Why Dallas Home Prices Keep Rising

Dallas area home prices continued to climb year-over-year, matching expectations in the North Texas residential market, says Ted Wilson, principal of Dallas-based Residential Strategies.

The Dallas metropolitan area's home prices rose 7 percent year-over-year in January, according to Standard & Poor's/Case-Schiller Home Price Indices released Tuesday. Dallas area home prices remained flat in January, compared with the previous month.

"Home prices are still trending upward," Wilson said, of the data. "I'm sure it will go on for the next year or so, as long as the rates stay low."

Low interest rates — about 3.2 percent on a 30-year mortgage — gives homebuyers 30 percent more buying power, which gives room in the market for home prices to rise, he said. Expect home prices to continue to rise if interest rates remain low, Wilson said.

It's unclear how rising interest rates would impact the recovering residential market, he said.

The trend is being seen throughout the nation, with an increase in home prices year-over-year of 7.3 percent in a 10-city composite and 8.1 percent in a 20-city composite, according to the Standard & Poor's/Case-Schiller Home Price Indices report.

Written by Candice Carlisle - http://www.bizjournals.com/dallas/news/2013/03/26/ted-wilson-the-reason-behind-rising.html?iana=ind_rre

Global Luxury Market Still Growing

The international luxury real estate market remains relatively immune to the economic and political trends that drive the general housing market and is off to strong start in 2013, according to a report from high-end real estate affiliate network Christie's International Real Estate.

The report compared 10 top property markets around the world: London, New York, Hong Kong, Paris, San Francisco, France's Cote d’Azur, Toronto, Dallas, Los Angeles, and Miami. The company, a subsidiary of Christie's auction house, also rolled out a new index, the Christie's International Real Estate Index, which ranks markets across metrics such as record sales price, prices per square foot, percentage of non-local and international purchasers, and the number of luxury listings relative to population.

The 10 markets were also chosen for the network's strong market share locally. Christie's International Real Estate has 125 affiliated brokerages in 41 countries.

London, which topped the index, achieved a record sales price of more than $121 million for a residential property in 2012, followed by an $88 million sale in New York. In all of the cities studied except Dallas and Toronto, the highest sales price for the year exceeded $35 million, the report said.

Economist Robert Shiller has predicted U.S. home prices will rise only one or two percent a year in inflation-adjusted terms for the next half decade due to "lingering uncertainties" in world economies, the report said. By contrast, a study by the The Boston Consulting Group expects global sales of personal luxury goods, such as fine art, to grow about 7 percent annually through 2014, assuming there are no new major economic crises, the report added.

"Except where there is government intervention luxury residential real estate values will likely follow luxury goods and not the general housing market, and are therefore poised to increase in many of the cities studied in 2013,"  the report said. "This is particularly true as (high-net-worth individuals) turn their luxury investments toward nonconsumables and experiential luxury products that have lasting value."

Bonnie Stone Sellers, CEO of Christie's International Real Estate, said in a statement that "strong momentum" in the luxury property market "is also being driven by scarcity of quality inventory and demand from international buyers in many of the world's top destinations."

There are more billionaires worldwide now than before the 2008 financial crisis and 55 percent more millionaires than in 2000, the report said.

"This is a large part of the reason the cities surveyed have done so well: the international crossborder purchaser has continued to buy the trophy properties at top dollar," the report said.

This is particularly true for buyers from countries where local economic uncertainty encourages the rich to park their cash in international cities least affected by the global downturn. In seven of the 10 cities studied, more than 30 percent of the luxury homebuyers were from other countries.

High-net-worth individuals "find the world to be a small place, and geographical distances between cities are not relevant to purchasing patterns, which are more similar to each other in the 10 cities surveyed than other cities within the same country," the report said. "Globalization, economic development, wealth deposits, and technology attract HNWIs to the key global urban centers, where knowledge, capital, and culture intersect."

