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Texas Housing Insight

Here is a great post from Texas A&M Real Estate Center regarding home sales for September.

 

Seasonally adjusted Texas housing sales decreased 2 percent in September from August after hovering around record levels the previous two months. Low mortgage rates and steady employment growth, however, supported ongoing housing demand, as exemplified by increased mortgage applications and a rise in the state’s homeownership rate. The average home continued to sell after just two months on the market. On the supply side, increased single-family permits, housing starts, and lot development indicate positive momentum for future construction. Presently, however, available inventories remain constrained, putting upward pressure on home prices, which have persistently outpaced wages. Affordability remains a primary challenge to the Texas home market, but the extended national and state economic expansion supports a favorable outlook.

Supply*

The Texas Residential Construction Cycle (Coincident) Index, which measures current construction activity, ticked up with industry labor market improvements. The Residential Construction Leading Index rose to its highest level since the Great Recession amid falling interest rates and upward-trending building permits and housing starts. This suggests higher levels of construction in the coming months.

Supply-side activity accelerated at the earliest stage of the construction cycle with a 29.7 percent quarterly increase in the number of new vacant developed lots (VDLs) in the four major Metropolitan Statistical Areas. DFW’s VDLs accounted for much of the surge, rebounding after a year-long decline. The correction occurred primarily in the $200,000-$500,000 range. Improvements in North Texas and San Antonio boosted their VDLs to post-recession record levels. Lot development in San Antonio and Houston picked up for homes selling for less than $300,000; activity targeted for higher-priced homes in Houston, however, pulled back. New VDLs reached an all-time high in Austin following three straight quarterly increases.

As VDLs surged upward, single-family construction permits hovered at a post-recession record high, increasing 9.9 percent quarter over quarter (QOQ). Permit activity through September, however, remained 2 percent below levels in the first nine months of 2018. Texas’ 10,193 monthly permits (nonseasonally adjusted) accounted for 17 percent of the national total. The Lone Star State led the nation in total permits but ranked sixth in per capita issuance. On the metropolitan level, Houston topped the list with 3,371 permits, followed by DFW with 3,058. Central Texas extended a steep upward trend, issuing 1,440 and 737 permits in Austin and San Antonio, respectively.

Total Texas housing starts rose 6.3 percent QOQ as momentum shifted from the multifamily to single-family sector based on Metrostudy data. Approximately 24,000 single-family homes broke ground in the Texas Urban Triangle, rebounding to solid first-quarter levels. Half of the increase occurred in the constrained $200,000-$400,000 price range. Trending similar to VDLs, Austin single-family starts maintained a solid pace upward, while Houston held steady at its year-long average. San Antonio activity showed moderate improvement. DFW was the exception, with starts decreasing slightly following a year-long period of downward VDL and permit adjustments. Corroborating improved residential construction, single-family private construction values increased 3 percent during the third quarter. The trend, however, remained flat except in San Antonio.

Despite increased housing starts, Texas’ months of inventory (MOI) held steady at 3.6 months. A total MOI around six months is considered a balanced housing market. The MOI for homes priced less than $300,000, which comprised two-thirds of sales, balanced below 2.8 months. Inventory for luxury homes (those priced more than $500,000), however, increased for the fifth consecutive month to 8.4 months. These divergent trends exemplify the shortage of affordable housing and the current mismatch between demand and supply.

Inventory in the major metros were even more constrained than the statewide average. The MOI fell to year to date (YTD) lows of 2.3 and 3.1 months in Austin and Dallas, respectively. Fort Worth’s and San Antonio’s metrics eased slightly after a three-month slide in both locales but hovered at 2.5 and 3.5 months, respectively. The exception was Houston, where the MOI remained at 3.9 months.

Demand

Total housing sales fell 2 percent in September but maintained an upward trajectory amid lower mortgage rates and solid job market conditions. Meanwhile, existing-home sales, which make up 80 percent of total sales, decreased 2.6 percent. Nonseasonally adjusted total sales increased 8.6 percent from September 2018; after accounting for the number of business days, however, sales increased only 4.5 percent over the same period.

According to Metrostudy data, third quarter new home sales approached 25,000 in the Texas Urban Triangle for the first time since 2007, corroborating the overall strength of the state’s housing market. An increase in new-home transactions priced $300,000-$400,000 comprised over half of the quarterly improvement. Austin sold a record level 4,783 new homes during the third quarter, surpassing 20 percent year-over-year (YOY) growth. San Antonio maintained sales pace of 15 percent YOY, accounting for 3,200 new-home transactions. Dallas and Houston constituted more than two-thirds of the new home purchases, selling 9,015 and 7,712, respectively.

