DFW Area Home Prices Climb According to Latest S&P/Case-Schiller Index

Good news DFW! The Dallas/Fort Worth area pre-owned homes showed a price increase this past November, up 1.4 percent from a year previous, according to the lastest statistics released by the Standard & Poor's/Case-Schiller Home Price Index. This is the first positive increase in DFW in the past 2 years. The Dallas area also placed 1st out of 20 cities tracked monthly according to the index. Based on the numbers, our area has been on a steady increase since the market bottomed out in March 2009.

It's not time to celebrate yet however. There is still much speculation about mortgage rates increasing if the Fed stops buying mortgages and mortgage backed securities this April. 30-year fixed rates have already risen by one-quarter of a percent this past month to around 5.2%, according to HSH Associates. This could be the beginning of a steady rise in rates. With this in mind, NOW is the time to lock in your mortgage on the purchase of your next home or a re-finance of your current home.

Visit BW Home Team to find all the homes available on the market today, whether it is homes in Frisco, homes in McKinney, or homes in Flower Mound, pre-owned or new construction. Quit searching and start finding with us!

The Borrowers Right to Inspect Closing Documents Act of 2009

A new bill was introduced to the House of Representatives late last year. This bill, titled "The Borrowers Right to Inspect Closing Documents Act of 2009" was co-sponsored by Reps. Melissa Bean, D - Ill., and Shelley Moore Capito, R - W. Va. The bill, if passed, would require that borrowers receive their closing documents at least three business days before their scheduled closing. This would mean that the lender would be required to provide the title company or other settlement agent:

• the completed promissory note
• the deed of trust or other mortgage instrument
• all items needed to complete the uniform settlement statement
• the final closing instructions

at least four days before a borrowers scheduled closing in order to allow the settlement agent time to prepare the closing documents and get them to the buyer within the required 3 days prior to closing.

Like most pieces of legislation, this bill is a double-edged sword in my opinion. Most legislators blame the housing crisis on predatory lenders having taken advantage of sub-prime borrowers ignorance of the paperwork they were signing and the terms they had agreed to. I give borrowers I little more credit than this. Having sat through many closings, settlement agents do a good job of explaining the paperwork in layman's terms that all but the dimmest can understand. "A 5 year ARM will keep your payments at this level for 5 years and then your interest rate will increase by no more than a certain percentage (stating what that percentage number is) PER YEAR, which will increase your payment to this, etc."

I believe everyone should have the right to read what they are signing and are smart to do so. A large amount of lenders are notorious for getting paperwork to the title company/settlement agent as late as the afternoon of a borrower's closing, if not later. Closing documents are generally stacked together in a pile a good 6 inches thick, with several documents being full of legalese and the buyer is expected to get through a closing within the scheduled hour to hour and a half. Thus, in a Utopian society where all runs smoothly in the world, this bill would seem like a good idea. However, here's the other side of the sword. We do not live in a Utopian society and like good ol' Murphy stated, if something can go wrong, it will. Most buyers arrange their movers or rent their moving vans for the day of closing. If they are selling a house and do not negotiate a temporary lease back, they have nowhere else to put their belongings. Will these lenders be able to keep up with these new guidelines or will this cause the process to bottleneck even more? It seems smart and logical to get to the root cause of the bottleneck. I don't have faith that our legislators can even comprehend this concept. I believe that if required closing documents were more universally standardized between all lenders, closings could be more streamlined. Buyers could compare apples to apples when looking at good faith estimates and all the lenders would need to do is fill in the blanks. Borrowers could review blank closing documents before they ever get into contract on a house and hidden fees would not be so hidden anymore.

Only time will tell if this legislation will pass and if these new requirements will further bog down the closing process. The good news is, the home market is looking up in 2010! There are lots of homes for sale in Frisco, homes for sale in Highland Village, homes for sale in Southlake, and homes for sale in Flower Mound , along with other areas of Dallas/Fort Worth that are just waiting for that new buyer to move in, that is, as long as they get through the closing process first!

