March Collin County housing market update

Based on last trends report the housing market in Plano is stable. The supply of inventory on the market is much higher than the sales. The months of inventory on the market is 5.3 which is higher than the last month but under the average of 6.9 months for Collin county. Rely on the data below I would say that the market in Plano is stable with tendency for prices staying flat or slightly appreciating.

However the Real estate is local and there are areas in Plano where the price is going up and some where the prices have been declining., so if you intend to put your home on the market make sure to analyze the market in your subdivision very carefully.

The picture is not the same in some different areas in Collin county as McKinney and Frisco for example., where that supply of inventory is much higher because of the new constructions. Buyers will need definitely more time to see some appreciation on their hoses and sellers will need more time and lower the prices to sell their properties. Just for example the months of inventory on the market in McKinney is 9.1, almost twice higher than Plano.

Click on the graph to enlarge it.

Mistatkes Home Sellers Make

Since today in several consequent articles every Monday I will start discussing what are the main mistakes that Sellers make.

Using a real estate agent instead of Realtor.

When you are looking for help buying or selling property, it is important to remember that the terms: real estate agent” and “Realtor” are not synonymous. Realtor’s can provide an extra level of service, and to be a Realtor you must be a member National Association of Realtors /NAR/. The equivalent organization in Canada is the Canadian Real Estate Association /CREA/. Both are non-profit trade organizations that promote real estate information, education, and professional standards. The national Association of Realtors also has earned a strong reputation for actively championing private property rights and working to make home ownership affordable and accessible.

The NAR and CREA members adhere to strict code ethics founded on the principle of providing fair and honest service to all consumers. Realtor business practices are monitored at local board levels. Arbitration and disciplinary systems are in place to address complaints from the public or board members. This local monitoring keeps Realtors directly accountable to the individual consumer they serve and therefore the consumer is more likely to find better service and accountability by using a Realtor.

Foreclosures

A lot of buyers and investors want to buy a foreclosure for a good deal, but most of them don't know almost anything about the foreclosure process.

On my next few articles every Saturday I will discuss foreclosures, short sales and foreclosing process. I will be appreciate on any questions or comments.

The first you need to know about foreclosures that could be judicial and non - judicial.

Foreclosure by judicial sale, more commonly known as Judicial Foreclosure is available in every state and required in many, involves the sale of the mortgaged property under the supervision of a court, with the proceeds going first to satisfy the mortgage; then other lien holders; and, finally, the mortgagor/borrower if any proceeds are left. As with all other legal actions, all parties must be notified of the foreclosure, but notification requirements vary significantly from state to state. A judicial decision is announced after pleadings at a (usually short) hearing in a state or local court. In some fairly rare instances, foreclosures are filed in Federal courts.

Foreclosure by power of sale, which is also allowed by many states if a power of sale clause is included in the mortgage. This process involves the sale of the property by the mortgage holder without court supervision. It is generally more expedient than foreclosure by judicial sale. As in judicial sale, the mortgage holder and other lien holders are respectively first and second claimants to the proceeds from the sale.

Texas is a state with non - judicial (power of sale) foreclosures.

U.S. Home Prices Tumble

Joseph A. LaVorgna, chief economist at Standard & Poor's said in a note to investors Tuesday that falling home prices aren't such a bad thing, "On one hand they are causing negative wealth effects and forcing some new mortgages underwater; but on the other hand, this is a necessary, albeit unpleasant, prescription for restimulating housing demand," he said.

What do you think about this statment?

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Chasing The Market

I am publishing an article written by Paul Pastore. I think it is very interesting and shows the main mistake the sellers make on today's market. I just only disagree that the 10% below apply to the all areas. I think that the housing in some areas in DFW just going flat or even appreciate. The real estate market is local, so this percent should be different for the different areas and sellers have to use this technique very carefully , after detailed analyze on the local market.

Enjoy reading:


Have you ever seen a dog chasing after a car? No matter how fast the dog runs, it will never catch the car. The dog will never slow the car down. And, the dog will never bite a moving tire. What must the dog be thinking?

Today, many sellers are running after the market, the same way dogs chase vehicles.
What are these sellers thinking? Their home is the only castle for sale? Buyers will love the scent of their lilac bushes so much that it will temporarily cause them to forget the competition? Is it possible the smell of fresh baked bread will cause a buyer to pay yesterday's price in today's market?

It is imperative for a seller to price their property 10% below market in order to sell promptly and avoid being left in the long line of expired listings. With such a high number of homes on the market, it will be a long wait for the inventory levels to decrease to a balanced market.

