Housing-Insight-May-2022

Texas Housing Insight May 2022 Summary

Both U.S. and Texas’ construction permits shrank, posting the third decline in the last four months, signaling a future slowdown in national and state homebuilding. Although the projection on Texas’ year-end supplies decelerated, current supplies expanded as new listings and active listings grew. Record-high housing prices and robustly rising mortgage rates deterred many potential buyers. Housing sales lost nearly 5,600 transactions from January’s record level, shrinking 14.5 percent. Price disparities were conspicuous between Austin’s new-home and existing-home markets. Prices for the former were considerably less than the latter as pressure in the existing market intensified.

Supply1

Texas had been the No. 1 state for issuing housing permits since May 2006. In 2022, for every six single-family homebuilding permits issued in the U.S., one permit originated in Texas. Despite the large market share, under the projection of cooling housing markets, both national and Texas permits had a mid-single-digit reduction in May. The Lone Star State retreated 1,000 permits to a seasonally adjusted (SA) monthly rate of 15,000 units. Dallas—the second largest metro on the national list—contracted by 700 permits for the month. Furthermore, multifamily construction permits for Texas’ two-to-four units and five-plus units saw a double-digit reduction. This signals a forthcoming deceleration of housing supplies.

Lumber prices moderated at April’s price level, falling 14.5 percent year-over-year (YOY). Texas’ total housing starts hit a three-decade high last month with 26,915 SA units. The number returned to the year-ago average, hovering around 20,000 SA units this month. As starts for housing projects dipped, Texas’ single-family private construction values fell 10.4 percent month-over-month (MOM) to $3.7 billion, the largest monthly decline since last July. Private construction values shrunk in all metros except Austin as finished projects exited the local construction market faster than new projects entered. Although only falling marginally in May at an annualized rate, Dallas’ single-family construction appears to have lost momentum compared with Houston.

While new listings for existing homes continue to climb, new listings for new construction through the Multiple Listing Services (MLS) grew aggressively at 17.5 percent MOM. Overall, new listings grew for all four major metros and across all price cohorts. Overall active listings reflected the same trend. The rising number of homes ready for sale pulled Texas’ months of inventory (MOI) up to 1.5 months. A six-month MOI is considered a balanced housing market (Table 1). After hovering below the one-month benchmark for 19 consecutive months (since October 2020) and hitting a record low of 13 days in May 2021, Austin’s MOI finally rebounded above 31 days. The rising MOI means the sales pace to the number of available properties is improving. As Texas’ housing market frenzy started to ease, MOIs in the major metros all advanced four to ten days.

Prices

Although housing inventories slowly started to build up, housing prices did not immediately reflect the supply shift. The Texas median home price hit a record high every month starting in January 2021, and the median price rose to a record-breaking $354,000 this month, climbing over 25 percent since the beginning of 2021 (Table 2). All metros hit new price levels. Austin ($534,000) and Dallas ($446,000) were the two most expensive metros in which to own a single-family home. Amid all expanding metros, the median price growth was most notable in Austin where it rose almost 40 percent since January 2021. Data suggest in Austin it may be more affordable to buy a new home than hunt for an existing one. The median price for new homes sold in Austin through the MLS was $437,000, more than $100,000 less than the price of existing homes. In either case, housing in Austin is still out of reach for many potential buyers. Median prices in San Antonio ($337,000), Houston ($341,000), and Fort Worth ($373,000) advanced at a double-digit rate, albeit at a slower rate.

The Federal Reserve is expected to reduce its balance sheet assets and increase the Federal Funds rate several more times by the end of 2022. The ten-year U.S. Treasury bond yield shot up to 2.9 percent2, increasing 15 basis points in one month. The spread difference between the ten-year and the two-year bond yields rebounded 7 basis points to 0.3 percent, yet the spread between the two was still alarmingly low, signaling economic uncertainties and rising risks in the near future. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate, which for years hovered around 3 percent, elevated to 5.23 percent. The last time the mortgage rate was this high was in 2008. For more information on the effect of mortgage interest rates on purchase affordability, see “How Higher Interest Rates Affect Homebuying.”

