leaving them house locked.

“Whatever the reason, there’s not as many houses on the market right now,” he said, which has been driving prices higher and higher.

Dallas area home prices rose 3.9 percent year-over-year in December 2012, according to a report released Tuesday by California-based CoreLogic (NYSE: CLGX). Nationwide, home prices rose 8.3 percent year-over-year.

Home prices will continue to rise as more people turn into homebuyers, attracted to home ownership by low interest rates. Those rates offset rising home prices, Wilson said.

“Until I see new inventory in the market, there’s no reason why prices won’t continue to climb,” he said.