Real Estate News

One of the best ways to build your family’s financial future is through homeownership. Recent data from the Federal Reserve indicates the net worth of a homeowner is actually over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a home, especially when they are so affordable in today’s market.

Every three years the Survey of Consumer Finances shows the breakdown of how owning a home helps build financial security. In the graph below, you can see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting just keeps getting wider over time, making homeownership more and more desirable for those who are ready.

Owning a Home is a Great Way to Build Family Wealth

For many families, homeownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your home.

The impact of home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the seventh year in a row. According to this year’s survey, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds. Today there are great opportunities available for those planning to buy a home. The house market has made a fully recovery, and all-time low interest rates are giving homebuyers a big boost in purchasing power. If you’re ready, buying a home this fall can set you up to increase your net worth and create a safety net for your family’s future.

Are You Ready?

To learn how you can use your monthly housing cost to build your family’s net worth, reach out to a trusted real estate professional in your area who can guide you through the homebuying process.

Filed under: Real Estate News by Olga Gilmore

There are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you are considering selling on your own, known as For Sale By Owner (FSBO), it is critical to consider the following items:

Your Safety is a Priority

Your family’s safety should always come first, and that is more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your home. A realtor will have the proper protocols in place to protect not only your belongings but your family’s health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, realtors are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.

A Powerful Outline Strategy is a Must to Attract a Buyer

Recent studies from NAR have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumps to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong internet and social media strategy to promote the sale of your house. Have you?

There Are Too Many Negotiations

Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:

• The buyer, who wants the best deal possible
• The buyer’s agent, who solely represents the best interest of the buyer
• The inspection companies, which work for the buyer and will almost always find challenges with the house
• The appraiser, if there is a question of value.

As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.

You Won’t Know if Your Purchaser Is Qualified for a Mortgage

Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress being made toward a purchaser’s mortgage commitment.

Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and in mortgage forbearance. A loan program that was available yesterday could be gone tomorrow. You need someone who is working with lenders every day to guarantee your buyer makes it to the closing table.

FSBO’ing Has Becoming More Difficult from a Legal Standpoint

The documentation involved in the selling process has increased dramatically as more and more disclosure and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBO’ing has dropped from 10% to 8% over the last 20+ years.

You Net More Money When Using an Agent

Many homeowners believe they’ll save the real estate commission by selling on their own. Real that they main reason buyers look at FSBO is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save on the commission.

A study by Collateral Analytics revealed that FSBO’s don’t actually save anything by foregoing the help help of an agent. In some cases, the seller may even net less money from the sale. The Study found the difference in price between a FSBO and an agent-listed home was an average of 6%.

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. An those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

The more buyers that view a home, the greater the change a bidding war will take place.

KEYPOINT

Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount of money or maybe more? Before you decide to take on the challenge of selling your house alone, reach out to a local real estate professional to discuss your options.

Filed under: Real Estate News, Uncategorized by Olga Gilmore

Once the kids have left the nest, you may be wondering what to do with all of the extra space in your home. Chances are, you don’t need four bedrooms anymore, and it may be a great time to sell your house and downsize, maybe even into a single-story home. You’ve likely gained significant equity if you’ve lived in your home for a while, so making a move while demand for your current house is high could be your best step forward toward the retirement goals you set out to achieve.

The dilemma, though, is where to go next. A big concern for many homeowners who are ready to sell is finding a home to move into, given today’s lack of houses available for sale. There is, however, some good news: the number of single-family, 1-story homes being built today is on the rise, improving your odds of finding the right home for your changing needs.

What are the benefits of buying a one-story home?

Still not sure about buying a single-story home? An article from Home Talk covers several advantages of switching from two floors to one:

1. Energy Efficient – most single-story homes only need one heating or cooling unit, and they typically stay cooler than a two-story home, both of which can lead to significant savings.
2. Easier to Maintain – Cleaning and maintenance of a single-story home can take less time and effort and better upkeep helps improve the overall value of the home.
3. Accessible for Everyone – If you’re looking for a house that provides a safe and easily accessible environment at any age, a single-story home may be the one for you!
4. Good Resell Potential – Single-story homes have a lot of benefits and are often in higher demand. This bodes well for future resale opportunities.

BOTTOM LINE

There are many benefits to downsizing into a one-story home. Doing so while demand for your current house is high might make it easier than ever to make a move. We’re happy to help if you’re ready to purchase the single-story home you need.

Filed under: Real Estate News by Olga Gilmore

Single-family home sales in the Austin-Round Rock Metropolitan Statistical Area (MSA) experienced strong and steady growth in the first half of this year but declined in June 2018, according to the June & Midyear 2018 Central Texas Housing Market Report released today by the Austin Board of REALTORS®. In the first half of the year, area home prices continued to increase and housing inventory levels slowly declined amidst strong housing demand.

“Despite a decline in home sales volume across Central Texas in June, 2018 is on track to be another record-setting year for the region’s housing market,” Steve Crorey, 2018 president of the Austin Board of REALTORS®, said. “Consecutive years of record-breaking sales activity have set the bar incredibly high, and it’s important to remember that we’re comparing June 2018 figures to that strong activity. The Central Texas housing market remains strong and continues to move at a demanding pace.”