Good News for DFW Pre-Owned Home Market To Be Released in Dallas Morning News on 9/8/09 by Steve Brown!

Dallas-Fort Worth preowned home sales skyrocket as homebuyers take advantage of tax credit

By STEVE BROWN/ The Dallas Morning News

The North Texas housing market came roaring back in November.

Preowned home sales rose by 31 percent last month from a year ago – one of the biggest such increases on record.

And median home sales prices were up 5 percent.

The big jump in residential transactions came as large numbers of homebuyers rushed to take advantage of the federal home buying tax credit, which has been extended.

Real estate agents in October sold almost 5,500 preowned homes through their multiple listing service, according to statistics released Monday by the North Texas Residential Information Systems and the Real Estate Center at Texas A&M University.

And condo and townhouse sales were up more than 60 percent from a year ago.
November’s robust sales activity is the latest in a string of recent indicators, which show that the North Texas home market has bottomed out and is turning the corner.

Through the first 11 months of 2009, North Texas home sales are down 12 percent from the same period of last year. And median home sales prices are unchanged year to date from 2008.
November was the second consecutive month that Dallas-Fort Worth area home sales rose from the previous year – ending more than a year of consecutive declines.

Some neighborhoods that weren’t impacted by the federal homebuying incentives saw dramatic spikes in home sales last month.

In the Park Cities, preowned home sales soared 81 percent in November from a year ago.
Sales in close in North Dallas neighborhoods rose 48 percent.

And at the end of November, the inventory of unsold homes on the market fell below 6 months which is considered a balanced market.

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/120709dnbizhomesales.32d657683.html

Great Article Regarding Housing Market Recovery in Your Local Area!

I just read a great article entitled "When Will Your Housing Market Recover?" This article goes into detail about how to find out if your own local market is recovering and where to find the information. They mention researching the supply of for-sale homes, median home prices and volume of homes sold, along with other information such as the foreclosure rate for your area. If you've read my blog for long, you know that I post good information about the DFW housing market with hard facts and statistics that can help you if you're not into doing your own research. Read this article though to educate yourself a little more on the process. As always, when you are ready to find that next great home at a great price, visit www.BWHomeTeam.com first and then request a showing from one of our great agents!

The Case For Purchasing Real Estate Assets in the DFW Market NOW As A Hedge Against Inevitable Inflation

As I speak with my agents I am told the same story time and time again regarding clients who are still on the fence about purchasing a home in the DFW area. They are either waiting for the real estate market to drop further in order to get a better deal or they are just indecisive and haven’t come across that “dream home” yet. Each time I am told one of these stories I am concerned and the concern isn’t necessarily directed where you might think. Yes, I am concerned for my agents and want them to continue to make a living, but my biggest and most grave concern is for the people in our market that have some desire to buy, but keep waiting. Why is this so? The reason is twofold.

First, according to the Case-Shiller home price index, the Dallas/Fort Worth real estate market IS recovering. The latest released housing market snapshot released in September 2009 shows that home prices in DFW were up from June 2009 to July 2009, marking the fifth consecutive month of increases in our market. The July figure is also the highest point in the home price index since September 2008, right before the first big government bailout. The Case-Shiller data backs up other numerous reports that home price declines bottomed out in North Texas in early 2009.

"The rate of annual decline in home price values continues to decelerate, and we now seem to be witnessing some sustained monthly increases across many markets," Standard & Poor's David Blitzer said in the report. "These figures continue to support an indication of stabilization in national real estate values."

These figures point to the fact that the longer a home buyer waits in the DFW market, the more they will end up paying for their next home or investment property. However, increasing sales prices alone are not the only thing that will raise a future homebuyer’s expenses, which leads me to my second point. Rising interest rates in the face of inflation.

