Here's some food for thought. Bernanke talks about housing and the prospects for the housing recovery.
Which residential neighborhoods in Southeast Texas were really hot in the month of June? If you are talking about degrees Fahrenheit the answer is all of them, but if you are talking about the number of homes that sold in various parts of Southeast Texas then the answer is a few of them.
Take a look.
The hottest areas in Southeast Texas for the total number of homes that sold in June were: Lumberton, Beaumont W2, Beaumont W6, and Beaumont N6. These areas all had double digit home sales in June.
The top four neighborhood/areas account for 37% of the total number of home sales.
There are other residential neighborhoods/areas that had fewer than 3 home sales in the month of June that were not included on the chart.
Home sellers may also take note of the number of days that the average home stayed on the market. Its taking 124 days on average or just shy of five months for homes to close. That is the number of days from the day they were listed in the MLS to the day they close. When you're real estate agent is asking for a six month listing in this market that is just covering the amount of time its takes for most homes to sell. Data is complied from the Beaumont MLS.
The real estate market has seen historically low rates for over a year now but all good things will come to an end.
Housing affordabilty is at an all time high. Take a $150,000 home. In the market today with interest rates below 5% on a 30 year fixed mortgage. With a 5% down payment and a $142,500 loan amount, your principal and interest payment would be $857.59. Its hard to rent a nice 3 bedroom apartment for that. Not to mention the tax benefits of owning a home.
Let's say interest rates rise over the next year- and they will as the economy starts to get better. That same $150,000 home with a 5% down payment and a $142,500 loan amount will cost you $946.98 at 6% interest. That's almost $100 more per month. If rates go up to 7% which until the past few years was a normal interest rate on a home loan, that same house now costs $1,040.68 per month.
Its hard to think of a better time to buy real estate than the current time in the Southeast Texas residential housing market. If you are ready to get off the fence, call me. There are some great buys out there.
Here we are half way through the year already. All the predictions for the Southeast Texas housing market at the end of 2010 were that this would be the year the housing market recovered. So, how's that crystal ball looking now? Take a look at the way the first six months of 2011 compared to the first six months of 2010. You might be surprised!
While Jan. 2011 beat the total home sales in Jan. 2010, no other month has done the same. February 2011 came close and tied the home sales in February of 2010. But since then its been all down hill in terms of the total number of homes that have sold each month.
Six months into the year there have been 883 homes that have closed. This same six months last year there were 964 homes that closed. In percentages, we are off the 2010 home sales pace by approximately 14%.
We've got a lot of catching up to do if 2011 home sales are going to end the year better than 2010. Want to know which Southeast Texas neighborhoods had the largest total number of home sales in June? Check back tomorrow.
In Southeast Texas we see a lot of sellers providing a home warranty for the buyer of their home. Its also fairly common to see a seller help a buyer with closing costs when the buyer makes a good offer.
Leaving any furniture other than a refrigerator isn't too typical in our market. If you are a buyer in this market let me know what makes the most difference to you. What could a seller do to encourage you to buy? Or is the most important factor price and the rest is just icing on the cake?
Leave your comments here. I'm sure there are a lot of Southeast Texas home sellers out there that would like to know.