San Antonio Realty Market Expected To Improve
January 13, 2009 | Leave a Comment
This very timely article was recently published in the San Antonio Express News. Article Take Aways:
San Antonio residential home sales should improve in 2009, but median home prices are expected to remain flat and home value appreciation may be as low as 1%. San Antonio’s home market is fundamentally stronger than most markets nationwide.
Here’s the article.
By Aïssatou Sidimé - Express-News
Existing home sales should improve in 2009, based on home sale increases during the last month, according to presenters and attendees at the San Antonio Board of Realtors Annual Housing Forecast on Tuesday morning.
“I’m expecting to be at least at 2005 volumes and maybe slightly less than 2007,” said presenter Bob Gardner, CEO of Legacy Mutual Mortgage.
Still, 2009 won’t see a return to the boom days of 2006. Median home prices in San Antonio are expected to stay flat.
Gardner’s predictions were welcome news for an industry that appeared to shift closer to the ugly national picture in November when the number of home sales dropped 32 percent and the median price fell 4 percent.
Based on home sales for the last five weeks, Gardner told the audience of 650 attendees at the Omni San Antonio Hotel in the Colonnade that he’s taken the unusual step of hiring new employees in an industry that had been shrinking.
“There are people coming out of the woodwork buying housing,” Gardner said. “I thought January would be more like 2003, but I don’t think so. We are expecting to exceed our (sales) predictions by 35 percent. I’ve had to add some contract people to handle the business.”
Other presenters, including Paul Bishop, managing director of real estate research for the National Association of Realtors, and Mark Dotzour, chief economist of the Texas A&M University’s Real Estate Center, agreed that San Antonio’s housing market is fundamentally stronger than most markets nationwide.
“In 2008, San Antonio had job growth, cheap mortgages and positive price appreciation but declining volumes,” Dotzour said. “It tells me local economics are not the issue. It’s a lack of confidence in our government. And when that is repaired, buyers will start buying again.”
Bishop said these same positive forces also kept foreclosures down statewide compared to the rest of the country.
Actual data from 2008 may not show as cheery a picture, though.
Mortgage rates do continue to fall, and job growth is positive. But home price appreciation averaged less than 1 percent for the year through November 2008. The median sales price was $150,400 during that period, up slightly from $150,100 for the comparable period in 2007 And home sales declined 18 percent from 21,178 sales in the same period in 2007, according to SABOR figures.
New foreclosures were kept to just 0.6 percent in Texas versus 1.1 percent nationally in the third quarter of 2008, Bishop said. But San Antonio foreclosure postings spiked 46 percent in January to the single highest number of auction filings for one month since at least 2000.
Anecdotally, local agents also report higher home sales, but they say Gardner’s forecasted 35 percent increase is more than they expect to see. Several agents reported their December and January sales were either flat or increasing. Historically, sales dip in these months.
But, still, that’s hardly 35 percent.
“I was at 2005 levels (last year) and expect to do better,” said Missy Stagers, an agent with Coldwell Banker D’Ann Harper Realtors. Stagers said she has four deals already set to close this month, versus one in January 2008 and nine in January 2007. She expects to benefit from shrinking new-home inventories and a stronger general economy.
Presenters said the lackluster 2008 figures masked some strong sectors.
Lisa Schmidt of The Phyllis Browning Co. said downtown condo sales are ahead of projection. “Pretty much what has been finished is sold,” she said of the 910 condos built or placed under construction since 2007.
In addition, there were strong price-per-square-foot increases in several communities in 2008, including Rogers Ranch, Colonies North, Cordillera Ranch and Terrell Hills, which each showed at least a 5 percent price increase in 2008, Gardner said.
