NE TEXAS Real Estate News

3474 COUNTY ROAD 1412
BOGATA, TX 75417

$399,500

Beds: 5
Baths: 2
Sq. Ft.: 2,480
Type: House
   
Property Photo
1 of 17
Listing #18735707
 
Looking for a place to get away from all the hustle and bustle of city life? Come take a look at this secluded 5 bedroom 2 bath home that is centrally located between Paris and Mount Pleasant and just outside of the communities of Bogata and Clarksville. Enjoy walking or riding your ATV just over 1 mile to the Sulphur River Bridge and access point. Relax on the front or back porches and watch the deer and wildlife play in the nicely shaded fenced yard. This home has so much to offer including a large open living area with fireplace, nicely equipped kitchen with granite counters,custom wood cabinets and furnished appliances. Split bedroom floorplan with 2 bedrooms downstairs and 3 bedrooms upstairs. Huge game room upstairs and a loft living area would be great for the kids or office. Several patio doors for access to the screened in balcony porch. Neutral colors and rustic appeal make this home very cozy. Large metal shop with carport, circle drive and much more. Come see to appreciate. Listing agent of record: Sherry Dickson, Harold Carter Realtors
Property Features
Interior Features
Full Baths: 2
1/2 Baths: 0
Exterior Features
Lot Size in Acres: 2.17
Lot Size in Sq. Ft.: 0.0
Additional Information
Property Type: SFR
Year Built: 1977
Status: Active
Posted by NE TEXAS REALTY GROUP on August 18th, 2022 1:51 PM

Should I Buy a Home Right Now?

Should I Buy a Home Right Now?

If you’ve been thinking about buying a home, you likely have one question on the top of your mind: should I buy right now, or should I wait? While no one can answer that question for you, here’s some information that could help you make your decision.

The Future of Home Price Appreciation

Each quarter, Pulsenomics surveys a national panel of over 100 economists, real estate experts, and investment and market strategists to compile projections for the future of home price appreciation. The output is the Home Price Expectation Survey. In the latest release, it forecasts home prices will continue appreciating over the next five years (see graph below):

Should I Buy a Home Right Now? | Keeping Current Matters

As the graph shows, the rate of appreciation will moderate over the next few years as the market shifts away from the unsustainable pace it saw during the pandemic. After this year, experts project home price appreciation will continue, but at levels that are more typical for the market. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: 

“People should not anticipate another double-digit price appreciation. Those days are over. . . . We may return to more normal price appreciation of 4%, 5% a year.”

For you, that ongoing appreciation should give you peace of mind your investment in homeownership is worthwhile because you’re buying an asset that’s projected to grow in value in the years ahead.

What Does That Mean for You?

To give you an idea of how this could impact your net worth, here’s how a typical home could grow in value over the next few years using the expert price appreciation projections from the Pulsenomics survey mentioned above (see graph below):

Should I Buy a Home Right Now? | Keeping Current Matters

As the graph conveys, even at a more typical pace of appreciation, you still stand to make significant equity gains as your home grows in value. That’s what’s at stake if you delay your plans.

Bottom Line

If you’re ready to become a homeowner, know that buying today can set you up for long-term success as your asset’s value (and your own net worth) is projected to grow with the ongoing home price appreciation. Partner with a local real estate professional to begin your homebuying process today.

Posted by NE TEXAS REALTY GROUP on August 18th, 2022 1:46 PM

Should I Rent or Should I Buy? [INFOGRAPHIC]

Should I Rent or Should I Buy? [INFOGRAPHIC] | Keeping Current Matters

Some Highlights

  • It’s worth considering the many benefits of homeownership before you make the decision to rent or buy a home.
  • When you buy, you can stabilize your housing costs, own a tangible asset, and grow your net worth as you gain equity. When you rent, you face rising housing costs, won’t see a return on your investment, and limit your ability to save.
  • If you want to learn more about the benefits of homeownership, reach out to a real estate professional today.
Posted by NE TEXAS REALTY GROUP on August 17th, 2022 11:47 AM

Think Home Prices Are Going To Fall? Think Again

Think Home Prices Are Going To Fall? Think Again

Over the last two years, the rate of home prices appreciated at a dramatic pace. While that led to incredible equity gains for homeowners, it’s also caused some buyers to wonder if home prices will fall. It’s important to know the housing market isn’t a bubble about to burst, and home price growth is supported by strong market fundamentals.

To understand why price declines are unlikely, it’s important to explore what caused home prices to rise so much recently, and where experts say home prices are headed. Here’s what you need to know.

Home Prices Rose Significantly in Recent Years

The graph below uses the latest data from CoreLogic to illustrate the rise in home prices over the past year and a half. The gray bars represent the dramatic increase in the rate of home price appreciation in 2021. The blue bars show home prices are still rising in 2022, but not as quickly:

Think Home Prices Are Going To Fall? Think Again | Keeping Current Matters

You might be asking: why did home prices climb so much last year? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was extremely high, and supply was record low.

Where Experts Say Prices Will Go from Here

While housing inventory is increasing and buyer demand is softening today, there’s still a shortage of homes available for sale. That’s why the market is seeing ongoing price appreciation. Mark Fleming, Chief Economist at First Americanexplains it like this:

“. . .we’re still well below normal levels of inventory and that’s why even with the pullback in demand, we still see house prices appreciating. While there is more inventory, it’s still not enough.”

As a result, experts are projecting a more moderate rate of home price appreciation this year, which means home prices will continue rising, but at a slower pace. That doesn’t mean prices are going to fall. As Selma Hepp, Deputy Chief Economist at CoreLogicsays:

“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

In other words, even with higher mortgage rates, moderating buyer demand, and more homes for sale, experts say home price appreciation will slow, but prices won’t decline.

If you’re planning to buy a home, that means you shouldn’t wait for home prices to drop to make your purchase. Instead, buying today means you can get ahead of future price increases, and benefit from the rise in prices in the form of home equity.

Bottom Line

Home prices skyrocketed in recent years because there was more demand than supply. As the market shifts, experts aren’t forecasting a drop in prices, just a slowdown in the rate of price growth. To understand what’s happening with home prices in your area, connect with a local real estate professional today.

Posted by NE TEXAS REALTY GROUP on July 27th, 2022 11:09 AM

How an Energy Efficient Home Can Be a Bright Idea [INFOGRAPHIC]

How an Energy Efficient Home Can Be a Bright Idea [INFOGRAPHIC] | Keeping Current Matters

Some Highlights

  • With inflation driving up the cost of everyday items, seeking out an energy-efficient home can be a great way to decrease the expenses you can control.
  • Energy efficiency can help lower your utility bills and possibly even save you money on your taxesOptions to look for include efficient appliances, windows, and solar panels.
  • If it’s your goal to buy a home this year, consider energy efficiency. Work with a trusted real estate advisor to learn more about features that can save you money for years to come.
Posted by NE TEXAS REALTY GROUP on July 26th, 2022 1:58 PM

What You Can Expect from the Spring Housing Market

What You Can Expect from the Spring Housing Market

As the spring housing market kicks off, you likely want to know what you can expect this season when it comes to buying or selling a house. While there are multiple factors causing some uncertainty, including the conflict overseas, rising inflation, and the first rate increase from the Federal Reserve in over three years — the housing market seems to be relatively immune.

Here’s a look at what experts say you can expect this spring.

1. Mortgage Rates Will Climb

Freddie Mac reports the 30-year fixed mortgage rate has increased by more than a full point in the past six months. And despite some mild fluctuation in recent weeks, experts believe rates will continue to edge up over the next 90 days. As Freddie Mac says:

“The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year.”

