http://www.successrealtygroupdfw.com/blog/rss/feedsSat, 09 May 2026 04:38:58 -0700http://www.successrealtygroupdfw.com/blog/post/4-reasons-why-we-are-not-heading-toward-another-housing-bubblehttp://www.successrealtygroupdfw.com/blog/post/4-reasons-why-we-are-not-heading-toward-another-housing-bubbleWith home prices continuing to appreciate above historic levels, some are concerned that we may be heading for another housing ‘boom & bust.’ It is important to remember, however, that today’s market is quite different than the bubble market of twelve years ago.Here are four key metrics that will explain why:1. Home Prices2. Mortgage Standards3. Foreclosure Rates4. Housing Affordability1. HOME PRICESThere is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone.Last week, CoreLogic reported that,“The inflation-adjusted U.S. median sale price in June 2006 was $247,110 (or $199,899 in 2006 dollars), compared with $213,400 in March 2018.” (This is the latest data available.)2. MORTGAGE STANDARDSMany are concerned that lending institutions are again easing standards to a level that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.The Urban Institute’s Housing Finance Policy Center issues a monthly index which,“…measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”Their July Housing Credit Availability Index revealed:“Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market.”3. FORECLOSURE RATESA major cause of the housing crash last decade was the number of foreclosures that hit the market. They not only increased the supply of homes for sale but were also being sold at 20-50% discounts. Foreclosures helped drive down all home values.Today, foreclosure numbers are lower than they were before the housing boom. Here are the number of consumers with new foreclosures according to the Federal Reserve’s most recent Household Debt and Credit Report:• 2003: 203,320 (earliest reported numbers)• 2009: 566,180 (at the valley of the crash)• Today: 76,480Foreclosures today are less than 40% of what they were in 2003.4. HOUSING AFFORDABILITYContrary to many headlines, home affordability is better now than it was prior to the last housing boom. In the same article referenced in #1, CoreLogic revealed that in the vast majority of markets, “the inflation-adjusted, principal-and-interest mortgage payments that homebuyers have committed to this year remain much lower than their pre-crisis peaks.”They went on to explain:“The main reason the typical mortgage payment remains well below record levels in most of the country is that the average mortgage rate back in June 2006, when the U.S. typical mortgage payment peaked, was about 6.7 percent, compared with an average mortgage rate of about 4.4 percent in March 2018.”The “price” of a home may be higher, but the “cost” is still below historic norms.Bottom LineAfter using these four key housing metrics to compare today to last decade, we can see that the current market is not anything like that bubble market.Thu, 26 Jul 2018 10:00:00 -0700http://www.successrealtygroupdfw.com/blog/post/buying-this-summer-be-prepared-for-bidding-warshttp://www.successrealtygroupdfw.com/blog/post/buying-this-summer-be-prepared-for-bidding-wars Summer is traditionally a busy season for real estate. Buyers come out in force and homeowners list their houses for sale hoping to capitalize on those buyers who are looking to purchase before the new school year. This year will be no different!Buyers have already been out in force looking for their dream homes and more are on their way. The challenge is that the inventory of homes for sale has not kept up with demand, which has led to A LOT of competition for the homes that are available.A recent article by the National Association of Realtors touched on the current market conditions:“Realtors® in areas with strong job markets report that consumer frustration is rising. Home shoppers are increasingly struggling to find an affordable property to buy, and the prevalence of multiple bids is pushing prices further out of reach.”Realtor.com went on to explain why buyers are flocking to the market in such big numbers:“A booming economy and stable employment in most parts of the country have created a new generation of eager home buyers – and led to fevered price battles spilling over into some unexpected, smaller markets.”Javier Vivas, Director of Economic Research for Realtor.com had this to say about competition:“Multiple-offer scenarios are no longer reserved to the usual big, fast-moving markets…demand for homes has spilled outward into secondary, smaller markets, and more buyers are gearing up to face fierce competition in more places around the