There is a Turkish proverb that says, "No matter how long you are traveling down the wrong road, when you figure it out, turn around." Overpricing is a two-edge sword. If a property is receiving little activity, it is overpriced. Or, if a property is receiving adequate activity, but no offers; it is also overpriced. The latter problem is called 'always the bridesmaid, never the bride.'

By suggesting a seller has an overpriced property, the real estate agent runs the risk of being the messenger that gets shot. Courageous agents tell the truth. Cowardly agents hope the overpriced property will generate sign or ad calls while the seller slowly reduces the price and stigmatizes the property with additional days on the market.
Say's law says, "No good or service will remain chronically unsold, as long as prices remain flexible." The next time you see a dog chasing a car, hopefully, it will remind you of the futility of chasing a declining real estate market.

Top 10 Best Cities for Home Sellers

1. San Jose, Calif. Because of a tough regulatory environment, new home construction dropped 63 percent last year.

2. San Francisco. When the conforming loan limit recently jumped from $417,000 to the maximum $729,750, that made credit much easier to get for many of the city's home buyers.

3. Salt Lake City. The 3 percent annual job growth rate, paired with a declining inventory of existing homes and one of the nation’s sharpest declines in construction made this market a good one for sellers.

4. Austin, Texas. Texas is very affordable, plus the city has the nation’s fastest job growth at 4.1 percent.

5. Kansas City, Mo. The number of unsold, vacant houses dropped by 40 percent last year.

6. San Antonio, Texas. Jobs are growing by 3 percent and construction starts have dropped by 42 percent.

7. Denver. The 49 percent drop in construction starts paired with the 2 percent rise in new jobs are good news for sellers.

8. Providence, R.I. Vacancy rates at 1.6 percent combined with a 42 percent cut in inventory help sellers.

9. Charlotte, N.C. Moderate prices and strong job growth bode well for sellers.

10. Seattle, Wash. Strong job growth and a 42 percent decrease in new home construction are good news for sellers.

Source: Forbes, Matt Woolsey (04/07/08)

Good bye to the stated income loans

Fannie Mae/Freddie Mac Program Change - No more stated income loans.

The last day to submit a stated income/stated assets loan is April 14, 2008.

The last day to close a stated income/state assets loan is April 30, 2008.

If you have any borrowers looking for this type of loan, now is the time to get started; May is too late.

Congress debates the foreclosure mess

Members of Congress are ready to dig homeowners out of the foreclosure avalanche. They're just not unified on where to break ground first.

On Tuesday, House Ways and Means Committee Chairman Charles Rangel, D-N.Y., introduced a bill that would give some taxpayers a credit of up to $7,500 on the purchase of their first homes. It also allows those who claim the standard deduction on their tax returns an extra $350 deduction to offset property taxes. Currently, you only get a property tax deduction if you itemize.

House Democrats reportedly thought a Senate bill designed to curb foreclosures was too lenient toward lenders.

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The Home Builder Relief Act Of 2008

Amid a sharp downturn in housing, the Senate is set to debate a flurry of amendments and provisions on a bill to provide relief--foreclosure relief in theory, home builder relief for certain.

Stocks of major home builders were up on news that the bill's first draft contained a provision allowing home builders to apply their current losses to tax returns dating back to 2004, when the industry was booming. With past profits are marked down, the builders will be eligible for refunds.


The Senate takes on the housing crisis. Guess who's cheering.
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Barnet Shale advancing North Texas

The Barnett Shale is fueling growth throughout North Texas. A new study from the Fort Worth Chamber of Commerce and economist Ray Perryman found that the Barnett Shale pushed $8.2 billion into the local economy. This is a 50 percent increase over 2006. It has also created more than 83,820 jobs as well.

The Barnet Shale serves as a buffer to the North Texas area from much of the economic slowdown we’ve seen around the nation. The phenomenon has a multiplier effect on everything in our local economy especially real estate.

The Three Most Important Things in Real Estate Are: Price! Price! Price!

People have traditionally thought that the three most important things in real estate are: Location - Location - Location. Location is important in determining price, however, since the location of a particular home cannot be moved, the location becomes a function of price. If a home is located next to a freeway, gas station, high tension power lines or in a neighborhood with a number of foreclosed and bank owned homes, it will still sell provided the price is low enough. Potential Buyers may not be looking for a home in one of those less desirable locations and still buy because of the low price. The same principle works for condition of the home. A home in disrepair will still sell if priced low enough. Buyers often think “it’s not really what we want, however, at that low price we’ll buy it”. DFW area market is stable compare with most parts of US but there are areas with declining market such as McKinney and Frisco. Sellers who need to sell must price their home at a price which will attract Buyers or be prepared for waiting until the market improves while Buyers still have a limited time to take advantage of an abundant selection of low priced top quality homes in located in desirable areas.