If you’re a first-time buyer or a seller thinking of moving to a home that better fits your needs, realize that waiting will likely mean you’ll pay a higher mortgage rate on your purchase. And that higher rate drives up your monthly payment and can really add up over the life of your loan.

2. Housing Inventory Will Increase

There may be some relief coming for buyers searching for a home to purchase. Realtor.com recently reported that the number of newly listed homes has grown for each of the last two months. Also, the National Association of Realtors (NAR) just announced the months’ supply of inventory increased for the first time in eight months. The inventory of existing homes usually grows every spring, and it seems, based on recent activity, the next 90 days could bring more listings to the market.

If you’re a buyer who has been frustrated with the limited supply of homes available for sale, it looks like you could find some relief this spring. However, be prepared to act quickly if you find the right home.

If you’re a seller, listing now instead of waiting for this additional competition to hit the market makes sense. Your leverage in any negotiation during the sale will be impacted as additional homes come to market.

3. Home Prices Will Rise

Prices are always determined by supply and demand. Though the number of homes entering the market is increasing, buyer demand remains very strong. As realtor.com explains in their most recent Housing Report:

“During the final two weeks of the month, more new sellers entered the market than during the same time last year. . . . However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”

What does that mean for you? With the demand for housing still outpacing supply, home prices will continue to appreciate. Many experts believe the level of appreciation will decelerate from the high double-digit levels we’ve seen over the last two years. That means prices will continue to climb, just at a more moderate pace. Most experts are predicting home prices will not depreciate.

Won’t Increasing Mortgage Rates Cause Home Prices To Fall?

While some people may believe a 1% increase in mortgage rates will impact demand so dramatically that home prices will have to fall, experts say otherwise. Doug Duncan, Senior Vice President and Chief Economist at Fannie Maesays:

“What I will caution against is making the inference that interest rates have a direct impact on house prices. That is not true.”

Freddie Mac studied the impact that mortgage rates increasing by at least 1% has had on home prices in the past. Here are the results of that study:

What You Can Expect from the Spring Housing Market | Keeping Current Matters

As the chart shows, mortgage rates jumped by at least 1% six times in the last thirty years. In each case, home values increased.

So again, if you’re a first-time buyer or a repeat buyer, waiting to buy likely means you’ll pay more for a home later in the year (as compared to its current value).

Bottom Line

There are three things that seem certain going into the spring housing market:

  1. Mortgage rates will continue to rise
  2. The selection of homes available for sale will modestly improve
  3. Home prices will continue to appreciate, just at a slightly slower pace

If you’re thinking of buying, act now before mortgage rates and home prices increase further. If you’re thinking of selling, your best bet may be to sell soon so you can beat the increase in competition that’s about to come to market.

Posted by NE TEXAS REALTY GROUP on June 30th, 2022 1:16 PM

A Majority of Consumers Say It’s a Good Time To Sell Your House

A Majority of Consumers Say It’s a Good Time To Sell Your House

If you’re a homeowner thinking about selling your house, you’re probably looking for the best time to make your move. That means you’re likely balancing a number of factors, like your changing needs, where you’ll go when you sell, and today’s mortgage rates in order to time it just right.

According to recent data, that sweet spot could already be here. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae finds that 76% of consumers believe now is a good time to sell.

The graph below shows the percentage of survey respondents who say it’s a good time to sell a house. The big dip in March and April of 2020 reflects how consumer sentiment dropped at the beginning of the pandemic as uncertainty about the health crisis grew. Since then, the percentage has grown consistently as more people feel confident it’s a good time to sell.

In fact, survey respondents think it’s an even better time to sell a house today than they did in 2019, which was a strong year for the housing market. The latest survey results indicate one of the strongest peaks in seller sentiment in nearly three years (see graph below):

A Majority of Consumers Say It’s a Good Time To Sell Your House | Keeping Current Matters

What Makes Today a Good Time To Sell?

One reason so many people think it’s a good time to sell is because there are still more buyers in today’s market than there are homes for sale. That’s driving home prices up, making it a good time to sell your house.

And if you’re on the fence about whether or not to sell because you don’t know where you’ll go once you do, know that you might have more options today than in previous months. That’s because the number of homes coming onto the market has grown each month since the start of the year. When more homes come onto the market, it gives you more opportunities to find one that meets your changing needs.

Bottom Line

While the number of homes available for sale is growing and giving you more options for your move, inventory is still low overall. That could mean it’s a great time for you to sell. If you’re ready to address your changing needs and take advantage of today’s favorable conditions, contact a local real estate advisor.

Posted by NE TEXAS REALTY GROUP on June 30th, 2022 1:16 PM

The Average Homeowner Gained More Than $55K in Equity over the Past Year

The Average Homeowner Gained More Than $55K in Equity over the Past Year

If you’re a current homeowner, you should know your net worth just got a big boost. It comes in the form of rising home equity. Equity is the current value of your home minus what you owe on the loan. Today, you’re building that equity far faster than you may expect – and this gain is great news for you.

Here’s how it happened. Home values are on the rise thanks to low housing supply and high buyer demand. Basically, there aren’t enough homes available to meet this high buyer interest,  so bidding wars are driving home prices up. When you own a home, the rising prices mean your home is worth more in today’s market. And as home values climb, your equity does too. As Dr. Frank Nothaft, Chief Economist at CoreLogicexplains:

“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth.”

The latest Homeowner Equity Insights from CoreLogic shed light on just how much rising home values have boosted homeowner equity. According to that report, the average homeowner’s equity has grown by $55,300 over the last 12 months.

Want to know what’s happening in your area? Here’s a breakdown of the average year-over-year equity growth for each state based on that data.

The Average Homeowner Gained More Than $55K in Equity over the Past Year | Keeping Current Matters

How Rising Equity Impacts You

In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home. It works like this: when you sell your house, the equity you built up comes back to you in the sale.

In a market where you’re gaining so much equity, it may be just what you need to cover a large portion – if not all – of the down payment on your next home. So, if you’ve been holding off on selling and worried about being priced out of your next home because of today’s home price appreciation, rest assured your equity can help fuel your move.

Bottom Line

Equity can be a real game-changer if you’re planning to make a move. To find out just how much equity you have in your home and how you can use it to fuel your next purchase, connect with a trusted real estate advisor.

Posted by NE TEXAS REALTY GROUP on June 15th, 2022 9:36 AM

How Buying or Selling a Home Benefits the Economy and Your Community

How Buying or Selling a Home Benefits the Economy and Your Community

If you’re thinking of buying or selling a home, chances are you’re focusing on the many extraordinary ways it’ll change your life. But do you know it has a large impact on your community too?

To measure that impact, the National Association of Realtors (NAR) releases a report each year to highlight just how much economic activity a home sale generates. The chart below shows how the sale of both a newly built home and an existing home impact the economy:

How Buying or Selling a Home Benefits the Economy and Your Community | Keeping Current MattersAs the visual shows, a single home sale can have a significant effect on the overall economy. To dive a level deeper, NAR also provides a detailed look at how that varies state-by-state for newly built homes (see map below):

How Buying or Selling a Home Benefits the Economy and Your Community | Keeping Current MattersYou may be wondering: how can a single home sale have such a major effect on the economy?

For starters, there are multiple industries that play a role in the process. Numerous contractors, specialists, lawyers, town and city officials, and so many other professionals are all necessary at various stages during the transaction. Every individual you work with, like your trusted real estate advisor, has a team of professionals involved behind the scenes.

That means when you buy or sell a home, you’re leaving a lasting impression on the community at large. Let the knowledge that you’re contributing to those around you while also meeting your own needs help you feel even more empowered when you decide to make your move this year.

