Home prices will continue to Spike in 2022 and 2023

According to Zillow “the year-over-year rate of home price growth to peak at 21.6% in
May and to close the year at 17.3%. Simply put: Instead of decelerating, Zillow sees the
2022 spring housing market getting even hotter.”

This is largely attributed to the low inventory.

Fannie Mae expects the growth to be in the range of 7.6% and 3.3 percent for 2022 and 2023.

Home prices continue to Soar

According to Dallas Morning News home prices continue to soar the median home prices
in Dallas-Fort Worth were up 14% YoY. The price stood at $400,000.

The talks about interest rate hikes have not slowed the housing markets yet. This is not
expected to normalize at least in the near future for the DFW market.

Property Management Tips

As more and more investors enter the residential real estate market here are some
tips to help you take care of your investments.

  • Mange your property like a business – Understand the cash flow, books, policies,
    procedures and regulations
  • Invest in your property – Every tenant loves a clean home ensure that you
    maintain your property including flooring, HVAC, Lawn and other aspects of your
    property
  • Looks are important – how your property looks exterior and interior are key
  • Hire a professional – Keeping up with regulation and changes can be taxing if you
    are not able to do that hire a professional to do the same

Real Estate Macro News

According to NAR 67% of 183 metro areas – had a double-digit increase in the median
single-family existing-home sales price

In January 2022, existing-home sales rose to a seasonally adjusted annual rate of 6.5
million – an increase of 6.7% from the prior month, with sales up in all regions.

The fourth quarter of 2021, much like the third quarter, saw home prices continue to
increase, although at a slower pace.

The top metros were Punta Gorda, Fla. (28.7%); Ocala, Fla. (28.2%); Austin-Round Rock, Texas (25.8%); Phoenix-Mesa-Scottsdale, Ariz. (25.7%); Sherman-Denison, Texas (25.1%); Tucson, Ariz. (24.9%);

Top expensive markets were

  1. San Jose-Sunnyvale-Sta. Clara, Calif. ($1,675,000; 19.6%);
  2. San Francisco-Oakland-Hayward, Calif. ($1,310,000; 14.9%);
  3. Anaheim-Santa Ana-Irvine, Calif. ($1,150,000; 23%);
  4. Urban Honolulu, Hawaii ($1,054,500; 16.8%);
  5. San Diego-Carlsbad, Calif. ($845,000; 14.2%);
  6. Los Angeles-Long Beach-Glendale, Calif. ($797,900; 15.9%);
  7. Boulder, Colo. ($775,100; 17.2%);
  8. Seattle-Tacoma-Bellevue, Wash. ($700,000; 13.9%);

According to NAR economist Yun “The good news is that home prices should begin to
normalize later in 2022 as more homes come on the market,”

Real Estate Development News

PGA America Relocating its headquarters from Florida to Frisco

According to Rebusinessonline Omni Resorts is developing Omni PGA resort.

The property is developed in partnership with the City of Frisco and the PGA of America.

The relocation represents a total investment of $520 million for Frisco.

The following Amenities will be available at the resort

  1. Two 18-hole courses, a 10-hole short course and a two-acre putting green
  2. 3 Pools, spa, 127,000 sq foot of meeting & event space
  3. Variety of Food and Beverage options onsite.

The project is slated to be completed in Spring of 2023

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

Mortgage rates continue to Climb

According to Freddie Mac,  Average 30 year Mortgage rates rose to 3.22% highest level since May 2020. 15 year Rates stood at 2.43 and 5/1-year ARM stood at 2.41 %

2021 Housing Market was the strongest in 15 years 

According to National Association of Realtor, 2021 market was the strongest market in 15 year. This was in large part supported by lowest mortgage rates in 50 years of below 3% in 2021. Existing home sales rose 11% year-over-year in the first 10 months. Sales started to normalize from January to August but picked up steam again in September and October.

The supply was tight due to the lower supply of inventory from builders and also due to the raw materials and supply chain delays caused by the pandemic.

There were some underlying markets where the home prices were undervalued

Dallas-Fortworth was undervalued followed by Daphne-Fairhope-Foley, Alabama at the second place and Fayetteville-Springdale-Rogers, Arkansas-Missouri at the 3rd place

Austin rated as Top City in Texas for Jobs by Wallet Hub

According to Wallethub Austin TX was rated as one of the top city in Texas for Job. Austin stood at 5th place nationally followed by Plano TX at 11th place. 

Source: WalletHub

New Development News

According to Austin American Statesman,  Landsea Homes Corp., acquired more than 900 lots in a subdivision in Kyle called Anthem Texas. The first homes are expected to be delivered in late 2023

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

Median Home Prices continue to climb

According to NAR home prices continue to climb. The Real estate forecast survey found that median home sales price will change by 5.7%.

