Market Conditions

Looking for a Steal Style Foreclosure Deal in The Woodlands TX?

by Ken Brand, Sales Manager - Prudential Gary Greene, Realtors / The Woodlands TX / Cell: 832-797-1779 on May 13, 2009

Everybody loves a deal.  We’d be fools to overpay for anything when it feels like everything is on sale.  If you’re in the market to buy real estate, naturally you’re compelled to at least attempt to buy a property that is a screaming deal.  The last thing you want is find out you were the rube who overpaid.

If you’re reading Yahoo.com today you might have seen this headline:  RealtyTrac: April foreclosures rise 32 percent  You can read the entire article HERE.  Naturally you might believe that now is the time make your steal. It makes sense on the surface.

So. about those foreclosure steals in The Woodlands TX.  Yes, there are fantastic properties at fair prices, but don’t pimp-slap the messenger, there are very few foreclosures.  At 7:27 a.m. I ran a report using our Houston Association of Realtors Multiple Listing Service (MLS).  Our MLS system allows us to search for properties in dozens of ways, one of them – search by: “Foreclosures and Short Sales”, which is what I’ve done.

Here’s what I found:  This morning there are only 9 Foreclosures listed for sale in The Woodlands TX.  The prices range from $71,000 to $391,000.  There are only 5 Short Sale* Listings ranging from  $130,000 to $549,550.  Add the two together and your have a total of 14 Foreclosure/Short Sale listings out of a total of 961 active For Sale Listings.  WHOA, that’s a flea sized percentage of just 1.4%. 

I ran another report, Closed Foreclosure/Short Sales in The Woodlands TX from May 13th, 2008 to now.  There have been 80 Foreclosure and 8 Short Sale closings with an average price of $207,135.  That’s 88 our of 1,885 total closings with an Average Sold Price of $341,679.  Total Foreclosure and Short Sale closing equal a lilliputian 4.66%.

Bottom line, everyone wants value, the real estate market in The Woodlands TX is stable and a good value, but not a steal.  Sellers in general aren’t desperate, prices haven’t plummeted and the streets are littered with Foreclosures.  

The good news, because mortgage rates are at record lows, buying power is historically sky-high.  The selection of properties is broad and excellent.  In the near future mortgage interest rates are most likely to pop back up, and I’d bet prices will rise in the future too.  Now is the time buy, a screaming steal is unlikely a great value is certain.

If you’d like to dig a bit deeper, you can check out this Months Supply Of Inventory by price Range list and this Collection of Real Estate Statistics (Average Sold Prices, Broker Market Share, Average Days On Market, Average List Price To Sales Price %, more.)

OK, that’s my twenty-five cents on screaming foreclosure sDeals in The Woodlands TX.  If our team of Icons can do anything to help you, let me know:  Ken Brand, Sales Manager – 832-797-1779.

Related Reading:

$8,000 First Time Buyer Tax Credit

Houston Real Estate Market in The News

Houston Market Real Estate Trends

The Woodlands TX Real Estate Market Reports

*Short Sale – A short sale is like selling your car and you’re upside down, you owe more that it’s worth.  In real estate the  transaction works like this, I’m using mythical numbers:  The seller owes the bank $200,000.  The Property is worth less, let’s say $175000.   To sell it the seller would have to bring money to the closing table, but they don’t have it to bring.  In cases like these, under certain circumstances (see your favorite real estate agent for a full explanation) the bank will agree to allow the seller to sell the property for less than they owe.  In this case the seller walks away with no money but doesn’t have to bring money to the closing table.  The bank is open mined to this because their cost of foreclosing and then selling the property is greater than taking the immediate short sale loss.

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Is It Finally Time To Buy Real Estate In The Woodlands and Houston?

by Ken Brand, Sales Manager - Prudential Gary Greene, Realtors / The Woodlands TX / Cell: 832-797-1779 on February 10, 2009

Dial Down Fear - Dial Up Opportunity

Dial down the Fear Factor Volume.  It could be time to buy.  Here’s why?

When (if) the $15,000 Home Buyer Tax Credit passes, the market will trampoline upward.  Currently there  5.6 Months Supply of Inventory “For Sale” in The Woodlands.  Real estate economists believe 6 to 7 months is represents a balanced market.  If buyer activity catches fire, prices will go UP and a sellers market will re-bloom.  Do you want to pay more in the summer or less now? 

Mortgage rates are swooned to record lows.  Today you can buy bigger, cooler, beautiful home for your hard earned money.  When the market heats, home prices always rise along with mortgage rates.  Do you want bigger monthly payments or smaller monthly payments.

