Confidence among home improvement professionals is booming. After a quarterly survey of thousands of remodelers, carpenters, painters, plumbers and roofers, the HomeAdvisor Farnsworth Index reports that over three-quarters of those home improvement professionals feel highly confident in their business prospects over the coming year. The survey was administered between May 11 and May 26 to professionals in 13 categories. According to the survey, 77.5 percent of professionals expressed confidence that their businesses will grow in the next 12 months. Landscaping and mechanical companies foresee the most revenue growth.

The report tells us what we already know about this time of year. The number of home improvement projects rose this quarter, and professionals are busier than ever for spring and summer. According to HomeAdvisor, both the number and size of projects has increased in the first half of 2017. (more…)

Immigrant

Second only to California, Texas hosts largest immigrant population in the United States. And in Dallas-Fort Worth alone, more than 1.2 million immigrants make their homes, hold jobs, attend schools, and participate in local communities. An integral part of the DFW economy, immigrants contributed $8.4 billion in taxes and over $25 billion in spending power in 2014 alone, according to a recent study.

But action of late by the Trump Administration, including discriminatory travel bans, ramped-up deportation raids, and even wall-related rhetoric are forcing many to reassess their places here, particularly when it comes to buying property.

An article published last month in The Guardian cited a 2013 study which put, in stark terms, the potential national impact anti-immigrant action could have on real estate.

[Dowell Myers, director of the Population Dynamics Research Group at the University of California] estimated that in this decade, immigrants nationwide will account for 32.2% of the growth in all households, 35.7% of growth in homeowners and 26.4% of growth in renter households.

The study found that the volume of growth in foreign-born homeowners has increased each decade, rising from 0.8 million added immigrant homeowners in the United States during the period from 1980–1990 to 2.8 million in the current decade.

“It’s pretty clear what will happen,” warns Myers. “One way that people afford houses is by pooling incomes. So if you were to deport one of the three mortgage payers, that can destabilize the whole rest of the household. Immigrants are so interwoven into many communities that when you unravel one thread, you can destabilize it entirely.”

Could DFW experience that kind of destabilization? Possibly.

(more…)

Dashboard 1

If you feel like everyone you know has gotten into the flipping game, your instincts are correct. According to 2016 Year-End U.S. Home Flipping Report by ATTOM Data Solutions, the number of folks making a living from house flipping reached a nine-year high last year. Data shows that in 2016, 126,256 individuals and corporate entities flipped homes — the highest number since 2007.

Low housing inventory and an influx of capital meant the number of properties flipped in 2016 reached peaks not seen since 2006. And the report shows profits from house flipping are also at an all-time high, with the average return on investment hovering at 49.2 percent.

Interestingly, the study lists 39 zip codes where at least 20 percent of all home sales during the year were home flips – including zip codes in Texas.

(more…)

Courtesy: Joint Center for Housing Studies of Harvard University

Baby Boomers dominate renovation spending. Courtesy: Joint Center for Housing Studies of Harvard University

Don’t be misguided by what you see on HGTV. The renovation market is not being driven by young couples out to feather their first nests. According to a report released by Harvard Joint Center for Housing Studies, Baby Boomers, motivated by changing accessibility needs, currently spend more money than any other generation on housing renovations – and will continue to do so over the next several years.

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1024px-Neiman_Marcus_flagship_store_-_sign

Their clothing and shoes (and jewelry! yes jewelry!) make us happy, but a little doom and gloom is hanging over Neiman Marcus after the retailer’s Tuesday morning earnings call this week. And if you are in the business of pushing luxury products, like million dollar homes or vacation homes, you pay attention. The take-aways: it’s been a challenging Q2, lowest oil prices in a decade definitely impacted Texas, home to Neiman’s largest volume stores, and more of their customers are turning to the internet to shop. Other factors that kept people from spending and challenged holidays sales were the skiddish stock market and strong U.S. dollar limiting international tourists in key store markets.

First of all, Neiman’s fiscal year ends in July. The company has been struggling. In October, Neimans announced layoffs for 500 employees, or 3 percent of its workforce.

