Two features matter more to potential home buyers than air conditioning

Two features matter more to potential home buyers than air conditioning

With Dallas residents suffering through a late summer heat wave of 100 degree days, you don’t need a researcher to tell you that air conditioning is a must-have.

Even so, a new study by the folks at Zillow tells us that more than three-quarters of U.S. buyers say they had to have AC in their new digs — one of the highest-rated features.

“Affordability, a preferred number of bedrooms and air conditioning top the list of important home characteristics for most shoppers,” Zillow’s Buyer Wants and Needs list says.

Seventy-six percent of buyers said they have to have air conditioning.

The other 24% weren’t from Texas, where we rate AC higher than indoor toilets or a roof.

“In the South — known for being hot and sticky in the summer — almost twice the share of buyers value AC (87.6%) over being near family and friends (44%),” Zillow says.

Off-street parking and multiple bathrooms were also on the list of preferred features.

At the other end of the preference list, hot tubs were one of the things home buyers were least likely to crave.

Again, Texas and summer — who wants to sit in hot water?

 

*Article by Steve Brown, Real Estate Editor for the Dallas Morning News

 

Experts Predict a Strong Housing Market for the Rest of 2019

We’re in the back half of the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the predictions are for the remainder of 2019.

Here’s what some of the experts have to say:

Ralph McLaughlin, Deputy Chief Economist for CoreLogic

“We see the cooldown flattening or even reversing course in the coming months and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.”

Lawrence Yun, Chief Economist at NAR

“We expect the second half of year will be notably better than the first half in terms of home sales, mainly because of lower mortgage rates.”

Freddie Mac

“The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months…The benefit of lower mortgage rates is not only shoring up home sales, but also providing support to homeowner balance sheets via higher monthly cash flow and steadily rising home equity.”

Bottom Line

The housing market will be strong for the rest of 2019. If you’d like to know more about our specific market, let’s get together to discuss what’s happening in our area.

What Experts are Saying About the Current Housing Market

We’re halfway through the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the experts predict for the second half of 2019.

Here’s what some have to say:

Danielle Hale, Chief Economist at realtor.com

“Lower mortgage rates, higher wages and more homes for sale have helped counteract rising home prices, and ultimately, made it so that buyers are able to afford more than last year.”

“Our outlook implies 4% growth for the remaining months of the year, predicated on…more supply than last year, the decline in mortgage rates, moderating home price appreciation and improving affordability.”

Lawrence Yun, Chief Economist at NAR

“Rates of 4% and, in some cases even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and lock in at these rates.”

Doug Duncan, Chief Economist for Fannie Mae

“Moderating home price appreciation and attractive mortgage rates continue to support affordability, particularly as home builders are now paying more attention to the entry-level portion of the housing market.”

Kaycee Miller in a Realtor Magazine article

“At the moment, some observers suggest the housing market is indeed headed for a slowdown. But no need to panic — experts say the financial and economic factors that were in play during the big crash a decade ago don’t exist today.”

Bottom Line

The housing market will be stronger for the rest of 2019. If you’d like to know more about your specific market, let’s get together to chat about what’s happening in our area.

 

The featured illustration appeared first on DMagazine.com.

 

Real Estate Market Update for the DFW Area

Dallas-area home prices grew by less than 3% in the latest CoreLogic survey.

Home prices in Dallas rose by just 2.68% in April compared with a year ago. That’s less than the nationwide gain of 3.6%

Prices in the Fort Worth area climbed by more than 5% – the largest year-over-year increase of any major Texas market.

Nationwide, home price increases picked up their pace after months of slowing appreciation.

“The pickup in sales between March and April has helped to counter the recent slowing in annual home-price growth,” Frank Nothaft, chief economist at CoreLogic, said in the report. “Mortgage rates are 0.6 percentage points below what they were one year ago and incomes are up, which has improved affordability for buyers. However, price growth has remained the highest for lower-priced homes, constraining housing choices for first-time buyers.”

The biggest U.S. price increase was in the Las Vegas area, where prices rose 7.6% from April 2018.