In the most of the cities studied, the share of all-cash deals rose with the sales price. Nearly 100 percent of Los Angeles transactions above $5 million were in cash, followed by 90 percent in New York and 70 percent each in San Francisco and Miami.

Recent tax law changes in many of these markets will likely have a negative effect on 2013 high-end market activity, the report said. For instance, in Toronto, new restrictions on mortgage financing intended to cool the housing market, are expected to lengthen days on market for luxury properties, which have hovered at 46 days for the past two years.

"Government actions relating to taxation and lending standards can significantly influence buyers worldwide, including luxury home buyers. In nearly all of the cities examined, recent changes to capital gains taxes, wealth taxes, transfer taxes, mortgage restrictions, and secondary residence taxes have created notable catalysts in the market," the report said.

Originally by Inman News - http://www.inman.com/news/2013/03/11/global-luxury-real-estate-market-showing-strong-momentum

Dallas is the most affordable place to live in the U.S.

Dallas is the most-affordable major metropolitan area to live in the United States, according to a report by ZipRealty, which measures the national housing market.

The ranking is based on median household income and the median home prices. This is the first year ZipRealty has compiled this data, which measures 30 metropolitan areas throughout the country.

Dallas' median household income is $47,418 with the median home price of $249,950, which gives it a home price to median income ratio of 5.27. That ratio of home price to income is the lowest in the country, said Lanny Baker, president and CEO of Calfornia-based ZipRealty Inc. (NASDAQ: ZIPR)

"My sense is that the economy in Dallas is healthier today than it's been for awhile," Baker said, attributing his opinion to North Texas' stable income levels. "That hasn't yet translated into higher housing values."
The favorable ratio of income to housing prices could bring in folks from other parts of the country, where housing prices are higher than Dallas. The median home price throughout the country is $299,500, which is about $50,000 more than Dallas' median home price.

"Dallas isn't inflating as fast as other areas of the country," Baker said, adding that San Francisco, Sacramento and Las Vegas are seeing significantly higher home prices year-over-year through the first quarter of 2013.

Houston has the second-most-affordable housing market, followed by Minneapolis, with a 5.43 and a 5.5 index, respectively, Baker said.
Some of the most expensive places to live in the country based off the index include Washington, D.C., Brooklyn and the San Francisco area.

Written by Candace Carlisle - http://www.bizjournals.com/dallas/news/2013/03/20/why-dallas-is-the-most-affordable.html?iana=ind_rre

The Hottest Spots in Dallas!

For people seeking a new home, Dallas-Fort Worth is one of the most exciting markets in the United States. In an interview, Jeff Ferguson, a Dallas real estate agent with Virginia Cook Realtors, cited it as the "sixth strongest real estate market in the country." Homebuyers would be hard-pressed to find a poor real estate market in any DFW neighborhood, yet Ferguson pointed out three of the hottest markets in Dallas: Downtown and Uptown, the area around the Jesuit College Preparatory School of Dallas, and Richardson.

Hottest Real Estate Market in Dallas: Downtown and Uptown

Thanks to their location and the recently opened park over Woodall Rodgers Freeway, Downtown and Uptown are the most exciting real estate markets in Dallas-Fort Worth right now. According to Ferguson, being close to Dallas' center is key. People want to live inside the Loop, preferably at the center of the city. No neighborhood is more centrally located in Dallas than Uptown and Downtown.
In the past, these two neighborhoods were divided by Woodall Rodgers Freeway. In October 2012, Klyde Warren Park opened on top of Woodall Rodgers Freeway. As the park's website says, it "creates green space 'out of thin air' that connects the vibrant Uptown neighborhood with the Dallas Arts District and downtown." Ferguson noted how this green space has already attracted pedestrians and made the area more pleasing to prospective home buyers.
These neighborhoods are still lacking a supermarket, he mentioned. However, Klyde Warren Park's restaurant, which is slated to open late this summer, might be the first of many new food establishments to move into this area.