End Of Article
If you have questions or need San Antonio realty advice or assistance, don’t hesitate to contact the SanAntonioHomeQuest Realty Solutions team at sanantoniohomequest.com , Keller Williams Legacy, (800) 201-9145, (210) 863-2661, (210) 867-8743. You can also visit at our blogs at http://sanantoniorealestate.blogspot.com/
http://www.trulia.com/blog/stephanie_kelley
Risks of Buying Lender Owned (REO) San Antonio Real Estate
January 7, 2009 | Leave a Comment
Written by Stephanie Kelley, Real Estate Professional in San Antonio
This excellent article is compliments of Stefani Romer, EPro. Stephanie works for Old Republic Home Protection, a major provider of home warranty (protection) insurance. Article Take Aways:
(1) REO purchases are riskier than usual real estate deals.
(2) The buyer should be prepared for higher repair and maintenance costs when buying a REO property.
(3) The buyer should consider asking the REO seller to furnish a 1 year home warranty protection plan.
Here’s the article:
Prepare for Unexpected Risks When Buying an REO Have you ever bought a “mystery gift” from a catalog company? That is when you purchase a surprise package containing, say, $100 worth of unknown items for only $50. You have no idea what is in there, but you know it is a good deal. Buying an REO can be a lot like that. When purchasing an REO (bank owned) property, there can be a variety of risks. Often times the utilities were not turned on prior to the close of sale, so the true condition of most of the home’s systems and appliances is unclear. For that reason, the buyers may need to set a larger repair budget to cover any problems discovered when the utilities are turned on and the systems and appliances are tested for the first time.There are also times when the buyers have a pretty good idea of the condition of the home because the utilities were on and a thorough inspection was performed. In those instances, the repair budget is more accurate.
Whether or not the buyers clearly know the condition of the home and its systems and appliances, they have set the purchase price knowing that there will be some additional out-of-pocket expenses necessary to make the home livable. There has been a “budget” set for the repairs and renovations needed in the first few weeks and months after taking possession of the property.
One can plan for what is known or anticipated. The tough part is when the unexpected happens - the heater stops working three months after close of sale, the shower valve in the master bathroom malfunctions, or any other problem that can occur in the first year of home ownership.
What happens next? The “budget” has been spent and now the buyers are facing an expensive repair with a pretty slim bank account.
Plan ahead and be prepared. Be sure to protect your own investments and those of your clients by including a home warranty on all REO transactions. More banks are willing to pay for them today, and on those occasions when they won’t, be sure the buyers include them even if they have to pay for it. The home warranty is more than worth the money if a major system or appliance needs to be repaired or replaced.
For more information on the value of including home warranties on all your REO’s or to order home warranties for your current transactions, call your local Old Republic Home Protection Account Executive.
Stefani Romer, ePRO
Sr. Account Executive
(800) 282-7131 Ext. 1377
StefaniR@orhp.com
Do you need San Antonio realty advice or assistance? You can contact me at swkrealtor@aol.com, visit my website at sanantoniohomequest.com or blog my realty services team at http://sanantoniorealestate.blogspot.com and http://www.trulia.com/blog/stephanie_kelley .
Are San Antonio Mortgage Loan Interest Rates Taking An Unexpected Turn?
January 6, 2009 | Leave a Comment
Are mortgage loan interest rates taking an unexpected turn? You’d expect rates to be falling with treasury bonds at a historic low and considering all the stimulating “bailout” monies that the Fed has recently infused into the lending system. But, what’s really going on.
You might be surprised as you read these interesting quotes from a recent article by Charles Guy Stidham III, a VP Loan Officer at Town & Country Mortgage Services, San Antonio.
“The rates should probably be around 4.5%, but … large institutional investors are trying to fatten their margins and are not budging below 5%.”
