Buyers – Home Prices are going to keep Rising

Quote

Home sales reached their highest pace in a decade in the first quarter of 2017 as property prices continue to escalate, according to the National Association of REALTORS®’ latest quarterly report.

The median price of an existing single-family home nationally was $232,100 in the first quarter, up 6.9 percent from the same time period a year ago. Home prices rose year over year in 85 percent of the 178 metro areas analyzed.

The continued inventory shortages prompted home-price appreciation to quicken its pace in the first quarter, says NAR chief economist Lawrence Yun.

“Prospective buyers poured into the market to start the year, and while the increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” Yun says. “Those able to successfully buy most likely had to outbid others—especially for those in the starter-home market—which in turn quickened price growth to the fastest quarterly pace in almost two years.”

Thirty metros saw double-digit price increases in the first quarter, NAR’s report shows. “Several metro areas with the healthiest job gains in recent years continue to see a large upswing in buyer demand but lack the commensurate ramp in new-home construction,” Yun says. “This is why many of these areas—in particular several parts of the South and West—are seeing unhealthy price appreciation that far exceeds incomes.”

The Commerce Department also reported Tuesday that overall home construction fell from March to April, with housing starts declining 2.6 percent month-over-month. This could have a broader impact on the economy, Yun adds. “With housing starts declining in April, inventory shortages will continue for a longer period of time. The intensifying housing shortage will push up home prices and rents, and easily above wage growth and the broad consumer price inflation. This continued, slow pace of construction of new homes is a major bottleneck to a faster economic and housing recovery.”

Affordability weakened slightly nationwide in the first quarter, despite a rise in the national family median income to $71,201. Higher mortgage rates and home prices softened affordability compared to a year ago, NAR reports. To buy at the national median price, a buyer making a 5 percent down payment would need an income of $52,251; a buyer with a 10 percent down payment would need to earn $49,501; and a buyer with a 20 percent down payment would need to earn $44,001, according to NAR.

Total existing-home sales in the first quarter, including single-family homes and condos, rose 1.4 percent to a seasonally adjusted annual rate of 5.62 million. That is the highest since the first quarter of 2007, when it stood at 5.66 million sales.

“Last quarter’s robust pace of sales was especially impressive considering the affordability sting buyers experienced from higher prices and mortgage rates,” Yun says. “High demand is poised to continue heading into the summer as long as job gains continue. However, many metro areas need to see a significant rise in new and existing inventory to meet this demand and cool down price growth.”

At the end of the first quarter, 1.83 million existing homes were available for sale—6.6 percent below inventory levels of a year ago. The average supply during the first quarter was 3.7 months, NAR reports.

Source: National Association of REALTORS®

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.  Click here to learn more about Cedar Creek Lake.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

What’s happening in Real Estate in 2017

Quote

What’s happening in real estate so far in 2017?  The Texas Association of REALTORS® released the Texas Quarterly Housing Report for the first quarter of 2017. Highlights include:

68,420 Texas homes were sold in Q1-2017, a 4.6% increase from 2016-Q1.

Median sales price for Texas homes was $213,325, a 9.4% increase from 2016-Q1.

Monthly housing inventory in Texas was 3.6 months in 2017-Q1 compared to 3.5 months in the same quarter last year.

Active listings rose 6 percent year-over-year to 98,399 listings in 2017-Q1.

Texas homes spent an average of 64 days on the market in 2017-Q1, unchanged from 2016-Q1.

“On the heels of a second consecutive record year for Texas home sales, the positive momentum experienced in the Texas housing market during the last quarter of 2016 has continued in 2017,” said Vicki Fullerton, chairman of the Texas Association of REALTORS®. “Annual gains in both sales and listing activity in the first quarter indicate that a strong summer selling season could be ahead.”

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.  Click here to learn more about Cedar Creek Lake.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

Buyer’s Tips

Quote

house-countdown-628x354Be qualified – Pre-plan financing by meeting with a mortgage lender ahead of time and receive a pre-approval letter that may be submitted when you make a written offer. “Less paperwork and more personal attention” is more than a saying at Home Team Mortgage Company, Ebby Halliday’s affiliated mortgage source. Contact Home Team Mortgage Company for a frustration-free experience from loan application to decision.

Act quickly – In today’s hot market, acting slowly or “sleeping on it” may cost you the opportunity to buy the home of your dreams. If you’ve found a home you’d be thrilled with, don’t wait to submit an offer – other buyers will likely be doing the same.