Interest rates today, as many of you have heard being touted numerous times from television and radio advertisements, are at their lowest in years. History and today’s current economic policies prove that this will soon not be the case. How? The answer is inevitable inflation. Most people mistakenly believe that inflation is simply rising prices. The true definition of inflation is when the supply of money outpaces the production of goods and services. It is a simple case of supply and demand. When more and more money is being printed and the supply of goods and services remains the same, the influx of new money causes all money to be worth less, resulting in the increased price of goods and services. In other words, rising prices are only a symptom of inflation and the end result of a monetary trend. Congress has recently opened the non-existent coffers and more and more money is being spent every day on stimulus packages and bailouts. We have never seen this type of government debt in our country’s history. How does the government plan to pay for this additional spending? They may raise taxes but in a declared recession, that would be political suicide. Their answer: crank up the printing presses. This, along with rising gold prices due to fear of a weakening dollar and falling bond markets (when U.S. creditors begin to worry about inflation they demand a higher rate of interest on their loans to our government. As these interest rates rise, treasury bond prices fall.) show that inflation for the United States is unavoidable.

How does this affect mortgage interest rates? Throughout history we can see examples of how rising inflation has caused mortgage interest rates to rise substantially. If you take a look at the most recent inflationary period, the late 1970s and early 1980s, inflation was extensive. The 10-Yr treasury rate reached its peak in 1982 at 15% and the price of commodities skyrocketed. During inflationary times lenders who want to survive are forced to charge more interest in order to cover the losses they experience from the devaluation of the dollar. Mortgage rates averaged around 17% during this last inflationary period. Not a good sign for things to come. Interest rates do not need to rise by much to affect your purchasing power. What does a mortgage rate increase of only 3% mean for you? A mortgage for $150,000 today at 5% interest equates to a monthly payment of $805.23 principle and interest. The same mortgage at 8% interest equates to a monthly payment of $1100.65 principle and interest. That is an increase of nearly $300 per month and over $3500 per year! Looking at this another way, to get the same $805 monthly payment at 8% interest, your mortgage could not exceed $109,500. You would have to purchase a house that is priced $40,500 less for that same payment! Talk about throwing your money away!

For an even clearer example let’s take these two mortgage balances and figure in a 10% down payment on each. Considering the interest rates discussed previously, monthly payments for principle and interest would be $805 per month for both of these homes! You would go from a:

Kitchen in a Lewisville home priced at $165,000 @ 5% interest

to a Kitchen in a Lewisville home priced at $119,500 @ 8% interest

Take an assessment of your wants and needs list. Are you willing to give up the walk-in closet, separate shower and bathtub, or the open kitchen? If the answer is NO, please consider the facts above.

Remember, a mortgage is a long-term, fixed rate debt on a valuable asset that historically increases in value over time. Fixed rate debt can be an advantageous monetary tool during inflationary times. I know of no other legal way to borrow a dollar and only pay back 50 cents. The key however is to get that fixed rate BEFORE interest rates rise. That, along with an initial low purchase price, can be your hedge against inflation and your chance to own the most home with the most amenities for the money for years to come.

Just Released! Dallas/Fort Worth Home Prices Fall By Less Than 2% In Latest Measure

DFW home prices fell by the smallest percentage amount in almost two years, with a 1.6% decline in July 2009 from a year earlier, according to the just released housing market snapshot by the S&P/Case-Shiller home price index.

Local home prices were up from June to July, marking the fifth consecutive month in a row that Dallas/Fort Worth home prices rose. Another ray of sunshine is the fact that the July figure is also the highest point in the home price index since September 2008. These Case-Shiller numbers indicate that our market has seen the bottom, with most figures indicating it was hit in the early part of 2009.

Case-Shiller tracks the price in different metropolitan areas of the typical single-family homes sold in that area. The index does not include townhomes or condominiums or new construction single family homes.

"The rate of annual decline in home price values continues to decelerate, and we now seem to be witnessing some sustained monthly increases across many markets," Standard & Poor's David Blitzer said Tuesday in the report. "These figures continue to support an indication of stabilization in national real estate values."

The moral of the story is, if you were trying to time the real estate market in DFW, you need to get on the bandwagon NOW in order to get the best pricing. What about if your a seller? Gray skies are finally clearing up and all systems are go!

