How were the April, 2008 sales results for single family residence (SFR) unit sales as compared to April, 2007? Down again but not as bad. Let's take a look.
In MLS area 15 (Woodlands & West) sales were down 17%. In MLS area 19 (Conroe) they were down 9.68%. MLS area 39 (Lake Conroe area) was down 15.91% and MLS area 40 (East Montgomery County) was UP, yes UP 45.45%. Overall county single family residence unit sales declined 12.27% from April, 2007. This 12.27% decline was less than the previous three months of 2008. This lessening in the sales decline may be an indicator that the bottom is near. What a relief that would be for all of us.
The average "Days on the Market" required to sell a home increased in all four county MLS areas. These numbers increased from a low of 14.71% to a high of 22.83%. If you need to sell please remember to price correctly and list your home early.
The number of active listings increased only slightly moving up 1.29%. This small increase combined with the lessening sales decline may, as mentioned earlier, be an indicator that the bottom is near or has been reached. MLS areas 19 and 39 showed decreases in the number of active listings.
When we look at all of the sales numbers objectively, the Texas economic forecast and what the local county appraisers are doing as far as raising tax appraisals on businesses I do believe that something is shaking the trees so to speak. What is doing the shaking? I hope and honestly do believe that it is the pent-up demand for housing. As I mentioned twice earlier I believe the pendulum is about to start swinging the other way if it hasn't already. Is there further evidence of this? Yes I believe there is and I think it is in the area of average sales prices. We will address this subject on Monday along with the year-to-date SFR unit sales numbers.
Have a great weekend!
Ron
Friday, May 30, 2008
Tuesday, May 27, 2008
Sales Drop Prices Rise
Yes it is true, sales in Montgomery County, Texas fell this April versus last April but prices rose in three of the four MLS areas that comprise the county. In MLS area 15 (The Woodlands & west) prices rose 14.12%, in MLS area 39 (Lake Conroe) they rose 2.98%, in MLS area 40 (East county) they rose 13.87% and lastly in MLS area 19 (Conroe) they fell 12.9%. Those numbers are 2008 versus 2007. Amazing that sales fall and the sales prices continue to rise. The "deal" that some of you were hoping for is probably not going to materialize. The number of active listings is also starting to stabilize. County wide there was only a 1.29% increase over the number of active listings at the end of last April.
The average "Days on the Market" did take a big hit versus last April. The increases in this area for the four MLS areas ranged from a low increase of 14.7% to a high increase of 22.8%. Okay so your house takes longer to sell but there is a good chance you may get more money for it. Plan better and plan early is probably the key there.
In looking at the actual sales numbers they did fall again. The amount of decrease is smaller though and I think shows that the bottom is near. I will give you the actual numbers later this week. Don't be surprised if the deal you thought was there vanishes overnight. Last week a client of mine finally decided to make an offer on a home she had been looking at for three months. Well guess what, that same day the buyer got two other offers and my client's was not the high one. Please if you are thinking of making an offer make it today. Time waits for no person.
I hope you all had a great Memorial Weekend.
Ron
The average "Days on the Market" did take a big hit versus last April. The increases in this area for the four MLS areas ranged from a low increase of 14.7% to a high increase of 22.8%. Okay so your house takes longer to sell but there is a good chance you may get more money for it. Plan better and plan early is probably the key there.
In looking at the actual sales numbers they did fall again. The amount of decrease is smaller though and I think shows that the bottom is near. I will give you the actual numbers later this week. Don't be surprised if the deal you thought was there vanishes overnight. Last week a client of mine finally decided to make an offer on a home she had been looking at for three months. Well guess what, that same day the buyer got two other offers and my client's was not the high one. Please if you are thinking of making an offer make it today. Time waits for no person.
I hope you all had a great Memorial Weekend.
Ron
Friday, May 23, 2008
Sales Figures
I will have the April and YTD Montgomery County sales figures for you on Tuesday. They just came out and I will digest them over this long weekend. In the interim I would like you to ponder the following.
