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The District Concert Series - Petty Theft

by Christie Cannon

Come out this Friday and see The Christie Cannon Team at The Shops at Willowbend.  Petty Theft a Tom Petty tribute band will be there providing tunes and fun!  There are also some great places to eat and shop!

 

How Does the supply of homes for Sale Impact Buyer Demand?

by Christie Cannon

How Does the Supply of Homes for Sale Impact Buyer Demand?

How Does the Supply of Homes for Sale Impact Buyer Demand? | MyKCM
 

The price of any item is determined by supply, as well as the market’s demand for the item. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand).

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”How Does the Supply of Homes for Sale Impact Buyer Demand? | MyKCMThe darker the blue, the stronger the demand for homes is in that area. The survey shows that in 3 of the 50 U.S. states, buyer demand is now very strong; only 2 of the 50 states have a ‘weak’ demand. Overall, buyer demand is slightly lower than this time last year but remains strong.

Seller Supply 

The index also asked: “How would you rate seller traffic in your area?”How Does the Supply of Homes for Sale Impact Buyer Demand? | MyKCMAs the map below shows, 18 states reported ‘weak’ seller traffic, 29 states and Washington, D.C. reported ‘stable’ seller traffic, and 3 states reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are looking for homes.

Bottom Line

Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together to help you capitalize on the demand in our market now.

Should You Fix Your House Up or Sell Now?

by Christie Cannon

Should You Fix Your House Up or Sell Now?

What will you likely to recoup from your project? Find out here with the COST VS Value Report 2019:
 

Should You Fix Your House Up or Sell Now? | MyKCM
 

With the fall season upon us, change is in the air. For many families, children are growing up and moving out of the house, maybe leaving for college or taking a jump into the working world. Parents are finding themselves as empty nesters for the first time. The question inevitably arises: is it finally time to downsize?

If you’re pondering that thought, you may also be wondering if you should fix-up your house before you sell it, or go straight to the market as-is, allowing a potential buyer to do the updates and remodeling. If you’re one of the many homeowners this camp, here are a few tips to help you decide which way to go.

1. Analyze Your Market

A real estate professional can help you to understand your market and the potential level of buyer interest and demand for your home. Are you in a seller’s market or a buyer’s market? This can change based on the price range of your home, too. A professional can also give you some insight on what you can change or remodel, and how to declutter your house to make it attractive to buyers in your area.

2. Get an Inspector

Right now, the average length of time a family stays in a home is between 9-10 years. That’s a little longer than the historical average, so if you’ve been living in your home for a while, it might be time to make some significant improvements. Think: electrical system, HVAC units, roof, siding, etc. An inspector can give you a better idea of the condition of your home, if it is up to current code standards, and recommendations on how to have your house ready before you put it on the market.

3. Decide If You Need to Remodel

You may also be thinking about driving buyer appeal with something like a kitchen or a bathroom remodel. If so, first dig into the market value of your home, and compare it to the actual cost of the remodel. A local real estate professional can help you determine your home’s market value, and you’ll want to get a few quotes from contractors on the potential remodel pricing as well. Once you have those two factors narrowed down, you can to decide if a remodel will give you a return on your investment when you sell. Oftentimes, it is actually more advantageous to price your house to sell, list it competitively, and then let the buyer pick the colors they want for their bathroom tiles and the type of countertop they prefer. The 2019 Cost vs. Value Report in Remodeling Magazine compares the average cost for remodeling projects with the value those projects typically retain at resale.

Bottom Line

Nationwide, inventory is low, meaning there is less than the 6-month housing supply needed for a normal market. This drives buyer demand, creating a perfect time to sell. If you’re considering selling your house, let’s get together to help you confidently determine what will be the best choice for you and your family.

Dallas Market Has Cooled Off. Don’t Panic.

by Christie Cannon

The Dallas Real Estate Dallas Market Has Cooled Off. Don’t Panic.

Can you say “reversion to the norm”?

 

Mike and Tracy Voegtle are not getting back into the Dallas housing market anytime soon. Who can blame them? It took months of constant searching for the couple to find their Far North Dallas home back in 2013. That year, the local residential property market was the hottest it had ever been. Cash offers were being made for homes all over the area. Prices soared higher by the day. Supply was limited. Demand seemed endless.

That meant the Voegtles had to drag their three boys to multiple open houses on the weekends and face disappointment as they lost out on the first six houses they bid on. Finally, they landed a four-bedroom, four-bath place near Brentfield Elementary.

As the Dallas housing market has stayed hot in the years since, the Voegtles’ house has appreciated significantly, even though the only major change they have made was putting in a pool. But something else has changed in the Voegtles’ neighborhood. “For Sale” signs are standing on lawns a lot longer than they used to.

