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May 2022 DFW Area Real Estate Stats

May stats are here and we have the numbers! 

Inventory is increasing with new listings up in Collin, Dallas, Denton, and Tarrant Counties over April 2022. Average sales prices are up ranging from 14% in Dallas County to 26% in Rockwall County compared to May 2021. Average days on market across the five counties in North Texas was 18 days which is down in each county over 2021. According to the Dallas Business Journal, the DFW housing market had the largest increase in the close-to-list price ratio (average value of the sales price divided by the list price for each transaction) in the U.S. year-over-year with a close-to-list ratio of 104.7% compared to 98.4% in May 2021.

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.

Housing-Insight-March-2022

Texas Housing Insight March 2022 Summary

Total Texas housing sales continued to grow, increasing by 3.4 percent in the first quarter. Sales were concentrated on homes priced over $300,000. The constrained inventory in the lower-priced cohort pushed the median housing prices to a record-breaking level. Despite rising mortgage rates, housing market demand remains robust, driven largely by demographics. As building material costs (notably for lumber) continued to increase, so did housing starts.

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The Residential Construction Cycle (Coincident) Index, which measures current construction levels, increased slightly for both Texas and the U.S. as construction employment, wages, and output remained elevated. Construction activity is expected to continue expanding according to the Texas Residential Construction Leading Index (RCLI). Despite increases in the interest rates, the pace of new building permits and housing starts is expected to push the new home market forward at least for the immediate future.

According to Metrostudy data, after hitting a record high in the last quarter, the supply side contracted at the earliest stage of the construction cycle in the number of new vacant developed lots (VDLs). Despite a 26.3 percent elevation in San Antonio’s lot development, the depressed activity in DFW and Houston outweighed the gain. The contraction was most notable in lots priced between $200,000 and $299,000 for both metros, and DFW accounted for most of the quarterly loss due to reduced investment across all price cohorts, except in lots priced above $500,000.

Quarterly growth in single-family construction permits remained steady, hiking to 10.4 percent quarter over quarter (QOQ). All metros posted positive seasonally adjusted growth. Houston and DFW were standouts not only in Texas but also compared with other metros nationwide. Austin edged out San Antonio building permit output with 6,000 permits. Texas’ multifamily sector registered a moderate expansion with 15.06 percent QOQ increase as issuance shifted from two to four units to five or more units.

In 1Q2022, lumber prices continued the latest wave of rises, hiking steeply at 34 percent. In spite of the lumber price disruption for new home construction, total Texas housing starts still grew by a narrow margin of 1.7 percent. Among the 36,000 homes that broke ground in the Texas Triangle, 80 percent were appraised at over $300K. Moreover, Dallas had the most growth in housing starts ($500K+), followed by Austin and Houston ($400K-$499K), and San Antonio ($300K-$399K).  

Single-family private construction values increased 7.8 percent QOQ in real terms as the metric trended upward in Texas’ major metros. Houston’s average total cost for building construction surpassed Dallas’ in September 2021, and since then it had been the highest among all the Texas metros. Austin registered a sharp increase of 19.2 percent, while the other metros advanced incrementally.

The number of homes added to the Texas Multiple Listing Services expanded in March with 9,700 listings. Despite this inventory expansion, compared with 1.2 months in 2021Q4, Texas’ months of inventory (MOI) still deflated due to fast turnovers. Homes priced in the $200s had the tightest inventory at 0.8 months for the first quarter.

Both Austin and DFW remained below one month’s inventory, at 0.5 and 0.8 months, respectively. Houston and San Antonio trailed slightly above the one-month mark, at 1.1 and 1.2 months respectively. Inventory levels in each of the big four metros continued to drop over the latest quarter with the exception of DFW, which may have bottomed out.

Demand

While the national demand for housing declined marginally, demand in Texas accelerated, elevating the state total housing sales by 3.4 percent QOQ to 110,737 closed listings. Sales for homes priced above $500,000 continued climbing at an impressive rate, and the luxury home market share jumped to 24 percent with almost as many sales as homes priced from $200,000 to $299,999.

