Going to Hot Summer sales month soon – Houston & Dallas Market

Houston Market
Low interest rates inspired consumers to snap up high-end homes in April at a pace never before seen, sending prices to new highs while keeping home inventory at historic lows. It must be noted that, as in March, some figures contained in this latest housing report are distorted because they compare to the same month last year when real estate was just beginning its recovery from coronavirus-related lockdown orders that halted most of the business.

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Check out the stats from Houston Association of Realtors.

Dallas Market
It’s continued to be sellers demanding market with less than 1 month inventory. Buyers are paying whatever amount more than asking price to win the bidding war.

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Check out the stats from Greater Fort worth Association of Realtors.

2021 Home Buyers & Sellers Generational Trends

Eighteen percent of Generation X buyers purchased a multigenerational home while twenty percent of younger millennial homebuyers are unmarried. Read more from the 2021 Home Buyers and Sellers Generational Trends Report. http://ow.ly/bEmc50E0dig

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Multiple offers & Bidding war – Every property, all over Texas – How can you tackle and land a deal?

Limited inventory in most Texas markets has led to fierce competition for purchasing homes.
Here are some things to keep in mind for buyers when multiple offers are in play.

Buyers Face Stiff Competition for Properties
Many properties are going under contract quickly and often with multiple offers above listing price. Consider these tips for helping buyers put their best foot forward in this increasingly common scenario.

Prepare to Possibly Pay More
With such limited supply but no decrease in demand, home prices have been rising in most Texas markets. Stephen Etzel, a real estate educator, consultant, and broker based in Roanoke, Texas, tells clients to expect to pay full price in most situations. “In some markets, people are paying $10,000, $15,000, $20,000, or higher over the listing price.”

Prepare for the possibility they may have to pay out-of-pocket. Since lenders approve loans based on the appraised value of a property, buyers may need to close the gap between what they can borrow and the price of their offer. You can help set buyers’ expectations by showing them recent sales information.

Make Sure to Understand Appraisal Addenda
It’s important to understand how to use TREC’s Third Party Financing Addendum (TXR 1901) and the Addendum Concerning Right to Terminate Due to Lender’s Appraisal (TXR 1948). Knowing ahead of time how the provisions of these forms work can help buyers make faster choices about how they want to structure their offer and what protections they want in place pending the outcome of the appraisal.

Get Pre-Qualified
Sellers like offers from pre-qualified buyers, since those buyers have already contacted a lender to see how much money they might be eligible to borrow. Cash offers—for those buyers able to do so—are another attractive alternative to sellers, since they are easier than more complex financial arrangements.

Etzel points out that pre-qualified buyers know their budget and can make offers more quickly than buyers who haven’t taken this step.

Be Ready to Move Quickly
Texas homes spent an average of 48 days on the market in January 2021, down from 68 days in January 2020. Many properties are selling much faster than that. Etzel recommends counseling buyers so they know exactly what they’re looking for and can make offers quickly. If their offer isn’t selected, buyers need to be able to move on just as quickly.

Be Accommodating to the Seller
Etzel says one way to stand out is to make fewer demands of the seller. Each request is one more reason the seller might choose a different offer. Your client might forgo asking for closing costs or seller concessions, or even offer to pay for the owner’s policy of title insurance, as described in Paragraph 6 of the One to Four Family Residential Contract (Resale) (TXR 1601).

Earnest Money Amounts Can Help
Buyers who commit more earnest money show the sellers they are serious about buying the property.

Don’t Overlook Option Money
Offering more option money may be even more attractive to sellers than a higher amount of earnest money, Etzel says. The option money goes to the seller even if the buyer terminates, which can be enticing.

Hope these tips helps you to land your dream home faster.

Source – Texas Association of Realtors

Dallas Market – Quick Glance – Infographics

We are in Dallas market. Check out the stats from Greater Fort worth Association of Realtors.

As you know, it’s very much sellers market with just 1 month inventory. Buyers are paying almost 40-50k higher than asking price.
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Retreat or Resurgence – Great Study from Texas A&M RE Center

Years from now, what will people remember about the COVID-19 pandemic? Social tensions? Hand-washing jingles? Those following the economy will perhaps recall the housing market’s surprising resiliency.

Few expected such a rapid recovery in the housing market, especially after the last recession caused by the mortgage market collapse. Unlike last time, the housing market may end up the economic hero of 2020.

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Read full article at Texas A&M RE Center.

Despite the toll the pandemic took on the Texas economy, the state’s housing market is faring well overall. Sales continue to rise, and new construction is up. While homeowners are confident about being able to pay their mortgages, renters, who generally have fewer financial resources, are less certain.

Markets all over Texas are having bidding wars in each and every house in all different price points. No exceptions. It’s really surprising to many of us even realtors alike. I hope it’s just short term and once the supply goes up eventually in spring-summer of 2021 things should come back down bit and normalize in 2022 possibly. We can only wait and see.