Bottom Line

Homebuyers and sellers are economic drivers in their community and beyond. Reach out to your trusted real estate advisor today if you’re ready to get started. It won’t just change your life; it’ll make a powerful impact on your entire community.

Posted by NE TEXAS REALTY GROUP on May 25th, 2022 9:36 AM

ARE WE IN A HOUSING BUBBLE?

The “warning signs” look all too familiar.

Escalating home prices have both buyers & sellers worried that the market is just “too good to be true,” and agents across the U.S. are getting bombarded with the ultimate question: “Are we in a housing bubble?”

Let’s take a look at 3 key factors that suggest we’re not, so you can educate your clients and calm fears in your market.

PART 1: HOUSING SUPPLY

Last year, home values appreciated an average of 15% across the nation. And while this year’s growth isn’t expected to match it, buyers and sellers are still worried that home prices are too high and that depreciation is likely to follow.

However, unlike the Housing Bubble years of the mid-2000s, the major factor driving up home values is that we’re also in a dire inventory shortage.

A balanced real estate market’s inventory sits around 6 months. Today’s current market is at 1.7 months, a historically low amount of homes for sale.

In comparison, the inventory level from 2005 and 2007 increased from 5 months to 11 months, a vast over-supply of homes that did not warrant the price appreciation that went along with it.

So, throwing it back to your high school economics class, the biggest driver of price appreciation is a simple case of supply and demand, hence what we’re seeing in the market today.

PART 2: HOUSING DEMAND

If you remember the housing boom of the mid-2000s, you know how crazy that time was in real estate. But if Robert Schiller, a fellow at the Yale School of Management’s International Center for Finance, could sum it up in one phrase, it’s this: irrational exuberance.

In other words, the buying and selling frenzy that contributed to the market collapse was fueled not by tactful, financial decisions but a country-wide case of FOMO (fear of missing out).

The mortgage industry fed into the frenzy, making it easy for people to obtain home loans much higher than they could afford.

Today’s real estate demand, however, is a very real thing. And lending standards have become much tighter since before the crash.

Plus, with escalating rent happening across the U.S., many Americans are opting for the financial stability that homeownership offers.

These factors, coupled with low mortgage rates, make purchasing a home today a good financial decision. So, not only is the demand very real, it’s also very smart.

PART 3: EQUITY

Following the housing and economic crash of 2008, economists, financiers, and real estate industry experts have combed through data to figure out why the entire system crumbled the way it did.

Most will agree that one of the biggest pieces of that catastrophic equation came down to this: equity. Or in reality, a lack of it.

The mid-2000s saw a massive wave of homeowners cashing out the equity in their homes. In short, they were using their homes like ATMs to afford some of the finer things in life.

This led to a lot of negative equity situations: where the amount someone owed on their home was far more than what their house was worth. Many foreclosures and short-sales followed, depreciating home values nationwide.

Today is a much different equity picture. Cash-out refinance volume over the last three years is less than a third of what it was compared to the three years before the crash. Plus, escalating appreciation meant that homeowners gained an average of $55,300 in equity in the last 12 months alone. As prices continue to rise, equity will too.

This positive equity perspective puts the current housing market in a much stronger place, minimizing risk of foreclosure and stabilizing home values across the U.S.

BOTTOM LINE

The most important role of a real estate agent is to be the educator to their clients.

What that really means is analyzing data and insights, getting all sides of a story and then being able to communicate that so your clients can make the best real estate decision.

At the end of the day, knowledge is the most powerful tool you have in your business. Use it every chance you get!

And while you’re at it, download our free eGuide, How to Succeed in a Changing Real Estate Market, where we break down the best way to guide your clients through today’s challenges. That way you and your clients can navigate any shifting housing market.

Posted by NE TEXAS REALTY GROUP on May 24th, 2022 9:35 AM

Do You Know How Much Equity You Have in Your Home? [INFOGRAPHIC]

Do You Know How Much Equity You Have in Your Home? [INFOGRAPHIC] | Keeping Current Matters

Some Highlights

  • If you’re a homeowner, your net worth has gotten a big boost. That’s because recent home price appreciation has increased your equity.
  • Your equity grows as you pay down your loan and as your home increases in value. Over the past year, the average homeowner’s equity grew by $55,300.
  • Ready to sell? Reach out to a local real estate professional to talk about how you can use that equity to fuel your next move.
Posted by NE TEXAS REALTY GROUP on May 11th, 2022 2:10 PM

532 NASH STREET
VAN ALSTYNE, TX 75495

$148,000

Beds: 2
Baths: 1
Sq. Ft.: 1,219
Type: House
   
Property Photo
1 of 20
Listing #20053842
HUD Owned Home FHA Case#511-030565 Sold AS-IS. Come take a look at this 2 bedroom home in the heart of Van Alstyne, TX. This home offers a circle drive and privacy at the end of a dead end street. 2 car detached garage with 484 SF plus an additional 900 SF workshop with attached carport and utilities. Plenty of rear parking space plus an additional concrete slab. The interior offers 2 living areas, wood paneling and large kitchen and dining combo with tons of storage and cabinet space. This would be a great investment or fix and flip. Come take a look today!
Property Features
Location Information
County: Grayson
Latitude: 33.426161
Longitude: -96.575393
Subdivision: Greers 3rd Add
Directions: GPS
Interior Features
Interior: Decorative Lighting, Natural Woodwork, Paneling
Full Baths: 1
Has Fireplace: No
Number of Fireplaces: 0
Heating: Central, Electric
Cooling: Central Air, Electric
Floors: Carpet, Vinyl
Laundry: Utility Room, Full Size W/D Area, Washer Hookup
Appliances: Electric Range, Electric Water Heater
Has Basement: No
Exterior Features
Style: Traditional
Construction: Siding
Exterior: Covered Patio/Porch, Storage
Foundation: Pillar/Post/Pier
Roof: Composition
Water / Sewer: All Weather Road, City Sewer, City Water, Co-op Electric
Utilities: All Weather Road, City Sewer, City Water, Co-op Electric
Parking Description: 2-Car Double Doors, 2-Car Single Doors, Carport, Circular Driveway, Garage Faces Rear
Has Garage: Yes
Garage Spaces: 4
Has a Pool: No
Lot Size in Acres: 0.42
Lot Size in Sq. Ft.: 18,295
Is One Story: No
School
School District: Van Alstyne ISD
Elementary School: Van Alstyne
Jr. High School: Van Alstyne
High School: Van Alstyne
Additional Information
Year Built Details: Preowned
Property Type: SFR
Property SubType 2: Single Detached
Property SubType: Single Family Residence
Year Built: 1900
Status: Active
Home Owners Association: None
Unexempt Taxes: 3344
Lease Terms: Lease Type: , Lease Conditions:
Posted by NE TEXAS REALTY GROUP on May 11th, 2022 2:10 PM

Where Are Mortgage Rates Headed?

Where Are Mortgage Rates Headed?

There’s never been a truer statement regarding forecasting mortgage rates than the one offered last year by Mark Fleming, Chief Economist at First American:

“You know, the fallacy of economic forecasting is: Don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”

Coming into this year, most experts projected mortgage rates would gradually increase and end 2022 in the high three-percent range. It’s only April, and rates have already blown past those numbers. Freddie Mac announced last week that the 30-year fixed-rate mortgage is already at 4.72%.

Danielle Hale, Chief Economist at realtor.comtweeted on March 31:

“Continuing on the recent trajectory, would have mortgage rates hitting 5% within a matter of weeks. . . .”

Just five days later, on April 5, the Mortgage News Daily quoted a rate of 5.02%.