Total quarterly sales expanded in Texas largely due to massive growth in Houston, over 10 percent QOQ. San Antonio grew at a more modest rate of 2.7 percent, while both Austin and DFW contracted. Statewide existing-home sales shrunk for the first quarter, but new-home sales grew enough to push overall sales into positive territory.

Active listings in the existing-home market plummeted, maintaining supply constraints. Active listings of new homes also fell during the first quarter. Houston led the boost in new-home sales with an average of 9,355 closed listings per month, expanding 9.7 percent QOQ. Austin and San Antonio increased marginally with 3,095 and 3,552 closed listings, respectively. New-home sales in DFW decelerated in 1Q2022 after a positive run that started last summer. They tumbled across all price cohorts except $500,000+ homes, most of which were in Dallas.

While the homeownership rate for the South was 67.4 percent, the U.S. Census Bureau announced the Texas homeownership rate ticked down 1.1 percentage points to 62.8 percent. Metro-level homeownership rates fell slightly except in San Antonio, where they rebounded 1.54 percent.

Texas’ average days on market (DOM) elevated to 33 days, demonstrating that, while the housing market is still hot, some signs of weakness are emerging. Austin’s DOM gained a day over the previous quarter, averaging 22 days in Q1, while homes sold after an average of 24 and 25 days in Dallas and Fort Worth, respectively. Houston’s metric gained 4.9 percent QOQ, staying above the state average at 35 days. San Antonio fell to 31.4 days. As supply has begun rising to meet demand, DOM has increased QOQ, signifying a slow return to a healthy market. 

The Federal Reserve is expected to reduce its balance sheet assets and increase the Federal Funds rate several more times by the end of the year. The ten-year U.S. Treasury bond yield2 rose from 1.5 percent last December to 2.1 percent this March, soaring by at least 60 basis points with much volatility along the way. Furthermore, the Federal Home Loan Mortgage Corporation’s 30-year fixed-rate skyrocketed by 4.2 percent in March 2022, rising firmly from a record low of 2.7 percent in January 2021. Responding to these increased property interests, Texas’ home-refinance applications declined 10.8 percent in the past month, and the metric shrunk 54.8 percent from a year ago. Home-purchase applications, on the other hand, showed strong growth in 2022, albeit diminishing 8 percent from a year ago.

Millennials emerged as a big force of the mortgage applications as many reached 32 years old—the median age for first-time buyers. Though the increased mortgage rates could cool the homebuying frenzy and depress the housing boom, the need for larger family homes as well as for home office space persists, and housing demand remains robust. For a typical Texas mortgagee, the median mortgage rates in March climbed to 3.6 percent for non-GSE loans and 4.1 for GSE loans, respectively. The rates for both loans shot up by about 30 percent from a year ago. Under the pressure of rising interest rates, the original loan balance that constituted the “typical” Texas conventional home loan dropped $222 million in a year to $314 million. Despite the big drop in loan values, the debt-to-income ratio (DTI) rose from 35.3 to 35.6 percent, leaving housing affordability a long-lasting constraint.

Prices

Texas’ median home price rose for the 15th consecutive month, increasing 4.9 percent QOQ to a record-breaking $335,000 in March. The ongoing compositional sales shift toward higher-priced homes contributed to a higher median price. The growing share of higher-priced homes in Austin has increased the median price of homes sold to a new high of $520,000, up 8.9 percent QOQ. The Dallas metric ($416,000) gained 7.4 percent, while the quarterly price growth in Fort Worth ($352,000) elevated 5.9 percent. Houston’s ($330,000) and San Antonio’s ($322,000) metrics rose 4.8 and 4.1 percent, respectively.