CoreLogic said prices increased by 3.37% in the Houston area, 4.09% in San Antonio and 3.6% in Austin.

Even with the slowdown in home appreciation since last year, CoreLogic said more than 40% of U.S. home markets, including Dallas-Fort Worth, are overvalued.

Analysts are predicting that home values across the country will rise by 4.7% over the next year.

Through the first four months of 2019, the median sales price of single-family homes sold by real estate agents in North Texas is just 2% higher than in the same period last year.

Home sales in the area are down 1% from where they were at this time in 2018.

 

 

* Article source: Steve Brown for Dallas Morning News

 

 

4 Most Popular Bottom Line Investments in America

Every year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks, gold, and savings accounts.

For the sixth year in a row, real estate has come out on top as the best long-term investment! That has not always been the case. Gallup explains:

“Between 2008 and 2010, covering most of the Great Recession period that saw plummeting home and stock values, Americans were as likely to name savings accounts or CDs as the best long-term investment as they were to name stocks or real estate.”

This year’s results showed that 35% of Americans chose real estate, followed by stocks at 27%. The full results are shown in the chart below.

Bottom Line

Now that the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.

Home Buyer Demand Will Be Strong for Years to Come

…more and more research has surfaced that shows for the vast majority, owning a home is a major part of their American Dream!

There has been a lot written about millennials and their preference to live in city centers above their favorite pizza place. Some have even gone so far as to say that millennials are a “Renter-Generation”.

And while this might be true for some millennials, more and more research has surfaced that shows for the vast majority, owning a home is a major part of their American Dream!

New research shows that 66% of millennials who currently rent are determined to buy a home! Seventy-three percent of those surveyed by Pulsenomics plan to buy a home in the next five years, with 40% planning to do so within the next two years!

home buyer demand is high indigo skye group blog

Bottom Line

Are you one of the millions of renters who are ready and willing to buy a home? Let’s get together to determine your ability to buy now!

Related Article: Homeownership is a Dominant Gene

A Healthier Home Market Ahead

Experts are predicting that the housing market will slow down in 2019. But, that’s not such a bad thing. A slower market is more stable and offers advantages for both buyers and sellers.

Slowing Market Good for Both Buyers and Sellers

Experts are predicting that the housing market will slow down in 2019. But, that’s not such a bad thing. A slower market is more stable and offers advantages for both buyers and sellers.

The 30-year fixed-rate mortgage averaged 4.45% in mid-January 2019, according to Freddie Mac. While rates were nearly half a point higher than they were a year ago, they’ve since pulled back, making homes a little more affordable for homebuyers heading into spring.

Existing home sales in December 2018 were the lowest since November 2015, more than 10% lower than year-ago levels, reflecting sensitivity to rising interest rates and prices, according to The National Association of REALTORS. NAR chief chief economist Lawrence Yun explained that softer December sales reflected homes under contract at higher mortgage interest rates.

NAR also reported that the median sales price was $253,600, 2.9% higher than a year ago. While gains have been higher in previous years, prices are still rising – a benefit to home sellers.

Realtor.com economist Danielle Hale told Forbes.com that 2019 will bring less competition for homebuyers as the inventory of homes increases on the market. The Realtor.com forecast for 2019 is a 2% decline in home sales volume and a 2.2% rise in home prices from 2018.

These statistics are national averages, and market conditions will definitely vary here in the DFW Metro area. The Indigo Skye Group can share important local data with you that will improve your ability to buy or sell a home. Contact us today to learn about your options!

Related Article: Real Estate Is Transforming and DFW is Leading the Way

Economic Slowdown Won’t Crush Real Estate This Time

Last week, the National Association for Business Economics released their February 2019 Economic Policy Survey. The survey revealed that a majority of the panel believe an economic slowdown is in the near future:

“While only 10% of panelists expect a recession in 2019, 42% say a recession will happen in 2020, and 25% expect one in 2021.”