No one knows how swiftly mortgage rates will rise moving forward. However, at least to this point, they haven’t significantly impacted purchaser demand. Ali Wolf, Chief Economist at Zondaexplains:

Mortgage rates jumped much quicker and much higher than even the most aggressive forecasts called for at the end of last year, and yet housing demand appears to be holding steady.”

Through February, home prices, the number of showings, and the number of homes receiving multiple offers all saw a substantial increase. However, much of the spike in mortgage rates occurred in March. We will not know the true impact of the increase in mortgage rates until the March housing numbers become available in early May.

Rick Sharga, EVP of Market Intelligence at ATTOM Datarecently put rising rates into context:

“Historically low mortgage rates and higher wages helped offset rising home prices over the past few years, but as home prices continue to soar and interest rates approach five percent on a 30-year fixed rate loan, more consumers are going to struggle to find a property they can comfortably afford.”

While no one knows exactly where rates are headed, experts do think they’ll continue to rise in the months ahead. In the meantime, if you’re looking to buy a home, know that rising rates do have an impact. As rates rise, it’ll cost you more when you purchase a house. If you’re ready to buy, it may make sense to do so sooner rather than later.

Bottom Line

Mark Fleming got it right. Forecasting mortgage rates is an impossible task. However, it’s probably safe to assume the days of attaining a 3% mortgage rate are over. The question is whether that will soon be true for 4% rates as well.


Posted by NE TEXAS REALTY GROUP on May 4th, 2022 11:12 AM

What You Need To Know About Selling in a Sellers’ Market

What You Need To Know About Selling in a Sellers’ Market

Even if you haven’t been following real estate news, you’ve likely heard about the current sellers’ market. That’s because there’s a lot of talk about how strong market conditions are for people who want to sell their houses. But if you’re thinking about listing your house, you probably want to know: what does being in a sellers’ market really mean?

What Is a Sellers’ Market?

The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still very low. There’s a 2-month supply of homes at the current sales pace.

Historically, a 6-month supply is necessary for a normal or neutral market where there are enough homes available for active buyers. That puts today deep in sellers’ market territory (see graph below):

What You Need To Know About Selling in a Sellers' Market | Keeping Current Matters

What Does This Mean for You When You Sell?

When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which can lead to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer upfront. This could drive the final price of your house up.

And because mortgage rates and home prices are climbing, serious buyers are motivated to make their purchase soon, before those two things rise further. That means, if you put your house on the market while supply is still low, it will likely get a lot of attention from competitive buyers.

Bottom Line

The current real estate market has incredible opportunities for homeowners looking to make a move. Listing your house this season means you’ll be in front of serious buyers who are ready to buy. Connect with a local real estate professional so you can jumpstart the selling process.

Posted by NE TEXAS REALTY GROUP on April 29th, 2022 1:20 PM

Using Your Tax Refund To Achieve Your Homeownership Goals This Year

Using Your Tax Refund To Achieve Your Homeownership Goals This Year

If you’re buying or selling a home this year, you’re likely saving up for a variety of expenses. For buyers, that might include things like your down payment and closing costs. And for sellers, you’re probably working on a bit of spring cleaning and maintenance to spruce up your house before you list it.

Either way, any money you get back from your taxes can help you achieve your goals. Using a tax refund is a common tactic for buyers and sellers. SmartAsset estimates the average American will receive a $2,897 tax refund this year. The map below provides a more detailed estimate by state:

Using Your Tax Refund To Achieve Your Homeownership Goals This Year | Keeping Current Matters

If you’re getting a refund this year, here are a few tips to help with your home purchase or sale this season.

How Buyers Can Use Their Tax Refund

According to American Financing, there are multiple ways your refund check can help you as a homebuyer. A few include:

  • Growing your down payment fund – If you haven’t started saving for your down payment, let your tax refund kick off the process. And if you have a fund already, the money you get back could put you closer to your goal.
  • Paying for your home inspection – Your home inspection can save you a lot of headaches down the road by helping you determine the condition of the house. As a buyer, you’ll typically be responsible for paying for your inspection, and it’s definitely worth the investment.
  • Saving for closing costs – Closing costs are additional expenses you’ll need to pay once it’s time to close. They average anywhere between 2-5% of the purchase price of your home.

This list is a great start, but it isn’t exhaustive of all the costs you may encounter as you set out on your homebuying journey. The best way to prepare is to work with a trusted real estate professional to make sure you understand what’s to come in the process.

How Sellers Can Use Their Tax Refund

If you own a home and are planning to sell this spring, your tax refund can help you make sure your home is ready to list. Here are a few ways current homeowners can put their tax refund to good use:

  • Making small upgrades – NerdWallet provides a list of great ways to use your tax refund, including tackling small projects or boosting your curb appeal to help your home stand out.
  • Making repairs – If there’s anything in your house that needs to be fixed, American Financing notes that completing repairs is another great use of that money.
  • Buying your next home – Whether you’re selling to move up or downsize, you can use your tax refund to help pay for any costs on the purchase of your next home.

Of course, it’s important to talk with your trusted real estate advisor before taking on any projects. They’ll make sure you can focus on areas that’ll help you receive the best possible price when you sell.

Bottom Line

Funding your home purchase or sale can feel like a daunting task, but it doesn’t have to be. Your tax refund can help you reach your goals. Connect with a local real estate advisor today to discuss how you can start on your journey.

Posted by NE TEXAS REALTY GROUP on April 28th, 2022 11:21 AM

170 N JEFFUS STREET
DEPORT, TX 75435

$49,900

Beds: 3
Baths: 2
Sq. Ft.: 1,333
Type: House
   
Property Photo
1 of 20
Listing #20036024
Small town location in Deport, TX. This 3 bedroom 2 bath home offers 1333 SF living area with wood burning fireplace in the living room, central heat and air and kitchen appliances. The exterior offers a .73 acre double lot with good street frontage, storage building, attached carport, concrete storm shelter and large metal shed in the back. This property could be your next investment home or a great fix and flip. Come take a look!
Property Features
Location Information
County: Lamar
Latitude: 33.532652
Longitude: -95.320013
Subdivision: City Of Deport
Directions: GPS
Interior Features
Interior: Decorative Lighting, Paneling
Full Baths: 2
Has Fireplace: Yes
Number of Fireplaces: 1
Heating: Central, Fireplace(s), Gas Jets, Natural Gas
Cooling: Ceiling Fan(s), Central Air
Floors: Laminate, Vinyl
Laundry: Utility Room, Full Size W/D Area, Washer Hookup
Appliances: Electric Cooktop, Refrigerator
Has Basement: No
Exterior Features
Construction: Brick, Siding, Stone Veneer
Exterior: Covered Patio/Porch, Stable/Barn, Storage
Foundation: Block
Roof: Metal
Water / Sewer: Asphalt, City Sewer, City Water, Co-op Electric
Utilities: Asphalt, City Sewer, City Water, Co-op Electric
Parking Description: Attached Carport
Has Garage: No
Garage Spaces: 1
Patio / Deck Description: Covered
Has a Pool: No
Other Structures: Shed(s), Storage
Lot Description: Lrg. Backyard Grass
Lot Size in Acres: 0.734
Lot Size in Sq. Ft.: 31,981
Is One Story: No
Lot Description: Lrg. Backyard Grass
School
School District: Prairiland ISD
Elementary School: Deport
Jr. High School: Prairiland
High School: Prairiland
Additional Information
Year Built Details: Preowned
Property Type: SFR
Property SubType 2: Single Detached
Property SubType: Single Family Residence
Year Built: 1970
Status: Active
Home Owners Association: None
Unexempt Taxes: 85
Posted by NE TEXAS REALTY GROUP on April 21st, 2022 2:36 PM