The Texas Repeat Sales Home Price Index accounts for compositional price effects and corroborated substantial home-price appreciation as the index hovered near a series maximum, gaining 20 percent YOY. Austin led price growth with almost 30 percent YOY growth. Despite its elevated growth rate, the pace has gradually slowed closer to levels observed in the other major Texas metros. Annual home-price appreciation is at 28 and 25 percent in Dallas and Fort Worth, respectively. San Antonio posted a 20 percent annual hike followed by Houston with 15 percent growth. Rapid price growth outpaced wage gains, adding additional pressure to housing affordability.

Household Pulse Survey

According to the U.S. Census Bureau’s Household Pulse Survey, the share of Texas homeowners behind on their mortgage payments jumped 3 percentage points to 7 percent (Table 1). Houston areas mirrored the statewide average, where the behind-the-payment share increased 2 percent points, while DFW area was unchanged at 4 percent. The share of Texas respondents who were somewhat likely to leave their houses in the next two months due to foreclosure shrunk by 20 percent to 5 percent, much lower than the national rate of 13 percent (Table 2).

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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, Weiling Yan, and John Shaunfield (June 9, 2022)

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

What-is-a-Title-Policy

What Is A Title Policy

A title insurance policy is an insurance policy that insures you against liens or other claims against your property.  Unlike other types of insurance, you pay the premium one time and the policy generally insures you for as long as you own the property.  In Texas, Title Insurance rates are regulated by the Texas Department of Insurance and the rate is based on the amount of coverage provided by the policy. There are two basic types of title insurance, an owner’s title policy and a loan title policy.  Most financial lenders require a loan title policy as security for their investment in your property just as they require homeowners insurance or other types of coverage for their protection.  Owner’s title insurance lets the new homeowner feel safe and confident there are no other claims as to the ownership of the insured property.  Among other matters, it ensures access to the property, gives the homeowner the right to occupy the property, and provides indefeasible title. 

For more information, go to Blog for videos like this and other helpful information. Blog | REPUBLIC TITLE

Housing-Insight-February-2022-Summary

Texas Housing Insight February 2022 Summary

Texas’ housing market fell slightly in February as supply constraints continued pushing downward on the market, and mortgage rates increased. February sales and active listings were both down, resulting in an inventory level of about one month. Housing starts rose despite the continued surge in building material prices and dip in permits. The greatest challenge remains for homes in the lower price cohorts, as supply still has not caught up to the unprecedented demand. The state’s diverse and expanding economy, favorable business policies, and steady population growth, however, support a favorable outlook.

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The Texas Residential Construction Cycle (Coincident) Index, which measures current construction activity, increased both nationally and within Texas as employment exceeded the pre-pandemic level, and construction values accelerated. The Texas Residential Construction Leading Index (RCLI) advanced, signaling an expected elevation in future activity. The most influential metric in the leading index was the rise in residential construction value among new construction starts.

Single-family construction permits contracted half a percent seasonally adjusted for February, lagging the national increase of 3.9 percent month over month (MOM). Austin and Dallas-Fort Worth permit activity fell 10.7 and 0.3 percent, respectively. Houston and San Antonio, on the other hand, increased 9.1 and 2.4 percent, respectively. Houston’s permit growth rate topped the national list, issuing 5,316 permits, while Dallas followed with 4,091.

Lumber prices rose 11.4 percent in a month and were up 78.3 percent year over year (YOY), drastically raising the costs associated with home building. Despite the lumber market disruption, robust economic conditions and copious demand pushed total Texas housing starts up for the fourth consecutive month, soaring 11.3 percent MOM. However, single-family private construction values subsided 0.7 percent MOM. Austin accounted for the majority of the loss with a 23.4 percent dip from the previous month, while San Antonio had a 0.1 percent decrease. Dallas-Fort Worth was unchanged, and Houston posted an 8.3 percent hike.

Texas’ months of inventory (MOI) remained one-month in February while the U.S. had 2.5 months of inventory for the same period, accentuating how intense housing demand is in Texas. Supply continued to be an issue across all price categories but especially for homes in the lowest price range. Total housing inventory is still tight in Texas’ four biggest metros. Both Austin and DFW remained below one month while Houston and San Antonio were slightly above.

