Articles Tagged "First-time Home Buyer"

The North Texas housing market is downshifting quickly, with Dallas-Fort Worth being the only U.S. market to see a decrease in home sale prices last month, according to a report released today.  DFW home prices are down 1.9% year over year in July, according to the latest Re/Max National Housing Report.

And what a difference a month makes.  Last month, DFW led the U.S. for home price increases, with June prices up 29.3% over the previous year.   In hard numbers, home sales prices in DFW fell to $413,900 in July from $422,000 in July 2021.   Homes in DFW spend an average of 23 days on the market before selling.

Higher interest rates and inflation, as well as record home prices, triggered a sharp drop in demand for housing, said Todd Luong, a realtor with Re/Max DFW Associates:  "Here at our Re/Max office in Dallas-Fort Worth, our listings are currently getting on average 2.7 showings per week," Luong said. "Last year, at this same time, our listings were earning on average 5.9 showings per week. That is a huge drop in buyer demand compared to the previous year. Record home prices and higher mortgage rates have forced many potential buyers out of the market, especially first-time homebuyers."

While the latest trends may disappoint some sellers, buyers now have more choices and better opportunities for good deals, Luong said.   Luong said that the DFW housing market has been challenged with low inventory for years and reached an all-time low earlier this year, with only a two-week supply. Now, however, inventory is increasing.  "Although buyers have more choices now, it is still not a balanced market as we only have about a two-month housing supply," Luong said. "In a normal market, you have about a five to six-month supply of housing."

A new report from Zillow also found falling home values, although the numbers didn't match Re/Max's precisely because of different study methods and different geographic definitions of DFW as a metro area, among other reasons.  According to Zillow's findings, the Dallas-Fort Worth metro area's typical home value is $396,904, down 1.1% since June, the first month of decline. Values are up 55.4% since July 2019.

Zillow also reported that the mortgage payment on a typical home in DFW is $2,633 a month, including taxes and insurance. That's up 77.4% compared to July 2019.

According to Zillow, inventory in DFW has risen 10.2% since June, and the share of listings with a price cut in July was 22%, compared to 15.6% in June.  Nationwide, after two years of unprecedented growth, home values fell for the first time since 2012 as competition for houses eased, according to Zillow's July market report.

The slowdown is being driven by decreased competition among buyers. Zillow's analysis says that affordability pressures have pushed many to the sidelines, and buyers are waiting in the wings to resume their search if and when prices relax a bit.  Skylar Olsen, Zillow's chief economist, called the flattening of home values "a badly needed rebalancing.  This slowdown is about discouraged buyers pulling back after the affordability shock from higher rates," Olsen said. "As prices soften, many will renew their interest, and we will continue our progress back to 'normal.'"

Luong said he sees positive signs in the market.  The interest rate for a 30-year fixed mortgage dropped below 5% after peaking in June. More than 290,000 new jobs were added in Dallas-Fort Worth last year, so North Texas has one of the strongest labor markets in the country.   "Reasonably priced homes that are in good condition and move-in ready are still selling very fast," he said. "However, the bidding wars have subsided considerably across the board."

• Dallas Business Journal, August 19, 2022

Finding the perfect home is a challenging endeavor under normal circumstances, but searching for a home in a different city or state might seem impossible. Coordinating the purchase of a lifetime from several hundred miles away can seem like a daunting task.

While long-distance house hunting can pose challenges, our real estate agents want you to know that it's not as difficult as it seems. In today's world, with easily accessible online listings and the ability to conduct virtual tours, it's actually never been easier. Here are some tips on how to make your long-distance home search a success:

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As home prices soar, housing affordability is sinking to the lowest levels since 2008 and first-time buyers - who haven't benefited from rising home values and are also coping with rising rents - are being squeezed out.

First-time buyers accounted for 27% of existing home sales in January, according to the National Association of Realtors, near 2014 levels. With mortgage rates above 4%, around the highest in about three years, and expected to rise further, buyers on tight budgets may struggle even more to find homes they can afford.

• Reuters, March 13, 2022

Today's real estate market remains hot, hot, hot, with sellers enjoying high prices, while buyers are facing a highly competitive market that has made it difficult for some to land the home they're longing for. This is especially true for those selling homes in Dallas/Fort Worth or shopping for Dallas homes for sale and Fort Worth homes for sale. 