Great Investment Real Estate in Dallas: The Jesuit Neighborhood

When discussing Dallas' various neighborhoods, Ferguson was excited about the real estate investment possibilities in the area around the Jesuit College Preparatory School. Just below I-635 along Inwood Road, this neighborhood is within the Loop and close to the Dallas North Tollway.
Ferguson's experience has shown that the prices of older homes in this North Dallas neighborhood are often between $350,000 and $400,000, which is an affordable home price compared to Highland Park and University Park. However, new homes around the school often sell for around $1.2 million. This gap between older and newer home prices is a developer's dream. Ferguson has seen several developers purchase an older home, tear it down, and build a new one, which they quickly sell at a significant profit.

Excellent Family Homes Near Dallas: Richardson

Richardson is technically a suburb of Dallas, but it is barely outside the City of Dallas' limits. When comparing the North Dallas suburbs, Ferguson favored Richardson over Plano, Grapevine, and others. He mentioned Richardson's proximity to I-635 and I-75 as a positive, as they make Richardson one of the most accessible suburbs. He has noticed families favor this Dallas-area neighborhood because it has a strong school system and the housing is relatively inexpensive. "Richardson is exciting. It's very affordable, yet it's adjacent to high-end communities like the Park Cities," said Ferguson.



Written by - Robs Toccs - http://news.yahoo.com/3-hottest-real-estate-markets-dallas-2013-173200203.html

North Dallas Sales Continue to Rise!

Call me today to take advantage of this heavy sellers' market! 817-657-6213

Texas Real Estate Continues Upward Trend!

A renewed sense of urgency has filtered into Texas real estate, particularly in cities like Dallas. The frequency of home sales, low inventory and decreased number of foreclosure sales continue to heat up the buying frenzy, which is only expected to increased in 2013. Nationwide, it seems that home buying interest has regained momentum but Texas specifically seems to be growing by leaps and bounds:

Prices of pre-owned homes grew by 8% compared to 2011
Total sales ran 17% higher in 2012
The median price for homes has surged by nearly $100,000
Home builds are forecast to increase by as much as 15% in 2013
Adding to this new speculation and activity is the fact that the Federal Government is keeping interest rates low, which means that mortgage financing should stay at historic lows at least through the next year. This will not only reinforce the new purchases and speculation but invite buyers and sellers who until now have stood on the sidelines waiting for signs of a revitalized real estate market. Regardless of inventory, demand continues to pick up steam, especially in cities like Dallas and Plano.

There is also additional evidence to suggest that as prices continue to rise in parallel with demand, home owners who have held onto inventory, will be more motivated to move their properties up for sale. Such an increase in supply will additionally spur more speculative purchases from investors watching a renewed Texas real estate industry continue to pick up speed. In short, buying a home in Dallas will be an intensive process requiring patience and in-depth research. Partnering with an informed ally will be of the utmost importance.

Call me today at 817-657-6213 to take advantage of some of the best market conditions in history!

Article by Patrick Glaros - http://www.dallasmortgageplanners.com/dallas-real-estate-news/texas-real-estate-trending-upwards-as-the-calendar-turns/

Interest Rates Remain at All-Time Low, Now is the Time!

Home loans are still quite a bargain.

The average cost of 30-year, fixed-rate mortgages, the most popular way to finance a home, up less than a quarter of a point since reaching a record low in early December.

The average cost of a 15-year mortgage, which is very popular with borrowers looking to refinance a home, is back below 3%.

It looks like long-term interest rates are bouncing along what could be a long and profitable bottom for home buyers and owners.

We can probably count on cheap home loans as long as the Federal Reserve is determined to hold borrowing costs at historic lows until our lethargic economy is growing faster and creating more jobs.

The only question is whether the Fed's rate-setting committee is wavering on that commitment — a concern raised by the minutes of its most recent meeting.

Call Agent Brian Force today to take advantage of this record breaking opportunity! 817-657-6213

Originally posted by Mike Sante - http://www.interest.com/mortgage/news/mortgage-rates/