September 2008

No Housing Bubble in Collin County, Texas

The media is always reporting on the “housing bubble” and the decline of property values across the U.S. For many of us, our homes are the largest single investment we ever make, and this kind of news invokes fear and uncertainty.

However, the Collin County Association of REALTORs® just released its monthly Market Indicators Report and there is plenty of good news for homeowners in Collin County. According to the data taken from the North Texas Real Estate Information System (NTREIS) and the Multiple Listing Service (MLS) for North Texas, both the median sales price and the average sales price for homes in Collin County remain unchanged from the same period in 2007. While we have not seen appreciation in our property values, the good news is our property values are not declining.

While many areas of the country such as California, Las Vegas, Phoenix, Florida, and several New England states had run-a-way property value increases, they are now experiencing the natural correction of the market and values are declining. North Texas did not see those run-a-way increases and has not seen the rapid market correction as a result.

The real estate market in Collin County, and Texas in general, remains healthy and stable. That’s great news for homeowners and people relocating to the area. Dallas remains one of the top markets for business as well due to its central location, climate, and affordable housing among other things. Many companies are moving their headquarters to Dallas, which contributes to our growing economy. Homeowners in the Dallas area are fortunate to live life without the “housing bubble.”

CCAR Monthly Report

Authors: Tom and Gina Branch

NAR: August Existing-Home Sales Slide

Existing-home sales were down in August following a healthy gain in July as tight mortgage credit curtailed activity, according to the NATIONAL ASSOCIATION OF REALTORS®. Sales rose in the Midwest and South, but fell in the Northeast and West.

Nationally, existing-home sales — including single-family, townhomes, condominiums and co-ops — declined 2.2 percent to a seasonally adjusted annual rate of 4.91 million units in August from an upwardly revised pace of 5.02 million in July, but are 10.7 percent below the 5.50 million-unit pace in August 2007.

NAR: August Existing-Home Sales Slide

Source: National Association of REALTORs(R)

NAR Gets Behind Efforts to Restore Market

The NATIONAL ASSOCIATION OF REALTORS® on Monday gave its support to the ongoing bipartisan efforts to finalize a financial bailout plan.

The proposed plan would allow the Treasury to buy questionable mortgage loans from U.S. and foreign-owned banks. At a potential cost of as much a $700 billion, the bailout package aims to repair U.S. financial markets and keep mortgages flowing to consumers.

After a busy weekend, Congress will continue to negotiate the plan this week.

"Obviously, there will be differences over some details, and we will have to work through them," President George W. Bush said Monday in a Washington Post article. "The whole world is watching to see if we can act quickly to shore up our markets and prevent damage to our capital markets, businesses, our housing sector, and retirement accounts."

Bush warned that failure to pass the bill quickly, which he said is possible if too many provisions are added, would have broad consequences far beyond Wall Street. "It would threaten small business owners and homeowners on Main Street," Bush said in the Washington Post report.

NAR said it believes government intervention is imperative to restore market liquidity.

“Many securities are being valued at pennies on the dollar due to the very high leverage ratio and illiquidity of certain mortgage-backed securities," NAR President Dick Gaylord said. "Unrealistically low valuations are paralyzing the balance sheets of financial institutions and have hindered liquidity flow."

Gaylord said NAR supports efforts to stabilize financial markets to allow rational valuation of assets, expedite refinancing and relief efforts for home owners, and other measures to reestablish a level of confidence in the housing credit markets.

"NAR will work diligently with Congress and the administration to achieve these goals as well as the broader goal of reforming the housing finance system,” he said.

Source: Washington Post, NATIONAL ASSOCIATION OF REALTORS®

Restricted Access

Sometimes, I’m actually amazed by showing restrictions.

I am primarily a listing agent, and certainly understand there are times when restrictions are necessary due to special circumstances such as a baby, home schooling, elderly or sick occupants, etc. However, if a home is difficult is to show, you may find that your pool of buyers is considerably smaller, simply due to scheduling conflicts or incompatibilities...

Restricted Access

Source: Tom and Gina Branch - Texas Association of REALTORs(R)

Note: This entry is one of our earlier articles that was published by the Texas Association of REALTORs(R)

Statewide Update: Market's Slower, But Still Pretty Fast

Your neighbor might be upset that his house is still on the market after a few months, wondering what to do. Should he lower the price?.....

Statewide update: Market's slower, but still pretty fast

Source: Amy E. Lemen - Texas Association of REALTORs(R)

Can This Be Fixed?

You've heard it 1000 times; don't ever buy a home without getting a home inspection.....

Can this be fixed?

Source: Texas Association of REALTORs(R)

The Tax Credit Is Really A Loan

The recently announced tax credit for first-time home buyers - part of the Housing and Economic Recovery Act - is definitely a good deal for qualified buyers. However, the credit is not a cash gift from the government.

The credit is 10 percent of the home's purchase price, up to $7,500. The maximum credit is $3,750 for married couples filing separately, or $7,500 for unmarried couples who jointly purchased the home. Rather than a simple tax credit, the amount must be paid back to the government in equal installments over a period of 15 years. It could be more accurately described as an interest-free loan administered through the tax code - still a very good deal for many buyers. The pay-back amount for a maximum "credit" would be $500 per year or about $42 per month.

The credit offer is in effect for any home purchased by a first-time buyer on or after April 9th of this year and before July 1. 2009. You'll be required to start repaying the amount in the second tax year after the home purchase. The definition of a first-time buyer is one who has not owned a primary residence for at least the past three years.

The credit will allow many buyers to purchase a home now, instead of waiting while they save more money and improve their chances of qualifying for a mortgage. It will also help to reduce the inventory of unsold homes.