It’s the 1st move since lowering the rate to zero in December 2006.  Rates on 30 year fixed will rise gradually.  The rate moves in the same direction as the fed funds rate, but not in lockstep.  Same for 15 year home loans, a popular refinance choice.  Adjustable-rate mortgages will react quickly to the fed funds rates.  Rates on ARMS are typically tied to the prime rate.  All this according to Dr. Jim Gaines, Real Estate Center Chief Economist.  This could eventually price some buyers out of the market, then this subsequent reduced demand could slow home price increases.  WE WILL JUST HAVE TO SEE!

High demand for housing in the area!  One useful tool is days-on-market.  That’s how long a property , on average, is up for sale before finding a buyer offering a price, closing date to close & other details that seller will take.  That is now 58 days on the market as compared to 84 days in 2014.  Caution – as lack of lower priced and starter homes.  The lower-end buyers are being priced out of the market.  It’s tough to find newer starter homes in the location a family wants to live.

Properties located adjacent to Houston’s premier parks typically receive more than a 20% impact in values due to their proximity to outstanding public spaces according to local valuation firm Deal Sikes & Associates.  Does not matter if residential or commercial properties or just land and high-rise, mid-rise and single story buildings.  Even properties that are located more than 1,000 feet from a park can receive a positive valuation impact of 5-10%.  SAME FOR OTHER CITIES.

Homeowners & renters remodel, redesign and restructure their homes for many reasons.  Making the decision is hard, but can be worth the investment & increase satisfaction in the home.  35% of US home owners would rather move to a new home than remodel their current one.  If they do update 38% upgrade worn-out surfaces, finished and materials.  17% add features to improve liability and 13% because it is simply time for a change.  AFTER REMODELING, THEN WHAT – continued next.

Over the decade from 2000 – 2009 4.1 million Americans moved to Texas with 3.3 million going to other states.  Largest number from California, then Louisiana probably because of Hurricane Katrina.  Then Illinois, Florida, New York, Michigan and lesser amounts from other states.  During those years a few more Texans moved to Montana, DC and Colorado, but after 2009 then more moving to Texas from Colorado.  INTERESTING!

Right now builders are building for the upscale market, which leaves out folks who want to downsize or single or young people who want to start with smaller homes.  For this reason, a few builders are building small homes, but finding lots is a challenger.  Note that vacant lots scattered here and there are having smaller homes built on them.  One builder can build a 729 square foot metal home for $58,420 + $4,274 for the slab + the lot or land.  This keeps utility bills and monthly payments down and could be built in 6 weeks.  THEN MOVE UP LATER!!

the median price was up 7.2%.  The median price was $194,000 compared to $181,000 a year ago.  The month’s inventory was at 3.5 months and 6.5 months is a balanced market according to the Texas A&M Real Estate Center economists.  Also business economist Laila Assanie with the Federal Reserve Bank of Dallas said the U.S. as a whole took 75 months to recover lost jobs, but Texas recovered those job in 39 months.  Low oil prices are keeping the economy from taking off and job growth in Texas was ranked #1 and now is #28.

(1)  OPEN FLOOR PLANS ON A SMALLER SCALE.  Whimsy added with unique small spaces.  A door becomes bookshelf, phone charging station in a desk, etc.  (2)  ROOM FOR MULTIGENERATIONAL TOGETHERNESS.  Bottom floor for  older folks and upper for younger ones.  A NEW ECONOMY home!  (3)  EDIBLE GARDEN IN FORMER  FLOWER BEDS.  Or a common area for lots of food growing.  (4)  UNIVERSAL DESIGN with wider hallways, visible handrails & maybe grab bars.  There can be incorporated into design.  IT’S HAPPENING!!

for the 3rd quarter 2015 with the national average of 630 days, according to new RealtyTrac data.  Up 21% from 2nd quarter and 36% from the same period last year.  Nationally, foreclosures were up 66% from last year.  Dallas-Fort Worth-Arlington had 2,609 foreclosures with TYLER HAVING 51.  May be due to some financial institutions trying to unload old inventory.  We will just have to wait and see.

As needing extra money to buy a house with renting you pay the rent and taxes,  insurance, maintenance fees, HOA fees, etc. are paid with your rent.  Also it is now harder for a young person to qualify for a mortgage.  Some milleniums grew up with the spector of housing crash, with many seeing themselves or people they know lose their homes.  And millenials have a greater burden for student loan debt than their parents or grandparents.  This according to Dr. Jim Gaines, Realestate Center chief economist.