Texas’ average days on market (DOM) held steady at 60 days. The metrics in Dallas and Houston, where over 40 percent of statewide sales take place, remained unchanged at 56 and 59 days, respectively. Fort Worth’s DOM paused after reaching a four-year high in August of 45 days. On the other hand, Central Texas reached YTD lows of 52 and 56 days in Austin and San Antonio, respectively.

In an environment of extended economic expansion and steady job growth, Texas’ homeownership rate increased to 63 percent in 3Q2019. The national rate held firmly higher at 64.8 percent. Homeownership is persistently lower in the major metros but trended upwards. DFW ranked first among the metropolitan areas with 62.1 percent of occupied housing units being owner-occupied. Austin and Houston each posted 61.6 percent homeownership. San Antonio’s homeownership rate was 60.4 percent amid a decrease in apartment vacancy rates. The contrasting trends may indicate a recent inclination of households to rent rather than buy.

Better than expected U.S. economic data and a slightly optimistic outlook on U.S.-China trade talks slowed the downward slide in interest rates. Although long-term rates remained lower than those for short-term instruments, current economic fundamentals at the state and national level are healthy and stable. Short-term interest rates could fall further following the Federal Reserve’s third rate cut of the year in October. The ten-year U.S. Treasury bond yield inched up to 1.7 percent after falling to a three-year low of 1.6 percent in August. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate flattened at 3.6 percent. Texans capitalized on lower rates, pushing mortgage applications for home purchases up 28.3 percent YTD. Refinance mortgage applications, which are more sensitive to interest rate fluctuations, have more than doubled since year end.

Prices

The Texas median home price increased for the fourth consecutive month, reaching $243,800 for an annual growth rate of 5.1 percent. Although home-price appreciation accelerated, growth was below the double-digit levels YOY reached as recently as 2017. Austin led the metros in terms of median home price at $327,300. North Texas followed with a median price of $297,000 and $247,300 in Dallas and Fort Worth, respectively. Houston’s metric balanced at $246,800. The San Antonio median price increased to $236,000 but remained the lowest among the major MSAs.

The Texas Repeat Sales Home Price Index increased 3.8 percent YOY, decelerating from 3Q2018’s annual growth rate of 4.1 percent. The index’s growth, however, continued to outpace wage improvement, exacerbating affordability struggles. Similar to home-price appreciation, Austin’s index posted the greatest YOY increase of 4.6 percent. Fort Worth’s and San Antonio’s metrics decelerated from year-ago levels, registering 4.2 and 4.1 percent growth, respectively. The Dallas index increased 2.9 percent YOY while Houston’s rose 2.4 percent.

Click here for the full report.

Source – James P. Gaines, Luis B. Torres, Wesley Miller, and Paige Silva (November 1, 2019)

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

DFW Real Estate, Housing Market, Title Insurance, Title Company

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Helpful Terms for Buying/Selling Your Home

Buying or selling a home is one of the most important undertakings of a lifetime. When buying or selling a home, there are many real estate terms that may be unfamiliar to you. Check out this list of commonly used terms that you may find helpful during the process.

AIR:  Adjustable Interest Rate

AMORTIZATION SCHEDULE: A schedule showing the principal and interest payments throughout the life of the loan.

APPRAISED VALUE: An opinion of the value of a property at a given time, based on facts regarding the location, improvements, etc. of the property and surroundings.

CD/CLOSING DISCLOSURE: This form is a statement of final loan terms and closing costs. Sometimes referred to as ICD or Integrated Closing Disclosure.

COMMITMENT:  The document by which a title insurer discloses to all parties connected with  a particular real estate transaction all the liens, defects, and burdens and obligations that affect the subject property.

CREDIT REPORT: A report on the past ability of a loan applicant to pay installment payments.

DOCUMENT PREPARATION FEE: A charge by an attorney for preparing legal documents for transaction.

ESCROW FEE: A fee charged by the title company to service the transaction, to escrow monies, and cover documents. Usually split between buyer and seller.

ESCROW ACCOUNT: Funds held by the lender for payment of taxes and insurance when due. Usually does not include maintenance fees.

HOA ASSESSMENT FEES: Charged by the homeowner’s association as set out in subdivision restrictions.

