Your Real Estate Resource

Collin County Foreclosures Down Over Same Time Last Year

For the first time in several years, the number of new residential foreclosures is down in Collin County and surrounding areas. The first quarter of 2009 showed an 11.9 decrease in the number of new foreclosures over the same time last year, reports CCAR. In addition, more than one-fourth of all closed sales in the first quarter were foreclosure listings - up 19 percent from the same time last year.

"If we continue to see a decrease in new foreclosure listings while foreclosure sales are brisk, the market will eventually absorb most of those listings. This is an important component to a return to a more normal market," says Steve Haid, CCAR member services director.

Collin County Real Estate Market Improves in February

As reported by the Collin County Assocation of Realtors

February saw an improvement in the real estate market of Collin County and surrounding areas, reports the Collin County Association of Realtors. Closed sales increased by more than 34 percent over January, and the median sales price was 7 percent higher in February ($167,250), than in January ($156,200).

The CCAR Pulse, which delves into the real estate markets of 36 local communities, reports that the average time a house was on the market in February was 111 days, down from 113 days a year ago.

"The good news isn't just for sellers; local buyers have a great opportunity right now. Because interest rates are at historic lows and the median family income is 158 percent of what is needed to qualify for the median priced house, the average buyer will be able to find a nice home at an affordable price," notes Steve Haid, CCAR member services director.

The overall inventory of available homes on the local market remains balanced at 5.9 months. However, there is an undersupply of houses priced below $200,000 and an oversupply of homes priced above $500,000.

"The North Texas real estate market is much healthier than in most other parts of the country. It is encouraging to see that real estate activity improved in February and we anticipate continued improvement in March," says Haid.

Real Estate Transfer Tax???

Some legislators in Texas looking for additional sources of revenue think a tax on the transfer of real property is the ideal solution.  Three bills have already been filed – SB 942 (sponsored by Jeff Wentworth), SB 950 (sponsored by Royce West), & SB934 (sponsored by Eddie Lucio).  You can follow these bills by using My TLO (Texas Legislature Online).

Real estate transfer taxes increase the closing costs of buying or selling a property and are highly regressive, meaning higher burdens for low-income people. Growing families, seniors/retirees, and transferred employees and military would also be heavily affected.

You can read more about the potential impacts of a real estate transfer tax in this study by the National Center for Real Estate Research.

Let your representatives know how you feel about this issue!  You can find representatives here: http://www.senate.state.tx.us/75r/Senate/Members.htm#FYI. 

January Home Sales Follow Expected Seasonal Decline

January projected sales in Collin County and surrounding areas were 26 percent lower than the same time last year, reports the Collin County Association of Realtors (CCAR). While January marked the lowest number of sales for a single month in several years, new listings and homes under contract were up sharply from December.

"January is typically the slowest month of the year for real estate sales, and this year is no exception," says Steve Haid, CCAR member services director.

The CCAR Pulse, which delves into the real estate markets of 36 local communities, reports that the average time a house was on the market in January was 110 days, compared to 112 days in January 2008. In addition, the median sales price of a home in January was $156,200, which was down substantially from the same time last year: $170,000.

"This doesn't necessarily mean that home values are down dramatically. It appears that the sale of lower priced homes is very brisk compared to higher priced homes. This is reflected in the inventory of available homes on the market," says Haid. Inventory between five to six months of supply is considered a balanced market. For homes priced under $200,000, there is 4.2 months of inventory, indicating a shortage. However, homes priced above $500,000 are experiencing an oversupply with 13.9 months of inventory.

While our local real estate market is one of the strongest in the country, we are experiencing lower than normal activity related to concerns about the economy. However, it is an excellent time to buy a home, as the median family income is 160 percent of what is needed to qualify for the median priced home. As Collin County and surrounding areas continue to grow, we look forward to a rebound of sales and other indicators.

As reported by the Collin County Association of Realtors.

Housing Supply Balanced for First Time Since February

As reported by the Collin County Association of Realtors: 

August saw the supply of homes in Collin County and surrounding areas dip to 5.9 months of inventory. Since February, the housing supply had been above six months of inventory, which is considered an oversupply.