  • Housing demand is increasing faster than supply as home buyers rush to lock in interest rates. Demand is currently outpacing supply.
  • Properties are selling faster in 17 days (Dec 21) compared to 20 days (a year ago).
  • Prices increased by 15% year-over-year basis.
  • Mortgage application for homes decreased 0.7% from prior week.
  • 30-year rates stood at 3.12% as of this writing
  • NAR economists expect 30-year fixed mortgage rate to increase to 3.7% by the end of 2022 as monetary policy tightens
  • Inflation stood at 6.8% in Nov 2021.
  • Occupancy rose across the multifamily, industrial, and retail trade sector, but fell in the office real estate market, based on data reported by CoStar®.
  • Multifamily rent increased to 11% year-over-year basis as of December 16
  • Average office rent increased by 0.1%
  • Industrial property the rent growth stood at a record 8.4% due to demand in ecommerce sales.

Texas Commercial Real Estate Updates

Occupancy rates for Class A office space stood at 73.8% Asking rent was down by 2.2% in DFW metroplex. Retail occupancy stood at 93.4% and asking rent increased by 2.7%. Warehouse occupancy rates stood at 93.4%

Legacy Union two and Legacy Union three coming in Plano off of Dallas North Tollway and Legacy Drive.

According to Dallas Morning News Cousins Properties & Lincoln Property Co. plan to build two office towers near the northeast corner of the Dallas North Tollway and Legacy Drive.

New Development Update

390 acres of Mixed-use development, Crystal Park approved in Anna.

According to NTXE-NEWS Bloomfield homes to develop 390 acres of Mixed-use development west of U.S. Highway 75 and south of Farm-to-Market 455 in Anna. Crystal Park will house 969 single-family homes. The development will include commercial properties and multi-family development.

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

Austin and Dallas-Fort worth continue to be the hottest housing market in 2022

According to National Mortage News

Dallas is at #7 and Austin is at # 4 in the ranking of the top twelve hottest housing markets. The 5-year population and employment growth in Dallas were 1.4% and 1.6%. In Austin, the population and employment growth stood at 2% and 2.6 % respectively.

The top spot was held by Nashville, Tennessee followed by Raleigh/Durham, North Carolina at second spot followed by Phoenix, Arizona at the third spot, and Austin, Texas at the fourth spot. Dallas Fort Worth stood held the seventh spot.

Samsung to build 17 Billion dollar Semiconductor factory close to Austin

According to NPR Samsung plans to build a $17 billion semiconductor factory outside of Austin, Texas, amid a global shortage of chips used in phones, cars and other electronic devices. The operation will being in 2024. Samsung has chosen Taylor, TX for its plan.

Snapshot of Texas Economy

According to Texas Real Estate Research Center

  • Non Farm Employment payroll grew at 6.7% adjusted annually
  • WTI Crude rebounded after 2 month decline and stood at $69.23 per barrel
  • Retail sales grew at 6.3% YOY
  • US consumer price index grew at 5.4% annually

Cash Real Estate transaction may be subject to new rules

According to WSJ additional reporting requirements may be implemented on all Cash real estate transactions to combat Money Laundering and increase the transparency of real estate transactions domestically. The new rules could impact both residential and commercial real estate transactions. More at WSJ.com

New Development News

251 acres community planned along Coit Road in Celina

According to Dallas Morning News. The community is planned on Coit Road. Corson Cramer Development is building Ten Mile Creek, a residential community along the future Collin County Outer Loop east of Coit Rd.

The 251-acre project will have 371 single-family homes, 110 townhouses, rental homes, and apartments.

Plans also include 46-acre retail and commercial center.

American Legend Homes and William Ryan Homes will build the single-family homes while Grenadier Homes will build the townhomes.

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

House rent rises. First time home buyers getting priced out by Investors

According to the Wall street journal House rents have increased. First time home buyers are getting priced out due to the onset of investors in Key Metro markets

Rents have increased 13% year to date. The sharp increase in rent is attributed to the increasing demand from people who cannot afford to buy homes.

According to WSJ, Bigger investment banks such as Blackstone Group, Invesco also have committed large sums of money to the sector estimated at $11 billion. Institutional players are looking to build their portfolio that could serve as starter homes for owner occupier

Apartment Markets going through Major turnaround

Recon According to Dr. Luis Torres, research economist for the Texas Real Estate Research Center at Texas A&M University. Torres says the apartment outlook has changed from “catastrophic” when the pandemic began to “positive” today.

A large portion of this is attributed to the roll out of vaccines. Lack of availability of single family homes and increase in prices of single family homes and improvement in the overall state of the economy.

Texas Topped as the best place to buy homes 

According to Wallethub List Texas topped the no 1 state to buy homes.