HOMEOWNER’S INSURANCE:  Protects the property and contents in case of loss; must be for at least the loan amount or for 80% of the value of the improvements, whichever is greater.

INSPECTIONS: An examination of property for various reasons such as termite inspections; to see if required repairs need to be made before funds are received, etc.

INTEREST: Money paid regularly at a particular rate for the use of money lent.

LOAN TITLE POLICY: Required by the lender to insure that the lender has a valid lien; does not protect the buyer.

ORIGINATION FEE:  A fee the buyer pays the lender to originate a new loan.

OWNER’S TITLE POLICY: Insures that the buyer has title to the property, that there are no other claims as to ownership. Among other matters, it also insures access to the property, the right to occupy the property, good and indefeasible title, and that there are not other types of specific liens against the property. 

POINT:  1% of the loan amount.

PREPAIDS: Items to be paid by the buyer in advance of the first scheduled payment of the loan (Homeowner’s Insurance Premium, Mortgage Insurance Premium, Prepaid Interest, Property Taxes and a maximum of three additional items).

PREPAYMENT PENALTY:  Charged by the lender for premature payment of a loan balance.

PRIVATE MORTGAGE INSURANCE: Insurance against a loss by a lender (mortgagee) in the event of default by a borrower (mortgagor).

REALTOR FEES:  An amount paid to the REALTOR® as compensation for their services. RECORDING FEES: Charged by the County Clerk to record documents in the public records. RESPA:  Real Estate Settlement Procedures Act.

RESTRICTIONS: Certain limitations or conditions related to the future use of the property put on the property by a prior owner. These restrictions stay with the property until they expire or are amended as per certain procedures set forth in the restrictions.

SURVEY:  Confirms lot size and any encroachments or restriction violations.

TAX CERTIFICATES: Certificates issued by taxing authorities showing the current year’s taxes, the last year the taxes were paid, and any delinquencies to be collected at closing.

TAX PRORATION: Means that the payment of the taxes for the year of sale are divided between the Buyer and Seller, usually based on the amount of time the Seller owned the property during that year. Prorations, and how they are calculated, are typically addressed in the Contract of Sale.

TIL:  Truth in Lending.

TIP: Total Interest Percentage; the total amount of interest the borrower will pay over the loan term as a percentage of the loan amount.

TOTAL OF PAYMENTS: Total amount paid after all payments of principal, interest, mortgage insurance and loan costs are scheduled. 

To download our Helpful Terms for Buying/Selling Your Home flyer,  visit Helpful Terms for Buying and Selling Your Home.

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Texas Housing Insight

Here is a great post from Texas A&M Real Estate Center regarding home sales.

 

Texas housing sales recovered after second-quarter declines, trending upward amid lower mortgage interest rates and a robust economy. Mortgage applications for home purchases and refinances continued to rise, nudged by further decreases in interest rates. Demand was stable as the average home sold after two months on the market. On the supply side, single-family housing permits recovered from second quarter stagnation; however, starts remained sluggish. Home-price appreciation slowed but outpaced wage growth. Housing affordability continues to be the greatest challenge to the housing market across the state.

Supply*

The Texas Residential Construction Cycle (Coincident) Index, which measures current construction activity, inched up amid ongoing payroll growth in the industry. Higher wages and an upturn in construction values, however, are crucial for the metric’s continued growth. The Residential Construction Leading Index rose to its highest level since the Great Recession as falling interest rates and a rebound in building permits favored a more positive outlook.

Single-family construction permits bounced back 16.5 percent after staggering in June, but the year-to-date (YTD) count remained behind January through July of last year. Nevertheless, Texas’ 10,504 monthly permits (nonseasonally adjusted) accounted for 15 percent of the U.S. total, extending a 13-year stretch as the national leader. Houston and DFW topped the list at the metropolitan level with 3,493 and 2,944 permits, respectively, but North Texas activity remained suppressed through 2019. On the other hand, permits rebounded in Central Texas after taking a step back in June. Austin ranked fifth behind Phoenix and Atlanta with 1,525 permits. San Antonio issued 817 permits, up 10.9 percent year over year (YOY).

Total Texas housing starts flattened as apartment construction stumbled on top of a steep decline in June. The single-family sector remained stagnant while single-family private construction values perpetuated a yearlong trend of decline. Houston construction values rebounded after falling to a seven-year low but trended downward. DFW registered similar movement while Austin and San Antonio values dipped in July.

