SE Texas Real Estate Talk

Southeast Texas Home Sales 2008 vs 2009

Is the Southeast Texas real estate market up or is it down?  That's a question I hear almost everyday.  Buyers want to know if they can get a great deal.  Sellers want to know if their homes are still going up in value. 

Since we are half way through 2009 its a good time to compare the first half of 2009 to the first half of 2008.  The results may surprise you.  I like graphs and charts to display statistical information.  Like they say a picture is worth a thousand words.

1000 words about the number of homes that have sold:

The total number of homes that sold in the first six months of 2008 was 1089.   The total number that has sold in the first six months of 2009 is 1050. *This number is not official yet.  The Beaumont MLS has not reported the official number of sales for the month of June.  When they do they will be recorded for your viewing pleasure at the  Real Estate Center at Texas A&M website.  Looking at the number of sales our market really hasn't had any measurable change since last year.  But before we say there hasn't been any change, here's a thousand words about median sales price.

  

Now there's a change!  The median price in 2009 has been significantly higher than the median sales price in 2008.  June 2009 data has not been released yet.  However, from the research I've done it appears as though the median price in June is down.  We have been seeing this in the activity levels of the more modestly priced homes far outpacing the sales of the upper price range homes.  For most of 2009 the median sales price has been approximately $135,000.  Compare that to 2008 when the median price was about $125,000. 

Here's another change in our local real estate market, although this trend is happening across the country.  FHA financing is now as common at conventional financing.  Of the homes that closed in the first six months of the year there were 383 conventional loans, 333 FHA loans, 39 VA loans, and 269 cash sales. 

So to answer the question is the Southeast Texas real estate market going up or down?  I'd have to say prices, at least the median price, is up.  Sales are about the same.  We really don't have any signs of a down turn in the local real estate market.  Average days on market and inventory levels have gone up a bit this year which could signal a flattening out of the price increases but its really to soon to say. 

Is it a good time to buy?  Yes.  Is it a good time to sell in Southeast Texas? Yes.  Everybody is a winner in this market.

Breaking Mortgage Update: Get Your $8,000 Tax Credit At Closing

Just in this morning.  Southeast Texas has a lender than is offering monitaziation of the $8,000 first-time buyer tax credit.  Haven't heard about the credit yet?  You must have been under a rock but here's a website with all the information on Federal Housing Tax Credit for first-time home buyers.

The Mortgage Group is our local lender who is offering the program.  Here's the announcement:  

We are very excited to announce we are now able to offer the Texas Department of Housing and Community Affairs MONITAZIATION of the $8,000 Tax Credit so the funds can be used at closing.  The borrowers are allowed to get 5% of the first lien amount up to a max of $7,000 to go for down payment or closing costs.  Here are a few bullet points to help you understand the program:
 
Each buyer must complete a pre-purchase homebuyer education course.
Homebuyers must be eligible to claim the Federal Tax Credit.
Homebuyer must complete the IRS Form 5405 and file an amended 2008 IRS Federal Tax Return.
This is a 90 day 0% loan with a $250 admin fee.
Homebuyers cannot have owned a home in the last 3 years.
Must meet income limits.
If funds are not paid back within 90 days, the funds are repaid over 24 months at 10% interest with monthly payments of $323 per month. 
 
 
 
 
Scott Gittinger
Senior Loan Officer
Texas License Number 49555
 
 
Michael Caballero
Marketing Director
 
Mortgage Group
990 IH 10 North, Ste 135
Beaumont, TX 77702
(409) 899-1800   Office
(409) 899-1808   Fax
(409) 351-2528   Cell

If you need more information about this program call today.  Its an incredible opportunity but you have to qualify and you have to close on a home before November 30, 2009.  Its taking about sixty days for most residential purchase contracts to close these days so you want to be finding a home soon.  If you wait until October or November to start looking you may be too late.  Sometimes offers like this sound to good to be true but this one is true.  First-time home buyers are able to get an $8,000 tax credit for buying a home. 

100's of Choices for Luxury Home Buyers in Southeast Texas

Would you be surprised to hear that there are over 100 homes listed in the Beaumont MLS with asking prices at or above $400,000?  Well, there are at the present time 102 luxury homes for sale.

Would you care to guess how many homes priced at or above $400,000 have sold in 2009? 

