Summary of the week ending March 5th 2021
>> Fed Chair Powell acknowledged that the long-term rates were rising and did not confirm if the Fed will buy additional bonds leading to further tumbling and sell off in Stocks.
>> Dow at one point tumbling more than 700 points intra day and then recovering to 400 points.
>> Growth stocks and Nasdaq hammered due to rotation to cyclical and industrial.
Mortgage rates headed above 3% for the first time since last July 2020.
According to Freddie Mac’s Primary Mortgage Market Survey The average rate on a 30-year fixed-rate mortgage increased to 3.02%. The first since July 2020. We don’t expect this to affect the real estate market presently.
The demand and supply presently is out of equilibrium due to the excess demand and limited supply which was hampered by availability of war materials and labor due to Covid-19 impact
Over 264,900 Texas mortgages were past due in fourth quarter 2020, according to data from the Mortgage Bankers Association
Texas Initial Jobless Claim drops
According to the Texas Real Estate Research Center. Initial unemployment insurance claims in Texas decreased to 38,100 the week ending Feb. 6, continuing a four-week downward trend.
This is the largest weekly decline since the week ending Sept. 12, 2020.
“The solid decline in initial claims is a sign that layoffs have started to slow,” said Texas Real Estate Research Center Research Economist Dr. Luis Torres.
Market Statistics at a glance
The median price of home sold in Jan 2021 was $262K up 12% YOY
Supply seems to be constrained the months of inventory is down 1.5% YOY and stood at 1.6
Median price per sq foot was $133.56
Median home size was 1,980
Commercial Master planned community in Fort worth
According to the Dallas morning news Cresent Real Estate is planning a Major $250 Million mixed use project in fort worth’s cultural district. The development will include Luxury hotel, Luxury residential units.
Residential Community Launch
Meritage Cibolo Community in Saginaw Meritage Homes is planning to build new residential community off U.S. Highway 287 near Eagle Mountain Lake. The community is called Cibolo Hills, I will have 700 houses with pricings starting from $280K ranging from 1,394 to 3,050 square feet.