May 2004 Newsletter

Contents

• May 2004 Sales Update
• Dallas Existing Home Prices Slide
• DFW New Home Construction Boom
• Texas Home Appreciation Lags
• Mortgage Rates Creep Up
• Property Tax Reform
• Texas Homeowners Insurance
• Another Smoking Hazard: No Sale
• Home, Sweet Multimillion Dollar Homes
• A Nice Homeowner Website

May 2004 Sales Update

Welcome again to the Real Estate Update. Are you enjoying Spring as much as I am? Here's the regular report on home sales activity in our area. This information is taken from the North Texas Real Estate Information System and compares the 1st quarter of 2004 with the same period of 2003.

Don't forget to call me if you have any questions about real estate or if I can help you or someone you know with any real estate needs.

Have a wonderful summer and safe vacation.

I greatly appreciate referrals from clients who have been pleased with my services. If you have relatives or acquaintances who are thinking of Buying or Selling a Home, or just need some real estate information, please give them my business card or give me their number and I'll give them a call. I promise to serve them well.

If you're thinking of selling, now is the time - we are beginning the busiest selling time of the year. Price it right and stage it well!

If you're thinking about buying, do it now - interest rates have risen some but are still good, but experts believe they are likely to begin rising. You'll also have a great inventory to choose from! Call me at 817-230-4008. I can help!

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Dallas Existing Home Prices Slide

DALLAS (DallasNews.com) - Prices of existing homes in the Dallas-Fort Worth area fell 2 percent in first quarter 2004 compared with first quarter 2003. A drop like this has not happened since the mid-1990s.

According to North Texas Real Estate Information Systems, the median price of an existing single-family home has been flat or declining for the last six months. Last summer the median price in the North Texas area was $145,000. In March it was $133,950.

At the end of the quarter, there was about an eight-month supply of existing homes or 40,198 homes on the market. That is up about 8 percent from a year ago.

Dr. Jack C. Harris, research economist with the Real Estate Center, says that the number of listings has just about doubled in the last three years. "The number of houses chasing buyers is way up."   [Top]

DFW New Home Construction Boom

FORT WORTH (Star-Telegram.com) - New home starts and closings in the Dallas-Fort Worth area were up 7 percent during the first quarter compared with the same period last year, according to Metrostudy. The housing analysis firm attributes this to falling interest rates and job growth.   [Top]

Texas Home Appreciation Lags

WASHINGTON, D.C. (OFHEO.gov) - Average U.S. home prices increased 7.97% from fourth quarter 2002 to fourth quarter 2003, according to the Office of Federal Housing  Enterprise Oversight's (OFHEO's) House Price Index.

During 2003, homes appreciated the most in Rhode Island (16.43 %); California (13.77 %) and the District of Columbia (13.6 %).

States with the smallest price gains were Utah (1.61 %), Texas (2.63%) and Colorado (2.68 %).

Dr. Jack C. Harris, research economist with the Real Estate Center at Texas A&M University, explains that inventories have been rising in Texas and that keeps prices down. "MLS inventories rose in recent years from 'seller market levels' up to more normal, sustainable levels. Single-family building permits were unusually high, equaling about 60 percent of MLS sales," Harris said.   [Top]

Mortgage Rates Creep Up

MCLEAN, Va. (freddiemac.com) - In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage moved up to an average of 5.89 percent, with an average 0.6 point, for the week ending April 15, 2004. Fifteen-year fixed rate mortgages and adjustable rate mortgages also inched up.

"With economic news continuing to point to a growing economy, the financial markets are beginning to think about the likelihood of inflation again," said Frank Nothaft, Freddie Mac chief economist. "Not only that, but jobs creation, retail sales, and consumer prices jumped in March which buoyed market speculation that the Federal Reserve Board will raise rates sooner than expected."   [Top]

Special Legislative Session to Focus on Property Tax Reform

AUSTIN, Texas (DallasNews.com) - Gov. Perry favors a limited school finance proposal that splits property tax rolls between the state and the school districts. Under this plan, the state would tax business and commercial property, and school districts would continue to tax residential property. Additional money for schools would be raised through an increase in the state cigarette tax, legalized gambling machines at racetracks and by closing a loophole in the business franchise tax.