It's easy to get distracted during the buying or selling process by certain widespread real estate myths. Our real estate agents help many families in the area find their dream home and advise them to not fall for misconceptions they might hear from well-meaning friends and family members.

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No matter how big a house is, we seem never to have enough storage space. The problem might be you just haven't unlocked the secrets of a good storage strategy.

If you're considering homes among Dallas homes for sale or Fort Worth homes for sale, and you're wondering if the storage will be sufficient, just keep these tips in mind for how you might expand the storage space in your new home.

1. Over-the-doorway shelving. 
   Bet you didn't know you had all that potential storage space right over the doorway. Install open-air shelves over the doorway in bedrooms, bathrooms, and above double doors. Depending on the type of room where the shelves are installed, you can place plants, decorative dishes, and pottery, or treasured mementos.
   
   
2. Under-the-bed storage bins.
   Don't let that space under your bed go to the dust bunnies. Acquire long, flat storage bins and stow things such as holiday gift bags, tissue, and wrapping paper; or even off-season clothing. 
   
   
3. Hooks for measuring spoons and cups.
   Don't you get fed up looking for measuring spoons and smaller-size measuring cups in your drawer full of miscellanea? Now you can put your hand right on them by installing hooks inside your kitchen cabinet doors and hanging them within easy reach.
   
   
4. Drawer organizers.
   Utilize these to help organize your kitchen. Drawer organizers work well if you put some time into planning what you need to access before you buy the organizers. Make sure you measure your drawers as well! 
   
   
5. Storage bins for cabinets.
   Same as for drawer organizers: think about what you want to place in storage bins before you buy them. For instance, maybe you have some spices you'd like to have right at hand, so you acquire a bin for the pantry where you can place them in rough alphabetical order. Storage bins in cabinets should work well for all the smaller items in the kitchen, such as packets of gravy or dressing mixes, a box of bouillon cubes, a baggie full of orphaned tea bags, sweetener packets, whatever. Obviously, storage bins for your bedroom closets will be larger so they can hold your shoes; maybe in your office, a storage bin would be useful for rounding up all those power cords and chargers you can't seem to throw away.
   
   
6. Excess stuff.
   You know you need to get rid of stuff you never use, but it's hard. We suggest once a year going through your possessions and doing a fearless assessment of what you're likely to need or can let go of without regrets. Some of it can go in the trash or the recycling bin; the rest, such as clothing or furniture in good repair, can go to charity. 
   
   
7. Outdoor storage shed.
   This is one of the best solutions for relieving indoor crowding. Try to arrange stored items with a top to bottom plan by stacking seldom-used items on the bottom, and stuff you might need in smaller containers near the top. Think about what you'll want to get at (holiday decorations for instance) and place them so you can access them as needed. 

All these small changes will add up and provide you and your family more space so you can live more comfortably in your home.

Need more tips? Our real estate agents can help. Contact us today.

Buying a home for the first time can feel like an overwhelming experience. The walkthroughs, loan applications, and negotiations are only made more difficult when your offer is denied by a seller who chooses another buyer. Our real estate agents are also discouraged when a great offer goes unaccepted. Although a normal part of this process is to feel like the odds are stacked against you, remember that it's only a matter of time until you're handed the keys to your dream home.

Why First Time Homeowners are Faced with Unfavorable Odds

As each generation gets older, many men and women hope to purchase their first home early in adulthood. Unfortunately, there are a variety of factors that could prevent potential homebuyers from the home of their dreams. Some of the common hurdles first-time buyers struggle to overcome include:

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Faced with higher property prices and piles of student debt, Americans are getting older and older before they buy a home.

