What Can You Expect in 2014?

Welcome back! I wanted to do one final video for 2013. As we roll towards the end of the year, I want to personally say “thank you” for all your support, friendship and referrals. It has been a great year and we’re looking for 2014 to be a bang-up year as well. If we look back on 2013 ending in October, Houston added 79,000 jobs and 2014 is projected to add 70,000 more jobs. That may seem like a drop, but 79,000 was not a sustainable number. Another interesting number provided by the Greater Houston Partnership is that Houston will add another 125,000 residents on a consistent yearly basis. Oddly enough, 65,000 of those residents are from births alone.

As the city grows at a rapid pace, what does this mean for real estate? This will bring more demand in the coming years and next year is expected be another big year for real estate. Inventory is at an all-time low; inventory now is lower than it was two weeks ago. If the market is anything like it was last year, the market exploded much earlier than normal; our spring started in February and we expect the same. If you’re thinking about selling your home, you may want to put it on the market before spring to beat the competition.

Stay tuned for my Crystal Ball report. Thanks and have a great day!

Happy Thanksgiving!

Welcome back to my video blog. I wanted to wish everyone a Happy Thanksgiving and a Happy Hanukkah!

I can't believe 2014 is just a month away. We've had a fantastic market this year and we expect it to continue into next year.

This is our 29th consecutive month of gains; our market is up 13.1 percent from this time last year.

Inventory is at 3.1 months which means if we continue to sell at the current pace and no more homes came on the market, there wouldn't be any properties in 3 months.

If you're thinking about buying or selling this spring, give me a call. Let's talk about what your buying strategy should be or how to prepare your home for the market.

I also wanted to make you aware of a scam that is going on. You may have seen ads on Facebook or Craig's List where a property that is for sale is being offered as a rental. Some individuals are acquiring money by renting out properties they don't even own. If you have any questions about this, give me a call.

Thanks for watching. Happy Holidays!

Home Improvements and Renovations Part 2

Thanks for joining me again today! In the last video we talked about how you can improve your home and get the most return on renovations. Today I wanted to bring you a few more tips if you’re thinking about updating your home.

Layout - Is the space being utilized in the best way possible? The last thing you want to do is finish a project and find you could have done it a better way.

Replace your windows - If you change out your single-paned windows to double-windows, not only will the windows look better in the eyes of the buyer, but it saves hundreds of dollars in energy efficiency. You can expect around 86 percent return.

Replace your Roof - This sounds like a big task and it is; that’s why most buyers won’t consider a house that needs roof repairs. You will get a 75 percent return.

If you have any questions about a specific project you have in mind, give me call. I’d love to help you!

Thanks for watching!

Home Improvements and Renovations Part 1

Thanks for joining me today!

I have a good friend who is renovating his home. He asked me what he should be doing to improve his property. That’s an interesting question and the answer depends on what the purpose is. Are you remodeling for enjoyment? Are you improving the home to sell it?

If your goal is to increase the value of your home, it’s important to know what investments you will get the most return for. The two best renovations you can make then, are the kitchen and bathroom. We have found you will get 80-86 percent return on your investment.

You want your home to conform to the neighborhood. Know the price range and what will make your home a competitor. If you don’t upgrade, often homes do not sell.

If you have any questions, please give me a call. I’d love to help you find the best ways to improve your home.

Thanks for watching!

How is the Sellers Real Estate Market

Welcome back! I’ve been in the real estate business for 10 years and I have never seen a sellers market like we are in today.

A balanced market occurs when we have about 5-6 months of inventory. Currently we only have 3.5 months. That means with the current demand, if no new homes came on the market, it would only take 3.5 months for all the homes listed to sell.

If you have a home with a competitive price and it’s in good condition, you more than likely will see your home sell in the first week.

There is a huge demand now. Homes are getting multiple offers. Buyers are motivated and a lot of them are offering cash.

If we look at some of the micro markets, homes that are above $1 million in the Bellaire area are at about 2-3 months of inventory; homes below $1 million are under two months.

It is the best time to sell your home now! Give me a call so we can get your home listed!

Government Shutdown Risks Hurting The Housing Recovery

From: http://www.forbes.com/sites/morganbrennan/2013/10/01/heres-how-the-government-shutdown-will-affect-housing/

By:  Morgan Brennan, Forbes Staff

The government shutdown is here. Whether it’s not being able to get a new Social Security card or visit a national park, Americans will immediately feel the effects. But there’s one bright spot of the economy that stands to be affected as well: housing.

One of the biggest questions regarding the shutdown and how it will affect housing has revolved around the mortgage market, specifically prospective buyers’ access to new home loans. After all, more than 90% of all loan activity is underwritten, insured, or owned by the government and its affiliated entities.

Initially at least, the mortgage market is likely to be only minimally impacted. New loans will continue to push through most government agency pipelines. What will change is how long the process takes, as many agencies expect to experience delays.

Mortgages purchased and securitized by Fannie Mae and Freddie Mac will be unaffected because their operations are paid for by fees charged to lenders. And the Department of Veterans Affairs will continue to guarantee mortgages for Americans that have served in the military since these loans are funded by user fees as well.

But if the government shutdown of 1995-1996 is any indicator, the process will take longer than usual. “Loan Guaranty certificates of eligibility and certificates of reasonable value were delayed,” the VA warned in its September 25th contingency plan.