country.”Realtor.com looked at the number of homes that were selling above asking price to determine which markets were heating up. Below are the Top 10:• Akron, OH• Worcester, MA• Lexington, KY• Irvine, CA• Greensboro, NC• Sioux Falls, SD• Madison, WI• Louisville, KY• Tacoma, WA• Little Rock, ARBottom LineLet’s get together to discuss our exact market conditions so that we can help you create a strategy to secure your new home in this competitive atmosphere!Thu, 05 Jul 2018 06:55:00 -0700http://www.successrealtygroupdfw.com/blog/post/va-loans-making-a-home-for-the-brave-possiblehttp://www.successrealtygroupdfw.com/blog/post/va-loans-making-a-home-for-the-brave-possible Since the creation of the Veterans Affairs (VA) Home Loans Program, over 22 million veterans have achieved the American Dream of homeownership. Many veterans do not know the details of the program and therefore do not take advantage of the benefits available to them.If you are a veteran or you know someone who is, here is a breakdown of the VA Home Loan benefits that can be used to achieve the American Dream!Top 5 Benefits of a VA Home Loan1. The greatest benefit of a VA Loan is that borrowers can buy a home with a 0% down payment. In 2016, 82% of all VA Loans put down 0%!2. Primary Mortgage Insurance (PMI) is not required! (Most other loans with down payments under 20% require PMI, which adds additional costs to your monthly housing expense!)3. Credit Score requirements are also lower for VA Home Loans. The average FICO® score of a borrower for an approved VA Loan is 620, compared to 676 (FHA) or 753 (Conventional).4. There is also a limitation on a veteran buyer’s closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4% in concessions in some cases.5. Even with interest rates rising, VA Loans continue to have the lowest average interest rates of all loan types.Who Qualifies for a VA Home Loan?One of the most important first steps when applying for a VA Home Loan is obtaining your Certificate of Eligibility (COE). “The COE verifies to the lender that you are eligible for a VA-backed loan.”You Can Apply for a VA Loan if You:• Serve 90 consecutive days during wartime• Serve 181 consecutive days during peacetime• Have more than 6 years in the National Guard or Reserves• Are the spouse of a service member who has died in the line of duty or as the result of a service-related disabilityYou Can Use a VA Loan To:• Purchase a Home• Purchase a Condo• Build a Home• Refinance an existing home loan• Make improvements to a home by installing energy-related features or making energy-efficient improvementsBottom LineFor more information or to find out if you or a loved one would qualify to use the VA Home Loan Benefit, let’s get together! Thank you for your service!Thu, 05 Jul 2018 06:43:00 -0700http://www.successrealtygroupdfw.com/blog/post/selling-your-house-on-your-own-could-cost-youhttp://www.successrealtygroupdfw.com/blog/post/selling-your-house-on-your-own-could-cost-you In this extremely hot real estate market, some homeowners might consider selling their homes on their own which is known as a For Sale by Owner (FSBO). They rationalize that they don’t need a real estate agent and believe that they can save the fee for the services a real estate agent offers.However, a study by Collateral Analytics reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.In the study, they analyzed home sales in a variety of markets. The data showed that:“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added) Why would FSBOs net less money than if they had used an agent?The study makes several suggestions:• “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.• “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.• “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. And 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.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.Conclusions from the study:FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.The data suggests the average price was near 6% lower for FSBO sales of similar properties.Bottom LineAs Dave Ramsey, America’s trusted voice on money, explains:“Research has shown that, between mistakes, lack of negotiating skills, pricing errors and general exposure on the market, you’ll cost yourself more than the real estate commission…You’ll come out slightly better and with a lot less hassle if you use a top-shelf agent.”Thu, 24 May 2018 12:48:00 -0700http://www.successrealtygroupdfw.com/blog/post/why-have-interest-rates-jumped-to-a-7year-highhttp://www.successrealtygroupdfw.com/blog/post/why-have-interest-rates-jumped-to-a-7year-high Interest rates for a 30-year fixed rate mortgage have climbed from 3.95% in the first week of January up to 4.61% last week, which marks a 7-year high according to Freddie Mac. The current pace of acceleration has been fueled by many factors.Sam Khater, Freddie Mac’s Chief Economist, had this to say: “Healthy consumer spending and higher commodity prices spooked bond markets and led to higher mortgage rates over the past week.Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.” But what do gas prices have to do with interest rates?Investopedia explains the relationship like this: “The price of oil and inflation are often seen as being connected in a cause-and-effect relationship. As oil prices move up or down, inflation follows in the same direction.” You may have noticed that filling your gas tank has become substantially more expensive in recent months. The average national gas price has climbed nearly $0.50 from the beginning of the year, leading to the highest price for Memorial Day weekend since 2014. As rates go up, your purchasing power goes down, but don’t worry; rates are still well below the averages we’ve seen over the last four decades. “Freddie Mac said this year’s higher rates have not yet caused much of a ripple in the strong demand levels for buying a home seen in most markets, but inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.” Buying sooner rather than later will help lock in a lower rate than waiting, as the experts believe rates will continue to climb. Even a small increase in interest rates can have a big impact on your monthly housing cost. Bottom LineIf you are planning on buying a home this year, keep an eye on gas prices the next time you’re at the pump. If you start to feel a big jump in price, know that rates are probably on their way up, too.Tue, 22 May 2018 09:00:00 -0700http://www.successrealtygroupdfw.com/blog/post/a-tale-of-two-markets-infographichttp://www.successrealtygroupdfw.com/blog/post/a-tale-of-two-markets-infographic Some Highlights:• A trend that has been emerging for some time now is the contrast between inventory & demand in the Premium & Luxury Markets vs. the Starter & Trade-Up Home Markets and what that’s, in turn, doing to prices!• Inventory continues to rise in the luxury & premium home markets which is causing prices to cool.• Demand continues to rise with low inventory in the starter & trade-up home markets, causing prices to rise!Thu, 12 Apr 2018 09:00:00 -0700http://www.successrealtygroupdfw.com/blog/post/are-you-aware-of-how-much-equity-you-have-in-your-home-you-may-be-surprisedhttp://www.successrealtygroupdfw.com/blog/post/are-you-aware-of-how-much-equity-you-have-in-your-home-you-may-be-surprisedCoreLogic’s latest Equity Report revealed that 675,000 US homeowners regained positive equity in their homes in 2017. This is great news for the country, as 95.1% of all mortgaged properties are now in a positive equity situation.“U.S homeowners with mortgages (roughly 63% of all the properties) have seen their equity increase by a total of $908.4 billion since the fourth quarter 2016, an increase of 12.2%, year over year.” Price Appreciation = Good News for HomeownersFrank Nothaft, CoreLogic’s Chief Economist, explains:“Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017. The largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017 , the most in four years.”He also believes this is a great sign for the market in 2018, saying:“Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.” This is great news for homeowners! But, do they realize that their equity position has changed?A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their homes as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 4.9% of homes are in that position (down from 6.3% in Q4 2016).The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%) when in actuality, 83% do! This means that 46% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a house (either larger or smaller) that better meets their current needs.Fannie Mae spoke out on this issue in their report:“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.” Bottom LineIf you are one of the many Americans who is unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2018! Let’s get together to evaluate your situation! Tue, 20 Mar 2018 09:00:00 -0700http://www.successrealtygroupdfw.com/blog/post/the-cost-of-waiting-interest-rates-edition-infographichttp://www.successrealtygroupdfw.com/blog/post/the-cost-of-waiting-interest-rates-edition-infographic Some Highlights: • Interest rates are projected to increase steadily heading into 2019. • The higher your interest rate, the more money you end up paying for your home and the higher your monthly payment will be. • Rates