Tag Archives: Investment properties DFW

Have interest rates peaked?

As of this writing, Fed Daly poured cold water and sees that the rate may go up another 1%. St Louis Fed James Bullard seems to believe that the lower limit is 5% and the upper limit could be as high as 7%. The stock market seems to be in Euphoria S&P inched higher and Nasdaq jumped 1.5%. On other news the mortgage rates plunged to 6.61 from 7.08%, the largest drop since 1981

If the rates are bound to go up how come risk on is back fashion. We will try to answer this question and some others in this blog post.

  • The market is a future looking mechanism. Although the market has priced in all the rate hikes, but the inflation story is still not yet over.
  • The October consumer price index was lower than expected. The CPI came at 7.7% an increase of 0.4% over the last year. The expectation was 7.9%.
  • Core CPI that strips the volatile food and energy components came at 6.3% a 0.3% increase YOY. Expectation was at 6.5%.

How did the markets react to October CPI number

  • Nasdaq jumped 7.5% biggest gain since March 2020.
  • The bond yield started to fall.
  • S&P 500 was up 5.5%

This was all driven off a one low CPI Print. The question is are we out of the woods? Let’s try to answer this in the next paragraph.

The Fed will not tolerate an over headed economy and will not pivot until they have seen multiple data points that confirm a slow-down inflation. The Fed’s 2 main mandates are asset price stability and full employment.

Fed Chair, Jay Powell has reiterated numerous times “ it’s premature to talk about pausing rate hikes”. The FOMC committee seems to indicate “Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”

This brings us to the point why the sudden jubilation in the market and risk assets. There are many theories one of them happens to be that markets were oversold and there was lot of cash on the sideline that was looking for a place. The other theories are most of the trades were algorithmic and the rally was driven by short covering. Bear Market rallies are strong, and these rallies are known to push indexes upwards of 20%.

The more the financial conditions ease the Fed will have all the ammunition to keep accelerating the rate hikes.

Where are the Mortgage rates and Bond Market

Mortgage rates – as of Nov. 16, 2022

  • The 30-year rates stood at 7.08 %
  • 15 year stood at 6.38%
  • 5/1-Yr ARM stood at 6.06 %
  • 2 year US treasury stood at 4.37 up 0.009 basis points
  • The long-term treasury yield went down across the board starting from
    • 5 years stood at 3.855% down -0.066 basis points
    • 10 years stood at 3.699 down -0.1 basis points
  • The bond markets seem to indicate that the rates are going to go down. However, the Fed Speak tends to be hawkish.

A recent snippet from CNBC, during her interview with CNBC Fed Daly seems to indicate that the hike will continue, and the rate would go up at least another percentage “Pausing is off the table right now. It’s not even part of the discussion,” Daly said.

The markets seem to be overly jubilant with just one inflation read. Will the inflation go down from here only time will tell. I’m not a future teller to make a judgment on way or other, but the fed will not stop if the financial conditions ease. Markets are yet not pricing in a recession. There is a high likelihood of recession next year and the Fed is prepared to overdo rate hikes than undercut inflation.

What rates is the market pricing in

As of now, the market seems to be pricing in a probability of 85% for a fed fund rate of 425-450 basis points. Fed Daly sees the rate at 4.75% to 5.25%.

What does this all mean for the Housing Market

According to Fortune magazine, There are at least 219 markets that are down from their 2022 peak. 181 markets remain at their peak. The increase in the Fed fund rate has led to a reset in asset prices and overall asset validation be it stocks, bonds, homes or any other risk assets like bitcoin or ETH.

There are some markets where the prices will correct a lot and some where the prices may not correct at all. The key point to note here is that we have underbuilt homes in the past decade. The demand for homes far out ways the supply.

Supply and Demand of homes in Texas

According to the Texas Real Estate Research center.

“Mortgage rates have elevated significantly as a result of the Federal Reserve’s rate increases,” said Dr. Harold Hunt, research economist for the Texas Real Estate Research Center. “The result has been a real hit to affordability across the housing sector. Although interest rates are typically higher for manufactured homes compared with site-built products, the much lower purchase price still gives manufactured housing a strong advantage in the affordable-housing niche.”