There are four major resources that monitor home sales and prices. They are NAR (National Association of Realtors), OFHEO (Office of Federal Housing Enterprise Oversight), S&P/Case-Shiller Index and Realogy. Of these four major entities only one, yes only one says that home prices are dropping. Overall they reported that US home prices rose 0.6% from January to February of this year. They reported that eight of the ten major housing areas showed increases and only two showed decreases. That isn't what you are hearing on the news though is it. Of course not. Good news isn't news. Only bad news is news.
Historically real estate prices have a standard deviation of +/- 4%. That means from year-to-year the value of your home will increase or decrease no more than 4%. Have you looked at what our savings account or CD is paying right now? I will bet it is not half of that. Where else can you invest your money and be almost guaranteed of good steady growth? Why would you keep renting and throw that money away? Why are you waiting while interest rates are historic lows yet rise a little each week? Are homes sales still down? Yes. Why? Because people in my humble opinion keep listening to the badly reported news rather than listen to good advice.
Those of us in Texas must wake up and realize that we are in good economic shape. We must not let a few small pockets of bad real estate markets dictate what we do. Spend some time on the internet looking at the available listings and see what great bargains are available. It is amazing. Stop being like a pregnant elephant that has a gestation period of 22 months and make a positive home selling or guying decision today. I promise you will not regret the decision.
Do I sound desperate? Sorry I'm not. Had a great sales and listing week. I do though want you, my readers to know what is really going on and not have you rely on biased news reporting.
I would like you to all have a wonderful Memorial Day weekend. I would also ask that you remember the true purpose of this holiday, to remember all of those who have paid the ultimate sacrifice and given their lives in defense of our great country. I have two sons currently serving in the US Army. One is in Iraq and the other is under orders for deployment to Afghanistan. I ask that you remember not only those who have given their lives for us but also those who currently sacrifice their safety for us.
God Bless all of you.
Ron
There are four major resources that monitor home sales and prices. They are NAR (National Association of Realtors), OFHEO (Office of Federal Housing Enterprise Oversight), S&P/Case-Shiller Index and Realogy. Of these four major entities only one, yes only one says that home prices are dropping. Overall they reported that US home prices rose 0.6% from January to February of this year. They reported that eight of the ten major housing areas showed increases and only two showed decreases. That isn't what you are hearing on the news though is it. Of course not. Good news isn't news. Only bad news is news.
Historically real estate prices have a standard deviation of +/- 4%. That means from year-to-year the value of your home will increase or decrease no more than 4%. Have you looked at what our savings account or CD is paying right now? I will bet it is not half of that. Where else can you invest your money and be almost guaranteed of good steady growth? Why would you keep renting and throw that money away? Why are you waiting while interest rates are historic lows yet rise a little each week? Are homes sales still down? Yes. Why? Because people in my humble opinion keep listening to the badly reported news rather than listen to good advice.
Those of us in Texas must wake up and realize that we are in good economic shape. We must not let a few small pockets of bad real estate markets dictate what we do. Spend some time on the internet looking at the available listings and see what great bargains are available. It is amazing. Stop being like a pregnant elephant that has a gestation period of 22 months and make a positive home selling or guying decision today. I promise you will not regret the decision.
Do I sound desperate? Sorry I'm not. Had a great sales and listing week. I do though want you, my readers to know what is really going on and not have you rely on biased news reporting.
I would like you to all have a wonderful Memorial Day weekend. I would also ask that you remember the true purpose of this holiday, to remember all of those who have paid the ultimate sacrifice and given their lives in defense of our great country. I have two sons currently serving in the US Army. One is in Iraq and the other is under orders for deployment to Afghanistan. I ask that you remember not only those who have given their lives for us but also those who currently sacrifice their safety for us.
God Bless all of you.
Ron
Monday, May 19, 2008
Home buying and credit reality
I didn't realize that you had money to throw away during these almost $4.00 per gallon gasoline days. But from what most of you are telling me you do. Congratulations you are richer than I am.
What am I talking about? I am talking about your desire to buy a home in six months with a credit score between 620 and 650, live in it for 10 years and throw away about $15,000. Yep 15 big ones down the tank. Let's see, that is 3,750 gallons of gas idled away because you don't want to get your credit score to 720 or above by spending about $1,000.