Dwindling supply pulled Texas’ months of inventory (MOI) to the lowest level this year at 3.7 months. A total MOI around six months is considered a balanced housing market. The MOI for homes priced less than $300,000, which comprised the majority of sales, ticked below 2.8 months. Inventory for luxury homes (those priced more than $500,000), however, increased for the fourth consecutive month to reach an MOI of nine months. These divergent trends exemplify the shortage of affordable housing and the current mismatch between demand and supply.

The MOI ticked down across the major metros, chipping away at 2018 gains. Houston’s MOI fell below four months. Dallas and Fort Worth reached YTD lows at 3.2 and 2.6 months, respectively. In San Antonio, the MOI slid to 3.6 months, while Austin inventories fell to a three-year low, registering below 2.4 months.

Demand

Total housing sales through the MLS corrected upward 17 percent in July after declines in the previous two months. All price cohorts registered double-digit YTD growth except for homes priced less than $100,000, where a shortage of supply constrains sales. Despite the monthly jump, the sales pace shows signs of slowing in the $200,000-$300,000 price range, where more than a third of transactions take place.

After reaching YTD lows in June, metropolitan housing sales posted cycle-highs. Resale activity in Central Texas boosted YTD sales by 3.7 and 3.1 percent in Austin and San Antonio, respectively, compared with the same period last year. Total sales in Houston registered a 1.2 percent rise as the existing-home transactions increased at a more moderate pace. Growth in Dallas and Fort Worth home sales flattened at 1.0 and 0.7 percent, respectively, as North Texas’ resale market fell short of 2018 levels in the first seven months.

As sales stabilized, Texas’ average days on market (DOM) inched up to 60 days. Demand in the major metros also softened slightly but hovered around yearlong averages. Austin and San Antonio’s DOM stabilized at 59 days, as did Houston’s metric after falling the second quarter. The DOM in Fort Worth ticked up to 45 days. Dallas was the exception, where the DOM extended a sharp incline, reaching a six-and-a-half-year high of 58 days.

Continued concerns about global economic growth and trade uncertainty pulled interest rates down for the ninth consecutive month. Economic fundamentals at the state and national level, however, remain healthy and stable. Interest rates could fall further following the Federal Reserve’s rate cut. The ten-year U.S. Treasury bond yield flattened at a two-and-a-half year low of 2.1 percent, while the Federal Home Loan Mortgage Corporation’s 30-year fixed-rate dropped below 3.8 percent. Texans capitalized on lower rates, pushing mortgage applications for home purchases up 18.1 percent YTD. Refinance mortgage applications, which are more sensitive to interest rate fluctuations, have doubled since year-end.

Prices

The Texas median home price posted a new record-high, reaching $240,500. The annual rate of growth was 3.8 percent, below the 2018 average of 4.6 percent. Austin led the state with an all-time high median price of $315,500, followed by Dallas at $292,900. The median price in Fort Worth ($241,800) and Houston ($240,900) fell $800 and $400, respectively, from second-quarter record highs. San Antonio was the only metro with a median price below the statewide level, posting $232,500.

The Texas Repeat Sales Index increased 4.1 percent YOY on a statewide basis, insinuating greater home-price appreciation than the annual change in the Texas median home price. The index did, however, corroborate slowing growth compared with the 2018 and 2017 averages of 4.3 and 5.1 percent, respectively. North Texas registered 2.9 and 4.2 percent in Dallas and Fort Worth, respectively; however, appreciation calmed in comparison to 2018 levels. On the other hand, Austin’s index accelerated 5.2 percent, the fastest growth rate in over two years. Houston and San Antonio’s indices rose above last year’s average pace to 2.8 and 4.2 percent, respectively.

Click here for the full report.

Source – James P. Gaines, Luis B. Torres, Wesley Miller, and Paige Silva (September 6, 2019)

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

DFW Real Estate, Housing Market, Title Insurance, Title Company

Big Changes Being Made to Rollback Taxes for Agricultural Land in Texas

Here is some very helpful information of changes that were made regarding land used for agricultural purpose.

HB 1743 was passed and amends sections 23.55 and 23.76 of the Property Tax Code regarding the appraisal methods and procedures in Texas.  Specific changes made to the Property Tax Code are in regards to rollback taxes for agricultural land.  Land that is converted from agricultural use to non-agricultural use will still incur a rollback tax.  However, starting September 1, 2019 the number of years for a rollback tax bill for changing to a non-agricultural use will be reduced from five years to three years and the interest rate imposed on a rollback tax bill is also reduced from 7% to 5%.