Our real estate market is not depressed, battered and beaten like other real estate markets across the country and in the news.  Local sellers generally aren’t desperate, prices have held steady. When spring burns into summer, fast activity will heard home prices and mortgage rates upward.  Pay less for more now or pay more  for less later?

Nobody called the beginning of the recession.  We felt it before it was official.  Nobody can accurately call the bottom, you’ll feel it simmer before it boils, bounces and becomes official too.

More food for thought:

Is Now the Time to Buy

Smart people say, that moment of knowing we have hit rock bottom is only indicated by the time when everyone is the most pessimistic. That moment is certainly getting closer. 

1.  We are in the midst of the best interest rates we have seen since we are told, the 1950′s! 4.5% – 5.5% is an amazing rate to lock in for 30 yrs! Jumbo loans at 7%!

2.  Motivated sellers are watching the national news, they are willing to negotiate. Even though we are not in a depressed or declining market, the sellers watch national news stories that say otherwise. Buyers can take advantage of the negative mindset of the seller right now about his property not moving fast enough.

Facts:

National employment 3rd qtr 2008, down 500,000 vs. Houston employment at 60,000 new jobs. 

Stable pricing is between 6-7 months of inventory according to A&M Research Center and Metro Study. Same period facts of 3rd qtr. 2008, 6.5 months of new home supply in the market according to MLS and MetroStudy. 

State Resale Supply Statistics

State/City Months Supply
South Florida 28 Months
Chicago 15 Months
Atlanta and Phoenix 13 Months
Charlotte and San Diego 10 Months
Santa Fe, Albuquerque 9 months
Colorado Springs and Raleigh Durham 8 months
San Antonio 7.5 months
Dallas Forth Worth and Houston 6.5 months
Austin 5.5 months
The Woodlands, Texas 5.6 months

Texas Markets 2008 through 3rd qtr. overall appreciation metrostudy
Austin: 5%
Houston: 4.4%
San Antonio: 4%
Forth Worth: 3.1%
Dallas: 2.1%

10 year average home appreciation for Houston: 5.31%. Houston does not have the huge appreciation but it is not a depreciating market.

Check out THIS Goldmans Sachs REPORT – positive appreciation expected.

Multi-Market Closings for New Homes by Annual Closings

City Annual Closings
Colorado Springs less than 3,000
Santa Fe 4,000
Tampa 7,000
Denver 9,000
*Salt Lake City 11,000
*(#1 Recession proof city in the US according to Forbes Mag. 2008)
Austin 11,000
San Francisco 12,000
Raleigh/Durham 13,000
San Antonio 13,000
Las Vegas 14,000
Chicago 15,000
Charlotte 16,000
Orlando 24,000
Atlanta 25,000
Phoenix 29,000
DFW 29,000
**Houston 35,000
**Most Flourishing Market in the Nation and State with Annual New Home Closings

Texas has had and continues to have an overall escalating market.  
From 1st qtr. 2000 – Homes in Houston, San Antonio, Austin and DFW were basically selling at $200,000.

Today DFW is around $270,000; Houston is close to $300,000; While San Antonio and Austin sell at close to $310,000. Slow and Steady… 

Why Buy?

  • Affordability - Texas and specifically Houston is among the most affordable in the US
  • More choices in Houston than most other cities – single family, condo, high rises, lofts
  • The Meltdown is in Other Markets – not Texas ”We have a Stable Local Market”
  • Good time to trade up – you may sacrifice on selling end but capitalize on the buying end
  • Interest Rates are affordable “right now”…we don’t know about summer or fall 09
  • Homeowners are very realistic right now about home pricing – we could say homes are “on Sale” right now!
  • Home prices in Houston and Texas are stable.
  • Houston’s economy is strong

While others in cities that have enjoyed great appreciating markets are concerned they will not be able to build equity as rapidly as they did in real estate years past, in Texas, we have never seen the high appreciating markets, we only have seen in the past 10 years, slow and steady…If you plan to stick around in your home, you will see an appreciation of your property. NAR statistics show the average first time home buyer plans to stay in their home for 10 yrs. now as compared to last year’s survey of 7 yrs. Maybe people have become more realistic about how long it takes to earn equity or maybe they have more confidence in real estate assets they can see and feel than other market assets. 

As much as we discuss appreciation, truth be known: People buy for Life style…not investment. 

You couldn’t be in a better State or better City for selling real estate. The facts are crystal clear:

  • You will have the best year ever if you believe in psychology of real estate.
  • If you tell yourself it is a bad time – it will be.
  • If you tell yourself it is a great time – it will be.
  • But the facts say, “it has been and will be a great time for real estate”.