Let me give you some numbers (the interest rates reflected are based on information I collected this morning). If you get a loan today for $150,000 at 5.75% your monthly principal and interest (P&I) payment would be $875.30. If you got that same loan at 6.75% your monthly P&I payment would be $972.90. About $100 more plus of course a higher PMI of say $25 a month. A grand total of about $125 per month because of a lower credit score that you think is okay. I'm sorry but if I can find a way to save $125 per month on my future house payment I am going to do just that. I will gladly trade $1,000 for $15,000 any day of the week.
How do you raise your credit score? Well I can guarantee that you can't do it on your own. You versus a multinational corporation is a losing situation. I know what the law says and I know what the fine print in the law says also. You will almost certainly lose.
Is credit restoration legal? Yes it is. Is it ethical? Yes it is. Is it moral? Yes it is.
What does it take? It takes a national membership association with many benefits, thousands of members and a team of knowledgeable credit restoration attorneys. In other words it takes expertise. It takes team work, you and the association working together to better your situation. Are you going to let stubbornness and a "I don't believe that" attitude stand in the way? Or are you going to investigate the possibilities, make a good well researched decision for the betterment of your family and personal financial situation? I don't know about you, but in these days of $4.00 per gallon gas I am all for admitting where I need help and not be afraid of asking for a little. I think there is something in the bible about acquiring wisdom.
I hope you have a great day. See you at the gas pump.
Ron
What am I talking about? I am talking about your desire to buy a home in six months with a credit score between 620 and 650, live in it for 10 years and throw away about $15,000. Yep 15 big ones down the tank. Let's see, that is 3,750 gallons of gas idled away because you don't want to get your credit score to 720 or above by spending about $1,000.
Let me give you some numbers (the interest rates reflected are based on information I collected this morning). If you get a loan today for $150,000 at 5.75% your monthly principal and interest (P&I) payment would be $875.30. If you got that same loan at 6.75% your monthly P&I payment would be $972.90. About $100 more plus of course a higher PMI of say $25 a month. A grand total of about $125 per month because of a lower credit score that you think is okay. I'm sorry but if I can find a way to save $125 per month on my future house payment I am going to do just that. I will gladly trade $1,000 for $15,000 any day of the week.
How do you raise your credit score? Well I can guarantee that you can't do it on your own. You versus a multinational corporation is a losing situation. I know what the law says and I know what the fine print in the law says also. You will almost certainly lose.
Is credit restoration legal? Yes it is. Is it ethical? Yes it is. Is it moral? Yes it is.
What does it take? It takes a national membership association with many benefits, thousands of members and a team of knowledgeable credit restoration attorneys. In other words it takes expertise. It takes team work, you and the association working together to better your situation. Are you going to let stubbornness and a "I don't believe that" attitude stand in the way? Or are you going to investigate the possibilities, make a good well researched decision for the betterment of your family and personal financial situation? I don't know about you, but in these days of $4.00 per gallon gas I am all for admitting where I need help and not be afraid of asking for a little. I think there is something in the bible about acquiring wisdom.
I hope you have a great day. See you at the gas pump.
Ron
Thursday, May 15, 2008
Buyers and the FHA
Many years ago we used to think that anyone who bought a house using an FHA loan was a bad credit risk or a first time home buyer with limited resources. Although that really was not true that was the prevalent thinking at the time. Today FHA loans may be the way to go. The interest offered are great and there are several programs available. However on July 14,2008 the upfront and annual mortgage insurance premiums associated with FHA loans will be restructured.
What does this mean for you? It could possibly mean higher and more expensive mortgage insurance. The amount of upfront fees and monthly mortgage insurance premium you pay will be based on your credit score, loan length and loan to home value. The formula is becoming more risked based. This is the result of the recent debacle in the mortgage industry.
What can you do to avoid this increase in costs? First of all you can buy before the new formulas go into effect. That means finding and closing on a home no later that July 13, 2008. The other option is to raise your credit score to 680 or above and buy after the new rates go into effect. Both of these options are viable. If you aren't sure how drop me an email and I will explain.
If you want to read the Federal Register issued by the Department of Housing and Urban Development dealing with the issue I have attached a link for that purpose.
Thanks and I hope you have a great day.
Ron
What does this mean for you? It could possibly mean higher and more expensive mortgage insurance. The amount of upfront fees and monthly mortgage insurance premium you pay will be based on your credit score, loan length and loan to home value. The formula is becoming more risked based. This is the result of the recent debacle in the mortgage industry.