Customer Satisfaction of New Home Construction Gains Ground

I read an interesting article on CNNMoney this morning that should be of some interest to anyone considering purchasing a new construction home this year, especially those interested in taking advantage of the $8000 first time homebuyer tax credit. According to the 2009 J.D. Powers and Associates U.S. New Homebuilder Satisfaction Study, although less new construction homes are being built, overall customer satisfaction increased for the second year in a row, up 32 points to 811 on a 1,000 point scale. Fierce competition amongst builders has lead to benefit for home buyers. Only the strongest builders have survived and they have survived by offering better home construction quality, more upgrades, and functional floorplans all at a discount from previous years. Also, of special interest to first time homebuyers, there are many homes at the finish out stage or almost there, that can be closed on by the November 30th deadline to qualify for the new homebuyer tax credit. To read more, click here.

Darling Homes tops the builder satisfaction study for the Dallas/Fort Worth area. Drees Homes and Ashton Woods homes follow Darling in the number two and three spots.

Looking for a new construction home? Visit our website's new construction home search for the Dallas and Fort Worth area! See floorplans, community information, and many homes that you won't find on the MLS.

Top Dallas/Fort Worth home builders
Based on 2009 survey of consumer satisfaction with 1,000 being a perfect score:

1. Darling Homes 876
2. Drees Custom Homes 865
3. Ashton Woods 864
4. Pulte Homes 860
5. Standard Pacific Homes 858
6. David Weekley Homes 850
7. Highland Homes 849
8. Horizon Homes 836
9. Ryland Homes 816
10.K Hovnanian 813
11. Del Webb 811
D-FW average 809
12. Lennar 805
13. Meritage Homes 800
14. D. R. Horton 792
15. KB Homes 783
16. Beazer Homes 779
17. Centex Homes 774
18. Grand Homes 761
19. First Texas Homes 752
20. Fox & Jacobs 752
21. History Maker 749
22. Toll Brothers 716
SOURCE: J.D. Power and Associates 2009 New-Home Builder Customer Satisfaction Study

DFW Area Sees Decline in Number of Homes Sold, But Prices Hold Steady

12:00 AM CDT on Thursday, September 10, 2009
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com


North Texas home sales fell by double digits in August from a year earlier.
But despite the steep decline, prices are holding up.

Local real estate agents sold 6,338 pre-owned homes though their Multiple Listing Service last month – a 15 percent falloff from August 2008, according to the latest statistics from the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems Inc.

For the first eight months of 2009, home sales are down 19 percent compared with the same period last year. But median sales prices have fallen only 2 percent and were unchanged last month at $150,000.

The latest data is in line with recent national reports that show only modest declines in local home values – unlike the big drops still being experienced in many U.S. markets.

But analysts say it's probably too early to say for sure that North Texas residential values won't go a bit lower.

Any home price rebound will depend on a recovery of the local job market and the number of foreclosed homes coming on the market, said James Gaines, a research economist with the Real Estate Center at Texas A&M.

"So far, the D-FW market has absorbed these kinds of sales [foreclosures], and while there are individual neighborhoods or subdivisions where prices have fallen dramatically, the effect has not shown up as a major impact on the total market," Gaines said.

"Naturally, job loss is a primary cause of foreclosures and distressed sales, so the real culprit is the local economy.

"Dallas – like most of the rest of Texas – has sustained job losses since the first of the year," he said. "The losses need to stabilize and then reverse into gains for people to feel good about buying a home and having the income to do so."
The best news in the current local housing report is that the number of homes for sale continues to decline from year-ago levels.

At the end of August, 38,166 homes were listed for sale in the area, 14 percent less than a year earlier. That's about a 6.5-month supply.

"The key to house price stability is that there is not a surplus of listings," analyst Ted Wilson of Dallas-based Residential Strategies said. "Many households have elected not to put their houses on the market, and that has gone a long way to keeping prices firm.

"When there is an excess supply of housing for sale, on average it takes longer for a house to sell and, as a result, there is a tendency is for the seller to drop the price to garner buyer interest."