“Matt Lauer and his “morning” gang may not know what they are talking about when rates at 4% are being bantered about.” The apparent 5% interest rate floor is evidenced by the Town & Country Mortgage Services rates quoted in Charles’ article:
30 year fixed (with 720+ Fico score & 1% origination fee) 5.0%
15 Year fixed (with 720+ Fico score & 1% origination fee) 5.0%
FHA & VA 30 year fixed (with 1% origination fee) 5.0%
5 Year jumbo adjustable rate (with 1% origination fee) 6.5%
For comparison, here are some competing 30 year fixed rates quoted in Charles’ article:
Bank of America 5.76%
USAA 5.45%
Wells Fargo 5.50%
Coldwell Banker Mortgage 5.61%
So, here’s the message for prospective home buyers. Mortgage interest rates are highly unpredictable and the only certainty is that it pays to shop around for the best loan interest rate and loan settlement charges. Many lenders will offer enhanced convenience and cost free services just get your business. For example, Charles Stidham III offers the following promotional services:
No application fee
Free credit report for pre-qualification customers
Same day loan approval
Guaranteed call back on the same day (when referred by a real estate professional, like Randy or Stephanie Kelley)
You can contact Charles at Town & Country Mortgage Services at:
Cell 210 478-9846
FAX: 210 495-8908
gstidham@satxhomeloans.com
Do you need San Antonio realty advice or assistance? You can contact me at kelleybus@aol.com visit my website at sanantoniohomequest.com or blog my realty services team at http://sanantoniorealestate.blogspot.com and http://www.trulia.com/blog/stephanie_kelley .
San Antonio Home Construction & Home Sales Down
January 5, 2009 | Leave a Comment
Here’s another article showing why San Antonio’s residential realty market will most likely strongly favor buyers during the first quarter of 2009.
By Creighton A. Welch - Express-News 01/05/2009
Single-family home starts declined 32 percent in San Antonio and single-family home sales were down 29 percent in 2008 compared with 2007, a worse than expected decline.
During 2008, 8,719 new homes were started and 11,112 homes closed, according to Metrostudy, a housing research firm that presented its numbers at the annual Greater San Antonio Builders Association housing forecast.
In 2007, there were 12,800 home starts and 15,675 closings.
As a result of deteriorating economic conditions, Metrostudy expects construction and sales to continue to fall for much of 2009 as the San Antonio area remains a buyers market for much of the year.
There are 38 months worth of vacant developed lots available, and there were 8,053 lots delivered in 2008, 7,326 less than in 2007.
New home inventory did decline during the past year, falling 30 percent from 7,532 new homes in the fourth quarter of 2007 to 5,147 in the fourth quarter of 2008.
Posted by Randy Kelley, MS, BS, PA, San Antonio Realtor®
You can contact Randy at kelleybus@aol.com , visit his website at sanantoniohomequest.com or blog his realty services team at http://sanantoniorealestate.blogspot.com and http://www.trulia.com/blog/stephanie_kelley
A New Tax Credit For First Time San Antonio Home Buyers
January 4, 2009 | Leave a Comment
A new $7,500 tax credit for first time home buyers
Here’s some welcome news in recently enacted federal housing legislation: your first time home buyers can get a $7,500 tax credit. Congress intends for the credit to make housing more affordable. But qualified buyers have to act quickly – the credit is only available for purchases before July 1, 2009.
Here’s how the tax credit works
There are income limits: $75,000 for single purchasers, $150,000 for couples.
- The credit is not made to the buyer in the form of a check.
- Instead, the credit is an itemized deduction on federal tax returns (your buyers should consult with their tax advisor).
- It effectively reduces the purchase price by $7,500.
- The credit is limited to first time buyers.
- The credit must be repaid (at no interest) at the rate of $500 per year for 15 years.
- However, if the home is sold, the seller will not repay more of the credit than they realized in profit.
This article is compliments of
Edilma (Edi) Davila Cook
Mortgage Loan Officer
Retail Mortgage Sales
Direct: (210) 525-5007
Fax: (210) 525-5085
Mobile: (210) 326-9389
Mention Randy & Stephanie Kelley if you contact Edi.
Bank of America is an Equal Housing Lender.
