Contrary to what many believe, Millennials are not the ‘renter’ generation. Millennials purchased a larger percentage (34%) of homes in the U.S. than any other age group in 2017 and the most recent Census Bureau report shows that the homeownership rate among Millennials is finally on the rise. Despite what anyone says, millenials are buying homes as 85% of my clientele arw millenials.
1. Equity Build-Up
2. Projected Home Price Increases
3. Projected Interest Rate Increases
Higher PRICES + Higher INTEREST RATES = LARGER MORTGAGE PAYMENTS.
If you thought about selling your house this year, now more than ever may be the time to do it! The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market. This may be one of the best moments to get the absolute most from the sale of your home due to the demand. I know homeowners are great about the sale of their home but nervous about buying of their next home. My two cents is to use the profit of the sale of your home to be able to put a huge chunk into your second home.
I’ve watched sellers walk away with approximately 6 figures in selling their home. I WILL REPEAT….they walked away with approximately 6 figures from selling their DFW home. That’s an additional six figures along with their regular job. What could you do with extra income to buy the home of your dreams by selling your current home?
Lawrence Yun, Chief Economist at the National Association of Realtors, recently commented:
“Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast.”
Yun goes on to say:
“Current demand levels indicate sales should be stronger, but it’s clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions.”
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction, including the inspection, appraisal and financing contingencies.
As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.
It’s been a whirlwind week for that I just needed some Andrea time to cool off. I returned back to Dallas on Saturday after spending a few days in Louisiana celebrating the homegoing of my Aunt Elaine.
I love to say I’m a Louisiana native. It is forever engrained in me but the new normal is that I’m a Texas resident. There is no way to shake it. I’ve been here for 7 years and honestly I don’t see that changing anytime soon.
I spent Saturday catching up to make this week less hectic than it needs to be. Oh Sunday. Wednesdays and Sundays are my favorite days of the week. Wednesdays mean it is almost over and Sunday is my only day of relaxation. Let me tell you how I enjoyed this one.
I started the day doing a pre-birthday outing with my sister. We started at Toulouse Cafe and Barin Highland Park. I wasn’t that hungry since I ate at home but their drinks were definitely the right potion for Sunday Funday.
After celebrating with my sister for her 34th birthday, I headed to Bishop Arts for the Grand Opening of Ice Cream Wasted. I can’t give much about the company because most of the ice cream was gone and the kind I tried wasn’t a kind that I’d purchase. I’ll have to try it again when there is a flavor I like available.
After they ran out of ice cream at Ice Cream Wasted, I decided to take my talents to a place in Bishop Arts that never disappoints and that is Pink Magnolia. I still wasn’t as hungry but opted for biscuits and bacon because listen…it’s biscuits and bacon. There cinnamon sugar concoction is to die for on those biscuits. Oh yeah and I added more champagne to my diet for yesterday.
After leaving Pink Magnolia, I met for friend Treniece for dinner at Zenna Thai in Dallas/Carrollton. Lastly, I ventured to the DFW Founders Plaza because it’s a place that I always wondered where it was and it’s Sunday, why not?
That’s all for now. Stay tuned to my next Sunday Funday experience in DFW.
Recently, WFAA released an newcast stating that the rent rates in DFW are increasing month-to-month. All across DFW, you will see development happening. The developments are for new businesses, new apartments, and/or new homes. There isn’t too many places where you don’t see that in DFW. Currently, Dallas is the land of opportunity.
The newly published April 2017 Dallas Rent Report shows prices across the city remain above the national media. On average, one-bedroom apartments were leasing for $1,260. Two-bedroom units were renting at $1,760.
There are thousands of people relocating here monthly (so yes, people are coming here and they need a place to live). As a Realtor, I have people coming from everywhere. It isn’t a specific place that people aren’t migrating from. They come from the East and West Coasts, other Southern states, and the Midwest.
My biggest motto from a financial standpoint is that if you are paying $1000+, you should consider purchasing a home. Why? The benefits of being a homeowner outweighs being a renter. Let’s take this example.
Let’s say your monthly rent is $1200/month. For a whole year, you’ve paid $14,400 in rent. However, if you had a home that was $1200/month for your mortgage, you could have tax benefits from property taxes, mortgage insurance, mortgage interest. The $14,400 you spent with a mortgage with a tax benefit of $3,600 means that you technically have paid $10,800 for a whole year. That’s basically $900/month. What’s even better? You are build equity while buying and equity = wealth. With an apartment, you are making the developer/builder wealthy.
Homeownership is an investment. Yes, you can invest in stocks and bonds but homeownership provides you a tangible asset. Homeowners in DFW have seen an increase in their asset of 8.5%. That’s extra money that you have made and all you did was live in a home. Can you say the same about your apartment? I live with the financial sense of wanting to make money while I sleep. That is EXACTLY what a home does. Check out the graph below on the status of DFW homes from 2014 to now.