“The housing market around us feels like it is slowing down a bit,” says Mike, an architect with Dallas’ 5G Studio. “We’re seeing houses sitting on the market for a long time now, for months, even. That didn’t happen a few years ago.”

In fact, the average days on the market for a house in North Texas is now 53—the highest it has been since the Voegtles bought theirs. That’s just one of the many signs that the once white-hot Dallas housing market has finally begun to cool down.

state of Dallas real estate market

Strength in the Numbers

Don’t panic. This is not a bust. It is not a crash. If you are a homeowner in the Dallas area, you will not have to start making your belt out of cardboard. Prices overall are still increasing. First-quarter home prices in North Texas increased 1.4 percent over their level in 2018, according to the National Association of Realtors.

That was the smallest price gain in the area since 2011. In 2011, the median home price in North Texas was $150,000. Today, it is $254,300. So if area price increases have slowed, does that mean that $254,300 is something like the top of what has been a huge upward sales market here?

Not according to Zillow. It’s dubbed the Dallas market “cool,” but it’s also calling for a 7.5 percent rise in the median home price this year. That’s only half the 14.2 percent rise last year. But it still means the market is on an upward trajectory.

The reason for that is simple. There are jobs here, and tens of thousands of people are still moving to this area looking to land those jobs. The Bureau of Labor Statistics says 102,500 new jobs were created here in 2018. That helped cut the local unemployment rate to 3.3 percent as this story was going to print—lower than the 3.9 percent national average. There are 3.7 million people in this area going to work every day now.

Some of those people are new. About 130,000 people moved into the Dallas and Fort Worth area just last year alone. Some experts figure that about a third of those people want to buy a house. That’s a lot of new demand on top of whatever demand already existed before those 40,000 people dropped into this market.

The bottom line? “Home prices this year will still probably go up in Dallas-Fort Worth,” says Jim Gaines, chief economist at the Real Estate Center at Texas A&M University. “But they’re not going up as fast. In economics terms, we call what is happening a ‘reversion to norm.’ The market is going back to its normal pace of activity. Instead of being in a state of exuberance where prices go up 10 percent annually, they’ll return to going up 3 or 4 percent.”

For homeowners, it seems like good news that the demand is still out there and prices are still climbing. But, then, what’s the deal with those lingering “For Sale” signs in Mike Voegtle’s neighborhood?

Price Fatigue

As every Econ 101 student knows (or ought to know), when demand is high and supply is low—both phrases describe the overall North Texas housing market—prices go up. And, sure enough, whether you ask Zillow or the National Association of Realtors or just about anyone else, prices here are continuing to rise.

Don’t panic. This is not a bust. It is not a crash.

Sales, however, are not really going up. In January there were about 15,254 homes listed for sale in a part of the Dallas area that includes Plano and many other northern communities and Irving and other western cities. In April there were about 18,012 homes listed. That, in real estate agent-speak, is about three months of inventory, meaning that, if no new houses were listed for sale for the next three months, the existing level of demand would consume all the current listings and there’d be no more homes left to buy here. There are, of course, new listings coming online all the time—both for new homes and existing homes. Dallas leads the nation in number of new homes under construction. In 2018, construction began on 34,523 new homes here, up almost 3 percent from the year before. Houston ranked second to Dallas with 30,206. No other city reached 30,000 “home starts,” as they’re called.

Even so, Dallas still has only about three months of inventory on hand, well down from levels seen earlier this decade. Said in fewer words: supply is tight. Demand is high. So why are sales flat and why are price increases slowing? Many experts offer the same explanation: the prices are too damn high.

“There has been some price fatigue,” Gaines says. “People are looking at what they’re being asked to pay and there’s a little more resistance from buyers. If they’re not getting exactly what they want, they’re not buying it at all.”

Little wonder, then, that 61 percent of Dallas-area residents (an increasing number of whom are young people in the early phases of their careers) are now renters and not owners.

Jeff Duffey, who runs Jeff Duffey & Associates, a real estate firm that handles both existing and new home sales in Dallas, thinks that too many sellers believe Dallas is experiencing a boom market that gives them total control over pricing. “For example,” he says, “two to three years ago, it was hard to find many homes in North Dallas that were listed between $400,000 and $600,000. Now I can show someone homes for five straight weekends and still not go through all of the active listings in that price range. Sellers who have overpriced their homes or who think they don’t need to go through the trouble to fix up their homes for sale are watching their properties sit on the market. Buyers don’t want those homes and they don’t need them.”

But some potential buyers may also simply not be able to afford what’s on the market in many neighborhoods. Since 2012, prices in the Dallas market are up more than 60 percent. Fitch Ratings, a credit analysis firm, says the Dallas market is one of the more overvalued in the country and that prices are 15 percent higher than what they should be based on the growth of the area’s population, income, and average rental prices. The median income in North Texas has gone up a lot in the last 10 years, jumping from $58,025 to $67,382. That’s 16 percent. Median home prices in the same time period are up 70 percent.