The Most Flourishing Market in the Nation and State with Annual New Home Closings is Houston. 
Facts from MetroStudy 11/08 

Investing in real estate assets right now is the best placement of your money; it is a better hedge than gold.
Dr. Dotzour, TX A&M Research Center 1/12/09 

You couldn’t be in a better State or better City for selling real estate than Houston Texas. 
TX A&M Research Center Data 1/12/09 

More than 2 million jobs were lost between Nov 2007 – Nov 2008 in the Nation; representing 1.2 % of its labor force. The Texas economy gained 222,900jobs during the same time period; an increase in labor force of 2.1%. 
Real Estate Center RECON 1/13/09

Houston has the strongest job market in the US. 
Metrostud, Jan. 12, 2009

Texas has the strongest job market by State in the US exceeding the nearest competition by 1000%. 
MetroStudy, Jan. 2009. 

Houston’s inventory of homes is 5-6 months on average. This is the lowest average days on market in the US. 
TX A&M Research Center Data 1/13/09 

“We are half way through our recession in Texas. It started out last Jan. 2008.” 
Dr. Dotzour, TX A&M Research Center 1/13/09 

“The Texas Land Sales Market is short of Phenomenal.” 
Dr. Gilliland, A&M Research Center Jan. 12, 2009 

Texas is the #2 Destination State for Retirees. 
Dr. Gaines, TX A&M Research Center Data 1/12/09 

Houston has the most affordable median home price of any MSA. 
TX A&M Research Center Data 1/12/09.

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If I can answer questions or help, let me know – Ken Brand 832-797-1779

“Better keep yourself clean and bright; you are the window through which you must see the world.”  - George Bernard Shaw

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What’s the real estate market like in The Woodlands, Texas?

by Ken Brand, Sales Manager - Prudential Gary Greene, Realtors / The Woodlands TX / Cell: 832-797-1779 on January 6, 2009

Real Estate Market Report for The Woodlands, Texas / December 08, January 09This picture is worth a thousand words, at least.  

Click on the picture to enlarge.

Buyers 

Good news.  Selection is excellent.  Mortgage rates have swooned below 5%, really.  Interest rates in the 4% range means your buying power is ferocious.  Fewer qualified buyers have sellers competing for your attention.  Months Supply Of Inventory has crested the six month mark, spilling into Buyer’s Market territory.  As sales accelerate into spring, supply will dip back into buyer and seller balance.  

Other news.  Sales prices in general have appreciated over the past two years.  The Woodlands market is unique and unlike disaster real estate markets you read about or see featured on TV news. While it is taking sellers longer to sell, the average number of days on the market for homes sold in December was in the 70 days range.   Sellers are not frantic, desperate or faced with collapsing sales prices, they are competing for qualified buyers.

Sellers

Good news.  Thankfully you don’t live in a market with plunging prices.  You do live in a market where competition for qualified buyers is fierce and it is taking longer to sell.  Thankfully,  mortgage rates are at all time lows, more buyers will enter the market place, sales will accelerate into the spring and summer.  Homes are selling.  Over the past two years, overall sold prices have remained stable with a very slight appreciation.

Other news.  If you don’t really want or need to sell, save yourself time and hassle.   Don’t test the market.  Homes are taking longer to sell.    With over a six month supply of inventory, it’s an offical buyer’s market.  

Things effecting  your success  are marketing and merchandising.

Make sure you have fabulous pictures posted on the Internet (agent controlled/seller input).  

Make sure your home shows better, cleaner, sharper and crisper than your competition (seller controlled/agent input).  

Make sure your price is competitive (seller controlled/agent input).  

Buyers are watching the news, they mistake The Woodlands market for California, Arizona and Florida markets.  When a buyer low-balls you, don’t freak and get angry, respond positively, negotiate earnestly, attempt to remain unemotional and  work to lead the buyers up to realistic terms (seller and agent controlled).  

Make sure you have massive internet broadcasting  and a detailed marketing plan (agent controlled).

Agents

Guess what?  What ever you did to create success in 2008, won’t work as well in 2009.  You’re going to have to embrace new marketing methods, social media and technology.  You’re going to have lead, problem solve, create and communicate at higher heights.  You’re going to have to show up early and more often.  You’re going to have to over-deliver, follow-up more frequently and follow-through more faithfully.  Basically, you’re going to have to perform like a multiple personality super hero.  

The good news, fewer and fewer agents will be willing to invest the time, emotion, money, sweat and study necessary to thrive. 

In the next day or so, I’ll post detailed information about Average Sold Prices over the past two years and Months Supply of Inventory.

You might also be ineresting in learning which Woodlands broker leads the market in getting properties sold.  I’ll post that as well.

Any questions, feel free to call me.

Happy New Year.

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