The Texas Repeat Sales Home Price Index accounts for compositional price effects and provides a better measure of changes in single-family home values. Texas’ index corroborated substantial and unsustainable home-price appreciation, soaring 18.7 percent YOY. Dallas’ and Fort Worth’s index rose 26.4 and 24.6 percent, respectively, as home-price appreciation shot up in North Texas. Meanwhile, the metrics climbed around 19 percent in a year for the other three metros. Increasing home prices pressure housing affordability, particularly in an economic environment where mortgage rates are hiking and real wage growths are slow.

Demand

Record home prices and rapidly rising mortgage rates discouraged buyers and cooled the market. According to the MLS, total Texas housing sales peaked in January with nearly 39,000 transactions. Sales have declined each month since then. Total housing sales fell to a seasonally adjusted rate of 33,097, down 1,080 deals from April’s housing transactions. Sales in all major metros declined under the price pressures. Houston closed 9,100 sales, contributing one-third of the state’s total lost transactions. Dallas followed with 5,700 closed deals. Austin, Fort Worth, and San Antonio hovered around 3,000 units, each losing around 100 home transactions. Home appreciation drastically changed the price structure of home purchases. Housing sales slipped by double-digit percent for homes priced below $400,000, while transactions for more expensive homes (greater than $750,000) accelerated for the sixth month.

Texas’ average days on market (DOM) inched down to 28 days, the lowest on record. The historical low DOM indicated buyers’ eagerness to own a house. Austin and North Texas’ home purchases were the most frequent, closing in 20 days. Houston and San Antonio’s DOM inched down to 29 and 30 days, respectively. When days on market were differentiated based on the home market, the new home’s DOMs were notably higher than existing home’s, especially in the Houston area where homes lasted 61 days on average in the former market and 23 days in the latter. The existing-home market is hot. 

Homes in the $300K and $400K price cohorts sold fastest, typically leaving the market in 27 days. Homes under $300K had a longer market duration. Many of these homes may be older and not market-ready.

Note: Data collection for Household Pulse Survey was paused in May because the U.S. Census Bureau was making survey revisions. The survey analysis will resume in June.

________________

1 All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month over month, unless stated otherwise.
2 Bond and mortgage interest rates are nonseasonally adjusted. Loan-to-value ratios, debt-to-income ratios, and the credit score component are also nonseasonally adjusted.

Source – Joshua Roberson and Weiling Yan (July 25, 2022)

https://www.recenter.tamu.edu/articles/technical-report/Texas-Housing-Insight

August-Landscape-tips

August Landscape & Gardening Tips & To-Do’s

Need help planting a successful garden or landscape? Here are some August planting tips from the Dallas Arboretum horticulture staff and the Dallas County Master Gardeners that can help keep your home garden looking beautiful this Fall. Lawn and garden maintenance should be your focus in August.

  • Proper watering is crucial in August. Apply one to two inches of water per week to -landscaping.
  • Keep an eye out for webworms in trees. Use a garden hose to blast them out of the trees with water or cut them out with pole pruners.
  • Plant vegetable crops, including corn, tomatoes, and beans, for fall harvest.
  • Plant seasonal annuals such as marigolds and ornamental peppers for fall interest.
Favorite-Indoor-Spots

Favorite Spots for Indoor Fun in DFW

Another Round | Indoor Putt Putt | Dallas
Chicken & Pickle | Pickleball | Grand Prairie
Children’s Aquarium at Fair Park | Dallas
Crayola Experience | Plano
Crush It | Virtual Sports | Grapevine
Dallas Circus Center | Dallas
Electric Gamebox | Virtual Gaming | The Colony
Electric Shuffle | Shuffleboard | Dallas
Evo Cinemas | Entertainment Center | Southlake
Farm & Feed | Indoor Gaming | Plano
Frontiers of Flight Museum | Dallas
Gatsplat | Indoor Paintball | Ft. Worth
House of Shine | Interactive Museum | Grapevine
Kidzania | Children’s Amusement Center | Frisco
Kimball Art Museum | Ft. Worth
Legoland | Family Theme Park | Grapevine
Medieval Times | Dinner Theatre | Dallas
Modern Art Museum | Ft. Worth
Museum of Illusions | Dallas
National Video Game Museum | Frisco
Rainbow Vomit | Immersive Art | Dallas
Seaquest | Interactive Aquarium | Ft. Worth
Super Fort Wars | Fort Building | Ft. Worth
The 6th Floor Museum | Dallas
The Dallas World Aquarium | Dallas
The Perot Museum | Dallas
UTA Planetarium | Arlington
Whirlyball | Indoor Sport | Plano

