New Buyers – How to tackle friends when asked about home price?

I am sure many of faced this situation when you have house warming ceremony or friends are visiting you at the new house. They just simply ask you without even thinking twice, “How much you spent on this pretty house?” You are stumbled and don’t know what to say because you are not ready to reveal you best deal. You don’t want to say less because you got a good deal or more to show that you paid too much. It makes it even tough if you invited your neighbor who also bought the house recently in the same area. I have faced this issue myself and I was prepared for it and able to shoot out the answer quickly. Are you ready for it? If not, here is what I found out from an article from time magazine.

People pose the question for different reasons. For example, it may be that your friends from the city are thinking of moving to the suburbs, and want to get a sense of what they could get for their money, says clinical psychologist and financial coach Eric Dammann. Or it may simply be good old-fashioned competition. “A lot of times nosy questions have to do with low self-esteem and how we measure up,” says Dammann. “From childhood on, we’re always comparing ourselves to other people. In adulthood, one of the ways to compare ourselves is money.” In such cases, sharing numbers may heighten tension and envy between friends.

Assuming the person who’s asking is someone you know—as opposed to a nosy neighbor over the hedgerow—you probably have a sense of what’s motivating the question, and whether you feel comfortable answering. If you don’t feel comfortable, you shouldn’t feel pressured to divulge. Here are three ways you can avoid revealing what you paid, without leaving the person feeling dissed:

USE YOUR SPOUSE FOR BACKUP: “Jim and I decided that we wouldn’t talk about the price.”

“You don’t want to come off as dishonest,” says Puhn. “So discuss in advance with your husband or wife what you’re going to tell other people, and in the moment, use your partner as an ally.”

KEEP IT LIGHT: “How much did we pay? More than I would have liked!”

A joke can do double duty, diffusing tension and tacitly conveying that you’d prefer not to respond. While this response is more subtle, “most people will pick up on the cue,” says Dammann.

Still, since it’s not direct, you might want to change the subject quickly.

TELL THE TRUTH: “I’m sorry, I’m not really comfortable talking about the cost.”

If your friend really presses you, you don’t need to be dodgy. Just be honest. This comes off as authentic, since you’re talking about your feelings. And you’re putting the questioner in a bind—by pushing for a response, he or she knows that he will be making you even more uncomfortable since you’ve already said so.

You can learn more detail about it at time.com

These tips might help you to get out of the situation when someone might feel awkward and don’t really feel answering it. In reality, many really want to pride themselves by saying that you got a new house which you always dreamed and paid good money to get it comparing to staying in an apartment. Don’t hesitate, just be prepared and have fun sharing!!

Texas continues to be top migration destination – Texas Relocation report

Texas relocation report was released early this month by Texas Association of Realtors and it reinstated the fact which we kept hearing these recent years. Based on U.S. Census data, the report shows that Texas continues to lead the nation in relocation activity and be a sought-after location for people moving from other states. Texas’s reign as the top ‘domestic migration destination’ in the nation continues to be fueled by unprecedented economic growth, Dan Hatfield, chairman of the Texas Association of REALTORS®, commented.

Here is quick snippet of the report which gives lot of interesting things to ponder,

Texas gained more out-of-state residents than any other state in 2013, with 584,034 people moving to Texas from out of state. A majority of these residents originated from California (66,318), followed by Florida (32,619), Oklahoma (29,169), Louisiana (29,042), and Illinois (28,900).

Texas ranked third in the nation for number of residents moving out of state in 2013 (409,977), coming in behind California (581,689) and Florida (423,995) and topping New York (401,440) and Illinois (304,674). Like with incoming residents, a majority of the Texas residents who moved out of state moved to California (32,290), followed by Oklahoma (27,391), Florida (24,226), Colorado (23,490), and Louisiana (21,747).

Harris and Dallas counties remain the top two most mobile counties in the Lone Star State, ranking No. 1 and No. 2 in Texas, respectively, for both the largest inflow and the largest outflow of people. However, both of these counties posted the highest net losses of residents moving out of county, with Dallas County posting the highest net loss of people (25,461) followed by Harris County (20,222).
Overall, Texas had a net gain of out-of-state residents in 2013, with 138,057 more people moving into Texas than Texas residents moving out of state. This report comes six months after U-Haul named Texas the No. 2 growth state for 2013, Houston as the nation’s top destination city, and Dallas as the top U.S. growth city in its 2013 relocation reports.

Read the Texas Relocation report at texasrealestate.com.