The market has went from homes having a median sales price of $162,000 to $255,000 in June 2017. That’s a $93,000 increase in 3 years. Listen to me, that’s $93,000 increase in THREE years. Imagine what you could do with $93,000 if you had a home to sell. That’s 20% down for a move-up home and some left over to decorate and pay Navient (Sallie Mae’s wicked sister) a nice chunk of change.
Bottom Line: You could look into purchasing a home instead of renewing your lease. Homeownership can be a condo, townhome, or a house. The first two really depends on a person’s lifestyle and what they prefer. All three can be considered a home that you’ve purchased. I think condos/townhomes are great for turning into easy rental properties whether short term (Heard of Airbnb or Homeaway?) or in the long-term. You have to weigh your options and what works best for you. The easiest way to get to the McMansion is to purchase your first home and build yourself and your wealth from there.
For more detailed information for your personal situation, contact me at 972-813-9788 or atfowler@NewAvenueRealty.com.
I recently got this question and I wanted to share my thoughts on this. A buyer’s agent is free to the buyer even if the the buyer uses new construction. The only time a buyer may be forced to pay a commission is if they go the FSBO or For Sale By Owner route.
As far as new construction, builders have set aside a budget for agents to supply a commission. Some people think that if they don’t have one, they will get more incentives. That is so UNTRUE. The incentives could be more if you used a Realtor. Realtors have relationships with builder reps and can negotiate everything from lot to upgrades. The contract is also used based on the builder too. Do you have someone working for you to help you combat any issues that mat arise from the contract or building issues?
It’s worth your weight to use a specialist when it comes to buying a new home. There are things that people don’t think of when building or negotiating when buying a new home.
Just remember that it doesn’t hurt you to have someone represent you in their chosen field where they have the experience. Would you represent yourself in a lawsuit against a major corporation? It’s practically the same thing.
Did you know June was National Homeownership Month? A recent report stated that buying is cheaper than renting in some metros. I know in DFW, one bedroom apartments are climbing to the $1000 price range.
Why should you consider being a homeowner? The financial sense it makes. For me, the wealth building tool of homeownership beats renting all day.
Here are 5 reasons why it makes financial sense:
- Mortgage payments can be fixed while rents go up
- Equity in your home can be a financial resource later
- You can build wealth without paying capital gains
- A mortgage can act as a forced savings account
- Overall, homeowners can enjoy greater wealth growth than renters.
So before you sign that lease again, contact New Avenue Realty to better understand your options.
When I met Tracey, it was a phone call I received while in New Orleans for the Keller Williams annual Family Reunion conference. I remember sitting in my room I received an email and her number. I was nervous it was a spam email (I cannot tell you how many I get in one day). I was like why not call and make sure. I gave her a call and it was a real person and number. LOL
She told me she saw me in the Missy Lynn videos and was looking for a Realtor to help her purchase a home in Dallas. I told her that as soon as I made it back to Dallas in a few days, we could meet up to talk. I always seem to have some type of connection with clients. Lately, it has been a Louisiana connection. Tracey is from New Orleans and relocated to Dallas after Hurricane Katrina. She had no desires to make Dallas a permanent home but 10+ years later, she decided to do just that.
So we searched. It all started in Denton County. Until finally, I suggested a hidden gem area of Tarrant County. Read her story and more below.
Today is the actual home anniversary of one of my dear friends. A little background story of how I connected with Lauren before she was a client. We both attended Louisiana State University. We started in Summer 2006 and were both as we say it in Louisiana “318” girls. That just means we are from North and Central Louisiana.
Lauren moved to DFW from Houston in 2015. She quickly told me she’d rent for a few months and purchase a home. She had purchased two in Houston and she didn’t plan to be in anyone’s apartment. As she says this, I quickly mention that the Dallas market is different from Houston and a little more expensive as well. After 6 months of renting a townhome, Lauren was over it and was ready to find her home. Our journey began. Read below for her chat on buying her first home in DFW.
1. What type of home were you considering?
I previously came from a 4 bedroom home so I was looking for a similar size home that would accommodate all my furniture.
2. What city did you purchase your home in?
3. Was it your first choice location? If not, what areas did you consider?
I focused my search on a particular area of town and not so much the city. I was open to all areas along the 380 corridor.
4. Now that you have lived in your city for a year, what is it that you like about your city?
I love that Prosper is a growing town. I get the small town feel all while being close to the city.
5. What attracted you to your neighborhood?
The builder, neighbors, and amenities.
6. What is something that you like about your neighborhood now that you have lived there for a year?
I love the sense of community in my neighborhood. If I ever leave something at the grocery store, I just ask my neighbors and they have it!