NEED MORE ACTIVITY IDEAS? CHECK YOUR AREA FOR:
• arcades
• antique shopping
• axe throwing
• bowling alleys
• breweries
• escape rooms
• ice skating
• inflatable indoor playgrounds
• indoor obstacle courses
• Indoor rock climbing
• indoor sky diving
• indoor water parks/natatoriums
• movie theaters
• painting/art studios
• roller skating
• shopping malls
• trampoline parks

Important-After-Closing-Reminders-for-Buyers

Important After Closing Reminders for Buyers

Congratulations! You’ve just closed on the purchase of your new home! Here is a helpful list of important to-dos and reminders for after closing:

  1. A copy of the recorded Warranty Deed
    that transferred title of the property will be sent to you via email with your Owner’s Title Policy approximately one month after closing. Your Owner’s Title Policy should be printed and stored for safe keeping and/or saved on your personal computer.
  2. It is the taxpayer’s responsibility to be certain the property is rendered in the current taxpayer’s name
    for the upcoming tax year. Contact the County Appraisal District (CAD) for assistance in making certain this is done.
  3. Make certain to file your homestead designation with the County Appraisal District.
    If you have any questions about your homestead exemption for property tax purposes, or any other exemption which may be available to you, please contact your County Appraisal District. The forms necessary to apply for exemptions are available online from your Appraisal District at no cost. See the reverse side of this card for area County Appraisal District’s website and contact information.
  4. Contact the Home Warranty company if you received a home warranty and want additional coverage.
    If you received a Home Warranty (also known as a Residential Service Contract) in connection with your recent closing and wish to add additional coverage, please contact the Home Warranty company directly.

Collin County
Collin County Central Appraisal District
collincad.org | 469.742.9200

Dallas County
Dallas County Central Appraisal District
dallascad.org | 214.631.0520

Denton County
Denton County Central Appraisal District
dentoncad.org | 940.349.3800

Grayson County
Grayson County Central Appraisal District
graysonappraisal.org | 903.893.9673

Johnson County
Johnson County Central Appraisal District
johnsoncad.com | 817.648.3000

Kaufman County
Kaufman County Central Appraisal District
kaufman-cad.org | 972.932.6081

Rockwall County
Rockwall County Central Appraisal District
rockwallcad.com | 972.771.2034

Tarrant County
Tarrant County Central Appraisal District
tad.org | 817.284.0024

Exemption forms can be downloaded from the Central Appraisal District’s website for the county in which the property is located.

Click here for print version

Class-Calendar-Blog-Header

August Class Calendar

Republic Title is pleased to offer a variety of continuing education classes for our customers. Join us in August for classes including:

Cyber Security Basics for Brokers and Agents
This class will help licensees understand the importance of being ‘cyber- vigilant’ in addition to learning steps to take in order to protect themselves and their clients from cyber-attacks.
August 3rd
10:00 am – 11:00 am
Zoom

Matrix MLS – Auto Emails, Contacts, Client Portals
Join us for an in-depth overview of setting up automatic emails based on your client’s custom search, manage emails/contacts as well as client portals in the Matrix MLS System.
August 4th
10:00 am – 12:00 pm
Zoom

Advanced Signing Options Using DocuSign
Join us for this ADVANCED class where students will learn the progressive features of DocuSign®, such as using many of the advanced fields, correcting transactions, and creating time-saving templates. In addition, students will learn how to send the Seller’s Disclosure to their client to complete online.
August 10th
10:00 am – 11:00 am
Caddo Office Suites McKinney

Top Ten Contract Addenda
Join us to review 10 of the most commonly utilized TREC contract addenda including Third Party Financing Addendum, Addendum for Backup Contract and more.
August 10th
10:00 am – 11:00 am
Zoom

