It’s a good thing!
You may be surprised on how interest rates are projected to have a positive impact on the real estate market. Interest rates are projected to increase again. If you have been leaning toward purchasing,selling or refinancing a home, now is the time to do it. For those interested in purchasing, here is the average timeline from start to close.
Pre-approval for a loan
Finding a real estate professional to help you. You can stop your search you found us!
The average time to look online and view homes is 3-6 weeks.
Drafting, presenting, and negotiating a contract one to five days.
From execution of the contract financing will take on average 30-45 days.
The Federal Open Market Committee meeting was significant in that the Fed now appears committed to a path of steady rate hikes. It will probably lift short-term rates by 0.25% two more times in 2017, first at its June 14 meeting and next on either September 20 or December 13. via Kiplinger
Seeing the bigger picture….
Interest rates increasing are not necessarily a bad thing. CNBC just posted an article stating the following:
First, consumer psychology: There’s an entire cohort of potential homebuyers who have known nothing other than historically low interest rates. But now, having seen the Fed raise rates last week, and with two more rate increases considered very likely this year, many of these homebuyers will get off the fence and into the market before rates go any higher. At the very least this should result in more demand through the peak spring and summer selling seasons, and may even drive enough sales to have a positive effect on the overall economy.
Second, lending standards: Higher interest rates may provide lenders with more of an incentive to make loans – and a little bit of a cushion against risk – which will very likely loosen some of the incredibly tight lending standards that have prevented millions of credit-worthy borrowers from getting mortgages over the past few years. Higher rates will also drastically reduce the number of refinance loans being issued, which lenders may try to offset by doing more purchase loans.
Finally, predictability: the 25 basis point hike was well within the range that most industry analysts had expected, which means it’s possible that last week’s hike won’t cause mortgage rates to rise significantly from current levels. In fact, a week later, rates on 30-year and 15-year fixed rate loans are basically unchanged, and still at the low end of historical rates.
above image courtesy of har.com Home is available for sale! Contact us for a private showing and more information!
Record Volume in Home Sales
Home sales did not disappoint in the past year. 2016 brought record volume sales. We are often asked how the real estate market is doing. Despite the falling oil prices which drove an increase in energy related layoffs the Houston Housing Market stayed steady.
“Full-year 2016 single family home sales totaled 76,449, according to the latest report produced by the Houston Association of Realtors (HAR). That represents an increase of 3.0 percent from 2015 and is 1.3 percent above the previous record of 75,470 homes sold in 2014. Total dollar volume for properties sold in 2016 rose 4.2 percent to $24.5 billion.” (public release from HAR.com).
Houston’s diversity in the economy has kept Houston strong. Our city does not take the hit as hard as other cities when one trade gets hit. We have “World Renowned” Medical centers, we are the global leader in international business, home of NASA, and so much more. Houston’s labor force fills 2.9 million jobs and growing.
|CATEGORIES||FULL-YEAR 2015||FULL-YEAR 2016||CHANGE|
|Single-family home sales||74,174||76,449||3.0%|
|Total property sales||89,296||91,520||2.2%|
|Total dollar volume||$23,559,111,514||$24,546,840,733||4.2%|
|Single-family average sales price||$280,290||$283,133||1.1%|
|Single-family median sales price||$212,000||$221,000||4.5%|
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.
More inventory is coming onto the market, and this could slow the rate of home-price appreciation as we head into 2017. That’s the general forecast for Houston’s housing market in 2017.
Based on current construction trends, many real estate professionals expect the number of homes for sale to increase in 2017 as new inventory comes onto the market.
We are excited for 2017 as we expect to meet if not exceed some aggressive goals we have set for ourselves at Houston Dream Living.
MADERA VISTA gated community!
Distinguished home located in the convenient Energy Corridor. Grand Entry opens up to Formal living and dining areas featuring 20ft ceilings & hardwood floors. Beautifully designed with arches, custom cabinetry & built ins, upgraded plantation shutters. Double French doors with lead glass sidelights, custom built ins, and wood floors showcase the office. Enjoy your coffee on your covered patio as you enjoy the privacy of the lush backyard.