Also in October, Neimans said it would delay the initial public offering it filed for in August, 2015.

For the all important 13 week period that ended Jan. 30, which includes the shop-rich cha-ching Christmas shopping season, Neimans experienced a 2.3 percent dip in revenue. Cyber Monday shopping on November 30, their highest volume day, was 9% higher than 2014. And when comparing fiscal 2015 to recent sales for the first half of this fiscal year, things are looking down. The company reported total revenues of $2.65 billion for the 26 weeks ended Jan. 30,  a 2.1 percent decrease over fiscal 2015. Clearly, low oil prices are taking their toll on the luxury shopper’s paradise. (more…)

Chinese investment firm Yantai Xinchao Industry Co. is spending $1.3 billion to buy massive oil fields in the Permian Basin area of Texas. Photo: Paul Lowry via Creative Commons

Chinese investment firm Yantai Xinchao Industry Co. is spending $1.3 billion to buy massive oil fields in the Permian Basin area of Texas. Photo: Paul Lowry via Creative Commons

A Chinese investment firm has its sights set on West Texas as they declare their intent to spend $1.3 billion (8.3 billion yuan) to buy massive oil fields in Howard and Borden counties. This purchase is part of a trend of Chinese interest in U.S. energy resources.

Read the whole story over on MidlandDirt.com!

 

 

Dallas Breakdown for Diff Family Types

Breakdown of Monthly Income Required to Live as a Human in Dallas According to the Economic Policy Institute

By Jon Anderson
Columnist

Candy and I have been opinionating back and forth on low-income citizens and how their access to safe and affordable housing is a means to promote economic upwards mobility. After all, if the poor are less poor, they will live richer lives (by any definition) and contribute more to society.

Unlike the rich who sequester money in intangible investments or various savings schemes, when the poor have more money, they spend it – because they need to. This creates a cycle that reverberates throughout the larger economy. If the poor buy more, manufacturers must make more which means hiring more people which in turn creates more people with money to spend, and so on, and so on. It’s exactly like the recession when governments were screaming for money because tax revenues took such a hit. Once people were put back to work, tax revenues rose, and in some states like Texas, overflowed.

In fact, recessions in general would be rarer and less dramatic if companies were forced to keep workers on the payroll or if unemployment benefits paid close to salary levels. As it is, recessions create a domino effect where one company dumps workers and then its suppliers dump workers because they’re not getting orders – and on and on. Call it trickle-back economics.

Personally, I spent nearly three years unemployed during the telecom meltdown that sent 500,000 skilled workers out on the streets early in the millennium. Desperate, I was open to anything and willing to uproot my life and leave my partner for any job. In the end, I was required to move to another state which led to the dissolution of my relationship. And compared to many, I was lucky.

For part of that time, I collected unemployment benefits that paid me the maximum $1,600 per month, a tiny fraction of my former salary. (Let me tell you, swallowing my pride and taking unemployment was one of the hardest things I’ve done – even though I’d paid into it for years. It felt like a stigmatizing failure.) All that check did was slow the eventual evaporation of a three-year “emergency fund.” I tell you this because $1,600 per month is more than the minimum wage in America and it was crippling even with a free place to live and extensive savings. Before you groan, this column isn’t about the battle for living wages, it’s about documenting and understanding how much it takes to live as a human being in Dallas. (Spoiler alert: it’s not the current minimum wage.)

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Two new reports from the Local Market Monitor say Midland and Odessa can expect a strong housing market for the next few years.

Two new reports from the Local Market Monitor say Midland and Odessa can expect a strong housing market for the next few years.

More good news about the real estate market in Midland and Odessa: two new reports from Local Market Monitor say the housing market in both markets is strong and should stay that way for the next few years.

According to the reports, home values for Midland are forecast to increase by 8 percent over the next 12 months, compared to a national increase of 4.6 percent. In the second and third years, prices are forecast to increase 9 percent each year.

In Odessa, home values are forecast to increase by 7 percent over the next 12 months, and 9 percent each year in the next two years.

Why this positive outlook on the strong housing market? Jobs!

Read the whole story over at MidlandDirt.com!