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Christie Cannon

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Buyer Demand Remains High

by Christie Cannon

The price of any item is determined by the supply of that item, and the market demand. The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report.

Inventory Levels & Demand

Sales of existing homes rose 3.2% from May, outpacing year-over-year figures for the ninth consecutive month. Total unsold housing inventory is at a 5.0-month supply.

This is down from May’s 5.1-month supply and remains below the 6 months that is needed for a historically normal market.

Consumer confidence is at the highest level in over a decade. Pair that with interest rates still around 4%, new programs available for down payments as low as 3%, and you have an attractive market for buyers.

Buyer demand for housing surged to it’s highest level since June 2013.

Prices Rising

June marked the 40th consecutive month of year-over-year price gains as the median price of existing homes sold rose to $236,400 (up 6.5% from 2014).

So What Does This Mean?

The chart below shows the impact that inventory levels have on home prices.

Inventory & Pricing | Keeping Current Matters

NAR’s Chief Economist, Lawrence Yun gave some insight into the correlation:

"Limited inventory amidst strong demand continues to push home prices higher, leading to declining affordability for prospective buyers."

NAR’s President, Chris Polychron added:

"The demand for buying has really heated up this summer, leading to multiple bidders and homes selling at or above asking price."

Bottom Line

If you are debating putting your home on the market in 2015, now may be the time. The number of buyers ready and willing to make a purchase is at the highest level in years. Contact a local professional in your area to get the process started.

The Power of Interest on your Mortgage!

by Christie Cannon

Sometimes a simple graphic goes a long way!  This is based on average interest rates on a $200K mortgage (principal & interest only on 30yr fixed).

Lagging Appraisal Values

by Christie Cannon

The Impact of Rising Prices on Home Appraisals | Keeping Current Matters

The fact that residential home prices are increasing substantially in most regions of the country is music to the ears of homeowners. However, if you are in the process of selling your home, make sure you realize the major challenge a hot real estate market creates.

Each house must be sold twice; once to a buyer and a second time to an appraiser who represents the bank that will grant the purchaser a mortgage to buy the home (unless it is an “all cash” purchase). In a real market with escalating prices, the second sale may be the more difficult. And a recent survey by Quicken Loans reveals that the gap between what a homeowner believes is the value of their home compared to an appraiser is widening.

Appraisal vs. Homeowner Value | Keeping Current Matters

This could lead to an increase in the percentage of real estate transactions being challenged by a ‘short’ appraisal (where the appraiser value is less than the contracted price of the home).

The Take Away

Whether you are a buyer or a seller, you must be prepared for this possibility as it may result in a renegotiation of the price of the home.

Housing Bubble Fears rise with Prices

by Christie Cannon

What is a Housing Bubble? Is One Forming? | Keeping Current Matters

Sky-rocketing rises in real estate values have left many people worrying if we are in the middle of another housing bubble.

What is a housing bubble?

According to Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania:

“A price bubble is a rise in price based on the expectation that the price will rise. Sooner or later something happens to erode confidence in continued price increases, at which point the bubble bursts and prices drop. What makes it a price bubble is that the cause of the price increase is an expectation that the price will increase, which sooner or later must reverse itself.”

In a recent article, he explained:

“My view is that we are a long way from another house price bubble. Home buyers, lenders, investors and regulators now understand that a nationwide decline in house prices is possible -- because we recently lived through one.”

Where are home prices today?

Though home values are continuing to appreciate, the acceleration of the increases has slowed to year-over-year numbers which reflect a healthy housing market. Here is a chart showing year-over-year appreciation since January of last year:

Case Shiller Price Changes | Keeping Current Matters

The Take Away

Nick Timiraos of the Wall Street Journal put it best in a recent tweet:

“Predictions of a new national home price bubble look unfounded for now, according to data.”


Union Park Little Elm TX - New Community

by Christie Cannon

More information has been coming out about Little Elm's newest master planned community - Union Park. Developed by Hillwood, this Denton ISD community is seeking to bring in some of DFW's best builder: Highland HomesPlantation HomesAmerican Legend HomesEmerald Homes and Drees Custom HomesThe community will feature a community greenbelt with hiking trails to connect each phase. 

Amenities will include:

  • 35 Acre Wooded - Contiguous Central Park
  • Open Air Pavilion overlooking park
  • Community Center with Resort Pool
  • Food Truck Park
  • Pocket Parks and sports practice fields throughout the community
  • Denton ISD
  • Variety of Trails through the wooded areas and throughout the community
  • Fishing Ponds
  • Outdoor Fitness
  • Lifestyle, community event

Home Values Today v/s The Peak

by Christie Cannon

Bubble in the making? Seasonal "uptick"? or simply supply & demand?