Austin-Round Rock Metropolitan Statistical Area (MSA)
In the five-county MSA, single-family home sales increased 3.7 percent year-over-year to 15,364 home sales, while the median home price increased 4.3 percent year-over-year to $313,000. The volume of homes on the market declined year-to-date, although pending sales activity increased during the same time frame. From January to June 2018, active listings fell 0.8 percent to 5,951 listings; new listings decreased 0.6 percent to 21,795 listings; and pending sales rose 4.8 percent to 17,008 sales. Sales dollar volume in the Austin-Round Rock MSA was $6,025,035,605—an 8.2 percent increase from the first six months of 2017.

In June 2018, single-family home sales activity declined 2.7 percent year-over-year to 3,299 sales. During the same period, the median price for a single-family home rose 4.9 percent year-over-year to $326,250. Monthly housing inventory decreased 0.1 months year-over-year to 2.9 months, well below the Real Estate Center of Texas A&M University’s benchmark of 6.0 months as a balanced housing market. While home sales decreased across the MSA in June, this is not indicative of a declining housing market, suggested Jim Gaines, chief economist at the Real Estate Center at Texas A&M University.

“The Central Texas housing market is among the top three in the country. The region’s population growth, particularly along the I-35 corridor, is fueled by diversified economic opportunities that bring jobs, new businesses, and resources across multiple industries,” he said. “Strong population growth and home sales activity are expected to continue in the Central Texas region for the rest of the year and into 2019.”

City of Austin
In the city of Austin, single-family home sales in the first half of the year edged upward 1.3 percent year-over-year to 4,757 sales and the median price for a single-family home increased 3 percent to $375,760. During the same period, active listings decreased 10.1 percent to 1,279 listings; new listings decreased 3.9 percent to 6,458 listings; and pending sales rose 2.7 percent to 5,248 sales.

City of Austin home sales have not experienced a year-over-year decrease in the month of June since 2013. Austin home sales decreased 4.5 percent to 988 home sales and median price dipped 0.4 percent to $388,000. Housing inventory also decreased 0.3 months to 2.1 months of inventory. However, homes spent six fewer days on the market in 2018 than the previous June, averaging 30 days on the market.

Travis County
In Travis County, single-family home sales increased 3.8 percent year-over-year to 7,675 home sales in the first half of the year. During the same time frame, the median price for single-family homes grew 3.6 percent to $362,500. Active listings decreased 6.1 percent to 2,796 listings; new listings decreased 1.2 percent to 10,977 listings; and pending sales increased 6 percent to 8,587 sales.

In June 2018, single-family home sales decreased 2 percent to 1,651 home sales, while median price increased 1.2 percent to $374,500. Monthly housing inventory decreased 0.2 months to 2.8 months of inventory.

Williamson County
In Williamson County, single-family home sales in the first half of 2018 increased 5.2 percent year-over-year to 5,333 home sales. During the same period, the median price for single-family homes increased 3.7 percent to $286,900. Active listings increased 5.2 percent to 2,033 listings; new listings decreased 0.8 percent to 7,303 listings; and pending sales rose 4.7 percent to 5,832 sales.

In June 2018, single-family homes sales dipped 1.7 percent year-over-year to 1,143 sales, while the median price rose 4.7 percent to $300,000. During the same time frame, housing inventory declined 0.1 months to 2.8 months of inventory.

Hays County
In the first half of 2018, Hays County single-family home sales rose 2.6 percent year-over-year to 1,721 home sales, while median price increased 3.3 percent year-over-year to $264,900. New listings increased 2.2 percent to 2,536 listings and active listings increased 1.9 percent year-over-year to 799 listings. During the same time frame, pending sales rose 4.4 percent to 1,907 sales.

In June 2018, single-family home sales decreased 7.1 percent year-over-year to 369 sales, while median price increased 7.5 percent year-over-year to $284,900. During the same time frame, housing inventory increased 0.1 months to 3.4 months of inventory.

Filed under: Real Estate News by Olga Gilmore

The Austin area has a higher percentage of million-dollar homes than any other major Texas city.

Ranking 11th in the country, 2.16 percent of homes in the Austin metro are priced at $1 million or more, according to a new report by LendingTree.

That was higher than Houston (1.52 percent, No. 14 in the nation), Dallas (1.31 percent, No. 18) and San Antonio (0.41, No. 39).

LendingTree also clocked the Austin area’s median home value at $282,000, compared with $192,000 in Houston, $213,000 in Dallas and $191,000 in San Antonio.

Luxury homes of $1 million or more typically take longer to sell. According to the 2017 Texas Luxury Home Sales Report by the Texas Association of Realtors, last year there was an inventory of 6.6 months for Austin homes priced in the seven figures — the highest inventory of any price class.

The Austin Board of Realtors recently reported the median value of a single-family home in the Austin area hit $325,000 in May, suggesting that LendingTree may be underestimating the price of Central Texas homes.

LendingTree ranked the country’s 50 largest metros based on the 155 million properties in its database of property values. San Jose, Calif., had the highest percentage of million-dollar homes at 53.81 percent and a median home value of $1,069,000, followed by San Francisco with 40.03 percent and a median value of $891,000.

The LendingTree report highlighted the rising home affordability crisis in California: Los Angeles and San Diego also had more than 10 percent of their homes priced at $1 million or more.

Check out below a gallery from last July of what $1 million could buy in various parts of the Austin market.

Info courtesy of Austin Business Journal

Filed under: Real Estate News by Olga Gilmore