It currently takes 78 days on average to sell a house in North Texas. That's 3 percent longer than in August 2008.

So far this year, the smallest declines in home sales have been in properties priced below $80,000.

Sales of pre-owned homes with price tags of $600,000 and more have dropped more than 30 percent.

Agents and builders say that the federal homebuyer tax credit aimed at first-time purchasers has caused an uptick in sales of low- and moderate-price housing.
The tax credit expires at the end of November.

A second report released Wednesday predicted that despite continued sales declines, the Dallas area will be one of the top home markets in the country this year.
Fort Worth, Houston, San Antonio and Wichita Falls also are on the list of what are expected to be the 10 top-performing housing markets, according to analysts at Local Market Monitor.

The study identified home markets where residential values are expected to remain level, that didn't have a housing boom and that have had modest employment declines.

"This means that Dallas-Plano-Irving will fare among the best over this next year, a factor that bodes well considering the state of the national housing crisis," a representative of the research firm said.

New Forecast States Dallas, Houston, and San Antonio Will Be in Top 10 Home Markets for 2009

A little more good news about the housing market in Texas courtesy of Local Market Monitor and Steve Brown with the Dallas Morning News!

Despite continued sale declines, a new forecast predicts the Dallas, Houston, and San Antonio areas will be in the Top 10 Markets in the U.S. this year.

Dallas, Fort Worth, Houston, San Antonio, and Wichita Falls are all on the list of what are expected to be the 10 top-performing housing markets, according to a report released today, Wednesday, September 9, 2009, by analysts at Local Market Monitor.

To read the full article from the Dallas Morning News Click Here.


For more sales trends for the Dallas Fort Worth real estate market click here and find your favorite home, and click on sales trends.

Texas Leads Nation in Homebuilding!

Just released from the Dallas Morning News:

In an article released at 1:47 PM CDT today, The Dallas Morning News states that Houston and Dallas-Fort Worth are the top two markets in the country for new building permits on single-family homes, based on numbers for a 12 month period, ending in May 2009. Also according to the article, Texas had more homebuilding permits than California or Florida combined.

Texas still has a growing population, with more people seeking a lower cost of living lifestyle and safe communities to raise their families in. You can view new construction and preowned homes in the Dallas - Fort Worth areas through the BW Home Team website!

Dallas Ranks in Top 5 Cities Where Americans are Relocating

According to Forbes Magazine, Dallas ranks as the number 5 city that Americans are relocating to stating that "These places still offer a semblance of stability, as well as great weather, cultural life and, in many cases, affordability."

Click here to read the article

To find homes in the Dallas area visit our site!

Introducing the BW Home Team Real Estate Brokerage!

You may have noticed a long hiatus from my blogging lately. This is due to the extreme amount of workload I have taken on since December. However, I am now proud to announce that the BW Home Team has evolved into its own brokerage! We are currently 5 agents strong and serving the DFW area and plan to grow and expand in pace with the business we can generate. Each of our agents has had years of experience and were personally selected by me for their experience, communication skills, negotiation skills, and their dedication to clients. If you haven't tried the BW Home Team before, give us a shot! We want to make your real estate experience as stress free and enjoyable as possible!

DFW Market Statistics for December 2008 Year to Date

I have complied this spreadsheet to give you the latest statistics from the North Texas Real Estate Information System. These statistics cover the areas stated for December 2008 YTD. Some areas, such as E Dallas, are holding strong with 18% more sales than the previous year. Most average sales prices are holding steady with only 5 of the 16 cities listed showing a decline from the previous year. The rest have held strong or gone up as much as 7%, such as in Coppell. It is taking longer to sell a house in N. Texas, but not that much longer. For example, a home that took 81 days (the average Days on Market)to sell in Keller would have taken 21 days less the previous year, which works out to 3 weeks. This is much better than what some analyists portray to be months longer.

Homes are starting to hit the market again. Don't let the gloom and doom on the national news affect your decision to buy or sell in 2009! With the right team working for you, it can be done!