106 S TAYLOR STREET
LADONIA, TX 75449

$115,000

Beds: 2
Baths: 2
Sq. Ft.: 1,259
Type: House
   
Property Photo
1 of 21
Listing #20036925
Nice 2 bedroom 2 bath brick home in the Fannindel ISD. This property is located only minutes from the newly constructed Lake Ralph Hall and will make a great investment or personal home. This home offers a 1.70 acre lot with good road frontage, an oversized detached garage with workshop and storage area, screened in porch and fenced yard. The interior offers a gas fireplace in the open living area, island bar area in kitchen and 2 master suites with walk in closets and private bathrooms. This home is in overall good condition with only a few finishing touches needed and will not last long at this price. Come take a look. Sold AS-IS.
Property Features
Location Information
County: Fannin
Latitude: 33.423457
Longitude: -95.938782
Subdivision: Original Town Of Ladonia
Directions: GPS
Interior Features
Interior: Decorative Lighting, Kitchen Island, Walk-In Closet(s)
Full Baths: 2
Has Fireplace: Yes
Number of Fireplaces: 1
Heating: Central, Gas Jets
Cooling: Ceiling Fan(s), Central Air, Electric
Floors: Carpet, Laminate, Vinyl
Laundry: Electric Dryer Hookup, In Kitchen, Full Size W/D Area, Washer Hookup
Appliances: Dishwasher, Plumbed For Gas in Kitchen
Has Basement: No
Exterior Features
Style: Traditional
Construction: Brick
Exterior: Covered Patio/Porch, Storage
Foundation: Slab
Roof: Composition
Water / Sewer: City Sewer, City Water, Co-op Electric, Gravel/Rock
Utilities: City Sewer, City Water, Co-op Electric, Gravel/Rock
Parking Description: 2-Car Single Doors, Garage, Workshop in Garage
Has Garage: Yes
Garage Spaces: 2
Patio / Deck Description: Covered
Has a Pool: No
Other Structures: Workshop
Lot Description: Acreage, Lrg. Backyard Grass
Lot Size in Acres: 1.738
Lot Size in Sq. Ft.: 75,707
Is One Story: No
Lot Description: Acreage, Lrg. Backyard Grass
School
School District: Fannindel ISD
Elementary School: Fannindell
Jr. High School: Fannindell
High School: Fannindell
Additional Information
Year Built Details: Preowned
Property Type: SFR
Property SubType 2: Single Detached
Property SubType: Single Family Residence
Year Built: 2002
Status: Active
Home Owners Association: None
Unexempt Taxes: 2290
Posted by NE TEXAS REALTY GROUP on April 21st, 2022 2:35 PM

3353 FM 10
CARTHAGE, TX 75633

$190,000

Beds: 3
Baths: 3
Sq. Ft.: 2,820
Type: House
   
Property Photo
1 of 30
Listing #20037074
HUD OWNED HOME FHA CASE#511-002100 SOLD AS-IS. One of a kind home with 12.95 acres of land in Gary ISD. This rustic cabin style home has 3 bedrooms and 3 full bathrooms. Large living room with rock fireplace and plenty of wood work and built ins. The master bedroom has floor to ceiling glass and vaulted ceilings plus a huge walk in closet. Nice kitchen with large breakfast bar and tons of cabinet space. Large wood deck on the back and a workshop or additional guest quarters are a plus. Come take a look to see all it offers because it will not last at this price!
Property Features
Location Information
County: Panola
Latitude: 32.07155
Longitude: -94.373606
Subdivision: Isabella Hanks Surv A-271
Directions: GPS
Interior Features
Interior: Decorative Lighting, Kitchen Island, Natural Woodwork, Vaulted Ceiling(s), Walk-In Closet(s)
Full Baths: 3
Has Fireplace: Yes
Number of Fireplaces: 1
Heating: Central, Gas Jets
Cooling: Ceiling Fan(s), Central Air, Electric
Floors: Carpet, Concrete, Vinyl, Wood
Laundry: Electric Dryer Hookup, Utility Room, Washer Hookup
Appliances: Dishwasher, Electric Oven, Electric Range
Has Basement: No
Exterior Features
Style: Craftsman
Construction: Siding
Exterior: Covered Patio/Porch, Storage
Foundation: Pillar/Post/Pier, Slab
Roof: Metal
Water / Sewer: Asphalt, Co-op Electric, Outside City Limits
Utilities: Asphalt, Co-op Electric, Outside City Limits
Parking Description: Driveway
Has Garage: No
Garage Spaces: 0
Patio / Deck Description: Covered, Deck
Has a Pool: No
Other Structures: Guest House, Workshop w/Electric
Lot Description: Acreage, Lrg. Backyard Grass, Water/Lake View
Lot Size in Acres: 12.956
Lot Size in Sq. Ft.: 564,363
Is One Story: No
Lot Description: Acreage, Lrg. Backyard Grass, Water/Lake View
School
School District: Gary ISD
Elementary School: Gary
Jr. High School: Gary
High School: Gary
Additional Information
Year Built Details: Preowned
Property Type: SFR
Property SubType 2: Single Detached
Property SubType: Single Family Residence
Year Built: 1980
Status: Active
Home Owners Association: None
Unexempt Taxes: 4992
Posted by NE TEXAS REALTY GROUP on April 21st, 2022 2:34 PM

THE BIGGEST QUESTIONS CLIENTS ARE ASKING THIS SPRING

Buckle up. This spring market is going to be a busy one.

Homes are selling fast and inventory just can’t keep up with the demand.

But there are still some big questions surrounding the housing market right now holding back a lot of buyers and sellers.

And being able to answer them could make or break how successful you are this spring.

Here’s what you need to know so you can educate your sphere right now.

WILL WE SEE MORE INVENTORY THIS SPRING?

For the last number of decades, the real estate market has been broken down into seasons with spring reigning as the best time to sell a home. Traditionally, that’s how it’s been. But there’s a big shift happening now.

Recent years have seen that seasonality blur as more and more people decide to buy or sell a home no matter what time of year it is.

What we do know is that while we’ll probably see more homes hit the market this spring, supply is still too low to keep up with demand.

So, even if more homes do come on the market compared to previous months, there are plenty of willing and ready buyers waiting on the sidelines to scoop them up.

The best way to prepare your clients for this competitive market is to make sure they’re ready to move fast, be patient and stay flexible.

WHY ARE PRICES RISING SO QUICKLY?

No one wants to buy at the top of the market. We saw how that played out in 2008, and it didn’t end well for a lot of homeowners.

But according to recent expert projections, we aren’t at the top of the market.

But before we dive a little deeper into that, we need to explain a couple of things.

First, with both Millenials and Gen Z now in the buyer group, there isn’t enough existing inventory to keep up with the amount of aspiring homeowners. Second, we didn’t build enough homes in the last decade to keep up with the demand.

This leads us directly to our next big question.

SHOULD I WAIT TO BUY UNTIL PRICES GO DOWN?

So, with existing inventory not being able to keep up with the number of buyers looking to own a home, we are seeing price appreciation that looks strikingly similar to what we saw in the years leading up to the crash.

The big difference between now and then is this: this price appreciation is a direct result of low inventory and high demand. Not high inventory and high demand like in the early 2000s.

Plus, earlier projections by top industry experts are already being revised to higher than originally anticipated. That means more likely than not, we could see another year of above-average price appreciation.

Altos research quote

HOW WILL RISING INFLATION IMPACT THE HOUSING MARKET?

Inflation: one of the most unfortunate results of the pandemic. And there have obviously been many (let’s never forget the infamous toilet paper shortage).