Demand

Texas home sales were down from January, ending February slightly above 28,000. Sales fell in each of the four major Texas metros except San Antonio, where sales grew by almost 1 percent. February sales were negatively impacted by rising mortgage rates and higher home prices that continue to shut out some potential homebuyers.

The Federal Reserve is expected to reduce its balance sheet assets and increase the Federal Funds rate at least two to four times in 2022. The ten-year U.S. Treasury bond yield rose to 1.8 percent2, up 0.3 percent from the previous month. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate hovered around 3.5 percent, rising 0.4 percent over the previous month. The median mortgage rate for the typical Texas homebuyer climbed to 3.5 percent for government sponsored enterprise (GSE) loans in January3 and to 3.2 percent for non-GSE loans. February home-purchase applications inched up by 3.1 percent year to date (YTD), while refinance activities declined by 23.4 percent. (For more information, see Finding a Representative Interest Rate for the Typical Texas Mortgagee). 

In January, the median loan-to-value (LTV) constituting the “typical” Texas conventional-loan mortgage dropped from 87.7 a year ago to 83.8. The debt-to-income ratio (DTI) stayed unchanged from a year ago at 36.4 YOY, while the median credit score increased 8.7 points to 752.8 over the same period. The LTV for GSE borrowers stayed constant from December through January at 85.5; meanwhile, their DTI increased slightly from 36.8 to 37.3.

Prices

Texas’ median home price continued to increase, consistently growing since the start of the pandemic. Austin remains at the top with half the homes selling for almost $500,000. DFW is a distant second with a median home price around $375,000. Median prices for both Houston and San Antonio hovered slightly above $300,000.

The Texas Repeat Sales Home Price Index accounts for compositional price effects and provides a better measure of changes in single-family home values. The Texas index has risen 31.7 percent since the pandemic started. Texas home prices were up 1.24 percent MOM, escalating for the 21st consecutive month. While growth in all other metros accelerated at a steady pace, Austin’s explosive growth has slowed since last summer. In summary, Texas’ overall increasing home prices decreased its affordability advantage over states like California.

At the metropolitan level, Austin’s repeat sales home price index value surpassed all other metros with 29.1 percent YOY growth. Corroborating with the growth rate of median prices, Dallas followed with a 28 percent YOY expansion. Fort Worth and San Antonio’s indexes rose 23.3 and 19.7 percent, respectively. Houston followed with a 16.9 percent gain.

Household Pulse Survey

According to the U.S. Census Bureau’s Household Pulse Survey, the share of homeowners unable to make next month’s mortgage payment increased on a state level. Over 8.6 percent were “not at all confident” or only “slightly confident” they’d be able to make payments. The national average was just over 7.1 percent (Table 1). The number of Texas mortgage owners facing foreclosure increased (Table 2). However, the share of respondents who reported themselves as “not likely at all” to lose their house due to foreclosure also increased, inching up 1 percent to 43 percent. This is marginally above the national average of 42.9 percent (Table 2).

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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.
3 The release of Texas mortgage rate data typically lags the Texas Housing Insight by one month.

Source – Joshua Roberson, Weiling Yan, and John Shaunfield (May 31, 2022)

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

April-2022-b

April 2022 DFW Area Real Estate Stats

April stats are here and we have the numbers! 

The housing market in North Texas continues to be hot! New listings are up consistently in all five counties over March 2022 as the Spring market continues to heat up. Despite higher mortgage rates, demand remains strong in North Texas. Average sales prices are up ranging from 16% in Dallas County to 35% in Rockwall County compared to April 2021.

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.

Lingo You Should Know

Lingo You Should Know

When you are preparing to buy a home, there are many words that may be unfamiliar to you. This list of
commonly used real estate terms is intended to help you in the home buying or selling process.

Appraisal
The estimated value of a property based on a qualified appraiser’s written analysis. Banks typically require appraisals before issuing loans to ensure the estimated value of the property adequately supports the sales price and the loan being taken out by the Buyer.