What can you do to avoid this increase in costs? First of all you can buy before the new formulas go into effect. That means finding and closing on a home no later that July 13, 2008. The other option is to raise your credit score to 680 or above and buy after the new rates go into effect. Both of these options are viable. If you aren't sure how drop me an email and I will explain.
If you want to read the Federal Register issued by the Department of Housing and Urban Development dealing with the issue I have attached a link for that purpose.
Thanks and I hope you have a great day.
Ron
Wednesday, May 14, 2008
Subdivision information
Do you have thoughts about selling your home and buying another one or possibly moving out of your apartment into a home? Is the lack of information about your subdivision or the subdivision you would like to move into keeping you from making the decision? Well look no further. Informal information on individual subdivisions in Montgomery County is available. All you have to do is ask me and you will have it. I can tell you the price range, number of sales, price per square foot, average annual change etc. for most of the subdivisions in our county.
So please send me an email and get what you need. And yes I would love to list your home for sale and/or help you buy a new one.
Thanks and have a great day.
Ron
So please send me an email and get what you need. And yes I would love to list your home for sale and/or help you buy a new one.
Thanks and have a great day.
Ron
Montgomery County - total market
Prior to the release of the April sales numbers I thought it might be interesting to take a look at more of the numbers and see if people are still moving and to try and see if the market really has dropped or because of the credit crunch has the market just shifted a little. Here is what I found in looking at the first quarter of 2008 vs the same period 2007. These numbers are for Montgomery County.
Total unit sales of single family residences and townhomes/condos for the first three months of 2008 vs 2007 were down 18.5%. Big number right? Not so fast. Single family residence and townhomes/condo rentals for the same period were up 8.5% At this point we are left with a year-to-year decline of about 10%. But, and I do not have access to these numbers, rumor has it that apartment rentals are up at least that much if not more. And let's remember that the foreclosure rate in Texas is up only about 11% from the previous year and not 65% as advertised so blatantly on CNN today.
Conclusion? That the demand for housing in some form is still present. Is home ownership a problem for those with less than stellar credit? Yes. Can this problem be fixed? In many cases yes. More on that at a later date. Is real estate still a good year to year investment? Yes especially if you are an investor and thinking of purchasing homes for rental income.
Once again I have to tell you please do not believe all that you read in the national media. Montgomery County, Texas is still a great market. It is still a vibrant market with a ton of opportunities available. It is a good time to sell and buy.
See you later.
Ron
Total unit sales of single family residences and townhomes/condos for the first three months of 2008 vs 2007 were down 18.5%. Big number right? Not so fast. Single family residence and townhomes/condo rentals for the same period were up 8.5% At this point we are left with a year-to-year decline of about 10%. But, and I do not have access to these numbers, rumor has it that apartment rentals are up at least that much if not more. And let's remember that the foreclosure rate in Texas is up only about 11% from the previous year and not 65% as advertised so blatantly on CNN today.
Conclusion? That the demand for housing in some form is still present. Is home ownership a problem for those with less than stellar credit? Yes. Can this problem be fixed? In many cases yes. More on that at a later date. Is real estate still a good year to year investment? Yes especially if you are an investor and thinking of purchasing homes for rental income.
Once again I have to tell you please do not believe all that you read in the national media. Montgomery County, Texas is still a great market. It is still a vibrant market with a ton of opportunities available. It is a good time to sell and buy.
See you later.
Ron
Friday, May 9, 2008
Home renovation
The Joint Center for Housing Studies at Harvard University in its’ recently released quarterly LIRA (Leading Indicator for Remodeling Activity) report predicts that homeowner remodeling activity will continue to fall through the remainder of 2008 at an annual rate of about 4.8%. When I read this I thought okay what if I am going to buck the trend and remodel or renovate my home for future sale. Where is the best place to put my money in order to recover my investment? What are the six best home renovation improvements I can make? After doing some research here is what the experts say.