Frisco was ranked number 1 followed by Austin at no.2 Mckinney was at no.4 followed by Denton at no.5 and Allen at No.6

The rest of WalletHub’s top ten cities were No. 3 Gilbert, Ariz.; No. 7 Durham, N.C.; No. 8 Reno, Nev.; No. 9 Roseville, Calif.; and Nashville, Tenn.  

Texas housing Market at glance

Employment Statistics at a glance From Texas A&M Real estate Center

Texas added 80,900 nonagricultural jobs last month, marking gains in 14 of the last 16 months. 

Texas’ job growth rate matched the nation’s at 0.6 percent. The Texas Real Estate Research Center forecasted a growth rate of 0.5 percent for July. 

The state added 714,800 jobs since July 2020. The Texas economy now needs to gain almost 261,700 jobs to return to pre-pandemic levels.

Development News

38 Acres of Mixed use Development in Keller.

According to Rebusinessonline. Realty Capital Management and South Carolina-based Greystar are underway on construction of Keller Center Stage, a 38-acre mixed-use project on the northern outskirts of Fort Worth

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

House rent rises. First time home buyers getting priced out by Investors

According to the Wall street journal House rents have increased. First time home buyers are getting priced out due to the onset of investors in Key Metro markets

Rents have increased 13% year to date. The sharp increase in rent is attributed to the increasing demand from people who cannot afford to buy homes.

According to WSJ, Bigger investment banks such as Blackstone Group, Invesco also have committed large sums of money to the sector estimated at $11 billion. Institutional players are looking to build their portfolio that could serve as starter homes for owner occupier

Apartment Markets going through Major turnaround

Recon According to Dr. Luis Torres, research economist for the Texas Real Estate Research Center at Texas A&M University. Torres says the apartment outlook has changed from “catastrophic” when the pandemic began to “positive” today.

A large portion of this is attributed to the roll out of vaccines. Lack of availability of single family homes and increase in prices of single family homes and improvement in the overall state of the economy.

According to Wall Street journal Lumbar prices are seeing a decline in the past few weeks. The prices dropped to $1010 from $1200 a week ago. Prices were $482 in October 2021 and currently they are at $879.

Although the prices have dropped, they are not at the level before the pandemic.

According to Wall Street Journal – “Lumber prices are still sky high, to be sure. The spot-price index was $459 a year ago and despite a dramatic tumble, lumber futures remain more than twice what is typical.”

Texas dominates to be the hottest market across the 50 states.

According to Builderonline, Dallas fortworth stood at #1 leading with 50% market share followed by Houston at # 2, Austin at #5 followed by San Antonio at # 6.

https://www.builderonline.com/land/local-leaders-list/2021/

Home Affordability continues to decline due to drop in income and rising home prices.

According to NAR, Lack of housing supply is pushing the home prices higher.  Monthly Mortgage payments are continuing to increase to $1,184 The payment as a percentage of income continue to climb up and is at 16% in April from 13.7% a year ago … for detailed report form NAR click here

     

Housing Affordability from National Association of Realtors

Housing Market Statistics at a glance From Texas A&M Real estate Center

Texas housing Market at glance

Employment Statistics at a glance From Texas A&M Real estate Center

Development News

Kaufman County Attract Development from Centurion American.

According to Dallas Morning News. Centurion American to develop 1,100 acres of land for residential projects.

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.

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

Taylor Morrison to develop 150 SFR in Grand Prairie

According to rebusinessonline Taylor Morrison home corp to develop a 140 SFR Community in Metro Dallas

Taylor Morrison home corp. is looking to develop 14—sq foot single family unit in Grand Prairie

Booming real estate surged prices of rural real estate land in Texas.

According to Texas A&M real estate Center. Post pandemic in 2021 Texas rural land markets have exploded in a burst of activity,” said Dr. Charles Gilliland, research economist and rural land expert for the Texas Real Estate Research Center at Texas A&M University.

“First quarter 2021 sales of large acreage rural properties grew more than 50 percent in West Texas and 37 percent statewide compared to 2020,” said Gilliland. “First quarter activity exceeded the remarkable levels seen in the third and fourth quarter of 2020 in most areas.

  • Prices in North East Region rose by 12.11 percent to $5,423 per acre
  • Prices in Gulf Region increased by 11.2 percent to $7,069 per acre
  • Austin-Waco-Hill Country prices rose 7.07 percent to $4,424 per acre.
  • South Texas prices remained steady, retreating 0.35 percent to $3,950 per acre.

Home Prices rise everywhere in the first quarter.

According to a report by Wall Street Journal, Home prices rose everywhere “a rapid price appreciation that shows little sign of fading soon with limited housing inventory and robust demand”.

     

The housing boom is widely fueled by low mortgage rates. First time home buyers are overbid losing to cash buyers. The number of homes has been less than the number of realtors available in the market. The reduction in inventory has only extended this increase in home prices. The prices of commodities such as lumber, steel, labor has also contributed to this rapid acceleration of home prices.