The median age of first-time home buyers has increased to 33, the oldest in records dating back to 1981, according to a National Association of Realtors report released Friday. The median age of all buyers also hit a fresh record, 47, increasing for a third straight year — and well above the median age of 31 in 1981.  While the median age of first-time home buyers only rose by one year, the increase reflects a variety of factors facing Americans searching for a home.  A nationwide shortage of affordable housing, coupled with lower mortgage rates, has stoked prices in cities from the coasts to the heartland. At the same time, student loans and other debts make it harder for Americans to save tens of thousands of dollars for a down payment, while tight lending standards can make getting a bank loan difficult for borrowers with less-than-stellar credit scores.  "Housing affordability is so difficult today, especially when coupled with rising rents and student loan debt, that they're finding different ways to enter home ownership," said Jessica Lautz, vice president of demographics and behavioral insights at the Realtors group in Washington.  The characteristics of home buyers have changed in recent years. The share of married couples has declined as unmarried couples and those purchasing as roommates has risen.  As buyers' ages have increased, so have their incomes. The typical income of purchasers rose to $93,200 in 2018 as a lack of affordable options squeezed lower-income potential buyers out of the market.  Higher prices of homes have also changed how first-time buyers are entering the market. Nearly a third of first-time home buyers said they used a gift from a relative or friend to fund their down payment.

• Investors Business Daily, November 8, 2019

Paige Shipp, regional director with housing analyst MetroStudy Inc. fears home sales might slow next year in the ramp up to presidential and congressional elections.  "We typically have much slower selling seasons right before an election," she said. "After that happens, the flood gates open and people come out. It's not a matter of who wins."   Worries about a recession may also impact the home market.  "We spent the better part of the last decade still looking over our shoulder," said George Ratiu, senior economist with Realtor.com.  "The last recession was so bad that we are still carrying some of the scars from that."   However, Dr. James Gaines, chief economist with the Real Estate Center at Texas A&M University states that Texas economy is still expanding.  "And we are extremely unlikely to be in a recession by the end of this calendar year," he said. "We are probably pretty safe through the first six months of next year."

• Dallas Morning News, October 14, 2019

The number of homes listed for sale with North Texas real estate agents has risen by about 15% this year. But they aren't in the price range most buyers want.  "The inventory is increasing at the upper end — $750,000 and above," Dr. James Gaines, chief economist with the Real Estate Center at Texas A&M University said. "If you have a well-located $300,000 house, you can sell it tomorrow. We are seeing evidence of price fatigue in the market."  D-FW home prices are up only about 3% so far in 2019 — nothing like the double-digit percentage home price gains of a couple of years ago.  "The recent spike in mortgage rates did expose how price sensitive the market is," said Paige Shipp, regional director with housing analyst MetroStudy Inc. "Things are not quite as rosy as they seem in terms of what people can afford."  Many home sellers haven't gotten the message, she said. "They want to list their house for more than their neighbors sold for and sell it overnight."  D-FW has an undersupply of homes priced below $250.000.

• Dallas Morning News, October 14, 2019

Latinos are finding their economic legs under the Trump administration, leading the surge in home ownership and income growth and record low poverty rates, according to two comprehensive new surveys.  While they remain far behind whites in income, they have seen their third consecutive year of income growth and have a higher workplace participation rate, according to the National Association of Hispanic Real Estate Professionals and the Hispanic Wealth Project. 

In two studies just released, the groups also provided revealing details about Latinos and their growth in America. For example, by 2060, nearly one of every three in the U.S. will identify as Latino.  The reports detailed Hispanic housing and economic trends and found most signs rapidly improving.  What's more, the group's goal of nudging overall Hispanic income up is showing signs of success. The group said that within the next five years, Hispanic median income will triple.

The group listed the positive trends in its income report:

• For the fourth consecutive year, Hispanics increased their rate of home ownership, reaching a rate of 47.1%. In 2018, Latinos added 362,000 homeowners which is the highest number of owner households added for Latinos since 2005.
• In 2017, Hispanics saw the third consecutive year of income growth and the highest of any demographic.
• Between 2016 and 2017, Hispanics increased their real median income by 3.7%. Latino families making an annual income over $200,000 increased from 2.1% in 2011 to 3.8% in 2017, and the percentage of Latino millionaires more than doubled between 2013 and 2016.
• Poverty rates reached a historic low for Latinos. Simultaneous to median income growth, Hispanics have lowered their poverty rate for three consecutive years. With a poverty rate of 18.3% in 2017, Hispanics reached their lowest level since poverty estimates for Hispanics were first published by the U.S. Census Bureau in 1972.