Offer a compelling price – Sellers often price their homes based on historical sold data or past appraisals, and in a strong market where prices are rising rapidly, homes may sell for the listing price or higher. Study the sold comps, but also compare the house you want to other homes on the market, and ask yourself, “What price am I willing to pay, and at what price am I willing to lose this house?”

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.  Click here to learn more about Cedar Creek Lake.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

100% Financing for VA Loans

Quote

VALoanInfo LendingPartners

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.  Click here to learn more about Cedar Creek Lake.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

Interest Rates are DROPPING!

Quote

My friends, The Lending Partners just let me know that over the past week and a half we have continued to see interest rates fall to 2017 lows. Rates are mainly benefiting from geopolitical uncertainty and a cooling-off of investor optimism over the Trump administration’s fiscal policy path. The rates today on a 30 YR FIXED, 15 YR FIXED, and 5/1 ARM are below:

30 YR FIXED- 4%

15 YR FIXED- 3.25%

 5/1 ARM- 3.375%

 This is GREAT news heading into the busy months and summer! It will be interesting to see how rates hold up throughout the summer! You can read more about this recent drop in rates below.

http://www.mortgagenewsdaily.com/consumer_rates/730347.aspx

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

Essential Facts That First-Time Buyers Don’t Know About Mortgages | realtor.com®

Quote

When it comes to what might be the biggest purchase of your life, it’s nice to know real facts. A lot of mortgage “facts” are not what people think.

Source: Essential Facts That First-Time Buyers Don’t Know About Mortgages | realtor.com®

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

How a Bridge Loan Works

Quote

 

Mortgage BridgeLoanHas this happened to you?  You have your home for sale.  You are looking for a new home and find it but your primary home hasn’t closed yet.  You might want to consider a Bridge Loan.  Above is a timeline of a transaction from our Friends at The Lending Partners on a transaction that he completed this month.  The buyer utilized the bridge loan offered by TLP to leverage the equity in his current home to purchase his new home with NO CONTIGENCY! We had a clear-to-close 6 days prior to the closing date and docs issued to title company 2 days prior. The bottom line is the bridge loan is a great option for clients to explore if they have a contingent offer AND we can process and close the bridge loans VERY quickly and smoothly…under 30 days!  If you are interested in this program,  click here to go to The Lending Partners Website.

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.  Click here to learn more about Cedar Creek Lake.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

Mortgage Rates & News

Quote

MortgageRates 03-25-17

From our friends at The Lending Partners.

Rates are Improving:

Since the election, stocks have performed very well, while bonds yields have risen. This was due to expected policy changes under the Trump administration which would boost economic growth. Stronger growth is good for the economy and for stocks, but it raises the outlook for future inflation, which is negative for mortgage rates. Over the past week, President Trump encountered resistance to a health care bill. This increased investor concerns about the ease with which Trump will be able to deliver his pro-growth policy changes in areas such as tax cuts, deregulation, and infrastructure spending. As investors questioned whether the policies might be smaller in scale or might take longer to implement, some of the “Trump Trade” reversed this week, which was good for mortgage rates.

The housing sector data released this week revealed that home sales activity remained at very good levels. New homes sold in February rose to the best level in months. Sales of previously owned homes did slip from January’s strong pace, but according to the National Association of Realtors, this was due to a shortage of inventory in many regions.

Demand remained very strong. The median time properties were on the market fell to just 45 days in February, down from 59 days last year at this time.

Looking ahead, the outcome of the health care bill vote scheduled for late Friday afternoon might influence mortgage rates. After that, Pending Home Sales will be released on Wednesday. The core PCE price index and Personal Income will come out on Friday. Core PCE is the inflation indicator favored by the Fed. In addition, there will be Treasury auctionson Monday, Tuesday, and Wednesday. There will be Fed speakers every day next week as well.

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.  Click here to learn more about Cedar Creek Lake.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

Fed raises rates at March meeting

Quote

The markets widely expected the Fed would raise its benchmark interest rate a quarter point.

Source: Fed raises rates at March meeting

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |

Fed raises rates at March meeting

Quote

The markets widely expected the Fed would raise its benchmark interest rate a quarter point.

Source: Fed raises rates at March meeting

Let the Schwanbecks Exceed Your Expectations!

We would love an opportunity to assist you in your real estate needs  – anywhere in the DFW metroplex or whether you want a lake home in East Texas.  Click here to view our website.

| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com  469.283.8656 |