Total home sales improved 10.9 percent since July’s steep decline, reaching a seasonally adjusted rate of 31,000 closed listings.

In the higher-end home (> 750K) market sales went down by 20% QOQ. due to the rising Mortgage rates.

  • Homes are sitting on the market longer because of slowing sales.
  • Texas’ average days on market (DOM) inched up to 42 days, continuously climbing from 29 days in March.
  • DOM was shortest in Dallas at 35 days and longest in San Antonio at 47 days

Home prices fell in Austin-Round Rock and increased in Dallas-Fortworth

Some Keys Stats on Supply

Texas’ single-family construction permits dropped to a two-year low, although Texas remained the state with the most issuance with 10,934 permits.
The lumber producer price index (PPI) fell three times in the past four months, and the year-over-year price elevation decelerated from 74.3 percent in January to 17.6 percent in September.

New single-family construction saw an 18.2 percent QOQ cutback in September, and single-family private construction values balanced at a two-year low. All major metros reported double-digit negative year-to-date (YTD) growths.

Contributor : Financial & Market Section – Ishan Pandey | Real Estate & Market Section : Balgovind Pandey


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

This week let’s spend a little time dissecting the CPI

From Consumer Price Index Summary – 2022 M08 Results
(bls.gov)

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in August on a seasonally adjusted basis after being unchanged in July.

  • Increases in the shelter, food, and medical care indexes were the largest of many contributors to the broad-based monthly all items increase.
  • These increases were mostly offset by a 10.6-percent decline in the gasoline index. The food index continued to rise, increasing 0.8 percent over the month as the food at home index rose 0.7 percent.
  • The energy index fell 5.0 percent over the month as the gasoline index declined, but the electricity and natural gas indexes increased.
  • The core consumer price index, which excludes volatile food and energy prices, rose 0.6% in August from July, double July’s pace. Economists follow core inflation closely as a reflection of broad, underlying inflation.
  • Stronger service-sector prices could trouble policymakers by reflecting how solid demand and growing incomes have enabled companies to continue raising prices.
  • Higher than expected inflation led to a hawkish Fed who reaffirmed that he will not halt until he sees meaningful drop in inflation confirmed via data.

FED and where are rates heading

  • The Fed’s Anxiety about not letting Inflation go high will derail the long-term economic prospects.
  • This week Fed raised the Fed fund rate by 0.75%. The market is pricing in a terminal rate of 4.25% – $4.5% according to the fed futures market.
  • Fed’s projection seems to indicate a median rate of 4.3% and a range of 4.1 –5.0% for 2022.
  • This could go higher if the inflation continues to persist. There are increasing signs that inflation has peaked as commodity prices have eased.

Impact on Home Sellers

  • Most sellers have refinanced at a historically low rate. Many sellers have pivoted towards renting rather than selling driven by higher rent they could collect in the current environment.
  • Renter market is as resilient as it has been in the recent past.

Rate hike impact on Builders

  • The increase in rates has pivoted builders to construct buy-to-rent homes. There is a great demand for rentals. The supply of homes is far lower than the demand and historical average. The time to build a home averages anywhere between 6-9 months.
  • Builders were not able to meet the supply due to covid supply chain issues to start with due to COVID lockdowns As the supply chain eased they were hit by high material costs due to inflation.

Overall messaging from the FED and its impact on housing

  • Near-term crash in housing unlike the financial crisis is not to be seen any time soon unless the market is hit by foreclosure.
  • The rate of foreclosure will be very low as most homeowners have financed at historically lowest rates.
  • Fed Chair Powell in his interviews with reporters did reiterate the fact longer term he is looking at “supply and demand to get better aligned so that housing prices go up at a reasonable level, at a reasonable pace”
  • The Fed is willing to go as long as it takes to contain inflation.

Impact of rates on Capital Markets

  • Dow Jones industrial average dropped 500 points touching the June 2022 lows and Nasdaq dropped roughly 200 points.
  • High growth Nasdaq is eviscerated due to the front-loaded rate hikes
  • Most tech companies have embarked on the journey of implementing cost-cut Measures METAGOOGL
  • Stronger Dollar has already dented the earnings of many of these multinationals.
  • Alarm bells have been run by noted investors – Ray Dalio, and Scott Minerd about the pain ahead for the stocks as rates continue to raise.
  • Valuation have already been reset.

