What the Recent Rate Shifts Mean for You

Today I have John Hardimon on the line from the John Hardimon Team at Verity Mortgage to explain to us what the recent Fed rate increases mean for us.

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Today, I have a special guest on the line, John Hardimon of the John Hardimon Team at Verity Mortgage. They are our preferred mortgage lender and we refer them to our all of our clients. John is here to give his expert opinion on how the Fed’s recent rate increase affects you. He has a team of three licensed loan officers and has been in the business for 19 years. According to John, the Federal Reserve has decided to raise the bank funds rate. The bank funds rate is the amount banks have to pay to borrow funds and, in turn, loan money out to us. When their rates go up, so do ours. That rate went up a quarter of a point, which isn’t huge, but it is still a move. Something else that has taken place, John says, is that the market has changed in the way that mortgage-backed securities are not as desirable because the stock market is doing really well, which makes those securities more expensive.

We have a strong market and now is a great time to take advantage of that.

We had a quarter of a point move from the market, and a quarter of a point move from the Federal Reserve, which means there’s been nearly a half point move over the past six weeks. John believes the market has been positive in responding to the new President-elect. According to John, if you have a $400,000 loan that goes up half a point, that would make a difference of about $700 per year, so if you find a good house that makes sense for you today, it’s best to buy now. The recent jump isn’t a huge deal, but it is something to be aware of. John says the bottom line is that rates have been low over the last few years and the market has been good, so you should take advantage of it. The real estate market is so strong and is getting even better. John also brought up a great question. If you are looking to buy a house, why keep paying up to $30,000 a year in rent, when you could put that toward equity in your own home, paint, have a dog, have a BBQ cookout, and have all the other great things that homeownership brings? Now is a great time to take advantage of the market. If you have any other questions for John, you can reach him at 972-820-5730 or email him at john@johnhardimon.com.

If you have any questions I can answer or you're thinking about buying or selling a home, give me a call or send me an email. I'd be happy to help!

How Is the Dallas Market Performing Right Now?

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Today we are excited to be bringing you the latest market statistics for the Dallas/Forth Worth real estate market, as well as a preview of some upcoming local events. 

First, I want to share a few statistics with you about our local market. When we take a look at the market statistics, we always make sure to take special note of things like the median price, the average price per square foot, and how fast homes are selling. We will touch on all of these numbers for our current market, but right now we want to focus on the most important figure to look at: inventory. 

The amount of inventory in a given market dictates and spurs all of the growth in the market. In the most popular segment of our market (pre-owned single-family properties) we have just 2.7 months of inventory, which is extremely low. A balanced market has anywhere from 5-7 months of inventory, so having only 2.7 months puts us firmly in a seller’s market, where homes are moving at a rapid pace. Now let’s take a look at some of the other important statistics in our market. 

Days on market are much lower than they have been the last few years. Right now, the median days on market is 28 days, a great figure. If your home has been sitting on the market for more than 30 days, there is probably something wrong. It could be your pricing strategy, it could be the condition of the home, or it could be the marketing of the property. 

The median sale price has continued to rise throughout the DFW area. Right now, it’s sitting at $190,000. This is different from the average sales price, which is between $240,000 and $250,000, and takes the average of all the homes sold. The median sale price is exactly what its name implies, the exact middle of home sale prices right now. It is up 8.6% from last year!

The average price per square foot in the DFW area right now is $94, which is definitely up from where we were at just a few short years ago. 

The market is still moving along pretty nicely, so people have been asking us a lot lately if they should take action now, or wait for the market to continue to improve into next year. I tell these people what I tell all of my customers: whether you want to buy or sell, the best time for you to do so is whenever you are ready. The timing of the market doesn’t mean much here in DFW, so there’s really nothing to be concerned about as far as a price increase is concerned.

Finally, we wanted to take a minute to talk to you about some community events coming up. Obviously, the big one is the State Fair of Texas, at Fair Park in Dallas. It runs from September 25 to October 18, and is a great time for you and your family to come out and experience all the sights, sounds, and smells that this great event has to offer. We love going to the state fair, and hope to see you there this month!

If you have any questions for us, feel free to give us a call or send us an email. We look forward to speaking with you!

Dallas Real Estate Market Update

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This market update is focused on the Dallas area in the second quarter of 2015. A lot of clients are asking me whether we're in a seller's market or a buyer's market. 

The truth is that we actually do have quite a strong seller's market right now. We have less than three months of inventory, and this is creating a lot of competition for buyers. 

Now is a great time to sell because prices have risen almost 25-30% in some areas of town. So, please contact me if you've been thinking of selling. You have a very good chance to profit off of a home sale right now. 

If you're buying, the longer you wait the more expensive it will be for you to purchase a home. Interest rates are set to rise, and this will continue to hurt your affordability. When you see a good home you have to be ready to act. Otherwise you run the risk of losing out on it.

If you have any questions, or if you need any assistance with real estate in Dallas, please don't hesitate to contact me!