Source:   Dr. Blake Bennett, Associate Professor and Extension Economist, Texas A&M AgriLife Extension Service

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After Closing Reminders For Sellers

Your house has sold and the deal is closed.  Now what do you do?

Here are some reminders for you as the seller:

  • 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.
  • Cancel your auto deduction for your house payment with your current lender if applicable.
  • 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 the other loan file documents. Retain these for future reference. When you receive this confirmation, you may also receive a “Release of Lien” or “Reconveyance of Lien” from your lender. If the release does not appear to have been recorded with the County Clerk’s office, please forward it to your closer at the title company. We have collected for the recording of the document at closing and will send it to the County to be filed, thereby releasing the lien of record.
  • 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.
  • 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.

We hope these tips have been helpful to you in answering any post closing questions you may have had. As always, please do not hesitate to contact your closer should you have any questions. Thank you for allowing us to be a part of this transaction.

Click here for printable version.

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Texas Housing Insight

Here is a great post from Texas A&M Real Estate Center regarding home sales for June.

Texas housing sales dropped 10 percent after hovering around record levels in April and May. The trend, however, remained positive with lower mortgage rates and robust demand. Falling mortgage rates and rising income levels stimulated mortgage applications for home purchases as well as the homeownership rate. The average home continued to sell in less than two months on the market. On the supply side, single-family housing permits and starts wavered on the month, but a surge in vacant lot development indicates positive momentum for future construction. Home prices continued to rise but at a more moderate pace, providing some relief to affordability constraints. The shortage of homes priced below $300,000 remained the biggest challenge facing the housing market. Texas’ robust economy and population growth, however, support a favorable outlook.

Supply*

The Texas Residential Construction Cycle (Coincident) Index, which measures current construction activity, inched downward due to sluggish residential construction values and wages in the industry. The Residential Construction Leading Index flattened as a decline in building permits offset lower interest rates. The extended economic expansion, however, continues to bode well for the housing market.

Supply-side activity remained stable at the earliest stage of the construction cycle with a 6.3 percent quarterly increase in the number of new vacant developed lots (VDLs). Austin’s VDLs rebounded after a slow start to the year, primarily for those targeting homes selling for less than $300,000. Development maintained an upward trend in San Antonio, but activity cooled for lots targeted for homes priced more than the metro’s median ($229,750). New VDLs picked up for the second straight quarter in Houston but failed to recover all of the losses from the second half of 2018. Dallas-Fort Worth (DFW) continued a yearlong decline of lot development in response to last year’s market adjustment.

Single-family construction permits receded 13 percent in June after five consecutive monthly increases. The overall trend remained positive, but permits are currently on track to fall short of last year’s total. Texas’ 9,767 monthly permits (nonseasonally adjusted) accounted for 15 percent of the U.S. total, extending a 13-year stretch as the national leader. Houston and DFW topped the list at the metropolitan level with 3,030 and 2,822 permits, respectively, but flattened after a marginal recovery from last year’s correction. In Central Texas, permits staggered in June but maintained a steady upward trend. Austin issued 1,598 single-family permits, while San Antonio issued 660.

Total Texas housing starts increased 5.2 percent quarter over quarter due to continued strength in multifamily residential investment. Approximately 22,600 single-family homes broke ground in the Texas Urban Triangle, slightly down from a solid first quarter. Most of the quarterly decline occurred in the ultra-constrained $200,000-$400,000 price range. In Austin and Dallas, single-family starts held a flat trend, but Houston showed signs of weakness. Starts fell back in San Antonio but maintained 7 percent year-over-year growth.

Revised first quarter data revealed that single-family private construction values bottomed out after a sharp decline in the second half of 2018. Austin and Houston displayed similar stabilization, while DFW construction values continued to slide in line with VDLs. Accelerating supply activity in San Antonio pushed single-family construction values up toward a cycle high.

Housing starts had little effect on Texas’ months of inventory (MOI), which held firmly at 3.8 months. A total MOI around six months is considered a balanced housing market. Last year’s stretch of slow and steady inventory growth stalled amid rebounding demand and fewer new Multiple Listing Service (MLS) listings. Different segments of the market displayed wide variation in inventory levels. The MOI for homes priced less than $300,000 hovered below three months, while the MOI surpassed 9.1 months for luxury homes (those priced more than $500,000). These divergent trends exemplify the shortage of affordable housing and the current mismatch between demand and supply.