What does this mean for the DFW Real estate market?

  • DFW real estate has been stable and slowing heading towards supply and demand normalization.
  • The inventory of homes for sale is improving and is at 2.6%
  • New home sales increased to 28.8% in august 2022 (Market Watch)
  • There has not been a dramatic correction in the prices and prices generally have remained stable.
  • The other advantage that Texas metros are enjoying is high energy prices. The oil and gas companies are some of the largest employers in Texas and Oklahoma.
  • Given Putin’s use of energy as a weapon I see the energy companies and those employed tremendously benefitting in the near term.
  • Net-Net DFW and its surrounding Real estate Market will be resilient in the near term.

Interest Rates trajectory

2 Year treasury rate rose as high as 4.20%

Impact on Leases and Rentals:

Most tenants are choosing to opt for 2-year leases due to the impact of inflationary pressure on the rent according to the US bureau of labor statistics

  • About 9 percent of tenants had a lease term other than 12 months or month to month.
  • Of these tenants, 29.9 percent had a 24-month lease
  • 14.8 percent had a 13-month lease, and 12.4 percent had a 6-month lease during this period.

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

Recession and its impact on Real Estate.

  • Last week’s strong employment report has made the job of Fed even more difficult in colling off the economy.
  • Employers added 528K jobs and the unemployment was at pre-pandemic levels. The labor market is red hot at this time.
  • Unemployment slipped to 3.5% from 3.6%
  • There is also clear indication inflation has peaked and commodity prices like gasoline, copper, and lumber are clear indications of the same

What does this mean for interest rates?

    • St. Louis Fed President James Bullard said he expects another 1.5 percentage points or so in interest rate increases this year.

    •  The talks of recession have gone up but given the economy that looks to be mild or next to nothing.

Impact on Real Estate

The long-term rate has gone down. Mortgage rates have started to fall. Rates peaked at 5.8% on June 23 2022 and have since fallen down.

As of August, the rates stood at 4.99% for a 30-year mortgage.

  • Falling rates are good for real estate. In the last few months, the market has normalized and home prices in the DFW area have taken a breather
  • According to NAR – Pending home sales declined 8.6% from May as escalating mortgage rates and housing prices impacted potential buyers.
  • Pending sales retreated in all four major regions, with the West experiencing the largest monthly decline.
Home Sellers have started reducing their prices as the housing
market cools off.
  • According to Redfin home prices have been up 40% in the last 2 years but they have started to go down in the recent past.
  • Realtors have started to adapt to the new realities of this market.
  • Most agents have dropped the prices if they don’t receive the offer in the two weeks of their listing.
  • The playbook has certainly changed for Listing agents who listed the home and were swarmed by buyers with multiple offers and appraisal waiver clauses.
  • Buyer incentives such as closing costs have become a norm these days.
  • The market slowly but surely is shifting towards a buyer market

Texas Real Estate and unemployment report salient points 

Job Market in Texas is steady and strong.

  • Texas added 82,500 jobs in June, an almost 0.62 percent increase over May.
  • The state’s unemployment rate improved to 4.1 percent. 
  • The state’s labor force expanded by almost 40,000 a decline from 56K in May.

Real Estate Market

According to Texas A&M Real Estate Center

Housing Report for Dallas-Fort Worth-Arlington

  • Sales volume for single-unit residential housing decreased 8.85% YoY from 10,816 to 9,859 transactions.
  • The average sales price rose 18.8% YoY from $442,831 to $526,100, while the average price per square foot subsequently rose from $181.49 to $222.21.
  • Median price rose 21.13% YoY from $355,000 to $430,000, while the median price per square foot also rose from $170.14 to $209.76.
  • Months inventory for single-unit residential housing rose from 1.1 to 1.8 months supply, and days to sell declined from 56 to 54.

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

State of Housing Market

With stronger employment numbers the FED is continuing the path to raise the rate. The 30-year fixed rate stood at 5%. As the FED embarks on its journey to curtail raging inflation there is a high probability that the rates may go up in the short term.

According to Fannie Mae, the home purchase sentiment index decreased 3.4 points in June to 64.8 this is the lowest reading in a decade. The percentage of respondents who said it was a good time to buy increased from 17% to 20%. The percentage of respondents who said home prices will go up in the next 12 months decreased from 47% to 44%.

