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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Homes that are "For Sale By Owner" could help you generate a lead as the market is cooling off this fall. (Photo via: TaxRebate.org.uk)

Homes that are “For Sale By Owner” could help you generate a lead as the market is cooling off this fall. (Photo via: TaxRebate.org.uk)

Once summer wraps up and school’s back in session, the real estate market tends to slow down. Parents don’t want to uproot their children mid-school year, and they’re just not looking to buy or sell a home in the near future.

This can be a frustrating time for real estate agents and brokers. There just aren’t that many leads to tap, and sales and customers begin to decline.

Fortunately, though it may be a little harder to see success this time of year, it’s not impossible. You just have to get a little more creative. Want to keep your leads coming in, even when the market slows down in the fall?

Here are a few ways to do it:

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5118 Stanford Ave. in 2013

5118 Stanford Ave. in 2013

In January 2013, my Hubby and I were frantically looking for a house as our Preston Hollow condo was under contract in 3 days to a cash buyer (HOORAY!!!). I fell in love the minute I saw this Briarwood cottage and the For Sale sign out in front of 5118 Stanford Avenue.

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water Spigot

We’re reporting from the National Association of Real Estate Editors Houston Conference today and it has been an incredible morning just stewing with new information. The opening remarks were especially mind-boggling, as Counselors of Real Estate chair Hugh F. Kelly listed the top 10 issues facing real estate now and into the future.

“The list reflects growing economic and political turmoil, changing demographics, and the lifestyle choices of an emerging generation, rising energy independence in the United States, and a strengthening job market fueled in part by massive changes in the delivery of health care,” Kelly said.

For the full list, jump.

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Spoken For

It’s official: According to the latest numbers from CoreLogic, the Dallas-area real estate market is fully recovered from the recession and housing bubble. Dallas real estate prices are up 9.7 percent according to the CoreLogic HPI report.

Nationally, prices are up 12 percent year-over-year, too, the report showed, showing that regions across the U.S. are making great strides. It’s the 19th straight month that the housing market has showed gains.

“U.S. home prices continued their ascent in September. Average home prices in nearly half the states are now within striking distance of their pre-downturn pricing peaks,” said Anand Nallathambi, president and CEO of CoreLogic. “We are seeing a slowdown in the rate of price appreciation over the past few months from the rapid pace experienced over the first half of this year. This deceleration is natural and should help keep market fundamentals in balance over the longer-term.”

Let’s juxtapose that great news (and it is great!) with some less-than-stellar reports from the National Association of Realtors. According to the NAR’s Pending Home Sales Index, fewer people are poised to buy homes. The index fell for the fourth month in a row this past September, down 5.6 percent. It was a shock to economists who had forecasted a slight increase.

It’s been attributed to the rise in mortgage rates and an increase in prices in some markets, as well as the shrinking middle class income.

Does the NAR report affect your optimism about the Dallas real estate market?

David Griffin for sale

(Photo: David Woo/The Dallas Morning News)

Rarely do you see both home prices and rents grow in the same market where, as we reported earlier this week, net migration is in the red. And yet that’s what Local Market Monitor is projecting for Dallas-Irving-Plano area over the next 12 months.

That’s partially due to unemployment rates dropping and a strong financial and service job market in the Dallas area. Local Market Monitor projections show 9 percent growth in housing prices over the next 12 months and 12 percent growth over the next three years. And demand for housing, both buying and renting, will grow thanks to overall population growth that is outpacing the national average.

For these reasons, Local Market Monitor is categorizing the Dallas-Plano-Irving area as “Low Risk” for investors, which is good news for international real estate investors, a growing market in DFW.

Boots on the ground reports from Realtors still show sales as somewhat brisk, but according to RedFin reports, the fall season is showing its traditional slowdown from a hot sellers market to a better buyers market.

“At the end of this summer, you could smell the rubber on the road from buyers hitting the breaks,” said Redfin San Diego agent Sara Fischer. “The cutthroat competition and frenzied demand has relaxed considerably.”

So with prices reaching equilibrium and short inventory, those homebuyers who were waiting for the right time to find their dream home will be happy to hear that today’s the day.

Luxury Panel June 2013Kind of like a bride, something old and something new. A panel of real estate heavy hitters, from tip-top Dallas area agents (Mike Brodie, Jennifer Miller, Jan Richey) to Briggs-Freeman Sotheby’s chieftain Robbie Briggs took part in a luxury real estate marketing panel discussion today led by Laurie Moore-Moore, of the Institute for Luxury Home Marketing. A lot of the talk was about team building and dealing with clients, presentations, stuff agents would naturally want to know to help grow their business. But here’s where we consumers can perk our ears: a lot of the discussion centered on tips and techniques of the day that every homeowner selling or buying a home should know.

The way I look at it, every home should be marketed like a million dollar plus plus home.

Today’s takeaway: the most important rule for any agent to know is that old-fashioned personal contact with a client trumps everything — that’s the old part of the equation: you just cannot minimize that personal and individual contact. So if you are not getting this out of your agent, well, speak up and tell them to get with it!

The second part, the “new”, is web presence which is not just critical, but crucial in today’s market. It’s a great, navigable web site plus glorious photos of your listings plus video (not too long) plus being in touch with everyone via email, text, Twitter, Skype, all of it. Some folks will tell you to blog, we will not. Solid blogging is best a reporter’s job unless you would rather blog than sell homes. And you always have to consider the liabilities. All of them. But the point is this: is your agent doing everything possible to get your property proper web exposure?