To search listings, research schools, and learn more about San Antonio, visit our website at SanAntonioHomeQuest.com.
It’s The Best MonthTo Buy A San Antonio Home
January 3, 2009 | Leave a Comment
Article Take Away: It’s January - the best month to buy a San Antonio home.
Hey, buyer! Are you sitting on the fence, waiting out the market, looking for the bottom? You’re not alone. Hundreds of prospective San Antonio home buyers are holding back, waiting for home prices to stabilize, and hoping to jump in and buy just when prices start to rise again.
Your logic’s good and here are some facts to make it even better:
First, San Antonio’s realty market tends to be exceptionally stable. It’s not prone to experience drastically depreciating home values and rapidly falling sale prices. In fact, the value of the average San Antonio area home has appreciated every year for decades.
Second, real estate prices are very localized and there will always be a neighborhood where, for a variety of reasons, home values and prices are depreciating. If you are interesting in finding out what’s really happening with a neighborhood’s home values, ask a real estate professional to do a highly reliable comparative market analysis for you. Or you can visit web sites like Trulia where you might get a fairly reliable ballpark estimate.
Third, and most important, every year, San Antonio’s average residential list price fluctuates according to a predictable seasonable demand cycle. List prices are lowest in the fall and winter, rise in the early spring, peak in mid-to-late summer, then slide back in early fall. You’re most likely to negotiate a good deal in November and January and least likely to get a good deal in May and June.
January has consistently been the very best month for San Antonio home buyers.
Don’t let the opportunity go by. Go buy!
January 2009 San Antonio Realty Market Report
January 2, 2009 | Leave a Comment
As of Friday, 2 January 2009, here’s what sellers and buyers need to know about San Antonio’s residential realty market.
Despite dropping dramatically in December, the “for sale” home INVENTORY remains HIGH, and is projected to increase during the first quarter, 2009.
CLOSED SALE PRICES are FALLING STEADILY.
The market STRONGLY FAVORS BUYERS, however, reasonably priced and well prepared new and resale homes continue to sell well.
In November and December, home builders offered greatly enhanced buyer incentives in hopes of selling off their new home inventories before the New Year. Builders typically pull back on buyer incentives in January, but that might not be the case this year. We’ll let you know in the February report.
Although it might be a great time to buy a new construction home, it’s always prudent to diligently check out the incentives offered by the builders and particularly the loans offered by the builders’ affiliated lenders. Before signing a sales agreement, a buyer should seek the help of a Realtor ® to verify (1) that the property is reasonably priced and (2) that the lender is offering the most favorable loan, with the best interest rate, for the lowest settlement cost.
For San Antonio, the ECONOMIC DOWNTURN IMPACT is now MODERATE. Beginning in November 2008, San Antonio’s realty market was much slower than projected for the season. The downturn continued through December. Nevertheless, San Antonio still receives high marks as one of the nation’s top realty markets based on the area’s high employment rate, population growth, and better-than-average price appreciation.
AFFORDABLE MORTGAGE AVAILABILITY is EXTREMELY HIGH. Interest rates are historically low and lenders are aggressively seeking qualified buyers. A 580 credit score is acceptable to qualify for some types of mortgages. FHA insured mortgages are particularly popular.
Do you have realty questions? Do you need home buying or selling advice or assistance? Do you need mortgage loan advice? Look to the SanAntonioHomeQuest.com Realty Solutions Team to answer all your realty questions. Our never ending goal is to serve you exceedingly well.
Our team members are Randy & Stephanie Kelley & Tara Kelley-Guariglia, Realtors® at Keller Williams Legacy, telephone toll free (800) 201-9145, or (210) 867-8743 for Stephanie, (210) 863-2661 for Randy, and (210) 792-8726 for Tara.
Approximate Location Boundaries: San Antonio Metropolitan Area Including Surrounding Counties
Location Characteristics: Nations 7th Largest City