1 – The number one improvement you can make is replacing or improving your siding. Curb appeal. Exactly what we realtors preach. That first impression….you only get one chance at it. Unless you have an all brick home replace what siding is there. Take at look at your soffits, porch ceiling and the second floor exterior walls. What shape are those in? PLEASE if you have a brick masonry home DO NOT paint the brick. Nothing in my opinion looks worse than painted brick. In five years it is going to look like badly painted brick. There are ways to restore brick and make it look great again. Estimates of your cost recovery rate on this improvement are about 88%.
2 – Build a deck. You gain living and entertainment space with this improvement. Remember to keep it proportional with your back yard. A future buyer may have small kids and want that swing set in there somewhere. Your cost recovery rate on this improvement can be about 80%.
3 – Spruce up your kitchen. Fresh paint, new drawer and cabinet handles do not cost that much. Think about a new cook top. A friend of mine just bought a new electric one for under $1,000. All of these improvements can be relatively inexpensive. Please avoid the gaudy wallpaper borders. Remember you are fixing the kitchen up for the next buyer. Cost recovery for this area of your home can be about 80%.
4 – Replace your windows with energy-efficient windows. The future buyers of your home will not only look at the home itself but will also take into consideration the cost of living in that home. Buying good windows can lower your utility bills and improve the value and salability of your home. Please make sure you look for the proper certification of your new windows. You do not want to just buy any old window. Your cost recovery rate here can be about 80% plus lower utility bills.
5 – Finally the bathroom. This is where you put on your best outfits. Do you want to do that in a dirty dingy room? Of course not. Take a look around at your faucets, showerhead, paint, countertops, toilet and bathtub. Most of those items are not that expensive. If you are going to replace that faucet please remember to turn off the water supply first. You will probably recoup about 78% of your investment in this area.
6 – Adding crown molding to almost any room will really dress it up. This is really a simple and inexpensive improvement. Almost any DIY’er can undertake this project. Remember I said almost not all DIY’ers. This simple fix can add elegance to almost any room.
Please remember to plan carefully when deciding on which projects to undertake. Almost any realtor will be more than happy to discuss with you what improvements will help your home sell. Just remember that the realtor you check with should be the one to get the listing.
Why don't you start a project for Mother's Day?
I hope you have a great weekend!
Ron
1 – The number one improvement you can make is replacing or improving your siding. Curb appeal. Exactly what we realtors preach. That first impression….you only get one chance at it. Unless you have an all brick home replace what siding is there. Take at look at your soffits, porch ceiling and the second floor exterior walls. What shape are those in? PLEASE if you have a brick masonry home DO NOT paint the brick. Nothing in my opinion looks worse than painted brick. In five years it is going to look like badly painted brick. There are ways to restore brick and make it look great again. Estimates of your cost recovery rate on this improvement are about 88%.
2 – Build a deck. You gain living and entertainment space with this improvement. Remember to keep it proportional with your back yard. A future buyer may have small kids and want that swing set in there somewhere. Your cost recovery rate on this improvement can be about 80%.
3 – Spruce up your kitchen. Fresh paint, new drawer and cabinet handles do not cost that much. Think about a new cook top. A friend of mine just bought a new electric one for under $1,000. All of these improvements can be relatively inexpensive. Please avoid the gaudy wallpaper borders. Remember you are fixing the kitchen up for the next buyer. Cost recovery for this area of your home can be about 80%.
4 – Replace your windows with energy-efficient windows. The future buyers of your home will not only look at the home itself but will also take into consideration the cost of living in that home. Buying good windows can lower your utility bills and improve the value and salability of your home. Please make sure you look for the proper certification of your new windows. You do not want to just buy any old window. Your cost recovery rate here can be about 80% plus lower utility bills.
5 – Finally the bathroom. This is where you put on your best outfits. Do you want to do that in a dirty dingy room? Of course not. Take a look around at your faucets, showerhead, paint, countertops, toilet and bathtub. Most of those items are not that expensive. If you are going to replace that faucet please remember to turn off the water supply first. You will probably recoup about 78% of your investment in this area.
6 – Adding crown molding to almost any room will really dress it up. This is really a simple and inexpensive improvement. Almost any DIY’er can undertake this project. Remember I said almost not all DIY’ers. This simple fix can add elegance to almost any room.
