An inside look at the residential real estate market in Southeast Texas including: the hottest neighborhoods, proven home selling strategies, home buying and negotiating tactics, median prices by neighborhood, average days homes are on the market, and professional advice on how to get the best deal when buying or selling a home.

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July 2011
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September 2011

August 2011

Finding Homes with Owner Financing in Southeast Texas

The topic of owner financing is a popular one.  In fact, the posts on the blog that get the most responses tend to be the posts about finding homes that offer owner financing.  We all know the banks and big lenders are harder to work with than ever.  Qualifying standards haven't been this strict in years.  This has led to a group of potential home buyers that can't buy a home through the traditional lenders. 

The only hope for these buyers is Owner Financing.  From time to time, it is interesting to see just how many home owners that are trying to sell their homes are willing to offer owner financing.  Take a look at this chart.

Owner finance 

Out of the 2,700 plus homes that are for sale through the Beaumont MLS, at this time only 41 offer owner financing as an option for the buyer to purchase. 

"Just less than 2% of all homes listed offer owner financing at this time."

Here's 3 other noteworthy statistics about homes that offer owner financing in the Southeast Texas real estate market:

  1. The average price is $138,430
  2. The average days on the market is 153 which is a little higher than the overall average number of days on the market.
  3. You can buy new construction with owner financing through a few home builders.

Kelley Family Investments is building new homes in Wolf Creek.  This builder offers owner financing.  His terms are pretty reasonable.  Home prices are in the middle 100's. 

Three other things to think about before you buy a home with owner financing:

  1. Sellers are going to charge a higher interest rate than the banks.  On average expect to pay 7-10% in interest.
  2. Every seller can set their own terms.  For example, some sellers may finance for 20 years.  Others may want a payoff in 5 years with a balloon payment.
  3. As a buyer will you pay for an appraisal?  Its not a requirement with owner financing

There are a lot of things to consider when you decide to look for homes that offer owner financing.  .  With only about 2% of the homes for sale in Southeast Texas even offering owner financing, its not an easy way to find and buy a home.  It can be done but be prepared for the challenges. 

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Pool Homes Sell Faster in the Summer, Here in Southeast Texas

With record breaking heat the whole month of August, a lot of home owners have been wishing for a backyard swimming pool including me. It seems like a lot more home buyers ask to see homes with pools in the hot summer months than they do in the cold winter months.  So I decided to see if there is any truth to the statement that  more pool homes sell in the summer in Southeast Texas than they do at any other time of the year.

Take a look.

Pool home sales 

"There's not much truth to it!"

Pool homes don't really seem to sell better in the summer, but there are a few points worth thinking about:

  1. For the Southeast Texas real estate market as a whole, pool homes do sell faster in the summer.  117 days on the market compared to 163. 
  2. The number of sales during the four months from Jan. 1, 2011 to April 30, 2011 was 64.  The number of home sales during the four months from May 1, 2011- August 30, 2011 was 71. 
  3. Only about 10% more homes with pool sold in the summer months than they did in the first four months of the year.
  4. This ones not on the chart but the average price of all pool homes that sold so far this year $250,193.

Surprised?  I am.  I thought there would be a bigger difference than 10%.  So now you know that homes with pool may sell faster in the hot summer months, but not a whole lot more of them sell than they do in the winter.  At least not in 2011. 

If you want to know more about the housing market in Southeast Texas, you can contact me here on the blog.  Click the contact me icon and just ask me any question you have about the Southeast Texas real estate market.  Answers are free.

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Southeast Texas Home Sales: A Close Look At Sales by Price Range

On the first day back to school let's do a little math.  Nothing difficult here.  In fact, you don't have to calculate a thing.  This chart will show you home sales for the month of July broken into price ranges.

2011 July Sales_Range 

Three interesting things to note:

  1. The price range with the largest excess of inventory is $300,000-$399,999.  At July's sales rate there is over a 23 month supply. 
  2. The price range with the largest number of home sales for July was $200,000-$299,999.  18 homes sold in this one price range.
  3. The price range with the lowest supply of homes for sale is $1-$29,999.  In this range there is a 3.2 month supply of inventory. 

August is coming to an end and soon we will be able to compare the summer home sales from 2011 to the summer home sales from 2010.  At last glance the numbers are down.  Double digits down.

If you want to know more about home sales in Southeast Texas, contact me.  There's no better time to buy and there are more reasons than ever to have an experience local REALTOR help you learn how to get the best deal on your next home purchase. 

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July Homes Sales Drought

Like the weather here in Southeast Texas, home sales seem to be suffering from a on-going drought.  Summer is normally the best time to sell a home.  On average 200 homes sell in a given month from May-August.  Not so this year.  We've yet to have a month this summer top 200 home sales.

The home sales data for July is out.  Take a look.

July 11 stats 

Here's how the summer of 2011 compares to 2010.

  • April 2010, 200 homes sold.  April 2011, 166 homes sold.
  • May 2010, 202 homes sold.  May 2011, 142 homes sold.
  • June 2010, 189 homes sold.  June 2011 177 homes sold.
  • July 2010, 164 homes sold.  July 2011, 163 homes sold.

That's 755 home sales in 2010 compared to 648 homes sold in 2011.  That's a decrease of about 15%. 

What's the point? 

  • There is an excess of inventory.  That is homes for sale.
  • There is downward pressure on prices because of the number of homes on the market.
  • It's a great time to be a home buyer in Southeast Texas.
  • If you are selling a home in Southeast Texas, its critical to know the competition and to be priced aggressively.

If you want to know about the Southeast Texas housing market, contact me.  It pays to be informed whether you are planning to buy or are trying to sell. 

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Golden Triangle's Top Selling Residential Areas in July

153 homes sold in the month of July.  The median price was $143,900 and they spent an average of 137 days on the market. 

Certain areas are holding their ground better than others.  Take a look at where the most homes are selling in Southeast Texas. 

2011 July Sales 

Here's a few items to note:

  • Lumberton homes averaged the fewest days on the market.
  • Little Cypress homes averaged the highest median sales price.
  • Beaumont's westend area 2 had the second highest median sales price and the highest number of sales overall. (Tied with Beaumont W4).
  • 4 of the top selling markets, Little Cypress, Beaumont W6, Orange Co., and Port Arthur are averaging over six months from the time a home is listed in the MLS until the time it is closed. 
  • All data is from the Beaumont MLS, Mid- County sales are recorded in a different MLS but are sometimes included in the Beaumont MLS.

Buyers still have more control in the residential housing market than sellers do.  There is an ample supply of homes to choose from and some sellers are getting very motivated to sell even if that means at reduced prices.  Mortgage rates just hit their lowest level of the year.  How much better can it get if you are in the market to buy a home in Southeast Texas? 

Need more advice on buying a home in Beaumont or Lumberton, or any part of Southeast Texas call me.  It pays to be an informed buyer and it helps to know the market. 

 

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Southeast Texas 13 Month Supply of Homes

Home Ownership Rate Falls to 13-Year Low | Realtor Magazine.

Fewer people own homes today.  According to this article the tightened lending guidelines are partly to blame.  It shows in our local market.  There is currently over a 12 month supply of homes on the market.  It continues to be a great time to be a buyer.  Don't you wonder when the scale will tip back in favor of the sellers again?  It will happen but it may take a few years to sell all the inventory that is out there.

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