But inflation isn’t new. And if we look all the way back to 1970, we actually see one big takeaway: homeownership is historically a great hedge against it.

For example, as rental prices continue to rise nationwide, locking in mortgage payments can keep your largest monthly cost the same. remain the same.

Another big takeaway: home price appreciation has outperformed inflation for decades.

So, if you have clients worried about how today’s inflation may affect the housing market, tell them this: at the very least, data shows that historically real estate gas outperformed inflation.

SHOULD I WAIT UNTIL PRICES GO DOWN TO BUY?

Like we covered above, industry experts are projecting that prices will only go up from here (and that’s not likely to change anytime soon).

There are many benefits to homeownership. But the biggest one you need to discuss with your clients right now is that it’s consistently been voted the best long-term investment a person can make in their life.

And waiting for the market to cool off or prices to go down means only one thing: paying more for the exact same house. Especially as experts project mortgage rates will continue to rise.

The best advice you can give any clients who are hesitant to hop into this hot market is this: you can wait, but it will probably cost you.

Bottom Line

The defining factor between good agents and great agents is one thing: education.

This may be a competitive market for buyers and sellers. It’s also cutthroat for agents competing for listings. If you want to stand out from the crowd and prove yourself as the agent for the job, you need more than your license.

You need data, facts and expert insights to back up your answers and spread education throughout your sphere.

That’s why we created our How to Succeed in a Changing Market eGuide. Download it free and get tips and tactics to help you and your clients navigate today’s constantly changing and challenging housing market.

That’s what will show prospective clients that you are the trusted advisor to work with this spring.

Posted by NE TEXAS REALTY GROUP on April 21st, 2022 2:33 PM

512 NEAL STREET
HOWE, TX 75459

$220,000

Beds: 3
Baths: 2
Sq. Ft.: 2,400
Type: House
   
Property Photo
1 of 17
Listing #20019178
Great opportunity for this 2400 SF 3 bedroom 2 bath brick home centrally located in a small community between McKinney and Sherman TX. Great small town living with easy access to Interstate 75 for short commute. This home is in the Howe ISD. This property offers a metal roof, attached 2 car garage, 2 car carport, large covered patio and 2380SF workshop with utilities. The interior offers 2 living areas and large bedrooms. This home has a ton of custom built in cabinets and features. This home would be great for work from home small business person or someone looking for tons of storage space. This property has a lot to offer and ready for your ideas. Come take a look before it is gone.
Property Features
Location Information
County: Grayson
Latitude: 33.510478
Longitude: -96.615347
Subdivision: Chisholm Add
Directions: GPS
Interior Features
Interior: Built-in Features, Decorative Lighting
Full Baths: 2
Has Fireplace: No
Number of Fireplaces: 0
Heating: Central, Natural Gas
Cooling: Ceiling Fan(s), Central Air, Electric
Floors: Ceramic Tile, Combination, Concrete, Hardwood, Laminate
Laundry: Electric Dryer Hookup, Utility Room, Full Size W/D Area, Washer Hookup
Appliances: Dishwasher, Microwave, Vented Exhaust Fan
Has Basement: No
Exterior Features
Style: Ranch
Construction: Brick
Exterior: Covered Patio/Porch, Storage
Foundation: Slab
Roof: Metal
Water / Sewer: Asphalt, City Sewer, City Water
Utilities: Asphalt, City Sewer, City Water
Parking Description: 2-Car Single Doors, Attached Carport, Carport, Covered, Garage
Has Garage: Yes
Garage Spaces: 2
Patio / Deck Description: Covered, Front Porch, Rear Porch
Has a Pool: No
Lot Size in Acres: 0.366
Lot Size in Sq. Ft.: 15,942
Is One Story: No
School
School District: Howe ISD
Elementary School: Summit Hill
Jr. High School: Howe
High School: Howe
Additional Information
Year Built Details: Preowned
Property Type: SFR
Property SubType 2: Single Detached
Property SubType: Single Family Residence
Year Built: 1974
Status: Active
Home Owners Association: None
Unexempt Taxes: 4124
Lease Terms: Lease Type: , Lease Conditions:
Listing courtesy of
Kevin Riney, NE Texas Regional Realty
© 2022 North Texas Real Estate Information Systems. All rights reserved.
Posted by NE TEXAS REALTY GROUP on April 13th, 2022 11:49 AM

2692 HAWK ROAD
DIANA, TX 75640

$96,500

Beds: 3
Baths: 2
Sq. Ft.: 1,220
Type: Mobile Home
   
Property Photo
1 of 15
Listing #20001298
HUD Owned Home FHA Case#511-146594 Sold AS-IS. Great location! 3 bedroom 2 bath home on .50 acres. Tree shaded lot. Well kept neighborhood. This home offers a split bedroom floorplan and open living and dining area. The exterior offers a small fenced back yard with covered deck. Handicap ramp at front entrance. This home is in overall good condition and ready for new owner. Come take a look!
Property Features
Location Information
County: Upshur
Latitude: 32.706305
Longitude: -94.778503
Subdivision: John Lout Surv A-275
Directions: GPS
Interior Features
Interior: Eat-in Kitchen, Vaulted Ceiling(s), Walk-In Closet(s)
Full Baths: 2
Has Fireplace: No
Number of Fireplaces: 0
Heating: Central, Electric
Cooling: Ceiling Fan(s), Central Air, Electric
Floors: Linoleum
Appliances: Dishwasher, Electric Range
Has Basement: No
Accessibility: Accessible Approach with Ramp
Exterior Features
Construction: Siding
Exterior: Covered Deck
Foundation: Block
Roof: Composition
Water / Sewer: Aerobic Septic, All Weather Road
Utilities: Aerobic Septic, All Weather Road
Parking Description: Driveway
Has Garage: No
Garage Spaces: 0
Fencing: Chain Link
Patio / Deck Description: Covered, Deck
Has a Pool: No
Lot Size in Acres: 0.506
Lot Size in Sq. Ft.: 22,041
Is One Story: No
School
School District: New Diana ISD
Elementary School: Newdiana
Jr. High School: Newdiana
High School: Newdiana
Additional Information
Year Built Details: Preowned
Property Type: MH
Property SubType 2: Mobile Doublewide w/Land
Property SubType: Manufactured Home
Year Built: 2011
Status: Active
Home Owners Association: None
Unexempt Taxes: 943
Exclusions: No keys will be given at closing. Buyer must be ready to change locks after closing and funding.
Lease Terms: Lease Type: , Lease Conditions:
Listing courtesy of
Kevin Riney, NE Texas Regional Realty
© 2022 North Texas Real Estate Information Systems. All rights reserved.
Posted by NE TEXAS REALTY GROUP on April 13th, 2022 11:40 AM

What’s Happening with Mortgage Rates, and Where Will They Go from Here?

What’s Happening with Mortgage Rates, and Where Will They Go from Here?

Based on the Primary Mortgage Market Survey from Freddie Mac, the average 30-year fixed-rate mortgage has increased by 1.2% (3.22% to 4.42%) since January of this year. The rate jumped by more than a quarter of a point from just a week ago. Here’s a visual to show how mortgage rate movement throughout 2021 was steady compared to the rapid increase in mortgage rates this year:

What’s Happening with Mortgage Rates, and Where Will They Go from Here? | Keeping Current Matters

Just a few months ago, Freddie Mac projected mortgage rates would average 3.6% in 2022. Earlier this month, Fannie Mae forecast mortgage rates would average 3.8% in 2022. As the chart above shows, rates have already surpassed those projections.

Sam Khater, Chief Economist at Freddie Mac, explained in a press release last week:

“This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up. Rising inflation, escalating geopolitical uncertainty and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power.”