The CCAR Pulse, which delves into the real estate markets of 36 local communities, also reports positive news for real estate buyers. Not only are interest rates down compared to last month and last year, the housing affordability index is up substantially. "Currently, the median family income is 131 percent of what it takes to qualify to purchase a median priced home. This means that most families in this area could qualify to buy a median priced home," says Steve Haid, CCAR member services director. "In many parts of the country, the median family income is well below the 100 percent mark, which means most families would not be able to qualify."
 
In August, the median sales price of homes declined to $180,000, compared to $187,000 in July. While this is a normal seasonal drop, the year-to-date median sales price is exactly the same as it was last year at this time.
 
Although new listings, homes under contract, and the number of closed sales are all down from the same time last year, sales prices are holding up well. In addition, Collin County and surrounding areas continue to experience a growth in population and a strong local economy.

A Few Ways to Reduce Your Energy Costs

As energy costs rise and environmental concerns grow, aren’t we all searching for ways to reduce our energy usage & costs?  Check out a few of these numbers relating to homes & energy costs.

$180 - Average annual amount a homeowner can save with a programmable thermostat
$30 - Estimated lifetime energy savings of one Energy Star compact florescent light bulb (CFL)
45% - Percentage of energy costs that go toward heating and cooling
20% - Energy-cost savings of an Energy Star new home compared to an average existing home
$8,000 - Maximum amount of energy improvements that can be financed through an energy-efficient mortgage*.

* For more information about energy-efficient mortgages, contact Russell Thurmon at PrimeLending.

Sources: EPA Energy Star, U.S. Department of Energy, HUD

Builder Implosions

With the challenges faced by the home building industry, many builders have gone bankrupt or are in serious financial trouble. As a home buyer, it's obviously a good thing to keep tabs on these builders who have already imploded or are on the verge of implosion. I recently found a great site that tracks just such information: The Home Builder Implode-O-Meter. Several home builders in the DFW area are on the "imploded" list - Kimball Hill, Buescher Homes, & Royce Builders. Several more are on the "ailing" list - Centex Homes, D.R. Horton, & Standard Pacific.

If you have any questions about dealing with a builder either to buy an inventory home or having a home built, please give me a call or drop me an email.

Markets That Are Doing Just Fine, Thanks

According to Realtor.com & Forbes Magazine, Dallas is among 10 cities whose housing markets are practically recession proof. Check out the article here: http://www.realtor.org/rmodaily.nsf/pages/News2008050202.

Yikes! I just got my 2008 appraisal.

Many people across North Texas have finally received their "2008 Noticed of Appraised Value". This isn't exactly a welcome sight to most people since the majority of appraised values seem to have jumped significantly in what is presumed to be a level if not somewhat depressed housing market.

There are several simple techniques (for which you don't have to pay!) you can use to protest your appraisal. Please contact me for assistance in gathering the information you'll need to do this.

The most important thing to understand is the timeline that you must adhere to when filing a protest. These instructions should have accompanied the notice, but, if they didn't (or you've just misplaced them), here are links to several of the large appraisal districts:

• Dallas County - http://www.dallascad.org/Protest.aspx
• Tarrant County - http://www.tad.org/WebPages/protestinsert.cfm
• Collin County - http://www.collincad.org/Informal_Procedures_REAL.pdf
• Denton County - http://www.dentoncad.com//
  (Note: Denton County appraisals are due to be mailed out on May 14^th.)

If you're planning to contact me for information, I do ask that you don't wait until the last minute. It takes time to gather the information. We will also need to get together so that I can explain the information since I am not allowed to accompany you to the protest hearing.

Tax Tip: PMI is Deductible!

Some home buyers will be receiving a bit of a tax break for the 2007 tax year thanks to new legislation that will make mortgage insurance (MI or PMI for private mortgage insurance) tax deductible.

PMI, is a type of insurance that insures the lender in case the buyer defaults on the loan. The lender usually requires PMI when the buyer has a down payment less than 20% of the asking price of the home.

Many homeowners will be eligible to deduct 100% of the PMI they paid in 2007 on thier federal tax returns.  This law applies to all new mortgage transactions between January 1, 2007 and December 31, 2007.  There are some other deductibility stupliations including:

• The tax deduction only applies to mortgages closed in 2007
• There are income limits.  A 100% deduction is applicable for gross incomes of $100,000 or less. 
• No tax deductions are available for gross incomes over $110,000.

Note that this law has only been approved for tax year 2007 and there is no guarantee that it will be renewed, but at least it will be a nice benefit to new homeowners for this year.