Two new reports paint a bright picture of the housing market in Midland and Odessa now and for the next three years.

The Local Monitor Reports, released today, cite a 7 percent increase in Midland home prices over the last 12 months, which puts the average home price at $183,463. In Odessa, prices have gone up 5 percent over the last year and the current average home price is $210,980. In the last three years, home prices were up 10 percent in both markets.

The good news doesn’t stop there.

Read the whole story over on MidlandDirt.com!

 

 

home prices

Photo: Dan Moyle

Two new reports from Local Monitor Report are projecting big increases in home values in Midland and Odessa over the next three years, almost double the national average. Prices are predicted to rise even more.

Home values for Midland are forecast to increase by 8 percent over the next 12 months—compare that to national forecast of 4.6 percent. In the second and third years, values are forecast to increase 9 percent each year, a 26 percent increase in three years.

Midland home prices are projected to increase even more, at 30 percent over the next three years. In the last 12 months, prices have gone up by 7 percent, bringing the average home price in Midland to $183,463.

In Odessa, the report is predicting a 7 percent increase in home values over the next 12 months, and 9 percent in each of the next two years. That’s a total projected increase of at least 25 percent.

Odessa home prices are forecast to increase more, at 29 percent over the next three years. Odessa home prices have increased by 5 percent in the last 12 months, and the average home price is now $210,980.

All this adds up to a “low risk” categorization by Local Monitor Report for real estate investments in both Midland and Odessa, good news for homeowners and investors, alike.

See the full story at MidlandDirt.com.

Jeff Dworkin soldThe indicators are liking Dallas more and more, and we are getting a reputation around the country for being pretty hot stuff — in our real estate market, that is. According to the latest CoreLogic report, Dallas-area home prices in February were up 7.3 percent from a year ago, February 2011, this in CoreLogic’s latest nationwide price comparison.

And then if you do what CoreLogic does so well, take out distressed sales, values shot up  9.5 percent.

That still skirts the overall national increase of 10.2 percent, the biggest increase in about seven years, but I’ll take 9.5 percent anyday. We have not seen home prices increase this much in seven years.

Markets seeing the best price increases were in markets that were wiped out by the Great Recession, which really started because of housing. We call them the Sand States: Nevada, where prices shot up 19.3 percent, Arizona which is back from the dead, prices up 18.6 percent, and Miami 9.5%, all those out-of-country buyers. But look at California — up 15.3%, and even Idaho up 15.3%, while Hawaii rocked it at 15.5%.

Yep, paradise is getting more expensive. Prices in Nevada are still 50 percent lower than they were before the housing bust — which is a good thing!

If you are house shopping, or looking for a house, CoreLogic predicts the double-digit home price gains will continue. The firm is calling for a 10.2 percent nationwide increase in home values for March. Here in North Texas, home values are up about 8 percent according to the various multiple listing services. And I’ll tell you that new homes are going to see price increases like a Texas tornado. Come June 1, the cost of lumber is going up, Jeff Dworkin of JLD Custom Homes tells me, because of a lumber span charge. Builders have to use 2 by 8’s, not the 2 by 6-inch boards they have been using. This will affect spacing of studs — either closer spacing or bigger studs. This means when framing a house, there will be more wood in that frame, which will take a framer more time to frame, meaning more to pay your framers, which trickles down to price increases of 10 to 15% per new home built.

“I have 2 or 3 people who called me last summer, they were on the fence,” says Jeff, “Now they are ready to pull the trigger but I tell them, it’s a different world. It’s 10 to 15% more now to build than it was last summer, and that doesn’t include the price of land.”

Which, according to CoreLogic and MLS is about 9% more expensive than it was last year.

So there you have it: Jeff says that the buying floodgates opened after January, with record low interest rates, once the election was over, once we realized the world was not going to end on the fiscal crisis. People had jobs, got loans, got a house.

At least, that’s what happened in Dallas.

 

 

 

Jeff Dworkin soldThe indicators are liking Dallas more and more, and we are getting a reputation around the country for being pretty hot stuff — in our real estate market, that is. According to the latest CoreLogic report, Dallas-area home prices in February were up 7.3 percent from a year ago, February 2011, this in CoreLogic’s latest nationwide price comparison.

And then if you do what CoreLogic does so well, take out distressed sales, values shot up  9.5 percent.

That still skirts the overall national increase of 10.2 percent, the biggest increase in about seven years, but I’ll take 9.5 percent anyday. We have not seen home prices increase this much in seven years.

Markets seeing the best price increases were in markets that were wiped out by the Great Recession, which really started because of housing. We call them the Sand States: Nevada, where prices shot up 19.3 percent, Arizona which is back from the dead, prices up 18.6 percent, and Miami 9.5%, all those out-of-country buyers. But look at California — up 15.3%, and even Idaho up 15.3%, while Hawaii rocked it at 15.5%.