Where Are Mortgage Rates Going from Here?

In a recent article by Bankrate, several industry experts weighed in on where rates might be headed going forward. Here are some of their forecasts:

Greg McBride, Chief Financial Analyst, Bankrate:

“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0% on the 30-year fixed.”

Nadia Evangelou, Senior Economist and Director of Forecasting, National Association of Realtors (NAR):

“While higher short-term interest rates will push up mortgage rates, I expect some of this impact to be mitigated eventually through lower inflation. Thus, I expect the 30-year fixed mortgage rate to continue to rise, although we aren’t likely to see the big jumps that occurred over the past few weeks.”

Len Kiefer, Deputy Chief Economist, Freddie Mac:

“Mortgage rates are likely to continue to move higher throughout the balance of 2022, although the pace of rate increases is likely to moderate.”

In a recent realtor.com article, another expert adds to the conversation:

Danielle Hale, Chief Economist, realtor.com:

“. . . As markets digest the Fed’s updated economic projections, I anticipate a continued increase in mortgage rates over the next several months. . . .”

What Does This Mean for You if You’re Looking To Buy a Home?

With both mortgage rates and home values expected to increase throughout the year, it would be better to buy sooner rather than later if you’re able. That’s because it’ll cost you more the longer you wait. But, there is a possible silver lining to buying a home right now. While you’ll be paying a higher price and a higher mortgage rate than you would have last year, rising prices do have a long-term benefit once you buy.

If you purchase a home today valued at $400,000 and put 10% down, you would be taking out a $360,000 mortgage. According to mortgagecalculator.net, at a 4.42% fixed mortgage rate, your mortgage payment would be $1,807 a month (this does not include insurance, taxes, and other fees because those vary by location).

Now, let’s put that mortgage payment into a new perspective based on the substantial growth in equity that comes with the escalation in home prices. Every quarter, Pulsenomics surveys a panel of over 100 economists, investment strategists, and housing market analysts about their expectations for future home prices in the United States. Last week, Pulsenomics released their latest Home Price Expectation Survey. The survey reveals that the average of the experts’ forecasts calls for a 9% increase in home values in 2022.

Based on those projections, a $400,000 house you buy today could be valued at $436,000 by this time next year. If you break that down, that means the equity in your home would increase by $3,000 a month over that period. That’s greater than the estimated monthly payment above. Granted, the increase in your net worth is tied to the home, but it is one way to put the home price appreciation to use in a way that benefits you.

Bottom Line

Paying a higher price for a home and a higher mortgage rate can be a difficult pill to swallow. However, waiting will just cost you more. If you’re ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now. Connect with a real estate professional to begin the process today.

Posted by NE TEXAS REALTY GROUP on April 13th, 2022 11:38 AM

It’s Still a Sellers’ Market [INFOGRAPHIC]

It’s Still a Sellers’ Market [INFOGRAPHIC] | Keeping Current Matters

Some Highlights

  • Due to low supply and high demand, today is one of the strongest sellers’ markets we’ve seen.
  • Sellers can benefit from more offers to pick from, higher home values, and a faster sales process. There’s a reason why 72% of people believe it’s a good time to sell.
  • Don’t miss out on this unique opportunity. Work with an agent to take advantage of this hot sellers’ market.
Posted by NE TEXAS REALTY GROUP on April 8th, 2022 10:28 AM

What You Need To Budget for When Buying a Home

What You Need To Budget for When Buying a Home

When it comes to buying a home, it can feel a bit intimidating to know how much you need to save and where to find that information. But you should know, you’re not expected to have all the answers yourself. There are many trusted professionals who can help you understand your finances and what you’ll need to budget for throughout the process.

To get you started, here are a few things experts say you should plan for along the way.

1. Down Payment

As you set your savings goal for your purchase, your down payment is likely already top of mind. And, like many other people, you may believe you need to set aside 20% of the home’s purchase price for that down payment – but that’s not always the case. The National Association of Realtors (NAR) says:

One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership. Having this knowledge is critical to know what to save . . .”

The good news is, you may be able to put as little as 3.5% (or even 0%) down in some situations. To understand your options, partner with a trusted professional who can go over the various loan types, down payment assistance programs, and what each one requires.

2. Earnest Money Deposit

Another item you may want to plan for is an earnest money deposit. While it isn’t required, it’s common in today’s highly competitive market because it can help your offer stand out in a bidding war.

So, what is it? It’s money you pay as a show of good faith when you make an offer on a house. This deposit works like a credit. You’re using some of the money you already saved for your purchase to show the seller you’re committed and serious about their house. It’s not an added expense, it’s just paying some of that up front. First American explains what it is and how it works:

The deposit made from the buyer to the seller when submitting an offer. This deposit is typically held in trust by a third party and is intended to show the seller you are serious about purchasing their home. Upon closing the money will generally be applied to your down payment or closing costs.”

In other words, an earnest money deposit could be the very first check you’ll write toward your purchase. The amount varies by state and situation. Realtor.com elaborates:

The amount you’ll deposit as earnest money will depend on factors such as policies and limitations in your state, the current market, what your real estate agent recommends, and what the seller requires. On average, however, you can expect to hand over 1% to 2% of the total home purchase price.”

Work with a real estate advisor to understand any requirements in your local area and what they’ve recommended for other buyers in your market. They’ll help you determine if it’s something that could be a useful option for you.

3. Closing Costs

The next thing to plan for is your closing costs. The Federal Trade Commission (FTC) defines closing costs as:

The upfront fees charged in connection with a mortgage loan transaction. …generally including, but not limited to a loan origination fee, title examination and insurance, survey, attorney’s fee, and prepaid items, such as escrow deposits for taxes and insurance.”

Basically, your closing costs cover the fees for various people and services involved in your transaction. NAR has this to say about how much to budget for:

“A home costs more than just the sale price. For example, closing costs—which make up about 2% to 5% of the home’s purchase price—are a major added expense…Lenders provide a Closing Disclosure at least three business days prior to closing on a mortgage. But buyers will need to budget for these added costs ahead of time to avoid sticker shock days before closing.”

The key takeaway is savvy buyers plan ahead for these expenses so they can come into the process prepared. Freddie Mac sums it up like this:

“If you’re in the market to buy a home, your down payment is probably top of mind. And rightly so – it’s likely the biggest cost of homebuying. However, it is not the only cost and it’s critical you understand all your expenses before diving in. The more prepared you are for your down payment, closing and other costs, the smoother your homebuying journey will be.”

Bottom Line

Knowing what to budget for in the homebuying process is essential. To make sure you understand these and any other expenses that may come up, partner with a real estate advisor for expertise on what to expect when you buy a home.

Posted by NE TEXAS REALTY GROUP on April 6th, 2022 11:57 AM

Balancing Your Wants and Needs as a Homebuyer Today

Balancing Your Wants and Needs as a Homebuyer Today

Since the number of homes for sale is low today, it can feel challenging to find one that checks all your boxes. But if you know which features are absolutely essential in your next home and which ones are just nice bonuses, you can land a home that fits your needs.

Danielle Hale, Chief Economist for realtor.com, explains it like this:

“Focus on the goal you set out for yourself, like your list of must-haves and nice-to-haves and your budget, . . . Stick to that. Be persistent.”

So how do you go about creating your list of desired features? The first step is to get pre-approved for your mortgage. Pre-approval helps you better understand your budget, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a home that’s too far out of reach.

Once you have a good grasp of your budget, you can begin to list all the features of a home you would like. Here’s a great way to think about them before you begin:

  • Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
  • Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, garage, etc.).
  • Dream State– This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).

Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate advisor. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your needs.

Bottom Line

Crafting your home search checklist may seem like a small task, but it can save you time and money. It’s also one of the keys to being successful in today’s competitive market. Connect with a real estate professional so you can work together to find a home that fits your wants and needs.

Posted by NE TEXAS REALTY GROUP on April 5th, 2022 10:40 AM
New Index Reveals Impact of COVID-19 on Real Estate
New Index Reveals Impact of COVID-19 on Real Estate

Earlier this month, realtor.com announced the release of their initial Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry, tracking each of the following:

  1. Housing Demand – Growth in online search activity
  2. Home Price – Growth in asking prices
  3. Housing Supply – Growth of new listings
  4. Pace of Sales – Difference in time-on-market

The index then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.”

The graph below charts the index by showing how the real estate market started out strong in early 2020, and then dropped dramatically at the beginning of March when the pandemic paused the economy. It also shows the strength of the recovery since the beginning of May.New Index Reveals Impact of COVID-19 on Real Estate | Keeping Current MattersIt’s clear to see that the housing market is showing promising signs of recovery from the deep economic cuts we experienced earlier this spring. As noted by Dean Mon, Chairman of the National Association of Home Builders (NAHB):

“As the nation reopens, housing is well-positioned to lead the economy forward.”

The data today indicates the housing market is already on the way up.

Bottom Line

Staying connected to the housing market’s performance over the coming months will be essential, as we continue to evaluate exactly how the housing market is doing in this uncharted time ahead.

Posted by NE TEXAS REALTY GROUP on July 16th, 2020 3:02 PM

Housing Market Positioned to Bring Back the Economy

Housing Market Positioned to
Bring Back the Economy | MyKCM
All eyes are on the American economy. As it goes, so does the world economy. With states beginning to reopen, the question becomes: which sectors of the economy will drive its recovery? There seems to be a growing consensus that the housing market is positioned to be that driving force, the tailwind that is necessary. Some may question that assertion as they look back on the last recession in 2008 when housing was the anchor to the economy – holding it back from sailing forward. But even then, the overall economy did not begin to recover until the real estate market started to regain its strength. This time, the housing market was in great shape when the virus hit. As Mark Fleming, Chief Economist of First American, recently explained:
Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.
Fleming is not the only economist who believes this. Last week, Dr. Frank Nothaft, Chief Economist for CoreLogic, (@DrFrankNothaft) tweeted:
For the first 6 decades after WWII, the housing sector led the rest of the economy out of each recession. Expect it to do so this time as well.
And, Robert Dietz, Chief Economist for the National Association of Home Builders, in an economic update last week explained:
As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt…Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.

Bottom Line

Every time a home is sold it has a tremendous financial impact on local economies. As the real estate market continues its recovery, it will act as a strong tailwind to the overall national economy.
Posted by NE TEXAS REALTY GROUP on July 16th, 2020 3:02 PM

#1 Financial Benefit of Homeownership: Family Wealth

#1 Financial Benefit of
Homeownership: Family Wealth | MyKCM
While growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move. They explained how a mortgage is like a forced savings plan. When you pay rent, that money is lost forever. When you make a mortgage payment, much of that money accumulates as equity in the home. So, what exactly is equity? The equity in your home is the amount of money you can sell it for minus what you still owe on the mortgage. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. A recent study by CoreLogic explained that homeowners gained substantial equity over the last twelve months, and are essentially sitting on large sums of cash in their homes. In the study, Frank Nothaft, Chief Economist for CoreLogic explained:
“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth. The average family with a mortgage had a $7,300 gain in home equity during the past year, and a total of $177,000 in home equity wealth.”
For most families, their home is their largest financial asset. This increase in equity drives the net worth, or family wealth, of the homeowner. Renters are not earning that benefit. Instead, they're building the net worth of their landlord.

Bottom Line

Home price growth will moderate during the pandemic. But once a cure is available, most experts agree that home values will again begin to appreciate at levels similar to what we've seen over the last several years. In the long run, our family elders will be proven correct: owning a home is a savvy financial move.
Posted by NE TEXAS REALTY GROUP on June 25th, 2020 11:58 AM

A 365 Day Difference in Homeownership

A 365 Day Difference in
Homeownership | MyKCM

Over the past year, mortgage rates have fallen more than a full percentage point. This is a great driver for homeownership, as today's low rates provide consumers with some significant benefits. Here's a look at three of them:

  1. Refinance: If you already own a home, you may want to decide if you're going to refinance. It's one way to lock in a lower monthly payment and save substantially over time, but it also means paying upfront closing costs too. You have to answer the question: Should I refinance my home?
  2. Move-up or Downsize: Another option is to consider moving into a new home, putting the equity you've likely gained in your current house toward a down payment on a new one that better meets your needs – something that's truly a perfect fit for your family.
  3. Become a First-Time Homebuyer: There are many financial and non-financial benefits to owning a home, and the most important thing is to first decide when the time is right for you. You have to determine that on your own, but know that now is a great time to buy if you're considering it. Just take a look at the cost of renting vs. buying

Why 2019 Was a Great Year for Homeownership

Last year at this time, mortgage rates were 4.63% (substantially higher than they are today). If you're one who waited for a better time to make a move, market conditions have improved significantly. Today's low mortgage rates combined with increasing wages are making homes much more affordable than they were just one year ago, so it's a great time to get more for your money and consider a new home.

The chart below shows how much you would save based on today's rates, compared to what you would have paid if you purchased a house exactly one year ago, depending on how much you finance.A 365
Day Difference in Homeownership | MyKCM

Bottom Line

If you've been waiting since last year to make your move into homeownership, or to find a house that better meets your needs, today's low mortgage rates may be just what you need to get the process going. Let's get together to discuss how you can benefit from the current rates.

Posted in:General and tagged: Home Owner Tipsbuyingahome
Posted by NE TEXAS REALTY GROUP on January 14th, 2020 2:01 PM

Be on the Lookout for Gen Z: The Next Generation of Homebuyers

Be on the Lookout for Gen Z: The Next Generation of Homebuyers | MyKCM

You’ve likely heard a ton about Millennials, but what about Gen Z? In the next 5 years, this generation will be between the ages of 23 and 28, and they’re eager to become homeowners faster than you may think.

According to realtor.com,Nearly 80 percent of Generation Z members say they want to own a home before age 30,” and Concentrix Analytics said, “52% of prospective Gen Z buyers are already saving to buy a home.”

Wikipedia defines Generation Z (Gen Z) as “the demographic cohort after the Millennials. Demographers and researchers typically use the mid-1990s to mid-2000s as starting birth years.”

The report from Concentrix goes a little deeper on Gen Z, identifying the main reasons this cohort wants to own homes:

  • 55% want to own a home because they want to start a family
  • 47% want to build wealth over time
  • 33% want to make their family proud

Although they’re eager to buy, this generation also perceives a few challenges ahead:

  • 66% believe saving for a down payment and closing costs will be challenging
  • 58% feel covering the monthly costs of owning may be difficult
  • 52% perceive a lack of knowledge about where to start

It is also interesting to note that 21% of Gen Zers think their parents will provide financial help, 17% will use a down payment assistance program, and 15% believe other family members will help them. One of the highlights of the report mentioned,

“More than half of Gen Zers who think they’ll receive help also think they will need to pay their parents back, compared to 40 percent of millennials.”

Bottom Line

It is never too early to start saving for your own home, whether you are part of Gen Z or a different generation. If you would like to know where to start and how much you need to save to reach your goal of buying a home, let’s get together so you can better understand the process.

Posted by NE TEXAS REALTY GROUP on January 9th, 2020 1:54 PM

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