7. What advice would you give a first time homebuyer?
Be willing to compromise. It’s rare that you will get everything on your wish list. Understand that all the lovely features you want will cost so understand what can be upgraded at a later time to add value to your property in the future.
Lauren’s home was actually one that looked small without furniture in it. When I stopped by after she moved in, I was like WOW….I can’t believe your home is this big. This is to say, you’d be surprised on how much space the rooms actually have.
Real estate professionals get that consumers, by and large, ignore housing statistics and the market until they become involved in the purchase or sale of a home. It’s only natural then that what impacts the market is a bit of a mystery to many. What determines a buyers’ or sellers’ market? What factors influence home prices?
Of course the answers to these questions and more may be multi-faceted, but it’s important to pay attention to them if you hope to keep more of your money when it’s time to buy or sell real estate.
Believe it or not, even in what seems like the gloomiest of real estate markets, there will be a glimmer of light for some.
Pay Attention to Interest Rates
It certainly is no secret that obtaining a lower interest rate for a mortgage typically allows for a lower payment. Naturally then, low interest rates make home-buying an attractive venture—and, even whispers of a rate hike can spur folks to get out into the market.
For instance, by the end of 2015, the U.S. saw 5.26 million home sales, which was the most robust housing market since 2006. Lawrence Yun, chief economist for the National Association of REALTORS® (NAR), attributed the robust market, in part, to the mere “prospect of higher mortgage rates in coming months.”
And, rise they did, throughout the following year. In fact, late in 2016, mortgage interest rates rose eight times in nine weeks, according to bankrate.com. Sounds rather gloomy until one recognizes that, post-hike, rates were still at historic lows.
The bottom line is that if you’re in the market for a home and interest rates decrease or remain attractively low, it’s time to get excited about the housing market.
The current economy is a key factor affecting the real estate market. “Broadly speaking, when the economy is sluggish, so is real estate,” claims Joseph Nguyen at Investopedia. Rather than look at the glass half-full, however, we choose to take the opposite tack—when the economy is humming along, the housing market is at its most attractive.
When job growth is robust, consumer confidence rises and we’re more apt to spend money on high-ticket items, such as cars, appliances, vacations and, yes, homes.
Exciting Markets for Sellers
There’s an old saying in the real estate industry that counsels homeowners that the best time to sell a home is when you need to sell your home. Yes, we understand that isn’t very helpful. If you’re one of the fortunate who has no compelling reason to sell (such as a job offer in a different town or divorce), you have the luxury of choosing when to put the home on the market.
Get excited if real estate professionals mention the words “sellers’ market.” This is a period in which there are few homes for sale but buyer demand is high. During sellers’ markets prices typically increase rapidly and homes sell at or above list price.
One of the biggest mistakes we see in sellers’ markets is the homeowner who feels that the market itself will bring top dollar for the home, regardless of condition. Be aware that it’s the homes in good condition that sell the quickest and for the most amount of money. Regardless if market conditions favor sellers, if your home isn’t in move-in condition, it may be passed over by home buyers.
Buying a Home This Year?
A buyers’ market—when there is a large selection of homes for sale and few other buyers in the market—is a great time to purchase a home. Unlike a sellers’ market, prices aren’t rapidly escalating and you won’t be competing against a slew of other buyers. These markets are more relaxed so homebuyers can take their time deciding.
In a sellers’ market, however, it’s more important than ever to have all your ducks in a row before making an offer on a property. Ensure you know exactly how much you can spend and that you’ve obtained a preapproval letter from your lender. Make your offer stand out from others by keeping it lean and mean, with the shortest time periods for contingencies as possible. Finally, come in with your highest and best offer. A sellers’ market moves too quickly to assume the homeowner will negotiate over price.
While the type of market may determine when to jump in, as mentioned earlier, interest rates can also cause excitement in the housing market. Low rates and relaxed lending guidelines, such as we saw in 2015 and 2016, presented a prime opportunity for many would-be buyers who previously couldn’t afford to purchase.
Lower mortgage rates mean a lower monthly payment, which means you have more purchasing power, and that additional power can “mean the difference between buying a 2-bedroom home versus a 3-bedroom one; between buying a home with large closets versus small closets; and, between buying an upgraded home versus a dated one,” according to Dan Green at The Mortgage Reports.
Regardless of the media’s perception of the housing market, there is always a mix of good and bad news, depending on whether you are in the market to buy or to sell. Arm yourself with a professional real estate agent who can supply you with current and local market information (too often what you read in the news is stale and based on nationwide statistics), follow his or her advice and buying or selling a home in any market will be an exciting process.
Ready to talk to a Dallas real estate professional? Book an appointment with me at atfowlerrealtor.appointy.com.