With so many people moving into Texas, obviously the housing market is in lot of stress to provide housing for them. As buyers, many of you might have seen it in the real life when trying to buying a house these recent months. So much competition, not from investors anymore, its from another buyers who want to get in to the same house. If the area and neighborhood is hot, then it makes the job even tougher. Don’t go alone, take an experienced Realtor with you to help you out even if you are buying a new builder home. Now the market has slowed down a bit, it might be a good time to jump in and find some deals.

Consumers Optimism rises – Fannie Mae survey

Consumers’ optimism toward the housing market showed a slight rebound last month, with more people now saying it’s a good time to buy or sell a home, according to Fannie Mae’s September 2014 National Housing Survey, based on about 1,000 Americans’ attitudes on the housing market.

SURVEY HIGHLIGHTS

The average 12-month home price change expectation rose to 2.2 percent.
The share of respondents who say home prices will go up in the next 12 months rose to 45 percent. The share who say home prices will go down decreased to 8 percent.
The share of respondents who say mortgage rates will go up in the next 12 months fell by five percentage points to 45 percent.
Those who say it is a good time to buy a house rose to 68 percent. Those who say it is a good time to sell also increased—to 39 percent.
The average 12-month rental price change expectation fell to 3.2 percent.
The percentage of respondents who expect home rental prices to go up in the next 12 months increased to 55 percent.
The share of respondents who think it would be difficult to get a home mortgage today decreased by one percentage point.
The share who say they would buy if they were going to move rose to 66 percent, while the share who would rent decreased to 28 percent.

“The September National Housing Survey shows a slight recovery in consumer housing sentiment after a two-month setback, bringing us back to the modestly positive trend we’ve seen over the last year,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “It might be too late to save this year’s home sales from posting the first decline in five years. However, the return to an upward trend in housing sentiment, combined with this month’s positive news on the jobs front, suggests that a broad-based, albeit measured, housing recovery is on track to resume in 2015. The results of the past few months show that consumer optimism remains cautious and somewhat volatile, and we’ll likely continue to see bumps on the housing recovery path reflected in our survey results.”

Courtesy: Fanniemae

6 Reasons Why everyone moving to Houston – Infographics

Here is another infographics made by storage finder company about more reasons on why more people are moving the Houston these days.

Interesting but true facts…

moving-to-houston-infographic
Courtesy: Sparefoot.com

Finishing 2014 Strong and 2015 Forecast from NAR

We are in September and new year is not too far. Peak housing is almost winding down in all parts of the country and looking ahead on how it’s going to be in 2015. Here is some thoughts about 2014 and forecast for next year from NAR Economist.

Despite hitting a soft spot in the first quarter, home sales are expected to make a strong showing in the second half of 2014.

Past few years of economic recovery “difficult but meaningful.” Unit sales are currently down 5 percent year-over-year, but he expects 2014 to end up close to last year’s totals at a little more than 5 million units sold.

Gross domestic product (GDP) was negative in the first quarter, but bounced back in the second. Although Yun would like to see consistent economic growth above 3 percent – it’s currently around 2 percent. “It’s moving in the right direction,” he says. “We’ve recovered all the jobs lost in downturn and new jobs are being created.”

The total housing inventory at the end of June rose 2.2 percent to 2.30 million existing homes for sale. Research shows that consumers feel more confortable visiting 10 to 15 homes before making a purchase decision, and as inventories come back, so will buyer confidence and sales.

Yun also made the following three forecasts:

Forecast 1: Higher inflation and higher interest rates. The Federal Reserve is planning to end its purchasing of Treasury and mortgage-backed securities in October. Yun expects interest rates to increase in 2015. He also expects Consumer Price Index (CPI), which measures inflation, to increase 3.5 percent in 2015.

Forecast 2: Multi-year housing expansion. The population is on the rise. The U.S. gained 34 million people since 2000, but home sales were 5.2 million in 2000 and 5.1 million in 2013. The pent up demand will eventually equate to additional homes sales over the next few years, Yuns says.

Forecast 3: Continued inequitable wealth distribution. Household net worth is at an all time high, but only for the 10 percent of U.S. population that has investments in the stock market. At the same time, rents are rising and incomes are generally stagnant.

All the 3 points mentioned in forecast are valid. With higher inflation and high interest rates might put some pressure on the housing but it will be healthy one to stabilize the real estate industry and bring good consumer to housing market. Houston market will continue to see the demand like last few years but home prices almost reached peak period and don’t seem to be going anywhere. It will stabilize and help consumers to compare and make decision properly.

Last few months inventory is up in many areas but still competition is fierce if the price and house is good spot so there is always a demand for good neighborhood and schools. That’s normal and competition should cool down this winter and next year would expect to be healthy demand.