Appreciation
The increased value of your home from when you purchased it is considered its appreciation in value.

Assessed Value
This is the dollar value that the county appraisal district assigns to your home for the purpose of property taxes. This value may differ from a home appraisal value or market value.

Buyer’s Agent
A real estate agent who represents the interests of homebuyers.

Closing Costs
These refer to miscellaneous expenses to close the deal. Expenses can include recording fees, title insurance, commissions, surveys, and more.

Closing Disclosure
Final account of your loan’s interest rate and fees, mortgage closing costs, your monthly mortgage payment, and the total of all payments and finance charges. This document also notes the amount the Buyer has to bring to closing.

CMA
CMA stands for Comparative Market Analysis. This report looks at similar homes in your area that were sold or are currently on the market and can help determine an accurate value for your home.

Comparables
Also known as “Comps.”, which are used as a comparison in determining the current value of a property that is being appraised.

Contingencies
Particular conditions that must be met prior to closing a real estate transaction such as a home inspection (to ensure the home has no serious defects), a financing contingency (which releases a Buyer from the sales contract if their loan falls through), or a contingency that a Buyer must first sell their current home.

Deed
The recorded legal document transferring ownership or title to a property.

Deed of Trust
A recorded lien on the property which secures the Promissory Note and gives the lender the ability to foreclose if there is a default.

Earnest Money
Money that the Buyer deposits with the title company or directly with the Seller as a good faith gesture that they are serious about buying a home.

Effective Date
The date the Buyer and Seller have agreed to all terms and actually executed the contract.

Escrow
A legal arrangement in which a third party temporarily holds large sums of money or assets until a particular condition has been met (e.g., the fulfillment of a purchase agreement).

Executed
When a legal document has had its contents agreed upon by the Buyer and Seller and is signed by all parties to the document it is Executed.

HOA Resale Certificate
A document issued by a Property Owners Association or Condo Association (if applicable) that outlines the fees associated with the transfer of the property that are to be collected from the Buyer and Seller at closing.

Home Inspection
A thorough professional examination that evaluates the structural and mechanical condition of a property (plumbing, foundation, roof, electrical, HVAC systems, etc.) to identify problems with the house before purchasing. A pest inspection is also common as well as a pool inspection when applicable.

Home Warranty
Limited Warranty Coverage on some of the items in your home that can lead to costly repairs when in need of work, such as, HVAC systems, appliances, and even pest control. Every policy is different, it is important to understand what is covered and what is not. The Seller can provide a dollar amount towards a Home Warranty if it is selected and agreed upon within the contract.

Mortgage Lender
The lender providing funds for a mortgage. Lenders also manage the credit and financial information review, the property and the loan application process through closing.

Multiple Listing Service (MLS)
The MLS is a local organization that collects, catalogs, and distributes home listings for sale and lease as well as data on past sales. REALTORS® get access to the MLS by being a paid member of the organization. Some of the information in the MLS is distributed to popular listing websites.

Offer
A formal request to buy a home. This is most often presented to a Seller in the form of the contract and addenda required to purchase/sell a property that outlines all the terms and conditions of the offer.

Principal
The remaining unpaid balance on your mortgage. At closing, accrued and unpaid interest on the principal will also be due and payable.

Real Estate Agent
A professional with a real estate license who has passed a test as required by the state who may represent a Buyer or Seller in a real estate transaction.

REALTORS®
This is a real estate agent who is also a member of the National Association of REALTORS®, meaning they uphold certain standards and codes of ethics.

Real Estate Broker
A real estate agent that has additional education, has passed the state Broker’s exam, and meets minimum transaction requirements.

Real Property
Land and anything permanently affixed thereto — including buildings, fences, trees, and minerals.

Sales Contract
The finalized and executed contract and applicable addenda.

Seller’s Agent
The real estate agent who represents the Seller of a piece of property. Their job is to act in the best interests of the Seller, marketing their home to potential Buyers, and negotiating on the Seller’s behalf.