Here's your choices:

1. 40
2. 23
3. 67

Now before you find out the answer, here's a few things to consider.  If there have been 67 sales so far this year and there are 102 homes on the market we would have about a 10 month supply of homes in the luxury category.  That means a buyers market in most cases.  If there have been 40 sales so far this year, we would have about a 15 month supply of homes.  If there have been 23 sales so far this year, then we have a little over a two year supply of luxury homes on the market.  Luxury is defined here at a home priced above $400,000.  No other criteria factored in. 

If you guessed 23 sales, you win.  That's the number of homes that have sold at or above $400,000 as recorded by the Beaumont MLS in 2009.  Here's what this all means.  Luxury home buyers have a lot of choices.  Luxury home sellers are probably going to have to be flexible on their selling terms if they are looking for a quick sale.

Here's a few other facts about these luxury sales:

1. Beaumont's west-end had the highest number with neighborhoods such as Brownstone, Montclaire and those near Delaware being the most active.

2. Average days on the market was 139 but varied from a low of 4 to a high of 540.

3. The highest of all the closings was $749,000.

4. Lumberton, Winnie, Silsbee and Orange all had one closing in the luxury category.

5. Sellers averaged about 89% of their asking price.  With three sellers getting 100% of their asking price and one seller coming down to 69% of the original asking price ( a reduction of a little over $200,000).

Here's some free advice.  If you are in the market for a luxury home you are in a good position.  There is a good selection of homes to choose from but the most desirable still sell in about four months time.  If you are a luxury home seller know your competition.  There is a lot of it.  If you want your home to sell you've got to be priced aggressive enough to attract attention.  If you need help selling your home call me.  With over 100 other homes competing against yours, you need a local professional to help make sure your home has the best marketing strategy possible because the buyers won't even take the time to see your home if the strategy is wrong. 

90 Million Will Buy You Neverland

Little known fact about Micheal Jackson's Neverland Ranch is that last year it was bought just weeks before foreclosure by a California developer.  The developer is renovating the property and will be putting it up for sale soon.  The asking price will be close to 90 million.

Check out this short video for more details. 

Owner Financing, Not Often Offered in Southeast Texas Home Sales

Here's a question I hear all the time, "Do you have any homes with owner financing?".  With lending requirements being tougher than ever, more prospective home buyers have been forced to ask this question.  In today's market if your credit score is below the mid 600's you will have a hard time finding a bank to lend you money.  If you want to buy a home that only leaves one choice - find a home with owner financing. 

If only it were a simple thing to find.  Just this week, I heard that question, the same question again.  "Can you find me a home with owner financing?"  So I searched the MLS and here's what I found. 

10 listings that offer owner financing:

• 2540 Tyler, 2 bedroom, 1 bath, $44,500, MLS 134001
• 3360 Magnolia 2 bedroom, 1 bath, $45,000 MLS 135838
• 570 Campus, 4 bedroom, 2 bath, $49,500 MLS 135832
• 2348 Pecos, 2 bedroom, 2 bath, $63,000 MLS 127987

• 345 E Alma, 3 bedroom, 1 bath, $169,900 MLS 135451

• 5130 Canyon Circle, 3 bedroom, 2 bath, $175,900 MLS 133633

• 5120 Canyon Circle, 3 bedroom, 2 bath $179,900 MLS 133632

• 5140 Canyon Circle, 3 bedroom, 2 bath, $184,900 MLS 133634

• 5110 Canyon Circle, 3 bedroom, 2 bath, $199,900 MLS 133631

• 2108 Harrison, 5 bedroom, 2.5 bath, $395,000 MLS 136128

That's all.  Out of more than 1400 listings in the Beaumont MLS only ten offer owner financing.  But before you go out and offer owner financing on your home, you should know there has only been one sale in the Beaumont MLS this year that closed with owner financing.  Yes, home owners that can offer financing are picky about who they will finance too. 

The one home that closed was on Taft.  It sold for $55,000 and had 1024 square feet of living space.  So next time you are thinking about buying a home with owner financing, just remember you might have your work cut out for you because its not often offered in Southeast Texas.