Yep, paradise is getting more expensive. Prices in Nevada are still 50 percent lower than they were before the housing bust — which is a good thing!

If you are house shopping, or looking for a house, CoreLogic predicts the double-digit home price gains will continue. The firm is calling for a 10.2 percent nationwide increase in home values for March. Here in North Texas, home values are up about 8 percent according to the various multiple listing services. And I’ll tell you that new homes are going to see price increases like a Texas tornado. Come June 1, the cost of lumber is going up, Jeff Dworkin of JLD Custom Homes tells me, because of a lumber span charge. Builders have to use 2 by 8’s, not the 2 by 6-inch boards they have been using. This will affect spacing of studs — either closer spacing or bigger studs. This means when framing a house, there will be more wood in that frame, which will take a framer more time to frame, meaning more to pay your framers, which trickles down to price increases of 10 to 15% per new home built.

“I have 2 or 3 people who called me last summer, they were on the fence,” says Jeff, “Now they are ready to pull the trigger but I tell them, it’s a different world. It’s 10 to 15% more now to build than it was last summer, and that doesn’t include the price of land.”

Which, according to CoreLogic and MLS is about 9% more expensive than it was last year.

So there you have it: Jeff says that the buying floodgates opened after January, with record low interest rates, once the election was over, once we realized the world was not going to end on the fiscal crisis. People had jobs, got loans, got a house.

At least, that’s what happened in Dallas.

 

 

 

7203 Morton

FSBO

Steve Brown jumped on Tuesday’s Case-Shiller report like a kid with a shiny new bike (pay wall? not sure). The report showed Dallas-area home prices up by the largest percentage in more than a decade

Dallas home prices rose 5.7 percent in November from the same period a year ago in the monthly Standard & Poor’s/Case-Shiller Home Price Index. I will caution you, these are sales from November because by now, end of January, all paperwork is in. And it was the ninth month in a row that local prices were up from 2011. Our Dallas-area increase was slightly higher than the 5.5 percent average price rise in the other 20 major cities that Case-Shiller tracks, so yes, I would say that it is time to be very happy indeed. Get on a new bike and hit the Katy Trail!

But from what I see of the flurry of business agents are up to eyeballs in this month, I say we ain’t seen nothing yet when it comes to price increases.

There is so little on the market: local home inventory levels are at the lowest point since the early 2000s, and the analysts Steve interviewed say North Texas could see even bigger price increases in 2013 because there is, quite simply, less to choose from:

“If the inventory doesn’t improve, we are going to see remarkable price increases this year,” said Dr. James Gaines, an economist at the Real Estate Center at Texas A&M University. “If you own a house and want to sell, it’s probably the best time in years.”

Steve says “the number of pre-owned homes on the market in North Texas last year was down about 20 percent. And inventories of new homes are at the lowest point in more than a decade.” Well, what if everyone reads this and decides to put their house on the market? Herd mentality. Folks back in 2008/2009 pulled back, re-grouped, and got a bad taste for real estate. Now, they start hearing about a few good deals, they will get back in.

And Gaines estimates “that Dallas-area pre-owned home prices were up 7.6 percent in 2012 from 2011.” 2011, if you recall, was the first year of median price increases since before the Great Recession. We were probably the least affected state in the Union during the housing crash, but our values still took a 15 percent hit, which we are making up this year.

If the economy continues to chug along and Washington doesn’t do anything stupid…

The big boys confirm that housing is contributing to the nation’s economic growth, which is so interesting because housing is what spurred the crash.

Who is benefitting the most? Phoenix, prices up 22.8 percent, and San Francisco, prices up 12.7 percent from November 2011. Tell me about it: my son is trying to buy a house there.

You know who’s really happy in Dallas right now: home builders. Steve says home construction is still down here and not expected to return to pre-recession levels for years. Actually, Steve, it never will — there are not that many builders out there and banks still have a tight leash.

Steve talked to Dallas real estate appraiser Chuck Dannis, who said he wouldn’t bet on North Texas home prices rising at double-digit rates in 2013:

“but the laws of supply and demand suggest it could happen. If it does, it will just shock people,” Dannis said. “When we had double-digit inflation in housing prices around here, it was always tied to inflation and not necessarily supply and demand.”

Dannis told Steve that appraisers “will be reluctant to sign off on big price increases unless they can support the figures with data from closed home sales.”

Why? Because lenders won’t lend without appraisals that are as tight as Fort Knox security.

I also think that when buyers see billionaires putting their homes on the market, like the $135 million home of Tom and Cinda Hicks, it encourages more people to stick a toe in the water and make a move. In fact, that’s exactly how the herd mentality starts!