Survey
A drawing of your property prepared by a Registered Professional Land Surveyor that locates the boundary lines, any improvements, easements, building lines, encroachments of any structures or improvements over the property lines, easements, or building lines on the property.

Survey Deletion Coverage
The Owner’s Title Policy contains a standard exception to: “Any discrepancies, conflicts, or shortage in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.” When the Buyer purchases Survey Coverage, and the survey has been approved by the title company this standard exception is amended to remove everything except the words “shortages in area” and exceptions are added to exclude any matters currently shown on the survey from coverage in the Policy.

Title
Document that refers to your right of ownership and thus your ability to sell.

Title Insurance
Insurance purchased to protect against any unknown liens or debts that may be placed against the property as well as any claims by anyone else that they own or have any rights to your property that are not known or disclosed at closing.

Click here for print version.

What-To-Do-With-Smart-Home-Devices

What To Do With Smart Home Devices

In today’s high tech world, many homes are equipped with the latest smart home technology and security devices. As a real estate agent, it is important to be in the know on how the TREC Contract addresses security devices in the home. Listen in as Republic Title’s Janet Allen and Scott Rooker discuss:

  • What does the TREC Contract tell us about security devices?
  • What does the seller need to do if they are leaving security systems and devices in the house that are controlled by app or phone?
  • What should I expect at closing if I am buying a home with security devices?
  • How is a buyer able to access and operate smart devices in their new home?

For more information, go to Blog for videos like this and other helpful information. Blog | REPUBLIC TITLE

Housing-Insight-January-2022-Summary

Texas Housing Insight January 2022 Summary

Texas housing sales continued to rise in January, compounding gains despite ongoing supply constraints. The months of inventory (MOI) slid to 1.4 months, putting downward pressure on the market. Single-family permits, however, increased, and housing starts continued to rise despite steep price hikes in lumber and other building inputs. Finding homes priced below $300,000 remained a great challenge to many Texans as inventory cannot keep up with booming demand. Sales have remained strong despite ongoing inventory limitations, particularly among lower priced cohorts. The state’s diverse and expanding economy, favorable business policies, and steady population growth still support a favorable outlook.

Supply1

The Texas Residential Construction Cycle (Coincident) Index, which measures current construction activity, decreased nationally and in Texas due to falling employment outweighing heightened construction gains. The Texas Residential Construction Leading Index (RCLI) possibly reached a trough, signaling an increase in future activity. The downward trend was reverted by an increase in weighted building permits and residential construction value starts along with the ten-year real Treasury bill continuing to fall. The leading indexes among the major metros, however, continued to decline. Current inflationary conditions due to supply chain issues are putting downward pressure on construction activity and may impede construction activity in the coming months.

Single-family construction permits surged 7.1 percent, beating out the national increase of 6.5 percent month over month (MOM). Houston and Dallas-Fort Worth (DFW) remained on top of the national list and outnumbered Phoenix by approximately 1,000 permits. The largest rate of change of the major Texas metros came from San Antonio and DFW at 10 percent and 7.1 percent, respectively. Houston issued the highest number of permits at 4,837, marking a 2.2 percent uptick, while Austin issued 2,295 permits for a rise of 6.4 percent. Texas multifamily permits dropped 15.5 percent MOM; however, the metric was up 4.3 percent year to date (YTD).

Lumber prices soared 61.2 percent, drastically increasing the cost of home building. Despite the lumber market disruption, robust economic conditions and copious demand pushed total Texas housing starts up for the third consecutive month, increasing at 2.1 percent. Single-family private construction values also increased in real terms. Austin and Houston values ticked up 4 and 3 percent MOM, respectively, contributing to the majority of the 2 percent uptick in statewide values. Dallas and San Antonio posted negative numbers at 1 and 3 percent, respectively.