According to Har.com Houston home sales rose 6.7 percent year over year in July, with a total of 8,147 single-family units sold versus 7,637 a year earlier. So once again those concerned with the Oil & Gas industry and how it relates to the Houston housing market need not be. Houston’s diverse market continues to gain. Not only are sales up so is the inventory from 3.0 to 3.4 compared to last year. Even better the market is also seeing a significant growth in home pricing and even better in homes priced over $500,000. It’s still a great time to sell or purchase.
Jennifer L. Snyder
Oil Prices & Pending Home Sales
Home prices achieved record highs for February 2015.
Houston inventory is 2.7 months.
“Houston ranks as No. 2 job market in the U.S.”
(according to a new report by Forbes)
In addition, the Texas Workforce Commission just declared 2014 one of the best years for job creation in Houston with almost 105,000 jobs added and continued hiring expected this year. More jobs than anytime in history and 58% are paying more.
Forbes reported significant job growth in the Houston metro area, which includes The Woodlands, TX and Sugarland, TX.
Lower priced oil prompted thousands of layoffs since December 2014 in the Houston, and many may be concerned. But things really aren’t that bad, at least according to Forbes, they ranked Houston second strongest job market among 150 major American cities.
I have personally encountered more inquires on selling and purchasing. In addition, mortgage rates are still very low. Many existing homeowners are refinancing. I am grateful to live in a city that’s diversity help sustain the market in comparison to other cities that simply can’t.
Jennifer L. Snyder
RE/MAX Fine Properties
“IN THE NAME OF LOVE”
They took your life they could not take your pride…..
I make every effort in almost all cases when I see anyone in uniform to say thank you. Though I have chosen a firefighter illustration, I don’t limit to only them. I believe this such a beautiful song depicting the heroes in our world. They get up every morning with a determination that exceeds so many. They have a deep passion unlike no other. I am thankful that I live in a country so diverse but also allows us the freedom to express our strongest desires.
You must stand for what you believe in, and if you fail, if you are defeated, be still and know that you did the right thing, you did what you believed was right, and if your enemies take your life, it’s fine, because even if they take your life they can never, they will, never, take your pride, they will never triumph over you…No one who is pure in their belief and who stands by those who cannot stand for themselves can ever fail…If you stand for those who cannot stand… Author Unknown
So many have gone before us, without them we would not live in the country we live in today. I have and will always have the deepest respect for any and all who leave their families whether it be daily or for extended lengths of time to fight the fight, protect those who cant’ protect themselves, to provide safety in a world full of danger. They are so deserving of way more than any amount of words could ever express.
I believe they are a SELFLESS. If only I could wake up every morning with the same mentality and apply it to all I do. I believe I can do this maybe not quite perfectly, maybe not every morning, but its in all the other times I try that could make the largest impact on others.
So I say yet once again, THANK YOU. Thank your selfless acts.
Thank you for inspiring me.
Jennifer L. Snyder
Find Your Happy
Today I am happy because I don’t have any reason not to be. I think that is fairly simple. The key to happiness is letting each situation be what it is instead of what you think it should be. Sometimes that is a bit challenging, its easy to focus on everything that is going wrong in life. I do believe happiness is a choice overall. Sure we have hardships and losses that do bring on heartache and grieving. Am I saying don’t embrace your sadness in the moment, of course not. You absolutely should, but you have the choice on how long you remain there.
I think another common mistake is how often we give another person control over our own happiness. Good Lawdy!!!! That sure is lot of pressure to place on another imperfect individual. You are the only one that can make you happy. So how do you do that? Determine things that you are drawn to, eliminate excuses, and start a daily practice. For example, if writing brings you joy and eliminates stress then make time to do it. Lastly, stop dwelling in the past, don’t be anxious about the future, in all things be grateful in the present.
I just want to spend the rest of my life with cheeks that never stop hurting.
Jennifer L. Snyder
One Republic – I Lived
F.E.A.R. = False Evidence Appearing Real
Fear can be experienced in two forms. You have true fear which is result of danger and the body’s instinct to protect one’s self. Then you have the phobias. Fear of just about anything from spiders to leaving your house. In both senses it can be crippling. However we can choose to persevere through the phobia. What is the core of your fear. Digging deeper instead of simply staying at the surface is necessary to overcome it.
There is no sidestepping around it. You have to face it and then go through it.
It’s the only way to truly live.