Lumberton Home Sellers Average 97% of Asking Price

Welcome to Lumberton, Texas.  If you are selling your home in Lumberton, you are probably a pretty happy home seller.  Since Jan. 1, 2009 home buyers have been willing to pay 97% of the asking price on average for all homes that have sold with a Lumberton address.  

While many areas across the state have excess inventory and desperate home sellers, that's not the case in Lumberton.   The average number of days a home has spent on the market in 2009 is just 101- just a little over three months.  Now, keep in mind, that is the average.  As I glance over the Beaumont MLS data, there are several active listings that have been on the market for over 400 day - that's more than a year. 

One popular neighborhood, Gracelake Estate, has a few homes that have been on the market for over a year.  They are brand new construction.  The builder must not be that eager to sell.  There have been four closings so far in 2009 in the neighborhood and they averaged right about 100 days on the market.  

Here's a snapshot of sales in some other neighborhoods in Lumberton: 

• Crestview - 3 homes for sale, 5 sold in 2009. 
• River Birch Place - 6 homes for sale, 3 sold in 2009.  All sales closed at over $100/sq ft.
• Silvercrest - 13 total, 3 for sale, 7 closed, 3 under contract.  $91/sq. ft. was the lowest sale.  $109/sq. ft. was the highest sale.

• Stonegate- 3 sold, 3 pending, 5 for sale. All closings have been over $100/sq.ft. but one of the pendings was listed at $77/sq. ft.  It was corporate owned and it looks like some home buyer got a really great deal.

• Westwood had the most activity of any Lumberton neighborhood.  Its one of the only newer communities where you can find homes priced around $150,000.  

Five other interesting market trends:

• So far this year the median price of homes that have sold is $149,900.    

• Six homes spent less than 30 days on the market prior to sale.

• Five homes spent more than 200 days on the market prior to sale.

• Thirty-three sales were in Westwood.

• Only six homes sold for under $70/square foot of living space.

If you are planing to sell your home and want to know how to price it so that you get 97% of your asking price, call me.  There is a strategy to pricing a home correctly no matter what town you live in. Price it correctly and you'll be a happy home seller too.

Residential Market Trends In Southeast Texas...Up, Up, Up

More than just the temperature is rising in Southeast Texas.  The residential housing market shows several significant upward trends in May.  With data just released from the Beaumont Board of Realtors and Mid-County Board of Realtors here's the latest developments in residential real estate market:

Home sale prices are up!

Beaumont home prices continue to rise.  Last May the average sales price was $146,600.  This May the average sales price was $165,600.

Days on the market is up!

Its taking a little longer for those homes to sell.  Right now the average number of days a home stays on the market in Beaumont is 123.  In Mid-County sellers are averaging 132 days or about 5 months from the time they list their home until the time it sells.

Months supply of inventory is up!

In May of 2007, Beaumont has 5.4 months supply of homes for sale.  The months supply of inventory is the most commonly used statistic to determine if an area has an excess of homes for sale or a shortage of homes for sale.  Six months supply is often considered the perfect balance where buyers and sellers both have the same opportunity.  When there is a shortage of homes on the market, then sellers can increase prices and buyers have to compete for the best homes.  When there is an excess of homes for sale the opposite happens.  Buyers have more control over home prices because there is an abundance of homes to choose from.  So back to 2007, Beaumont had a 5.4 month supply.  Sellers market!  May 2008, there was a 7.4 months supply of homes available which tipped the balance toward buyers.  Here in May 2009, the number of available homes is up to 8.0 months supply.  This would make you think prices aren't going to be able to keep going up much longer unless the supply of homes start to decrease.

First-time home buyer home purchases are up!

On a national level, first-time home buyers account for 40% of the May home sales.  I can't remember where I read that.  Now here in Southeast Texas, we don't track first-time home buyer sales.  But I can say we have a lot of first-time home buyers interested in taking advantage of the first-time home buyer tax credit.  Who wouldn't be interested in getting a check for $8,000?  *You've only got until November 30th to take advantage of it.

What should you do?

If you are planning to buy or sell,this is an interesting market.  Prices are going up but overall sales are going down. Its important to have a local real estate expert help you with the best negotiation strategy.  It will save you thousands.  Need an expert?  Call me today. 

Fairfield Residential Real Estate Snapshot

Located off Major Drive in the westend of Beaumont is where you find Fairfield.  Its an upscale neighborhood with prices starting in the low $200's. 