Texas’ months of inventory (MOI) fell to 1.4 months as active listings remained retracted while demand stayed high. A total MOI around six months is typically considered a balanced housing market. Supply remained severely limited, dropping across all price categories but most notably for homes in the lowest price range. The inventory for homes priced $200,000-$299,999 dropped to 0.94 months, and the lowest cohort (homes price less than $200,000) dropped 0.1 to 1.34 months. Total housing inventory in the major metros dropped significantly with the MOI remaining most constrained in Austin at 0.4 months. The metric in North Texas fell to 0.7 and 1.0 months in Dallas and Fort Worth, respectively. Houston’s MOI stayed steady at 1.6 months, while San Antonio declined to 1.5 months. Dwindling inventory persisted as a major headwind to the health of Texas’ housing market.

Demand

Monthly housing sales reached an all-time high for January in Texas with 38,900 closed listings in January. Total housing sales started off strong in 2022 with a 9.5 percent MOM increase, and the gains occurred across all price cohorts. The greatest increase was the $400,000-$499,999 cohort at 24 percent, while the lowest cohort rose only 4.7 percent by comparison. Houses in cohorts priced above $300,000 nearly doubled the percent gains in sales compared with those priced in the lowest two categories.

Housing sales increased across all major metros, led by Houston at 20.6 percent MOM. San Antonio followed with a hike of 8.7 percent. Meanwhile, Dallas and Austin experienced a 5.2 and 5.0 percent sales increase, respectively.

Texas’ average days on market (DOM) rose marginally to 33 days, increasing 0.5 percent MOM. The state DOM started rebounding since hitting a historical low of 29 days in August 2021, and it had continued rising for five consecutive months. Despite the marginal improvement in the buyers’ market, Austin remained the hottest housing market with an average DOM of 23 days. Dallas and Fort Worth’s DOM remained steady at an average of 26 days. DOMs for Houston and San Antonio were slightly higher than the state average, both at 34 days.

Market expectations are for the Federal Reserve to accelerate the tapering of assets purchases and to increase the Federal Funds rate in 2022 in an effort to combat rising inflation. The ten-year U.S. Treasury bond yield rose to 1.8 percent2, up 30 basis points from the previous month. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate hovered around 3.1 percent for the third consecutive month. The median mortgage rate for the typical Texas homebuyer climbed to 3.3 percent for GSE loans in December3 and rose to 3.1 percent for non-GSE loans. Refinance applications have declined on a monthly basis and were down 37.5 percent year over year (YOY). MOM purchase and refinance applications diminished 12.4 and 13.6 percent, respectively. (For more information, see Finding a Representative Interest Rate for the Typical Texas Mortgagee). 

In December, the median loan-to-value ratio (LTV) constituting the “typical” Texas conventional-loan mortgage dropped from 86.7 a year ago to 83.5. The debt-to-income ratio (DTI) declined from 35.8 to 35.3 YOY, while the median credit score increased 4.8 points to 753 over the same period. The LTV for GSE borrowers dipped slightly from 85.3 in November to 84.9; meanwhile, their DTI also dropped slightly from 36.6 to 36.3.

Prices

The ongoing shift in the composition of sales and price effects boosted the average and median home price. The Texas median home price rose for the 14th consecutive month, appreciating 1.9 percent on a monthly basis and 16 percent YOY to a record-breaking $376,363. The five major metros all hit historically high median prices. Austin led the pack with a median home price of $518,390 increasing 3.3 percent MOM. Dallas followed suit rising 2.7 percent to reach a median price of $408,572. The Houston metric ($325,077) and Fort Worth metric ($339,679) increased 2.5 percent and 1.8 percent, respectively, while the San Antonio metric ($308,279) gained a modest 0.7 percent.

The Texas Repeat Sales Home Price Index accounts for compositional price effects and provides a better measure of changes in single-family home values. Compared with January 2021’s 8.9 percent YOY increase, Texas’ index corroborated significant home-price appreciation, accelerating 19.6 percent YOY in 2022. The repeat sales index accelerated in all major metros for 14 consecutive months. The metric grew most rapidly in Austin with a 33.7 percent YOY increase. San Antonio posted a 19.9 percent annual hike, where Houston reported a similar climb of 16.5 percent. Prices in North Texas increased 26.2 and 23.8 percent in Dallas and Fort Worth, respectively. Increasing home prices pressured housing affordability, decreasing Texas’ affordability advantage over other states like California.