• Latinos have significantly higher labor force participation rates. Hispanics are employed at a rate of 66.1%, compared to 62.9% of the general population. The Hispanic unemployment rate was reduced by over 7 percentage points between 2009 and 2018, from 12.1% to 4.7%, respectively.
• Latinos continue to drive small business growth. Between 2014 and 2016, the number of Latino-owned employer firms increased by 13.1%, accounting for 23.8% of the net growth of all employer firms during that period.
• Participation in retirement accounts for Latinos is increasing. Between 2013 and 2016, Hispanics increased their rate of retirement account ownership from 25.1% to 29.7%, and the value of their retirement accounts increased by roughly 40.4%.

• Washington Examiner, April 23, 2019

Dallas is one of the U.S. metro areas where rising home prices have hurt homeownership the most. Dallas, Denver and Houston were identified as the markets where there is the most downward pressure on homeownership, according to a new report by Florida Atlantic University and Florida International University faculty. The study ranked areas where the markets have tilted in favor of renting over buying homes. Researchers traced housing conditions in 23 markets for the report. Dallas was the most unfavorable for homeownership among the cities surveyed. "Of the metros in our index, Dallas is the highest and exhibiting the greatest downward pressure on the demand for homeownership," said Ken Johnson, real estate economist in FAU's College of Business. "The extraordinary appreciation in the area is a major driver of this score."  Dallas' housing market has taken off since the Great Recession, with soaring prices.

• Dallas Morning News, March 20, 2019

        SOURCE: Meyers Research

Dallas and Houston are the hottest spots in the country for millennial homebuyers. That's what analysts at California-based Meyers Research found in their annual "millennial desirability index" that rated the country's largest housing markets. Austin ranked third on the same list, which compared data on housing affordability, job growth, cost of living and other factors for major metro areas across the country. Meyers Research's director of research, Ali Wolf, said factors such as Texas' relatively low new home prices, strong economy and high quality of life push the state's major cities to the top of the list. Job opportunities, affordability and lifestyle were key factors millennials said they would consider in moving to a new city. Meyers' study is one of two recent studies that give North Texas high marks for first-time homebuyers.

• Dallas Morning News, March 24, 2019

Buying a home is a big decision, but paying for a home is an even bigger deal. Naturally, if you're looking at purchasing a home in the Dallas-Fort Worth area, then you'll most likely be looking toward a mortgage to finance your home purchase. 

The mortgage process is complex, multifaceted, and became even more so since the housing crash from a decade ago, so our real estate agents have put together some tips to help you understand the mortgage application process.

• Applying for a Mortgage
  First things first, regardless of who you end up going with as your lender, you need to apply for a mortgage. Most mortgage applications can be filled out online from your lender of choice, and some online services offer a "catch-all" mortgage application that can be submitted to multiple lenders saving you a lot of time. After all, most mortgage applications take 45 minutes or more to complete and submit!
  
  

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Is the housing boom running out of gas?  During the last few years, the home market has been on a tear in North Texas and in other parts of the country, with prices soaring and buyers lining up as soon as a sign hits the front yard.  But there are growing signs that the fast-paced housing market is shifting gears, with a decline in sales in many markets and smaller price increases.  In July, U.S. preowned home sales fell from a year ago for the fifth month in a row. And nationwide new home sales were down almost 2 percent in July, causing analysts at IHS Markit to question if the bull home market has turned bearish.  "The economy is strong. Labor markets are solid. Yet, new home sales and single-family housing starts and permits have stalled. How can this be?" said Patrick Newport, executive director of the U.S. economics team at IHS.

Newport said rising home prices and higher mortgage rates have cooled the ardor for home buying.  "This has choked off demand," he said. A slowdown in immigration and household formation could also be factors, Newport theorizes.  In North Texas, year-over-year preowned home sales have fallen in many neighborhoods, and for the entire region, year-to-date sales were up a measly 2 percent as of July.  At the same time, the double-digit percentage home price gains of the last few years have faded in Dallas-Fort Worth. Through the first seven months of 2018, median home sales prices were up only 6 percent from the same period last year, according to sales data from real estate agents.

Property agents say that some first-time buyers have given up after losing out to other buyers or all-cash investors who snapped up affordable homes.  At midyear, the number of prospective U.S. homebuyers who said they planned to make a purchase in the next 12 months fell to just 14 percent — down from 24 percent in fourth quarter of 2017, according to the National Association of Home Builders. That's still another sign that the home market — while not in a traditional bubble — may be headed for slower sales in the year ahead.  "It's clear that the winds that have boosted sellers over the past few years are ever-so-slightly starting to shift," said Zillow senior economist Aaron Terrazas.