Their findings coincide with three previous surveys calling for a slowdown sometime in the next two years:

  1. The Pulsenomics Survey of Market Analysts
  2. The Wall Street Journal Survey of Economists
  3. The Duke University Survey of American CFOs

That raises the question: Will the real estate market be impacted like it was during the last recession?

A recession does not equal a housing crisis. According to the dictionary definition, a recession is:

“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”

During the last recession, prices fell dramatically because the housing collapse caused the recession. However, if we look at the previous four recessions, we can see that home values weren’t negatively impacted:

  • January 1980 to July 1980: Home values rose 4.5%
  • July 1981 to November 1982: Home values rose 1.9%
  • July 1990 to March 1991: Home values fell less than 1%
  • March 2001 to November 2001: Home values rose 4.8%

Most experts agree with Ralph McLaughlin, CoreLogic’s Deputy Chief Economist, who recently explained:

“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash.”

The housing market is just “normalizing”. Inventory is starting to increase and home prices are finally stabilizing. This is a good thing for both buyers and sellers as we move forward.

Bottom Line

If there is an economic slowdown in our near future, there is no need for fear to set in. As renowned financial analyst, Morgan Housel, recently tweeted:

“An interesting thing is the widespread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”

 

Related Article: Dallas Real Estate is Experiencing a Cool-Down

D-FW home price growth trailed the nation in the fourth quarter

D-FW home price growth trailed the nation in the fourth quarter

Dallas-Fort Worth home price gains were slightly below the nationwide average in the latest comparison.

D-FW home prices rose 3.6 percent in the fourth quarter of 2018 from a year earlier compared with a nationwide 4 percent increase, according to the National Association of Realtors.

While home appreciation across the country has cooled, more than a dozen U.S. metro areas the Realtors group tracked had double-digit gains in the final three months of 2018.

“Home prices continued to rise in the vast majority of markets but with inventory steadily increasing, home prices are, on average, rising at a slower and healthier pace,” Realtors’ chief economist Lawrence Yun said in the closely-watched report. “Housing affordability will be the key to sustained healthy growth in the housing market in the upcoming years.”

The largest fourth quarter home price gains were in Cumberland, MD (up 29 percent) and Boise, Idaho (up 14.3 percent.)

Home prices fell year-over-year in 14 metro areas, with the worst declines in Decatur, Ill. (-10.7 percent) and Elmira, N.Y. (-8.3 percent.)

Among Texas’ big cities, the largest price growth was in Austin where median single-family home prices were 5.9 percent higher than fourth quarter 2017. Austin also had the highest prices with a median of $310,400 at the end of 2018.

D-FW’s median home price of $254,900 is still just a bit below the nationwide $257,600 price, according to the Realtors.

Nationwide home sales by real estate agents fell 7.4 percent in the fourth quarter compared with a year earlier. The biggest drop was in the West where home sales were 13.9 percent below a year ago.

The slowdown in home sales and price increases in the second half of 2018 is continuing into early 2019.

The moderation in the U.S. home market comes after several years of booming sales and huge price gains.

Article by Steve Brown for the Dallas Morning News.

Related article: Buying a Home This Year? Here’s What to Watch.

 

 

 

Dallas Real Estate is Experiencing a Cool-Down

According to the WSJ: Dallas housing market is cooling

“Dallas’ once-vibrant housing market is sputtering,” reports today’s edition of the Wall Street Journal.

​The paper reports builders in Frisco’s high-end neighborhoods are cutting new-home prices by up to $150,000. Earlier this month, one street had $4 million worth of unoccupied new homes.

“Even though the economy in [Dallas] has boomed, home prices have grown much faster than wages, and buyers have been straining to afford homes,” reported the Journal.

“We have this huge affordability crisis,” said Ted Wilson, principal at local consulting firm Residential Strategies. “With mortgage rates going higher, we’re hitting a ceiling.”

New and existing home sales in Dallas-Fort Worth fell 3.6 percent year over year in October, according to Real Estate Center data. Meanwhile, median home price growth slowed to less than half the pace of a year ago.

To find out what this fluctuating market means for you and your home investment, contact The Indigo Skye Group and let’s talk about your real estate goals personally!