Please remember to plan carefully when deciding on which projects to undertake. Almost any realtor will be more than happy to discuss with you what improvements will help your home sell. Just remember that the realtor you check with should be the one to get the listing.
Why don't you start a project for Mother's Day?
I hope you have a great weekend!
Ron
Wednesday, May 7, 2008
Are you a veteran or reservist?
Are you a veteran or serving member of the armed forces of the United States? Were you or are you currently a member of a reserve unit or National Guard unit?
Why do I ask the questions? Because most of you are missing out on some great opportunities that are available to you when it comes to real estate. There are special programs available to armed forces veterans that are truly unbelievable. I was shocked when I received my update briefing yesterday. We never had it so good when it comes to real estate.
I know you are thinking that I mean the usual VA program. Yes I am but I am also speaking of special programs that are available to Texas veterans. Texas veterans are not just veterans with a home of record in Texas but any veteran or serving member who has lived in Texas for a year or more.
I am a veteran. I served as a regular officer in the U.S. Marine Corps from 1972 to 1980. I have two sons currently serving in the Army. My father and both of my grandfathers served. I know and understand veterans. I want to help you.
The programs available to you are truly extraordinary. If you would like more information please email me today.
Thanks and have a great day.
Ron
Why do I ask the questions? Because most of you are missing out on some great opportunities that are available to you when it comes to real estate. There are special programs available to armed forces veterans that are truly unbelievable. I was shocked when I received my update briefing yesterday. We never had it so good when it comes to real estate.
I know you are thinking that I mean the usual VA program. Yes I am but I am also speaking of special programs that are available to Texas veterans. Texas veterans are not just veterans with a home of record in Texas but any veteran or serving member who has lived in Texas for a year or more.
I am a veteran. I served as a regular officer in the U.S. Marine Corps from 1972 to 1980. I have two sons currently serving in the Army. My father and both of my grandfathers served. I know and understand veterans. I want to help you.
The programs available to you are truly extraordinary. If you would like more information please email me today.
Thanks and have a great day.
Ron
Monday, May 5, 2008
Contracts
Okay I missed last Friday. Sorry about that but I hope you will forgive me when I tell you I got rear ended in an auto accident the previous and was trying to find a new car. By the way he got the ticket.
Today let's talk about submitting a contract to buy a home. It is not, as most people think just about the price. There are three basic elements to making an offer on a home. Those three elements are price, time and terms. Price is all that most people think about because it is all about the money. However time and terms can play a major roll in trying to get a better price. Time of course involves when you close the transaction. Do you need to close on the home in two weeks and move in or can you afford to wait three months until the end of the school year so the buyer's kids can finish the term? That decision can play a major roll in the price.
Terms involves everything from who pays for the one year home warranty, escrow costs, title insurance, survey, seller lease backs, on and on and on. All of these can play a vital roll in getting the deal you want.
Please do not expect to make a "low ball" offer and get all of the time and terms you want. It does take two sides to make a deal. I have a buyer who has a wonderful home priced below the market because she has to move. She recently received an offer that was 22% below her asking price. Needless to say she rejected the offer and told the buyer to go away. You should not pay more than a home is worth in the current market but please do not expect to pay a whole lot less either. You can possibly however with a good agent use the time and terms element to your advantage.
Ron
Today let's talk about submitting a contract to buy a home. It is not, as most people think just about the price. There are three basic elements to making an offer on a home. Those three elements are price, time and terms. Price is all that most people think about because it is all about the money. However time and terms can play a major roll in trying to get a better price. Time of course involves when you close the transaction. Do you need to close on the home in two weeks and move in or can you afford to wait three months until the end of the school year so the buyer's kids can finish the term? That decision can play a major roll in the price.
Terms involves everything from who pays for the one year home warranty, escrow costs, title insurance, survey, seller lease backs, on and on and on. All of these can play a vital roll in getting the deal you want.
Please do not expect to make a "low ball" offer and get all of the time and terms you want. It does take two sides to make a deal. I have a buyer who has a wonderful home priced below the market because she has to move. She recently received an offer that was 22% below her asking price. Needless to say she rejected the offer and told the buyer to go away. You should not pay more than a home is worth in the current market but please do not expect to pay a whole lot less either. You can possibly however with a good agent use the time and terms element to your advantage.
Ron
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