Several other alternative school finance plans are under consideration.   [Top]

Opinions Vary about Texas Homeowners Insurance

HOUSTON (HoustonChronicle.com) - Two years ago, during the homeowners insurance crisis, homeowners had a hard time finding a home insurer that would sell them a policy. That has changed. Allstate Texas Lloyds is making a comeback now and is selling homeowners insurance as fast as it can. In the meantime, State Farm and Farmers are fighting rate cuts that the Texas Department of Insurance (TDI) has ordered. 

TDI says competition is returning to this market. However, consumer groups say there is still a crisis. Texas Watch says that insurance companies are still overcharging Texas customers.

Robert Hartwig, chief economist for the Insurance Information Institute, notes that the state's insurer of last resort, the FAIR Plan, has taken in more than 110,000 policyholders since its inception about a year ago. He says that this strong residual market is a sign of a noncompetitive market.   [Top]

Another Smoking Hazard: No Sale

In spite of a healthy housing market, brokers have had more difficulty finding buyers for homes and condominiums that smell strongly of tobacco smoke, according to a Feb. 8, 2004, article in the New York Times. The American Lung Association, which has been warning people of the health risks of tobacco for more than 50 years, has heard of this secondary financial risk of smoking before.

"Potential home buyers may not always be able to articulate exactly what a 'healthy' house is, but they know an unhealthy environment when they smell it," said Angie Lien, national director of the American Lung Association Health House program, the nonprofit's indoor air quality program. "Our program has received more attention in real estate trade publications in recent years than anytime during its 10-year existence."

The American Lung Association Health House program offers a variety of consumer tip sheets and workbooks on its website, www.healthhouse.org. In addition to tip sheets on secondhand smoke, the site also has useful information on radon, mold, volatile organic compounds (VOCs), furnace filters, cleaning products and other issues pertaining to indoor air in the home.   [Top]

Home, Sweet Multimillion Dollar Home

Recon Release By David S. Jones (excerpted) - Researchers from the Institute for Luxury Home Marketing and Unique Home magazine surveyed wealthy owners who have at least one home valued at $2.5 million or more (70 percent of those surveyed owned more than one such home.)

What would you expect to find in a $2.5-million-plus house?

• Ninety-two percent of the houses have more than four bathrooms.
• Eighty-four percent have home offices. Most likely the office has a broadband Internet connection (62 percent) and may be part of a wireless home network (46 percent). Virtually all (95 percent) have Internet connections. .
• While 78 percent of the homes have more than four bedrooms, 19 percent have separate guest houses, and 19 percent have staff quarters.
• Home gyms rank high (59 percent). Swimming pools are a given, and many (30 percent) have pool houses or cabanas; 38 percent have steam or sauna rooms. While four out of ten super-rich homeowners play tennis or other racquet sports, about 8 percent have home tennis courts.
• Thirty-four percent have their own home theaters.
• Forty percent have indoor and outdoor kitchens. Eleven percent have separate catering kitchens. Bedtime snacks and morning coffee are within easy reach thanks to the mini-kitchens found in master bedrooms of 11 percent of the homes.

And where do you find such homes?

• Fifty-eight percent of super-rich homeowners say their homes are on the waterfront or at least have a water view.

And what else is in thee houses?

• Forty-nine percent of these homeowners have a new car priced at more than $50,000 in the garage.
• Fifty-four percent have wine and champagne in stock by the case,
• 81 percent have decorated with antiques, oriental rugs or fine art.

And who are these homeowners?

• Eight out of ten are corporate executives, business owners or self-employed professionals.

A Nice Homeowner Website

Check out this website. There's lots of online information about everything from woodworking and home decorating to gardening. There's also chat groups to answer questions and share experiences. Go to: http://www.taunton.com/index.asp.   [Top]