You'll find luxury amenities adorning the homes interiors.  Granite counter- tops, hardwood floors, jetted tubs, gourmet kitchens and exposed brick interior walls are common features the builders are putting in the new homes.  

Another positive about Fairfield are the schools.  If you want to see the BISD attendance zone for any street in the neighborhood you can type in the address.  Westbrook High School, Marshall Middle, and Regina Howell Elementary are some of the most popular schools in town. 

The real test of the desirability of a neighbor is the most recent sales history.  So here's what we find in Fairfield so far in 2009.  There are seven homes listed for sale in the MLS.  There are two pendings as of today.  Five homes have closed since Jan. 1, 2009.  The average days on the market for active listings is 173.  That's a little more than the MLS average which is about 100.  If you like to see your data in a chart, here's one to glance over.

 

Homes that sold ranged in price from $230,000 to $325,000.  The most expensive sale based on price per square foot went for $126.16.  The best bargain went for $113 per square foot. 

Homes that are on the market right now range in price from $218,900 to $299,900.  They range in price per square foot from $111 to $127. 

Home buyers you can find new construction and buy a brand new home in Fairfield or you can find a gently used resale.  With five sales and two pendings in the past six months, and seven homes currently for sale, there is about a six month supply of inventory.  That's a neutral market.  There are some builders a little anxious to sell some standing inventory so home buyers are in a good position to get a better deal than in the past.  In Beaumont builders normally don't negotiate on the price of their homes.  With the economy moving a little slower- even here in the Golden Triangle - some builders are accepting offers.  A few are even assisting with closing costs right now. 

Its a great time to buy a home.  Fairfield's a great neighborhood.  If you want more information on Fairfield or any other neighborhood in Southeast Texas call me.  I'll be glad to share our current market snap with you to help you make the best home buying decision. 

Vidor Homes Selling Faster Then Beaumont Homes

In May, homes in Vidor, Texas averaged just 71 days on the market.  Compare that to Beaumont's 126 days on the market and you see why I say, "Vidor homes are selling faster".

Now, numbers can be misleading.  There were fewer homes sold in Vidor than in Beaumont.  Having a smaller sample will tend to throw off your numbers but none-the-less, seven homes closed in May.  Eighteen homes went under contract.  

Other facts you should know about Vidor home sales:

• The highest price sale in May was $156,000
• The most expensive home to go under contract was for sale for $200,000.  It was on Duncan Woods.
• The most affordable home sold for $21,000.  It was a 1700 square foot home on Dewitt.  It sold for less than $15 per square foot.  (Yes, it was a fixer upper.)
• The average price per square foot of the homes that closed in May was $50.75
• The most expensive home sale based on price per square foot sold for $90.64.  It was less than five years old on Michelle. 

If you want to know more about home sales in Vidor or any other part of Southeast Texas, I'm always looking for new ideas for the blog.  Let me know the Southeast Texas real estate topic you want to know about.  I'll be glad to research it for you. 

April Homes Sales Across Texas Show Slight Decline

If you like residential home sales data then you have to book mark the Real Estate Center at Texas A&M website.  It has more data than you will know what to do with.  The latest trends for April 2009 vs. April 2008 have been reported for select Texas metro areas.  

Here's a chart from the Real Estate Center.

 

Across the state sales were down from the April 2008 numbers.  Some markets had median price increases-  like Beaumont (up 3.6%).  In fact, only Lubbock had a higher percentage gain than we did.  The Real Estate Center also states the median price across the state declined 2.8%.  The state has a 7.1 months supply of residential home inventory on the market.  7.1 months isn't bad.  If 6.0 is considered perfect balance, the state as a whole is still in pretty good shape.  Beaumont's inventory numbers are up a little but we've been averaging 6-8 months supply for the past two years. 

Beaumont home sellers won't want the inventory numbers to climb much higher or the scales will tip to a buyers market.  However, certain neighborhoods in Beaumont, Lumberton, Vidor and Mauriceville have a shortage of inventory.  You really have to get details for a specific neighborhood to know how much negotiation room you will have. 

If you want to know what's happening in your neighborhood, you can call me, email me or comment here on the blog.  I'll let you know how April home sales fared in the neighborhood you are interested in.