Rapid recovery from the Great Recession + the shale oil boom has fueled demand for single-family home in TEXAS. Tight inventories and rapid price appreciation is pushing prices UP about 33% from 2007. Nationwide rose only 2.8% during this same period. Texas has enough land, but developing subdivisions is slow, so some builders are without lots to build on + labor & some material shortages. All of these have gone up! So declining affordability.
Home prices are rising at a higher rate than incomes are growing. While income has ticked up 1-2%, home prices have been growing 5-6% per year. This is creating an affordability crisis. Now homes owned are at a 50 year low at 63.5% of households. Although mortgage rates are at a low of 3.5%. When the supply reaches closer to 6 months – the definition of a balanced market- we will see the best of all worlds: RISING new homes sales, existing-home sale, home and finally a RISING home ownership rate.
Sales of homes in the 2nd half of 2016 face more challenges. That’s because too few homes are available to keep up with demand. The supply level hit 4.7 months. In contrast, when home prices were falling several years ago, the supply hovered between 10 and 12 months. This lead to depressed home prices and rising foreclosures. The next housing “crisis” will be due to a collapse in supply, according to Lawrence Yun, chief National Association of Realtors economist. MORE TO COME!!
The new Panama Canal expansion will open the canal to larger vessels to land not only in Corpus Christi but Houston and other ports on the Gulf Coast, which impacts all of us. More goods that businesses depend on can be brought to our ports + the economic impact on those ports. It will not only be oil products but items we all live with day-to-day. These larger container ships now have a shortcut to all of us in Texas and the U.S. EXCITING NEWS!!
with the City of Tyler taxes or 22 cents to 23 cents per $100 property valuation. Extra penny will be dedicated to road maintenance projects, specifically seal coats and sealing cracks in roads. Asphalt overlay will be funded through the 1/2 sales tax fund. The average Tyler home with a value of $175,902 will see a property tax bill increase of $17.59 per year of $1.47 per month. Those over 65 years of age OR disabilities will see no increase. Sales taxes make up 42% of the City of Tyler revenues.
(1) Health Care & Social Assistance employs 24.5% of workers. (2) Retail Trade employs 12.2% of workers. (3) Accommodation and Food Services employs 9.1%. (4) Educational Services employs 8.8% of workers and (5) Manufacturing 5.7% of workers. About 25.5% of the Smith County workers have attended college or have an associate degree and 16.9% have received a bachelor’s degree or advanced degree.
In Austin the Texas Transportation Commission yesterday approved the 2017 Unified Transportation Program (UTP) with $70 billion work of projects to help TxDOT meet the state’s growing transportation demands. The 10 year plan was developed with extensive public input & targets congestion in the state’s most-populated areas & includes projects to better connect the major interstates in rural areas with local roads and highways. MORE TO COME!
How public schools are rated is important when it comes to purchasing a home. Obviously, ones in “better” schools or with higher ratings may sell for a little more and be on the market less time, so have to act quickly. If selling a home you should be able to get per square foot price if same condition as ones that have sold within the past 6 months. Good schools are defined as at least 1/3 (more or less) above the state average. SCHOOLS ARE IMPORTANT SO WE ALL NEED TO WORK TO KEEP THEM UP!
Buying any place to live in can be a challenge, then add the expense of the title insurance, which in Texas is the 5th highest in the U. S. It can be almost 1% of the sales price. Often paid by the seller, but can be negotiated between the buyer and seller. No legal outlet for price competition, so nothing passed on to the buyer or seller. Texas requires the most comprehensive plan, so no choice for a cheaper option. In no other corner of the Texas economy is a product’s peculiarity and high demand viewed as an excuse to hide from the competitive market. WHY IS TITLE INSURANCE SO DIFFERENT?
One important factor is home ownership. Nearly 80% of those over 65 own their homes, as compared to 34% of under 35 year olds. YOUNG FOLKS HAVE IT BAD. Student loan debt is one reason. 7l% of graduates are paying back those loans BEFORE buying a house – hopefully in 5 years. Student loans are charged 7 to 12% interest and rest of borrowing is at a lower interest rate. There needs to be a way to refinance student loans. National Association of Realtors is backing this in Congress to close this gap and make buying a home more reachable for younger folks.