Analyst and economist are hoping that the prices would slow as the rate tick up. As of this writing the 10-year treasury yields are at 1.652%

Market Statistics at a glance

The median price of home sold in May 2021 was $292K up 17.3% YOY

Supply seems to be constrained the months of inventory is down to 1.3% YOY down from 1.8%

Median price per sq foot was $145 up from $133.56 in March

Median home size was 2020 sq foot up from 1,980 in March

How the Pandemic Made Lumber America's Hottest Commodity

Development News

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.

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

Austin and Dallas are top destination for foreign investments.

According to Association of Foreign Investors in Real Estate (AFIRE). Dallas and Austin are the Top Real Estate markets in 2021. Atlanta and Newyork were at 25% and 21% respectively.

Overall, 90 percent of respondents said they plan to increase their position in U.S. cities over the next three to five years. 

Of the markets foreign investors plan to leave, New York, Chicago and San Francisco top the list. Houston was also in the top five.

Booming real estate surged prices of rural real estate land in Texas.

According to Texas A&M real estate Center. Post pandemic in 2021 Texas rural land markets have exploded in a burst of activity,” said Dr. Charles Gilliland, research economist and rural land expert for the Texas Real Estate Research Center at Texas A&M University.

“First quarter 2021 sales of large acreage rural properties grew more than 50 percent in West Texas and 37 percent statewide compared to 2020,” said Gilliland. “First quarter activity exceeded the remarkable levels seen in the third and fourth quarter of 2020 in most areas.

  • Prices in North East Region rose by 12.11 percent to $5,423 per acre
  • Prices in Gulf Region increased by 11.2 percent to $7,069 per acre
  • Austin-Waco-Hill Country prices rose 7.07 percent to $4,424 per acre.
  • South Texas prices remained steady, retreating 0.35 percent to $3,950 per acre.

Home Prices rise everywhere in the first quarter.

According to a report by Wall Street Journal, Home prices rose everywhere “a rapid price appreciation that shows little sign of fading soon with limited housing inventory and robust demand”.

     

The housing boom is widely fueled by low mortgage rates. First time home buyers are overbid losing to cash buyers. The number of homes has been less than the number of realtors available in the market. The reduction in inventory has only extended this increase in home prices. The prices of commodities such as lumber, steel, labor has also contributed to this rapid acceleration of home prices.

Analyst and economist are hoping that the prices would slow as the rate tick up. As of this writing the 10-year treasury yields are at 1.652%

Market Statistics at a glance

The median price of home sold in May 2021 was $292K up 17.3% YOY

Supply seems to be constrained the months of inventory is down to 1.3% YOY down from 1.8%

Median price per sq foot was $145 up from $133.56 in March

Median home size was 2020 sq foot up from 1,980 in March

Development News

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.

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

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.

10-year Treasury yield rising to above1.5% for the first time since the onset of pandemic.

>> 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 decl​​ine 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

Development News

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.

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true

Demand for homes continues, however homebuilder confidence drops

According to the latest NAHB/Wells Fargo Housing Market Index (HMI) Homebuilder confidence dropped from 90 in Nov to 86 in December this is attributed to increasing lumber prices and worker shortages. The builders are less confident that they will be able to deliver the inventory in time.

Record low mortgage rate has led to an influx of new first time Home buyers which had led to the increase in home prices especially in DFW area. Growing demand has not been able to catch up with inventory which could pose an issue in future. “Demand is strong entering 2021,” Chuck Fowke, chairman of NAHB, said in a statement.

Exodus of Tech companies from Silicon Valley continues to Texas

HP Enterprises becomes the latest company to announce relocation of its headquarters to Texas. HPE was joined by Oracle which announced relocating its headquarters from Redwood City in California to Austin Texas. Another Silicon Valley Juggernaut Palantir announced that it would move to Denver. Tesla’s Elon Musk recently revealed that he has moved to Texas

Texas sees increased Jobless claim number for the month of December

Jobless claims increased in Texas to 39,800 for the month of December up by over 11,000 for the week ending Dec. 5, according to the workforce commission

Uptick in Covid-19 cases could hinder economic activity and increase eviction and vacancy rates

According to the Texas Real estate center at A&M Economic activity rebounded, The Texas Residential Construction Cycle (Coincident) Index, which measures current construction levels, ticked up due to the improvements in industry wages, employment, and construction values. The Residential Construction Leading Index rose for the fifth straight month amid increased building permits and housing starts

credit : Real Estate center Texas A&M University

If you have a friend or family members looking to Buy/Sell/Lease Residential or Commercial Properties. We are here to help you and and your loved ones.

Let us help you find the home where your dreams come true