Home prices in DFW have not adjusted meaningfully due to the following
reason.

  1. Increase in rates – Existing homeowners who list their homes will have to buy homes at much higher prices and rates. This is causing a shortage of inventory.
  2. This crisis is not the same as the 2008-2009 financial crisis. The Financial crisis of 2009 was largely attributed to subprime loans. It was caused due the substandard credit policies that were adopted by mortgage lenders. In today’s world getting credit is still difficult. Most mortgages are fixed-rate mortgages locked in at historically low rates. Homeowners are in no mood to take on new mortgages.
  3. DFW real estate market is one of the stable and strongest markets. A lot of the demand here was fueled by the migration of people during the pandemic from California, New York, and other states.
  4. This migration may not come down but is bound to increase as tech companies look to reduce the workforce in the bay area and other areas more and more people are going to migrate to low-cost locations.
  5. In the near future, the most that will occur in the DFW market is that prices may stop going up and may equalize at the current state. Builders are churning less and less inventory and the inventory is still 50% below the pandemic levels according to realtor.com

Markets don’t like uncertainty. The uncertainty on the rate hikes and how far the fed will go is certainly adding to the wait and watch among some buyers and sellers.

Mortgage rates are continually climbing

Prices in DFW are unlikely to take a nosedive in the short term as the demand for homes is still strong in the short term. 

The south still is a stronger market when compared to the rest of the country.

Market Statistics Collin County

  • Median price/sq Foot is at $180.90 up 27% YOY 
  • Months of inventory stood at 1.5 
  • Home prices rose by 21.4% from a year earlier 
  • Mortgage was $1369 a year ago payments high by $351 (NAR affordability)  

Market Statistics Fort Worth  

  • Median price/sq Foot is at $180.90 up 27% YOY 
  • Months of inventory stood at 1.5 
  • Day to close went down by a day at 38 

Real Estate Development News

Globitech announces a new manufacturing facility in Sherman

Globitech Semiconductor plans to build a wafer factory in Sherman with an investment of $5B creating 1500 local jobs. The factory is expected to start production in 2025 

Globitech is the second firm to move to Sherman, recently Texas Instrument announced a $30B investment in Sherman to create 3000 jobs and build a 300-nm wafer fab

Master-planned community coming on HWY I-20 and FM 1187

1800 plus acres of master-planned development planned near HWY I20 and FM 1187 in Fort Worth 

Development Highlight  

Parkside Village is a new community bring developed in Royse City off of I-30. The community will have green spaces, a pool, cabana, playground, pond, and fishing pier. It is a master-planned community

There are 2 key builders building at this location  

If you have any questions about these communities, please contact us  

Here are some links to the virtual tour and floor plans

The Callighan:  https://vmdfwl830-lush.mammothsteps.com 
The Allen: https://vmdfwl840-elemental.mammothsteps.com 
The Channing:https://vmdfwl850-crisp.mammothsteps.com 
The McCoy:https://vmdfwl860-cool.mammothsteps.com 
The Matador:  https://vmdfwl870-sleek.mammothsteps.com 
The Winedale (MODEL):  https://vmdfwl870-sleek.mammothsteps.com 


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

Your One Source of All DFW Real Estate News from Dream Castle Realty

Why will Home Prices not fall anytime sooner?

 

Ever since mortgage rates have gone up, I have received a lot of questions on what is happening to home prices. In the following section I will cover some of those.

 

Supply and Demand are not at equilibrium

  • At the outset of pandemic more homeowners have refinanced their mortgages to a lower rate. These homeowners are in no mood to sell in this rising rate environment. The supply of homes is still historically at lower levels than it has been due to supply chain issues, lockdown, and other macro-economic factors.
  • The process of construction has slowed down tremendously due to the supply chain shortage and labor shortages.
  • Most builders are still operating with reservation list.

 

Competition is high

  • The stock market boom has also contributed to the increase in home prices. There are more cash buyers today than there have historically been. This is adding strain on first time home buyers. Most buyers are stretching to buy their dream home and a lot of contracts are written with appraisal waiver clauses. This will eventually slow down as liquidity is flushed out of the market.