Laurie also told agents to “put a spin on it”, that is, use relevant names like “relevant listings” instead of “comps”.  And get rid of all of a property’s negatives immediately by finding the lemonade in the lemon: say a home has a very small yard, well, say right from the start — this smaller yard is perfect for empty nesters or DINKs, double income no kids.

Laurie also shared some cool facts about our luxury home market from the folks at Altos Research: the average cost of a luxury home, that defined as homes $500,000 and above, is $903,506 in Dallas, with median size of 3767 square feet. In Austin, $827,623 is the median luxury home price with an average size of 3,666 square feet. How does that compare to New York? The average luxury home in New York costs over $4 million with a size of 4132 square feet. Houston, by the way, beat us with average luxury price of $1,096,000 for about the same square footage or 3,888 square feet. Clearly you get way more for your housing dollar in Texas than Los Angeles ($2,726,000) and San Francisco ($3,167,000).

The Luxury market, defined again as anything over $500,000, comprises only 10% of the entire real estate market. The media may be over-glorifying the true state of the overall real estate market: sales of homes $2 million and above are still slow, and it’s only those perfect homes that are perfectly priced we hear about flying off the shelves. Also the national days on market average for a luxury home ($1,273,414 nationally) is 151 days. In Dallas, it’s 142. Also, Laurie showed how one ascertains if a market is Buyer or Seller driven: her charts “Market Action Index illustrates a difference between supply and demand using a statistical function of the current rate of sale versus current inventory”  Anything below 30 is a Buyer’s market, above 30 is a Seller’s market. Dallas comes in right at 30, a little above, a little below.

Keller Williams’ Luxury Agent Division, Starkey Mortgage and Chicago Title sponsored the forum, which had a great turn-out.

“I’m glad that we can have such a successful and meaningful forum across agent and company lines with common interests and purpose,” said Jane Idzi. “Hopefully, it won’t be the last.”

Thanks to Yvette Grove and Jane Idzi, who were my reporters today.

Luxury Panel June 2013Kind of like a bride, something old and something new. A panel of real estate heavy hitters, from tip-top Dallas area agents (Mike Brodie, Jennifer Miller, Jan Richey) to Briggs-Freeman Sotheby’s chieftain Robbie Briggs took part in a luxury real estate marketing panel discussion today led by Laurie Moore-Moore, of the Institute for Luxury Home Marketing. A lot of the talk was about team building and dealing with clients, presentations, stuff agents would naturally want to know to help grow their business. But here’s where we consumers can perk our ears: a lot of the discussion centered on tips and techniques of the day that every homeowner selling or buying a home should know.

The way I look at it, every home should be marketed like a million dollar plus plus home.

Today’s takeaway: the most important rule for any agent to know is that old-fashioned personal contact with a client trumps everything — that’s the old part of the equation: you just cannot minimize that personal and individual contact. So if you are not getting this out of your agent, well, speak up and tell them to get with it!

The second part, the “new”, is web presence which is not just critical, but crucial in today’s market. It’s a great, navigable web site plus glorious photos of your listings plus video (not too long) plus being in touch with everyone via email, text, Twitter, Skype, all of it. Some folks will tell you to blog, we will not. Solid blogging is best a reporter’s job unless you would rather blog than sell homes. And you always have to consider the liabilities. All of them. But the point is this: is your agent doing everything possible to get your property proper web exposure?

Laurie also told agents to “put a spin on it”, that is, use relevant names like “relevant listings” instead of “comps”.  And get rid of all of a property’s negatives immediately by finding the lemonade in the lemon: say a home has a very small yard, well, say right from the start — this smaller yard is perfect for empty nesters or DINKs, double income no kids.

Laurie also shared some cool facts about our luxury home market from the folks at Altos Research: the average cost of a luxury home, that defined as homes $500,000 and above, is $903,506 in Dallas, with median size of 3767 square feet. In Austin, $827,623 is the median luxury home price with an average size of 3,666 square feet. How does that compare to New York? The average luxury home in New York costs over $4 million with a size of 4132 square feet. Houston, by the way, beat us with average luxury price of $1,096,000 for about the same square footage or 3,888 square feet. Clearly you get way more for your housing dollar in Texas than Los Angeles ($2,726,000) and San Francisco ($3,167,000).

The Luxury market, defined again as anything over $500,000, comprises only 10% of the entire real estate market. The media may be over-glorifying the true state of the overall real estate market: sales of homes $2 million and above are still slow, and it’s only those perfect homes that are perfectly priced we hear about flying off the shelves. Also the national days on market average for a luxury home ($1,273,414 nationally) is 151 days. In Dallas, it’s 142. Also, Laurie showed how one ascertains if a market is Buyer or Seller driven: her charts “Market Action Index illustrates a difference between supply and demand using a statistical function of the current rate of sale versus current inventory”  Anything below 30 is a Buyer’s market, above 30 is a Seller’s market. Dallas comes in right at 30, a little above, a little below.

Keller Williams’ Luxury Agent Division, Starkey Mortgage and Chicago Title sponsored the forum, which had a great turn-out.

“I’m glad that we can have such a successful and meaningful forum across agent and company lines with common interests and purpose,” said Jane Idzi. “Hopefully, it won’t be the last.”

Thanks to Yvette Grove and Jane Idzi, who were my reporters today.