Property Data on the go with RPR Mobile
Meeting the demands of today’s well-informed consumer is a top priority for REALTORS® and by using valuable tools like RPR® (Realtors Property Resource®) to help increase your productivity, you can do just that! RPR Mobile™ app offers on-the-go access so you can answer all your clients questions no matter where you are. This class will teach you how to effectively use RPR Mobile™ application in the field to quickly pull up properties for sale from the MLS, look up off market properties, and efficiently find property information such as school information, valuations, past sales and more.
August 16th
10:00 am – 11:00 am
Republic Title Southlake

Online Contracts via zipForm
Join us to learn the basics of using Lone Wolf Transactions, zipForm® Edition (formerly zipForm® Plus). zipForm® enables real estate agents to quickly and efficiently create digital transaction files, complete and fill in contract details, attach documents and even get them electronically signed by buyers, sellers and other parties involved in a real estate transaction.
August 23rd
10:00 am – 12:00 pm
Zoom

Death, Divorce & Real Estate
Join us to learn important laws surrounding death and divorce such as separation, homestead issues, community property and probate.
August 24th
9:30 am – 10:30 am
Caddo Office Reimagined Lakewood

To see a current list of available classes and to register, please visit www.republictitle.com/residential-education.

The-Essential-Texas-Bucket-List

The Essential Texas Bucket List

Our list of the top must-do activities in Texas:

  • See Texas’ own Eiffel Tower in Paris, Texas
  • Trip out in Marfa
  • See the stars at McDonald Observatory in Davis Mountains State Park
  • Take a selfie with Big Tex at the State Fair of Texas
  • Walk along the Riverwalk in San Antonio
  • Visit the biggest water park in Texas at Schlitterbahn
  • Camp out at Enchanted Rock
  • Visit the TV Famous Magnolia Market at the Silos in Waco
  • Take on the 72 oz. Steak Challenge at the Big Texas in Amarillo
  • Space out at the Lyndon B. Johnson Space Center
  • Get weird at The Museum of weird in Austin
  • Take pictures at Cadillac Ranch in Amarillo
  • See the country’s 2nd largest canyon – Palo Duro Canyon
  • Visit a Saloon in Luckenback
  • Hike your way to Gorman Falls
  • Drink your way through the wineries in Fredericksburg
  • Take a tour of the Alamo
  • Relax at the Padre Island seashore
  • Feed giraffes the Houston Zoo
  • Get a thrill at the Galveston Island Pleasure Pier
  • Tour the Sixth Floor Museum of Dallas
  • See the bats at the South Congress Bridge in Austin
  • Salute the Texas State Capitol
  • Float the river in New Braunfels
  • Check out the view from Reunion Tower
  • Eat iconic BBQ at the Salt Lick in Driftwood
  • Enjoy the secrets of Huntsville at The Blue Lagoon
  • See Trash Turned Treasure at the Cathedral of Junk in Austin
  • Visit the Blue Bell Creamery in Brenham
  • Drive over the Regency Suspension Bridge in San Saba
  • Cliff jump into Jacob’s Well
  • Zen out at the Shangria La Botanical Gardens

For this and more fun resources visit our Resource section: DFW Area Helpful Resources | Republic Title of Texas

8 Benefits of Using a Realtor

8 Benefits of using a REALTOR When Buying or Selling a Home

1. REALTORS® are experts in their local real estate market.
REALTORS® understand the area that they work in including market knowledge, utilities, zoning, school information, and the neighborhood background.

2. Real estate is a full-time job.
When selling, your REALTOR® will spend their time pre-qualifying potential Buyers, answering phone calls with questions, marketing your home, and scheduling and attending home showings. When buying, they will find homes that meet your criteria, spend time previewing homes to make sure they are a good fit for you, schedule and accompany you on showings, and write and submit offers. Hiring a REALTOR® is a smart choice for this reason alone. 

3. REALTORS® are professional negotiators.
There are many factors up for discussion in a real estate transaction and negotiating directly with the Buyer or Seller on the other side can be
difficult. A REALTOR® will both fight for your interests and keep the deal from falling part.

4. REALTORS® understand all the complex processes during a real estate transaction.
Buying and selling a home comes with a lot of paperwork. Your REALTOR® will draft contracts and addenda on your behalf and explain these documents to you. They are trained to know all of the important documents needed throughout the buying and selling process.