are still low right now. Don’t wait until rates hit 5% to start searching for your dream home!Mon, 19 Mar 2018 09:08:00 -0700http://www.successrealtygroupdfw.com/blog/post/7-factors-to-consider-when-choosing-a-home-to-retire-inhttp://www.successrealtygroupdfw.com/blog/post/7-factors-to-consider-when-choosing-a-home-to-retire-inAs more and more baby boomers enter retirement age, the question of whether or not to sell their homes and move will become a hot topic. In today’s housing market climate, with low available inventory in the starter and trade-up home categories, it makes sense to evaluate your home’s ability to adapt to your needs in retirement.According to the National Association of Exclusive Buyers Agents (NAEBA), there are 7 factors that you should consider when choosing your retirement home.1. Affordability“It may be easy enough to purchase your home today but think long-term about your monthly costs. Account for property taxes, insurance, HOA fees, utilities – all the things that will be due whether or not you have a mortgage on the property.”Would moving to a complex with homeowner association fees actually be cheaper than having to hire all the contractors you would need to maintain your home, lawn, etc.? Would your taxes go down significantly if you relocated? What is your monthly income going to be like in retirement? 2. Equity“If you have equity in your current home, you may be able to apply it to the purchase of your next home. Maintaining a healthy amount of home equity gives you a source of emergency funds to tap, via a home equity loan or reverse mortgage.”The equity you have in your current home may be enough to purchase your retirement home with little to no mortgage. Homeowners in the US gained an average of over $14,000 in equity last year. 3. Maintenance“As we age, our tolerance for cleaning gutters, raking leaves and shoveling snow can go right out the window. A condominium with low-maintenance needs can be a literal lifesaver, if your health or physical abilities decline.”As we mentioned earlier, would a condo with an HOA fee be worth the added peace of mind of not having to do the maintenance work yourself? 4. Security“Elderly homeowners can be targets for scams or break-ins. Living in a home with security features, such as a manned gate house, resident-only access and a security system can bring peace of mind.”As scary as that thought may be, any additional security and an extra set of eyes looking out for you always adds to peace of mind. 5. Pets“Renting won’t do if the dog can’t come too! The companionship of pets can provide emotional and physical benefits.”Evaluate all of your options when it comes to bringing your ‘furever’ friend with you to a new home. Will there be necessary additional deposits if you are renting or in a condo? Is the backyard fenced in? How far are you from your favorite veterinarian? 6. Mobility“No one wants to picture themselves in a wheelchair or a walker, but the home layout must be able to accommodate limited mobility.”Sixty is the new 40, right? People are living longer and are more active in retirement, but that doesn’t mean that down the road you won’t need your home to be more accessible. Installing handrails and making sure your hallways and doorways are wide enough may be a good reason to look for a home that was built to accommodate these needs.7. Convenience“Is the new home close to the golf course, or to shopping and dining? Do you have amenities within easy walking distance? This can add to home value!”How close are you to your children and grandchildren? Would relocating to a new area make visits with family easier or more frequent? Beyond being close to your favorite stores and restaurants, there are a lot of factors to consider. Bottom LineWhen it comes to your forever home, evaluating your current house for its ability to adapt with you as you age can be the first step to guaranteeing your comfort in retirement. If after considering all these factors you find yourself curious about your options, let’s get together to evaluate your ability to sell your house in today’s market and get you into your dream retirement home!Mon, 19 Mar 2018 09:04:00 -0700http://www.successrealtygroupdfw.com/blog/post/4-reasons-to-sell-this-spring-infographichttp://www.successrealtygroupdfw.com/blog/post/4-reasons-to-sell-this-spring-infographic Some Highlights:• Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available!• Housing inventory is still under the 6-month supply needed to sustain a normal housing market.• Perhaps the time has come for you and your family to move on and start living the life you desire.Fri, 02 Mar 2018 17:39:00 -0700