Home prices continue to inch higher & higher, but in all but 7 states (those in darkest blue) the average home price has yet to reach "peak pricing." Those seven states in darkest blue reflect the state's current market is their price peak.  

At least here in North Texas, our fundamentals remain strong, inventory remains low, & for many buyers there is little relief in sight.

 

Low Inventory Create Slowdown in Sales

by Christie Cannon

“Lagging Supply” Leads to Slowdown in Sales  | Keeping Current Matters

The National Association of Realtors (NAR) recently released the results of theirExisting Home Sales Report. Despite the fact that properties are selling faster than they have at any other time since July of 2013, existing home sales declined 3.3% from March.

NAR’s Chief Economist Lawrence Yun explained the main reason for the slow:

"April's setback is the result of lagging supply relative to demand and the upward pressure it's putting on prices.”

One major news organization actually used this headline about the decline:

Existing home sales fall 3.3%

They certainly haven’t cratered! April marked the second month in a row that the annual sales pace remained above the five million mark (5.04 million). Year-over-year sales have increased for seven consecutive months and are still 6.1% above a year ago.

Every month, SentriLock, LLC provides NAR Research with data on the number of homes shown to potential buyers. This data is referred to as ‘Foot Traffic’ and is a great predictor of future sales and buyer demand. In April, buyer demand remained at the same level experienced in March.

Why did sales go down?

Buyers who are ready and willing to make a purchase are entering a market where their dream house may not have been listed yet. They can’t find it! Or if they find it, it happens to catch the eye of other buyers and an ‘auction like environment’ begins.

"Housing inventory declined from last year and supply in many markets is very tight, which in turn is leading to bidding wars, faster price growth and properties selling at a quicker pace," says Yun. "To put it in perspective, roughly 40 percent of properties sold last month went at or above asking price, the highest since NAR began tracking this monthly data in December 2012." (emphasis added)

The median home price of existing homes sold in April was $219,400, which is 8.9% higher than last year, and marks the 38th consecutive month of year-over-year price gains.

Bottom Line

So how do you make sense of everything that’s going on in the housing market when there are so many conflicting headlines on the same report?

John Burns, real estate expert and CEO of John Burns Real Estate Consulting gives this advice:

“The bottom line is this: don't make decisions based on newspaper articles. Read the actual press release, including the methodology, and make sure the results jive with other data points and qualitative feedback you receive.”

If you are one of the many homeowners out there realizing that now may be the time to list your home for sale, or one of the many renters debating a purchase, sitting with a local real estate professional who takes the time to find out what’s really going on in the market, should be your first step!

Existing Home Sales Stats for May 2015!

by Christie Cannon

Buyer Demand Exceeds Housing Supply [INFOGRAPHIC] | Keeping Current Matters

Highlights:

  • Inventory Levels remain less than a six month supply - indicated an unbalanced / seller's market
  • For the last 38 straight months the market has seen gain in home prices
  • The average time on market is the lowest since June 2013

Event - Park-A-Palooza - Movies in the Park

by Christie Cannon

Warren Sports Complex will be hosting a MOVIE & Picnic in the park from 7-11pm on June 27th. The movie will be Paddington.  Admission is free & the event will offer bounce houses before the movie to try and burn off some energy before the showing.  Bring blankets, chairs, picnic foods, snacks.... and bug-spray (it is still TX after all).  More info can be found here!

EVENT - Frisco's Dive-in Movies (You read that right)

by Christie Cannon

So it may not be real estate related - but that doesn't make it any less awesome!

Frisco's Outdoor Aquatic Center will be sponsoring a DIVE-in movie event in June, July, & August.  Tickets went on sale last week. 

Tickets are $8 per person; children under 2 are free. Buy Tickers here! The Movies currently sheduled are:

Friday, June 19, 2015 - Dolphin Tale 2

Friday, July 17, 2015 - Big Hero 6

Friday, Aug. 17, 2015 - LEGO Movie

Displaying blog entries 1-10 of 148

Contact Information

Photo of Christie Cannon Real Estate
Christie Cannon
Keller Williams Realty
4783 Preston Road. Ste 100
Frisco TX 75034
469-951-9588
972-215-7747
Fax: 214-853-4774