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The Take Away:
SelfStorage.com's blog posted their 12 best places to move to in 2015 & Texas takes 4 of the 12 top spots!
So how did the Lonestar state fair:
The capital of Texas boasts the highest long-term job growth and the second-highest economic growth numbers among the Top 12. It also has the second-highest share of recent construction. Yet homes remain affordable, with median prices slightly higher than three times median incomes. The only drawback? Real estate taxes, which are higher in Austin than anywhere else in the Top 12.
Four of the Top 12 spots belong to metro areas in Texas, and Houston actually outperforms Austin in many ways: cost premiums are lower, prices recently have increased more and real estate taxes are lower. However, there’s less recent construction in Houston, and economic growth — while healthy — is slower than in Austin.
Like its Texas compatriots on our list, San Antonio scores well across the board and offers buyers a low cost premium combined with attractive recent price increases. Real estate taxes per capita are lower here than in the other Texas cities, too.
Dallas’ economic numbers are essentially the same as San Antonio’s. However, Dallas’ recent price increases and real estate taxes are higher, and the cost premium is slightly higher here than in San Antonio.
Appraisals & why we must sell every home twice!
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is that bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate comparable sales (similar houses in the neighborhood that closed recently) to defend the price when doing the appraisal for the bank.
With escalating prices, the second sale might be even more difficult than the first. And now, there may be a second issue further complicating the appraisal issue.
The Mortgage News Daily (MND) recently published an article titled Conservative Appraisals Increasingly Mentioned in 2015; Did Something Change?
The article revealed that there was a “flurry” of comments on their website from members expressing concern about…
“…a sudden increase in appraisals reflecting market values well below what had been expected. In some cases the low appraisals had merely required the restructuring of the loan, in others they killed the deal.”
The National Association of Realtors revealed this month that 8% of the contracts that fell through over the last three months were terminated because of appraisal issues.
MND decided to survey their members and ask why this sudden increase in “short” appraisals could be taking place. Here is one result of that survey:
“Almost everyone we spoke to mentioned Fannie Mae's new Collateral Underwriter (CU).”
Collateral Underwriter provides a risk score on individual appraisals which will lead to a ranking of appraisals by risk profile, allowing lenders to identify appraisals with heightened risk of quality issues, overvaluation, and compliance violations. It went on-line on January 26.
Marianne Sullivan, senior vice president of single-family business capability with Fannie Mae believes that CU is not a problem for appraisers. She claimed:
“From an appraiser perspective, one of the lender's responsibilities has always been to review the quality of an appraiser, and they have been using various methods to do that forever. I don’t think appraisers will find this tool to be disruptive.”
However, some think that CU has caused appraisers to become too cautious with their appraised values. One mortgage professional in the MND article explained it this way:
"My personal opinion is that appraisers are being overly conservative in choosing comps because of CU. If CU questions the comps, adjustments, etc., the appraiser would have to do a lot of extra work to justify them. I had anticipated that CU would cause delays because of this extra work, but it seems that appraisers are one step ahead and are being ultra conservative, thus avoiding the extra work in the first place. I haven't spoken to an appraiser about it; this is just my interpretation of what I am seeing."
Ryan Lundquist, a Certified Residential Appraiser in the Sacramento area, agreed:
“One of the unintended consequences of CU may be more conservative appraisals.”
We must realize that, in today’s housing market, every house must be sold twice and the second sale (to the bank’s appraiser) could be the more difficult one.
Thank you to Caitlin Clark of D Magazine & D Home for thinking of us in their recent blog post & QA. We discussed the affect of corporate relocations to the North TX area & how this may affect Frisco's real estate market.
Below is a quick glimpse - For all the Questions & Answers, please be sure to check out the Blog - HERE
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How do you think all the development in and around Frisco will affect the city’s housing market?
It is an exciting time to be in Frisco! The name recognition that comes with the Cowboys is priceless. As we continue develop and draw new employment anchors and employees, that name recognition will keep our great city in the forefront of buyers’ minds. Likewise, the affect we will see from our new corporate neighbors will be profound...
Are there any up-and-coming neighborhoods or residential developments that homebuyers looking in Frisco should know about?
We could talk all day! New home communities include: Phillips Creek Ranch with huge amenities, Lawler Park with creek lots and mature trees, and the gated Newman Village, which has come on strong over this past year. I do caution buyers not to let new build prices or inventory scare you from our market; the traditional heavy hitters in Frisco will always draw interest like Trails of West Frisco, Starwood, Stonebriar, Griffin Parc, etc. Likewise, the Hillcrest & Lebanon area of Plantation Estates, Hillcrest Estates, Cecile Place and others are wonderfully priced, just off 121, and offer amazing schools and amenities. Really, we could talk all day!
Do you have any tips or insight for homebuyers looking to make the move to Frisco?
Sure I do; give us a call!
The best advice I can offer is to get started early. Frisco is much larger than people expect. The city offers such a wide variety of communities, home styles, and amenities that it can be overwhelming for home seekers new to the area. Work with someone to get to know the area, not just the houses. This isn’t just about where you lay your head at night, but where do you work, live, relax, and play – how can your home, community, & city enhance this?
And, if you are relocating from another state, don’t worry, we native Texans are easy to win over – just let us know that while you may not be from here, you got here as soon as you could.
Displaying blog entries 11-14 of 14