• Dallas Morning News, August 27, 2018

Homebuyers are getting a double whammy. "Home prices are up and mortgage rates are up," said Frank Nothaft, chief economist with CoreLogic. Nationwide home prices are almost 7 percent higher than a year ago. And the average long-term mortgage cost has risen by seven tenths of a percentage point interest compared with this time in 2017, according to CoreLogic. "That translates into a 16 percent increase in the monthly principal and interest payments to buy the same house," Nothaft said. For the first-time homebuyer there is a 19 percent increase from one year ago. "Average wages around the country are up only 2.5 percent to 3 percent from a year ago. Each passing month as prices rise and mortgage rates rise, it's increasingly challenging for home buyers, especially entry-level homebuyers," he said. "The pinch it takes out of their monthly budget starts to affect more and more buyers across the country." Dallas-Fort Worth is one of the markets with record-high home costs. While overall median home prices in North Texas are up about 5 percent so far in 2018, prices for the most affordable houses — under $200,000 — are rising at almost twice that rate.  CoreLogic is forecasting further increases in home prices and interest rates in the year ahead.

• Dallas Morning News, June 15, 2018

If you follow local real estate news, you already know that North Texas has been identified as one of the country's hottest real estate markets. Home prices are rising and sellers are expecting to sell their homes at their asking price or better. Whether you're considering Dallas homes or Fort Worth homes, you're negotiating in a seller's market. You must bid conscientiously or risk missing out on a home you love. 

Our REALTORS® understand it can be difficult for your offer to get a seller's attention, especially when they realize that the next buyer might be willing to pay more. When you're ready to begin your home search, we'll be here to help with "Six Secrets for Getting Your Offer Accepted."

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Purchasing your first home has long been a part of the American dream.  While some cities across the country are considered Millennial Magnets, according to a report by ABODO Apartments, Dallas ranks near the bottom of the list of major US cities for this new wave of home buyer.

Dallas, Texas has experienced a boom in its employment market because of huge economic opportunities.  Consequently, the increase in the job market has also caused an increase in demand for housing making it difficult for Millennials to afford Dallas homes for sale.

But despite these challenges, some continue to push forward with buying their first home in the DFW.  Our REALTORS® know the local market well and offer these eight tips when you're ready to buy a home in Dallas.

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More Millennials Consider Dogs in Their Home-Buying Decision

There are many people in the world who love dogs, but you can't always include landlords on that list. While a landlord may love their own dog, they're typically less enthusiastic about the four-legged friends of their tenants. Combine that with the fact that dog owners love giving their pets room to roam the outdoors, and you can see one of the hidden motivations that inspire many renters to purchase a house of their own. So in a way, home-buying really is going to the dogs, and that's not a bad thing!

Our REALTORS® have the details on this growing trend, along with other key reasons buyers choose to purchase a home for the first time. 

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A Buyer's Guide to Open House Etiquette

An open house is a great opportunity to tour homes for sale in your community without having to schedule an appointment.

Hitting open houses on a given Sunday can also help you gauge available homes in a market and begin a relationship with a REALTOR® if you have not already found one. If you're new to "Open House Sundays," here are easy tips for making your search for Dallas homes more enjoyable and productive.

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Buying a home can be challenging in all kinds of ways. Simply finding a home that has everything you need is a big accomplishment, and we're here to help you in every way that we can.

For many, saving the money needed for buying a house is another major challenge. So to help you avoid any financing woes, our team has put together some of our favorite clever tips to save money for buying a home. With a little willpower and outside-the-box thinking, you'll be well on your way to saving for your dream home.

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Buying a house for the first time always comes with a mix of excitement and anxiety. Don't worry, it's normal. There's nothing like the feeling of picking out your very own home for the first time, but like any homebuyer you also want to make sure that you're getting solid value for your financial investment. Preparation is the key to finding a home you'll love long-term: you don't have to be an expert to prepare like one. Our REALTORS® at RE/MAX DFW Associates agree that differentiating between what you want and what you need is one of the most important steps you can take when buying a house for the first time.

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