“There are a whole bunch of houses now that are priced in higher price points—price points that a lot of people can’t afford,” says Paige Shipp, regional director in Dallas-Fort Worth for Metrostudy, a real estate research firm.

The National Association of Home Builders has crunched numbers that tell the same story on affordability here. The NAHB puts together a quarterly Housing Opportunity Index—a ranking of the percentage of total homes for sale that are considered affordable to the typical family. In Dallas a decade ago, the NAHB’s Index found that 75.7 percent of the homes were affordable. That rating increased a year later, peaking at 79.9 percent in the first quarter of 2010. But it has fallen sharply in recent years, sinking to just 45.2 percent in the second quarter of 2018, then rebounding slightly to 52.4 percent in the first quarter of this year.

Affordability isn’t just a problem in Dallas. It’s a major issue in many big markets today, like San Francisco. Still, the national affordability index average is 61 percent—higher than overall affordability in Dallas.

Builders have started to address buyer concerns about affordability by hanging drywall on thousands of new homes priced between $250,000 and $350,000. Metrostudy says one-quarter of all new home construction in the area is in that price range. A handful of those homes are townhouses located in Dallas. But most are more traditional single-family houses in communities far from the center city, with price points in the $250,000 to $350,000 range.

Examples include Sandbrock Ranch in Aubrey and Union Park in Little Elm—new developments popping up around U.S. 380 in Denton County. “Highway 380 is hot as a firecracker,” says Bill Shaddock, a partner in Shaddock Development Co. and CEO/owner of Capital Title of Texas.

For those who aren’t interested in seeing the pop of that affordable, exurban firecracker—and all the issues of sprawl that go with it—the Dallas area still has plenty to offer buyers and sellers, even as the market reverts to some of its former norms. “This is the first time in my career I’ve been able to say to my sellers that if they do certain things to their homes and are careful with how they price it, they will absolutely sell the home in a week,” Duffey says. “That’s not a guarantee real estate agents are normally willing to make, but I know that the buyers are still out there, and they’re ready to make a deal.”

SOLD!

Here are the hottest and nottest places in North Texas, based on change in median prices.

How Property Taxes Can Impact Your Mortgage Payment

by Christie Cannon

How Property Taxes Can Impact Your Mortgage Payment

How Property Taxes Can Impact Your Mortgage Payment | MyKCM
 

When buying a home, taxes are one of the expenses that can make a significant difference in your monthly payment. Do you know how much you might pay for property taxes in your state or local area?

When applying for a mortgage, you’ll see one of two acronyms in your paperwork – P&I or PITI – depending on how you’re including your taxes in your mortgage payment.

P&I stands for Principal and Interest, and both are parts of your monthly mortgage payment that go toward paying off the loan you borrow. PITI stands for Principal, Interest, Taxes, and Insurance, and they’re all important factors to calculate when you want to determine exactly what the cost of your new home will be.

TaxRates.org defines property taxes as,

“A municipal tax levied by counties, cities, or special tax districts on most types of real estate - including homes, businesses, and parcels of land. The amount of property tax owed depends on the appraised fair market value of the property, as determined by the property tax assessor.”

This organization also provides a map showing annual property taxes by state (including the District of Columbia), from lowest to highest, as a percentage of median home value.How Property Taxes Can Impact Your Mortgage Payment | MyKCMThe top 5 states with the highest median property taxes are New Jersey, New Hampshire, Texas, Nebraska, and Wisconsin. The states with the lowest median property taxes are Louisiana, Hawaii, Alabama, and Delaware, followed by the District of Columbia.

Bottom Line

Depending on where you live, property taxes can have a big impact on your monthly payment. To make sure your estimated taxes will fall within your desired budget, let’s get together today to determine how the neighborhood or area you choose can make a difference in your overall costs when buying a home.

Latest TX Foreclosure News!

by Christie Cannon

Texas Attorney General Greg Abbott asked loan servicing companies on Monday to suspend all foreclosure activities over concerns about the accuracy of foreclosure documents.

In a letter sent to 27 companies that service mortgage loans in Texas, Abbott's office demanded the immediate suspension of foreclosures, selling foreclosed properties and evicting people living in those properties.

The letter asks that companies obey the moratorium at least through Oct. 15 - the deadline Abbott established for companies to identify any employees who participated in unlawful practices and assure the state that the targeted companies are following Texas laws.

The attorney general's office is investigating mortgage lenders to determine the "full harm Texas homeowners have suffered," according to a letter signed by Paul D. Carmona, the chief of the state consumer protection and public health division.

"We will be pushing forward with our investigation and inquiry," attorney general spokesman Jerry Strickland said. "This is in the interest of homeowners who are feeling the effects of foreclosures."