Where there has been mounting concern is the Federal Housing Administration, which currently endorses about 15% of the entire single-family mortgage market. Several media outlets recently reported that the FHA would be unable to endorse any single-family loans and that no staff would be available underwrite and approve new loans.

That prospect would be somewhat worrisome – if it were actually true. The FHA’s Office of Single Family Housing will indeed remain open for business, albeit with a smaller staff. “FHA will be able to endorse single family loans during the shutdown. A limited number of FHA staff will be available to underwrite and approve new loans,” the report now states. In other words, other lenders’ loans will continue to be insured and some in-house lending will continue to take place at a reduced rate.

The reason for that mix-up: the initial draft of the U.S. Department of Housing and Urban Development’s contingency plan mistakenly stated that single-family loan operations would cease. The report was amended over the weekend.

The FHA’s single-family loan operations are funded through multi-year appropriations, meaning their budget is not tied to the government’s standoff over funding for the new fiscal year that starts in October. On the other hand, what will be more affected is the agency’s Multifamily Housing Office, which is funded through yearly appropriations.

“Because we are able to endorse loans, we don’t expect the impact on the housing market to be significant, as long as the shutdown is brief,” continues the HUD report. “If the shutdown lasts and our commitment authority runs out, we do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market.”

One government lender that will indeed suspend its home loan activity, however, is the Department of Agriculture. The USDA says that no new housing loans or guarantees will be issued through its Rural Development programs in a shutdown. The department also warns that such a scenario could cause “a setback in construction start-up,” and if the shutdown lasts for an extended period, “a substantial reduction in housing available in rural areas relative to population.”

“The government doesn’t generally approve loans, they basically just insure them,” says Don Frommeyer, president of the National Association of Mortgage Brokers and a vice president at Amtrust Mortgage Funding. “For the most part you aren’t going to see much of a hit in the mortgage market unless it goes for a long period of time.”

If it does stretch on, he adds, the worry will be what mortgage rates do in a market shrouded in fiscal uncertainty and how that will affect the home buying, especially in light of recent rate spikes.

Home lending aside, many economists and real estate experts are keeping a close watch on how Americans will react to this shutdown. “Administratively everything should keep moving along, but it’s more about the confidence of consumers and whether they perceive that the government shutdown could lead to a recession,” says Lawrence Yun, chief economist at the National Association of Realtors.

Moody’s Analytics chief economist Mark Zandi recently told the Senate Budget Committee that a partial shutdown could shave as much as 1.4 percentage points off of fourth quarter economic growth if it drags on for several weeks.

Americans’ confidence in their ability to buy and sell homes hit a record high in May, according to a Fannie Mae survey. Since then, as mortgage rates jumped more than a percentage point, that confidence level has plateaued.  If prospective homebuyers fear that the country’s economic recovery will stall, or worse slip back into recession, they will pull back on purchases, worries Yun.

“Home sales is always the first housing variable that changes so one would see sales declining and that would naturally lead to more inventory on the market and eventually put pressure on prices,” he says. But that would be a worst-case scenario based on a long-term shutdown.

Jed Kolko, chief economist at Trulia TRLA +6.43%, notes that if the shutdown lasts longer than a few days, the first places to feel the impact will be local economies with large concentrations of federal government workers. Metro areas like Washington, D.C. and Bethesda, Md., where 19% and 13% respectively of total local wages go to federal employees, would be the feel the negative effects of unpaid furloughs and with them, tightened consumer spending and weakening local economic growth. Though not all will be equally affected, other metro areas like Virginia Beach, Va., Honolulu, Hawaii, and Dayton, Ohio are areas that Kolko is keeping an eye on: “Whether there is a big effect depends on how long the shutdown lasts, how long people think the shutdown lasts, and whether people get back-pay. All those things matter for the impact.”

Still others are worrying even more about the next fiscal standoff, in  mid-October, surrounding the debt ceiling debate and its accompanying threat of debt default by the U.S.  ”With the threat of an impending partial government shutdown and yet another battle over the nation’s debt ceiling, in particular, we are really messing with fire right now—even if it doesn’t seem to bother some legislators,” says Stan Humphries, chief economist at Zillow.

“But the effects of a government default associated with the impending debt-ceiling deadline would be more pronounced because of its greater impact on domestic and international markets. This will rattle consumers and investors alike, slow down the overall economic recovery and further slow the housing recovery, which is already undergoing a moderation in the pace of home value gains due to rising mortgage rates,” he warns.

Houston Texas Real Estate Market Update

What’s Happening in the Houston Housing Market?

Hey, guys! It has been all over the news about what a strong market we’ve been having nationally. The Houston market is phenomenal.

If we compare July of this year to July of last year, we are way ahead. The total sales are up by 23 percent, the dollar volume went from $1.6 billion to $2.3 billion and the average home price increased by 14 percent.

Why is there so much activity? We are seeing a lot of people coming to Houston from different job industries. They are looking for a home in good condition and one that is fairly priced. The home should be move-in ready. Buyers want to move their furniture in and then go out to dinner, no extra work!

That’s why we stress the importance for sellers to make their home immaculate. First impressions are everything, whether that’s online or in person. Buyers often purchase off of emotion and then justify the purchase after.

Thanks for watching! If you have any questions please give me a call!