No single “magic bullet” will solve the growing affordable housing development problem in TX cities.  Small traditional stick-built homes or subsidized low-income apartments top the list, BUT manufactured housing (MH) communities could be a viable alternative.   There are 3 in TX & all managers agree it comes down to good restrictions, good management and offering the residents pride of ownership & value in their property.  Financing options are available from FHA, VA or USDA if home is sold along with the  land in a real property transaction.  MORE TO COME.

The Truth-in-Lending ACT (TILA) and Real Estate Settlement Procedures Act (RESPA) disclosure requirements will be integrated to provide borrowers with simplified documents at application and during the loan closing.  This takes effect October 3, 2015.   The new rule is consolidating 4 existing documents into 2 new disclosures and may take up to 45 days to close a loan.  The buyer is to receive the closing Disclosures at least 3 days before closing or closing delayed.  More on this subject will be coming.

What’s changed in the last 10 years:  home owners are paying their mortgages on time & few are seeking cash-out refinances.   According to Lawrence Yun, NAR chief economist expects home prices to rise continuously as long as mortgage rates remain under 6%.  It will rise, of course.  The U.S. needs more robust  job creation and meaningful increases in income levels to help propel home prices.  For now, though, NO BUBBLE or impending CRASH is in sight.

46% of Texas households can only afford a house up to $150,000 if 3% paid for a down payment.  This means they could not  meet the 35% limit of monthly housing cost to monthly income requirement.  As interest rates increase then either purchase less house OR increase down payment.  In Texas over the past decades home price increases have been modest with income going up some.  Since the 2007 recession there is a  wider margin as incomes have NOT increased as fast as home prices.  This creates UNCERTAINTY ON FUTURE TEXAS HOME AFFORDABILITY.

When interest rates, taxes, insurance, utilities rise in price, then the overall affordability of a new home is REDUCED.  From 1989 to 1999 they tracked tightly together.  More recently trying to get lenders to require less down payment  but then monthly payment go UP.  Lenders only want principal, interest, taxes, insurance & utilities to be NO more than 35% of the monthly income.  More down payment then buyers can afford a pricier house.  MORE TO COME

Texas’ median home price typically increases about 4% per year, bUt has increased 24% between 2012 – 2014 and may show that much increase in 2015.  During the same period, Texas nominal household income rose just 11.2%, less than half the ratE of increase of the median home price.  This  shows a widening gap between home price and nominal household income, so a decline in the affordability of Texas homes.  As the gap widens, households are forced to pay a higher multiple of income for home.  MORE TO COME!

Webster’s Dictionary defines a ranch as a “large farm, especially in the Western U.S., for raising cattle, horses or sheep”.   This only scratches the surface.  Raising livestock and agricultural production are often primary concerns, but in today’s dynamic market, other factors like recreation and scenic amenities are becoming just as important when considering the value of property.  Technology now allows individuals to work in remote & isolates areas, so media moguls and institutional investors are entering the market and changing the game.  MORE TO COME.

Home price appreciation outpaced wage growth in the U.S.  After prices bottomed out in 2012, they have recovered rather quickly, especially for investors says Daren Blomquist, VP of Realty Trac.  For the momentum to grow traditional buyers need to get MORE into the market, but wages are not increasing as much.  “The gap has worsened in many areas as rents continue to climb, but the accelerated pace of hiring has yet to give workers a meaningful bump in pay” according to Lawrence Yun, chief economist National Assoc. of Realtors.  So more folks are STAYING AS RENTERS.

40% thought the mortgage application and approval process were more difficult than expected.  22% said saving for the down payment was the most difficult task in the home buying process & 46% said it took them a year with 24% saying 1-2 years, then 17% 2-5 years & finally 13% more than 5 years.  33% had to repay student loans, 33% have too much credit card debt, another 33% paying on a car loan and lastly 38% paying for extra childcare, healthcare expenses, etc.  SACRIFICES to purchase a home are:  48% cut spending on nonessential items, 13% canceled vacations & 7% got extra income through a 2nd job.  All this according to Dr. Jim Gaines, economist the Real Estate Center at Texas A&M U.

Fortunately bedbugs don’t spread disease with their bites, but the bites can be terribly itchy and tend of occur in lines or groups..  They usually occur above the waist and are attracted by the carbon dioxide we exhale.  When we travel, the first thing we do when we get to the hotel – NO matter how  many stars its rated – check the beds for bedbugs.  JUST SOMETHING WE ALL HAVE TO BE ON THE LOOKOUT FOR, particularly if we travel a lot.