Single-Family Forecast

The Texas Real Estate Research Center projected single-family housing sales using monthly pending listings from the preceding period (Table 1). Texas sales reached a recent peak in December 2021, and the values have since declined. In February, Texas sales are expected to fall 2.7 percent. Likewise, the metric is estimated to dip 0.5 percent in Houston. Transactions in San Antonio are forecasted to plummet 3.2 percent. Austin and DFW are expected to see significant losses of 4.1 percent and 4.2 percent, respectively. Despite the monthly declines, sales from January to February 2022 should accelerate relative to the same period in 2021, with Houston anticipating a cumulative growth of 11.1 percent.

Household Pulse Survey

According to the U.S. Census Bureau’s Household Pulse Survey, the share of homeowners behind on mortgage payments balanced on the national level, and the share stepped up at the state level (Table 2). Meanwhile, for these mortgage owners, fewer of them needed to face the possibility of leaving due to foreclosure in Texas. The share of Texas respondents who reported themselves in the “not likely at all” group for leaving their house due to foreclosure jumped 15 percent, while the share reporting “somewhat likely” plummeted 9 percent (Table 3). In Houston, while the delinquent homeowners due to foreclosure remained high, more than half of the “not very likely” group predicted themselves as “not likely at all” to leave their house due to financial difficulties.

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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.
3 The release of Texas mortgage rate data typically lags the Texas Housing Insight by one month.

Source – Joshua Roberson, Weiling Yan, and John Shaunfield (May 3, 2022)

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

May-Landscape-Tips

May Landscape & Gardening Tips & To-Dos

Need help planting a successful garden or landscape? Here are some May planting tips from the Dallas Arboretum horticulture staff and the Dallas County Master Gardeners that can help keep your home garden looking beautiful this Summer. Heat tolerant plant care should be your focus in May.

  • Plant your heat tolerant summer annuals and tropicals, if you haven’t already. Our favorites for the heat are Lantana, Ornamental Sweet Potato Vine, Purple Fountain Grass, Ornamental Peppers, Coleus, Elephant Ears, Caladiums, Pentas, and Tropical Hibiscus.
  • Continue planting perennials, trees and shrubs. Just be sure to water them in well as the temperature rises and continue watering them regularly, making sure to saturate the root ball on trees and shrubs as much as twice per week, throughout the summer.
  • The last of the heat tolerant veggies and annual herbs can be planted until mid month, including Southern Peas, Sweet Potatoes, Basil and Oregano.
  • Fertilize your lawn and garden with a high nitrogen fertilizer, following recommended application rates.
  • Be sure to water grass regularly during the hot summer months, up to one inch depth, 2 to 3 times weekly, or what your city water restrictions will allow.
  • Mow your lawn once per week to maintain good healthy growth and reduce any unnecessary wear and tear on lawn equipment.
  • Continue pruning and reshaping any spring blooming shrubs and vines after they finish flowering.
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March 2022 DFW Area Real Estate Stats

March stats are here and we have the numbers! 

The Spring selling season is underway, and the market reflects that with new listings up in all five counties, though they are just slightly down from March 2021. The average days on market continues to drop each month and averages 21 days in Collin, Dallas, Denton, Rockwall, and Tarrant Counties. While the prices for single family homes continues to climb to staggering highs; with the highest average being Collin County, coming in at over $600k, up from $462k in 2021, and $386k in 2020. WOW! (please note that March 2022 is the first month of the NTREIS reporting area change, so the data with MLS area information is no longer available for reporting. For more information on the change, visit here: https://www.republictitle.com/ntreis-…)

Our stats infographics include a year over year comparison and area highlights for single family homes and condos broken down by MLS area. 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 MLS area and condo stats, 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.