Other states are taking similar action. Maryland Gov. Martin O'Malley supports a 60-day moratorium on foreclosures there. Delaware Attorney General Beau Biden is calling on mortgage banks to suspend all pending foreclosures until their policies are reviewed. And in Massachusetts, Attorney General Martha Coakley said her office is investigating an "apparent failure of major creditors to follow state foreclosure law."

The Texas request comes after several companies, including Bank of America Corp., suspended foreclosures following revelations of "robosigning," a practice in which bank employees sign thousands of foreclosure documents a month without verifying their accuracy or even reading them. Some of the court documents have proven to contain inaccurate information or improper notarizations or signatures.

In his letter, Carmona described possible fraudulent practices by lenders, including signing thousands of documents per months, often without reading them; signing affidavits falsely claiming personal knowledge of facts or falsely claiming the signing party reviewed attached documents; and notarizing documents prior to their signing or when the signer was not present.

Dallas-Fort Worth has lowest risk for home-price declines

by Christie Cannon

By STEVE BROWN / The Dallas Morning News

The latest home price risk forecast shows that Dallas-Fort Worth is overall the safest place in the country for stable home values.

The latest report by mortgage insurance company PMI Group ranked the D-FW area dead last among the 50 cities it rates for possible declines in home prices.

That means PMI is betting there is less than a 1 percent chance that average home prices here will be lower two years from now.

PMI's summer 2008 risk ranking for D-FW is similar to the insurance company's previous studies.

As in other PMI reports, the U.S. cities with the biggest run-up in home prices in recent years are at the greatest risk for losses.

During the last year, some markets have seen a significant increase in the number of existing single-family homes for sale, PMI chief economist David Berson said in the report.

"Given the magnitude of the inventory overhang, we expect national home price declines to continue into at least 2009," Mr. Berson said.

In North Texas, however, the number of pre-owned homes listed for sale has declined during the last year.

Although PMI Group's report about D-FW home prices should be encouraging, Mr. Berson said that doesn't mean there won't be short-term declines in values.

"It is also an average for a metropolitan area, so individual neighborhoods and houses could behave differently," he said, perhaps considerably so.

Likelihood of lower home prices in each market in two years.
GREATEST RISK
Riverside-San Bernardino-Ontario, Calif. 95.5%
Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla. 92.2%
West Palm Beach-Boca Raton-Boynton Beach, Fla. 91.9%
Orlando-Kissimmee, Fla. 91.1%
Las Vegas-Paradise, Nev. 88.1%
LOWEST RISK
Fort Worth <1%
Dallas <1%
Pittsburgh <1%
Houston <1%
San Antonio <1%
SOURCE: PMI Group.

Dallas home prices rise among few U.S. gains

by Christie Cannon
Dallas home prices rise among few U.S. gains
Industry experts say foreclosures a concern
11:15 AM CDT on Thursday, August 30, 2007
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Dallas is one of the few cities in the nation where home prices are still rising slightly, according to a national housing survey released Tuesday.
While U.S. home prices fell 3.2 percent in the second quarter, Standard & Poor's quarterly housing index reports that the Dallas metropolitan area was one of only five markets in the country with price gains.
Of the 20 cities it surveys, only Dallas , Seattle , Portland , Ore. , Atlanta and Charlotte , N.C. , had annual gains in home prices in the second quarter.
But it's hard to say whether the 1.6 percent gain in Dallas home prices is sustainable, industry experts say.
Dr. James Gaines of Texas A&M University 's Real Estate Center said "In a lot of places in Dallas , home prices are still going up by double digits.” In other neighborhoods, they are actually falling. But across the board, the gainers outweigh the losers," he said.
As mortgage lenders tighten loan requirements, a significant number of potential homebuyers have been locked out of the market. That could hurt the volume of sales in North Texas in the months ahead.
"It may take awhile to sort out" what's happening in the mortgage market, Dr. William Brueggeman, director of SMU's real estate department said. "There is going to be a little pain and suffering here, but nothing like we are seeing in other markets."
Fewer subprime woes
Dr. Gaines says that even with the soaring foreclosure rates, there have been fewer subprime mortgage problems here.
"The mortgage shakeout is affecting other parts of the country a lot more than it is Texas ," he said. "We didn't have anywhere near the level or magnitude" of subprime loans that other markets did.
But that doesn't mean that Dallas-Fort Worth homeowners aren't going to be hammered with a steady diet of bad news about the U.S. housing market. Those negative reports weigh on consumer psychology.

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Christie Cannon
Keller Williams Realty
4783 Preston Road #300
Frisco TX 75034
972-215-7747
Fax: 214-853-4774
Keller Williams Frisco - The Christie Cannon Team - http://www.christiecannon.com