5. REALTORS® always have your back.
Your REALTOR® has your back whether you’re a Buyer or a Seller. A REALTOR® has a fiduciary responsibility to their clients and are legally obligated to act in their client’s best interest.

6. REALTORS® have access to a vast network of experienced industry professionals.
Through your REALTOR® you will have access to a vast network of experienced industry professionals including inspectors, home repair companies, and title companies like Republic Title. Instead of going it alone, they can connect you with their trusted network.

7. REALTORS® know what to look for when pricing homes to sell and viewing properties to buy.
REALTORS® know what to look for when viewing properties for sale. They are trained to notice things that the average person might not see like foundation issues or floor plans that don’t flow. When selling, your REALTOR® does research to learn about your home and the neighborhood to price it to sell all while getting you the most money possible.

8. When buying a home, a REALTOR® is FREE.
When you hire a REALTOR® to help you purchase a home, it doesn’t cost you anything. The Seller will be paying for all of the commission fees while you get a quality representative to help you during the process. 

Click here for print version

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June 2022 DFW Area Real Estate Stats

June stats are here and we have the numbers! 

In June, home inventory increased in each county with new listings up ranging from 6% to 32% over June 2021. There is also an increase in inventory compared to last month in each county which is welcome as the DFW housing market has experienced tight supply conditions for some time. Average sales prices are up ranging from 15% in Dallas County to 27.9% in Collin County compared to June 2021. According to the Home Buying Institute, we are still in a seller’s market, but “these recent trends should make things a bit easier for buyers going forward”.

Our stats infographics include a year over year comparison and area highlights for single family homes broken down by county. We encourage you to share these infographics and video with your sphere.

For more stats information, pdfs and graphics of our stats including detailed information by county, visit the Resources section on our website at DFW Area Real Estate Statistics | Republic Title of Texas.

For the full report from the Texas A&M Real Estate Research Center, click here. For NTREIS County reports click here.

Important-After-Closing-Reminders-for-Sellers

Important After Closing Reminders for Sellers

1. Cancel your homeowners insurance with your insurance agent
once the transaction has closed, funded and your personal items have been removed from the home. There may be a prorated refund of your homeowner’s policy, based on the latest renewal date, owed to you. If you are remaining at the property after closing, you should notify your insurance agent of this change.

2. Cancel your automated deduction
for your house payment with your current lender if applicable.

3. Your lender will refund all monies left in your escrow account
approximately 15 to 30 business days after receipt of the payoff funds. The lender will mail a package containing your original Promissory Note marked “PAID” and other loan documents. Retain these for future reference. When you receive this confirmation, you may also receive a “Release of Lien” document from your lender. If the release has not already been recorded with the County Clerk’s office, please forward it to your closer at the title company and we will send it to the county to be filed, thereby releasing the lien of record.

4. Refer to your closing statement
Depending on what time of the year you sold your property, the Taxing Appraisal District may not have updated the account to show a change in ownership. If you receive a Tax Bill for the property that you sold, refer to your closing statement and send the bill to the new owners.

5. Important to note
You will receive a Substitute Form 1099-S from Republic Title within 30 days of closing. In addition, retain your closing statement, it serves as a Substitute Form 1099-S for tax purposes.

Click here for print version

DFW-AREA-LAKES-Blog-Header

DFW Area Lakes

Scorching temperatures again this weekend, which calls for a lake-cation! Check out this map of local lakes where you can camp, grill, boat or even swim as you soak up the sun!

Ray Roberts Lake
Lake-Ray-Roberts.com

Lake Lavon
Lake-Lavon.com

Lake Lewisville
Lake-Lewisville.org

Lake Grapevine
Lake-Grapevine.com

Lake Ray Hubbard
Lake-Ray-Hubbard.com

Bachman Lake
DallasParks.org/230/Bachman-Lake

White Rock Lake
WhiteRockLake.org

Mountain Creek Lake
MountainCreekLake.org

Lake Arlington
AHPD.org

For more seasonal resources like this, head over to our DFW Area Resources page at: republictitle.com/dfw-area-resources