The MOI ticked down across the major metros with signs of downward pressure after marginal gains last year. Dallas and Fort Worth reached year-to-date (YTD) lows at 3.3 and 2.6 months, respectively, while Austin’s MOI fell to 2.4 months. In San Antonio, the MOI hovered around a three-year high in May, while Houston’s MOI ticked down closer to four months.

Demand

Total housing sales through an MLS dropped 10.1 percent in June but remained on an upward trajectory amid lower mortgage rates, rising wages, and more moderate home price appreciation. Per MetroStudy data, second quarter new home sales surpassed 24,000 in the Texas Urban Triangle for the first time since 2007, corroborating the overall strength of the state’s housing market. New home sales increased across the price spectrum with particular strength in the $200,000-$300,000 price range.

Austin sold a record level 4,628 new homes during the second quarter, surpassing 13 percent year-over-year (YOY) growth. San Antonio was the growth leader at 15.6 percent YOY, selling more than 3,200 new homes. Dallas and Houston accounted for two-thirds of the new-home transactions with 8,623 and 7,611, respectively.

Texas’ average days on market (DOM) hovered around its four-year trend of 58 days. San Antonio continued to track the statewide level, while the DOM in Austin and Houston both fell to 56 days. Dallas’ DOM flattened for the first time this year at 54 days, more than a week longer than in June 2018. Fort Worth remained the exception with the DOM at 43 days and showed signs of trending lower.

Slightly softer affordability pressure generated an uptick in Texas’ homeownership rate, increasing to 62 percent after three consecutive quarterly declines. The national rate held firmly higher at 64.2 percent. Homeownership is persistently lower in the major metros. Houston ranked the lowest in Texas at 58.8 percent followed by DFW at 59.4 percent. In contrast, Austin’s homeownership rate climbed above 59 percent after bottoming out at 54.1 percent in 2017. San Antonio’s rate surpassed the state level at 63.8 percent and has been relatively stable over the past two years.

Continued concerns about global economic growth and trade uncertainty pulled interest rates down for the eighth consecutive month. Economic fundamentals at the state and national level, however, remain healthy and stable. Interest rates could fall further after the Federal Reserve’s rate cut. The ten-year U.S. Treasury bond yield fell to a two-and-a-half-year low of 2.1 percent, while the Federal Home Loan Mortgage Corporation’s 30-year fixed-rate dropped to 3.8 percent. Texans capitalized on lower rates, pushing mortgage applications for home purchases up 15.6 percent YTD. Refinance mortgage applications, which are more sensitive to interest rate fluctuations, have nearly doubled over the past six months.

Prices

The Texas median home price reached a record high $239,000, growing at an annual rate of 3.9 percent. While still increasing, home prices are no longer soaring at double-digit growth levels. Texas’ median price for new and existing homes trailed the respective national median by $21,700 and $41,400.

The Texas Repeat Sales Index slowed to 3.3 percent YOY growth during the second quarter, the slowest rate in more than five years. The Central Texas boom maintained more than 4 percent growth in Austin and San Antonio, pushing the median price above $313,000 and $229,700, respectively. Fort Worth’s median price reached a record high $242,700 amid 3.8 percent growth in the repeat sales index. The Houston index decelerated to 2.4 percent growth as the median price hovered around $240,000 for most of this year. Home price moderation was most apparent in Dallas where the index slowed to just 1.9 percent and the median price inched upward to $289,600.

Click here for the full report.

Source – James P. Gaines, Luis B. Torres, Wesley Miller, and Paige Silva (August 6, 2019)

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

DFW Real Estate, Housing Market, Title Insurance, Title Company

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Updated Seller’s Disclosure Notice Effective September 1st

The Texas Real Estate Commission has released an updated Seller’s Disclosure Notice for mandatory use Sept. 1.

It’s available for voluntary use immediately.

As of Sept. 1, 2019, the new Seller’s Disclosure Notice has questions in paragraphs 6, 7 and 8 relative to floodplains, and includes definitions of the various categories according to FEMA.  In addition, questions about previous claims for flood damage or assistance from FEMA or SBA are also included.

The notice must also disclose a seller’s knowledge of water damage not due to a flood event and requires a seller to disclose whether a prior flood-related insurance claim was filed with an insurance provider or the seller received aid from FEMA.

Click here for the red-lined seller’s disclosure notice and click here for the blank seller’s disclosure notice.