 

Accessing Credit is not easy today

  • Ever since the collapse of the housing market. Credit and underwriting requirements have become increasingly stringent. Most Americans are still not able to qualify for home purchases.

 

Prices are still historically high, and rents have gone up. This will prevent consumers from saving on down payments.

  • The Fed has started playing its part in raising rates and taking their foot off the gas pedal from stimulating the economy.
  • The Median prices of homes in DFW as of the latest data from Texas Real Estate Center in Dallas County has gone up by 19% compared to March 2021
  • Month of inventory is at 0.8
  • Increasing rent has prevented American consumer from saving for down payment towards purchase of their home.

 

Inventory is low – Listing of Preowned homes are drying up.

  • A lot of homeowners capitalized on sellers’ markets and sold their homes cashed in their Equity where in some of them downsized, most upsized to homes with dedicated office spaces and multiple rooms.
  • The influx of out-of-state residents from states such as California, New York, and New Jersey in search of warmer weather and larger homes has depleted the inventory further.
  • Most homeowners have preferred to stick to their homes for now as they have locked in historically low fixed mortgage rate.They are in no mood to move out and buy something at soaring prices and higher rates.
  • Builders are building less as they too are also feeling the pinch of rising rates.

 

 Inflation is eating away Affordability

  • The top-line inflation reading for May was 8.3 as inflation is going up and the affordability of homes is deteriorating. The cost of raw materials compounded with the supply chain problem has made affordability difficult

According to the NAR’s Home Affordability Index, national housing affordability fell in March compared to the previous month.

  • The Midwest was the most inexpensive area, with an index score of 170.6. The West remained the least affordable area, with a score of 97.1.
  • In March, affordability deteriorated as monthly mortgage payments rose 32.0 percent while median household income decreased 6.6 percent.
  • From the previous month, affordability was lower in all areas. At 25.7 percent of income, the West has the greatest mortgage payment to income proportion. At 14.7 percent, the Midwest had the lowest mortgage payment as a proportion of income.

 

Mortgage Payments have gone Up

The American consumer is paying more towards their mortgage than they used to pay a year ago. if they have purchased their home after the recent rate hikes.

 

The normalization in home prices especially in certain cities of DFW metro may take time.

There are four things that need to happen before normalization

 

  1. Supply and demand has to get back to normal levels.
  2. War in Ukraine and zero Covid policies in China would have to ease so supply chain can be normalized especially energy supply and other finished products that is contributing to escalating inflation.
  3. The current ongoing volatility caused by the Fed in its fight against inflation is not helping going to help the consumer in short and medium term. Fed has already given sufficient warning in its fight on inflation . Inflation would have to drop to meaningful and acceptable levels for fed to stop raising rates. 
  4. In the process to contain the inflation the Fed may cause a recession. Fed’s Softish landing is highly unlikely. I see gyration in equity and bond markets. 

 

Until these four things happen, we are not going to see a broader normalization in prices. There may be pockets where the prices may come down but not broadly. We may hear and there news snippets on decline in mortgage application, but that will not be meaningful to prices.

Last but not least, We are in for a long haul as far as normalization of prices is concerned. Each of these points will take time some are in Fed’s control especially the demand side but others are out of its control (Supply Side). Equity Markets will flush first. I hate to say this but, people will have to panic sell the equities before the housing markets starts to see the effect. We are still not at that point. All signs points to a multi-month or multiyear grind of ups and down.

 

My take of the current Market conditions 

 

  1. The Fed recent warning on getting inflation under control with softish landing of the economy currently is questionable.
  2. Equity markets have not yet priced in the recession factor which is highly likely given the acceleration in asset prices recently across the board.
  3. The effect of recession on housing prices is not yet fully understood as we have not seen something like this in a while.
  4. The 2008 financial crisis was caused due to laxity in credit and underwriting requirements leading to subprime mortgage crisis.
  5. This is not the case today. Credit is still tight, consumers are strong. Equity markets are not fully flushed.
  6. Last but not least consumer are sitting on the highest home equities in long time. We are still not at the point where there is fear or capitulation leading people to tap on some of their hard-assets. We are still far off from any meaningful correction in Housing markets.

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

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.


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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.


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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