The housing market is stuck—and isn’t likely to unstick itself this fall.
Wednesday, October 11, 2023
Wednesday, September 20, 2023
Are you freaked out by the high home prices in North Texas? Well, here are some cities who's home prices that won't break your budget. But as for the rest of you, especially your health and safety, BUYER BEWARE!
That's not entirely fair to this article. I mean, sure, Flint, MI has that water thing, and my wife really likes bottled water. Sure most of these destinations are just 90-45 minute commutes into a big city like, NYC. But Lawton, OK is probably nice?
Just incase I'm not being fair, here's the whole article from REALTOR.COM, written by Evan Wyloge.
Thursday, June 29, 2023
Saturday, March 11, 2023
From the Texas Association of REALTORS(R)
How can you prepare for the rest of 2023 when the last few years have been so unpredictable?
The Texas Real Estate Research Center released the 2023 Texas Economic Forecast in December. Researchers made educated guesses by using their understanding of economic and market conditions and past market trends, the report says.
Lead Data Analyst Joshua Roberson recently shared what he’s watching this year and how it could impact buyers, sellers, and renters.
Inflation will continue
Inflation will be the metric to watch in 2023. Inflation rose rapidly last year, and the Federal Reserve responded by raising interest rates. Making it more expensive to borrow money cools off inflation but also decreases buying power.
The Research Center predicts inflation will likely stay elevated this year. Even if the Federal Reserve does rein in inflation, we probably won’t feel the effects immediately or completely.
Global events also affect inflation. “What happens in one country spills over to the U.S. market,” he says. “If China shuts down because of COVID-19 or the oil markets are in flux because of the war in Ukraine, there’s only so much the Federal Reserve can do.”
Inflation impacts Texas real estate because higher interest rates push buyers out of the market. Qualified buyers may delay purchases until rates come down. Texas is somewhat protected from these consequences because of the steady stream of new residents, Roberson says. As a result, Texas is in a better position to bounce back compared with other states.
Texas home prices and rents could not keep growing like they did during the pandemic, the Research Center says. “The way I look at it, back in 2019 we were having conversations about declining housing affordability. Then COVID-19 threw everything into a whole other gear,” according to Roberson.
Prices partly rose because of low mortgage interest rates in 2019-2021. Buyers lost 40% of their purchasing power when rates leapt from 2.65% in January 2021 to around 7% last fall. The 30-year mortgage rate in February 2023 was 6.12%. That feels high compared to recent years but 6%-7% is closer to historical norms, Roberson says.
“COVID-19 was a special period of time with interest rates being as low as they were,” Roberson says. “People had a lot of money they couldn’t spend on anything else but their homes. We thought we’d be in our homes a lot more than we were. We couldn’t sustain those numbers. For Austin to experience 30% to 40% year-over-year price growth, that was unique. Things are leveling off.”
The Research Center predicts moderate home price and rent growth in 2023. The median home price in November 2019 was around $250,000. Last June it was $349,000. It’s down to $333,000 now but Roberson doesn’t see a return to the $250,000 range. Any fall in prices definitely won’t come close to the nosediving levels of the 2007-2009 Great Recession. Texas has a tight supply of homes and still-strong demand.
Sales will slow down
Higher mortgage rates and higher asking prices will slow sales even as price growth moderates, the Research Center predicts. “2022 had fewer sales than the previous year, but sales still exceeded 2019,” Roberson says. “Even if there was a decline, sales were still good. It’s just that everything will look disappointing compared to 2021.”
Roberson watches days on market and months of inventory, which are both slowly increasing. Texas continues to have limited inventory at the lower price points, even with new homes being built. The housing market in general remains undersupplied. He also watches list-to-sale price comparisons.
Are we headed to recession?
One of the biggest questions for the Research Center was whether the economy is headed into recession, Roberson says.
If there is a mild recession, job and housing growth will flatten. “More than likely, that’s the best-case scenario for this year,” he says. If the recession is more significant or persistent, there will be a loss of real wages and buying power. The economy will tighten and housing sales will continue to fall.
How consumers feel about the economy can be as important as the actual numbers themselves, Roberson says. Pessimistic attitudes influence purchasing decisions, like houses, which end up in the data. “Inflation is the big pain point,” he says. “That eclipses everything else. Even though it’s improved, it’s still elevated. And people feel it, especially when buying food.”
Thursday, August 19, 2021
The primary question agents get asked, naturally, "How's the market?"
The experts at the Texas A&M Real Estate Center say that we Texans can expect interest rates to rise and things to remain about the same. Some improvement in inventory of homes for sale should improve as listings have reached a low and are rising. I hope this will ease some of the price pressures.
Texas homebuilders can't get all the lumber, labor, appliances, and other construction materials, which is driving up prices and costs yet, home construction should maintain strong positive growth in 2021-2022.
Maybe the foreclosure market will offer some relief to pressure and price. Federal forbearance ends in the fall of 2021. The housing market could absorb the foreclosed homes and also those homes could be sold with a gain even before they enter foreclosure. We'll see.
Tuesday, July 6, 2021
Tuesday, March 30, 2021
Friday, March 13, 2020
The Collin County city ranked fifth in lowest separation and divorce rate, sixth in emotional and physical well-being, ninth in income and employment, and 16th in community and environment.
Austin ranked 22nd overall, the only other Texas city in the top 25. The Texas capital ranked fifth in highest income growth, sixth in income and employment, 12th in emotional and physical well-being, and 118th in community and environment.
Fremont, Calif., took the top spot in the overall rankings. The rest of the top five were San Jose, Calf.; Irvine, Calf.; and Madison, Wis.
Last year, Plano was first on WalletHub's list.
Friday, February 21, 2020
Dallas Morning News Editor, Steve Brown writes that the city council has approved The Avenue, an 80-acre mixed-use development at the southwest corner of SH 121 and Alma Rd.
The development, previously known as Allen Sports Village, will include:
- one million sf of office space,
- 65 single-family homes,
- 1,600 urban residential units,
- three hotels, and
- 275,000 sf of retail and restaurant space.
Many of the shops and dining venues will be built in old shipping containers. A food hall and a central outdoor plaza with water features will be included.
Developer Thakkar originally proposed building a $500 million sports complex with a cricket stadium, but the deal was canceled after neighborhood opposition and the departure of a key player.
Tuesday, February 11, 2020
Thursday, September 19, 2019
Tuesday, March 19, 2019
Home sales were down 5 percent from February 2018 with 280 homes sold. The median price increased 13 percent to $182,500. The number of active listings grew 7 percent over the year at 1,024 listings. Monthly housing inventory decreased from 2.9 months to 2.7 months in the same period. The TAMU Real Estate Center considers a six- to 6.5-month inventory a balanced market.
Homes in Lubbock spent an average of 87 days on the market. For more on the Lubbock housing market, read the Center's latest housing report.
Wednesday, March 13, 2019
Well of course not.
But we are officially still in the black, employment-wise. The soothsayers at the Federal Reserve Bank of Dallas adumbrate a modest growth in job-having. The Texas Employment Forecast suggests jobs will grow 1.5 percent this year. So, yeah.
Here's a cool chart they made for the occasion...