Two simple keys to success in 2019 for the real estate market

Don’t worry Tarrant County Tuesday readers, the Bow Tie Realtor will have a look in the 2019 crystal ball for some tasty prognostications before the ball drops.

The pendulum has swung.  This was discussed earlier in Tarrant County Tuesday  — the housing market in Tarrant County has become more of a buyer’s market than we have seen in many years.

Why A Buyer’s Market?

In real estate, a buyer’s market is when there is a surplus of homes available for sale.  Homes generally take longer to sell, and prices tend to drop or only rise slightly.

There’s no exact reason why a seller’s market (like we’ve seen in Dallas-Fort Worth for past number of years) flips to a buyer’s market but here are a few common themes:

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A slowdown isn't a bad thing for real estate

The slowdown in the real estate market is more like a shift toward balance for sellers and buyers.

WOW–tremendous responses and feedback on Part I of this real estate slowdown blog topic from last week.  Thanks so much!  Nice to know people are reading, following and giving thought to #tarrantcountytuesday.

Last week we established (with data) that there indeed is a slowdown or market shift in the housing market.  One Dirty Reader asked about this “recession” and I would strongly caution the use of that word.  There’s a big difference from a slowdown to a recession.

Is This Slowdown a Good Thing?

Many have indicated that this shift from a sellers’ market to a buyer-friendly market might actually be a good thing.  I would agree.

As the data indicated, when prices are increasing so quickly, interest rates are going up and individual incomes not keeping pace buyers aren’t buying.  That’s not good for anyone in the real estate business. (more…)

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Smart and resourceful, Annie Pennington has taken a lot of the lessons learned as an educator and applied them to her career as a Realtor at Nathan Grace. Not only does Annie have the dry sense of humor that we just eat right up, but she’s hardworking and patient, too. And did you know that she’s an expert in lakefront living? Keep reading for that.

As with any real estate transaction, a great Realtor and a great lender can go a long way toward making your experience a positive one. What has your lender done for you lately? See what you’re missing by contacting Jeff Lindigrin at Great Western Home Loans today.

Jump to read more about Annie Pennington, who came to the real estate industry from her 4th grade math class. We’re not kidding!

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May Local Market Montitor Report

We’re in the money, folks. If you have friends, clients, and friends who are clients who were waiting for the right time to buy or upgrade in the Dallas/Plano/Irving area, Local Market Monitor is giving you the green light!

Last month’s report showed that we had low risk in some sectors, but it was nothing Dallas agents hadn’t heard before. This month, however, the Dallas metro area got the green light for investors.

Local Market Monitor forecasts prices to grow four percent in the coming year, which is huge compared to national rates. We definitely have a healthy real estate market, and with the forecasted growth, the time to buy is right now!

Does this report jive with what you’re hearing, agents?

May Local Market Montitor Report

We’re in the money, folks. If you have friends, clients, and friends who are clients who were waiting for the right time to buy or upgrade in the Dallas/Plano/Irving area, Local Market Monitor is giving you the green light!

Last month’s report showed that we had low risk in some sectors, but it was nothing Dallas agents hadn’t heard before. This month, however, the Dallas metro area got the green light for investors.

Local Market Monitor forecasts prices to grow four percent in the coming year, which is huge compared to national rates. We definitely have a healthy real estate market, and with the forecasted growth, the time to buy is right now!

Does this report jive with what you’re hearing, agents?

So. It’s 2012 and we have been at this for what now, three years? Our market first started feeling the pinch about 2008. Texas is like the caboose on a long train: we are the last to fall off the cliff.

Foreclosures skyrocketed from 2008 to 2011. The folks at Standard & Poors are now saying that home prices are back to 2001 levels. Foreclosure rates in the Dallas-Plano-Irving area for September are slightly higher than 2010’s rate, according to a housing report released by CoreLogic. The same company also told us last month that the current residential shadow inventory as of October 2011 remained at 1.6 million units, or a supply of 5 months. This was better than October 2010, when shadow inventory stood at 1.9 million units, or 7-months’ supply, but approximately the same level as reported in July 2011. The flow of new seriously delinquent loans into the shadow inventory has been offset by the roughly equal flow of distressed (both short and real estate owned) sales.

In other words, we are crawling very, very slowly out of this mess. I almsot feel two steps ahead, one point five back.

Now comes a report from one of my fave real estate researchers, Local Market Monitor. I love these peeps. Looking at the economic conditions in Dallas-Plano and Irving, Texas, here’s what Local Market Monitor says we can expect: home prices are forecast to decrease by 2% over the next 12 months. (But! The nation can look forward to a 3.9% price dip.) After that, they are expected to increase 1%   in 2013 and 4% in 2014. That’s a net gain of 1% by 2014. Good stuff: our population grew 2% while the nation’s grew by only 1%. Same old, same old; doesn’t mean home prices IN EVERY NEIGHBORHOOD will decrease by 2%, just that it will still be a buyer’s market. Sellers, more than ever, get real on pricing.

But here’s what kind of worries me: the rental market. LMM says our rents are projected to increase by 17% over the next three years in this market. Average rent to be $1037.

This is why today’s buyers are really in the drivers seat. If you can afford a home or investment property, you’re locking in at the lowest price and getting the BEST. RATES. EVER.

“Monthly rent on average is roughly 2% of local per capita income, but there is lots of variation,” says Carolyn Beggs of Local Market Monitor, Inc.

Rents, she tells me, are forecasted to increase by 4.74% over the next 12 months, then 5.60% over the following 12 months and then by another 5.82% after that.

“There is a strong rent forecast in this market,” she says.