SE Texas Real Estate Talk

The Worries of First-time Home Buyers In Southeast Texas and Across the Nation

Its not surprising the first-time home buyers worry about getting a loan.  It may surprise you that they worry home prices may go up in the next six months.

A survey of 1,000 first-time home buyers conducted in early March reveals some other interesting facts. InmanNews reports that the survey conducted for Century 21 Real Estate LLC, also shows:

• 42% say they are comfortable buying today
• 48% say they are waiting for prices to go down
• 69% say they are worried about prices going up if they don't act soon
• 85% say current home prices are affordable
• 75% think it is difficult to get a loan
• Only 41% were aware of the $8,000 first-time home buyer tax credit
• 77% said the tax credit makes them more likely to buy a home in the next six months

If you are a Southeast Texas first-time home buyer let me know what you worry about.  Ask me for a free home buyers guide.  It may help answer some of your questions and take the worry out of buying your first home.

What's in store for the Southeast Texas real estate market in 2009?

 Local REALTORS heard from the "real estate expert" today.  Dr. Mark Dotzour, the Chief Economist with the Real Estate Center at Texas A&M was in Beaumont to talk about the "Economic Outlook for Residential Real Estate in 2009".

Not only is he a very smart guy, but he's funny.  If you ever have a chance to attend one of his speeches, I recommend you go.  Since the talk today was for local REALTORS only, I'll share a few key points with you.

1. Every one of the 25 metropolitan areas in Texas experienced job growth from Oct. 2007- October 2008.

2. Texas led the nation in job growth.

3. If Texas was a nation, we would rank ahead of Russia and India.  Just behind Spain and Brazil.

4. If you are going to own a home for three years or more, there has never been a better time to buy than now.

5. We may never see interest rates this low again in our lifetime.  (30 year fixed rates today are below 5%)

6. Generally, the 30 year fixed rate is 1.5% higher than the 10 year Treasury.  Today the 10 year Treasury is about 2.25%.  That said, rates should be around 3.75% but they aren't because no one wants to invest in mortgage backed securities at the moment.

7. Housing starts will probably be the lowest they've been since World War II.  This is a good thing because it will help reduce the excess inventory that is out there.

8. Months supply of inventory is the best predictor of the future direction of home prices.

9. Buying a home right now is smarter than buying gold as an investment. 

10. The economy is likely to hit bottom before the end of the year and a rising stock market will signal the end.

Dr. Dotzour has a plan that he thinks would help the country get out the current housing crisis.  You can see the video in the video files on the Real Estate Center Website.   

Rainy days and Monday's In Southeast Texas

According to the latest CNNMoney.com Poll more than half of us are "down".  60% of Americans believe a depression is somewhat or very likely. 

On a bright note, the economists disagree with the average man.  While admitting the current economic environment is bad, they generally don't believe we are on the verge of a depression.

Three things the average guy and the economists agree on:

1. We are in a recession.
2. We all agree economic conditions are poor.
3. We all agree the credit crunch will be felt on Main Street not just Wall Street.

A fourth thing most of us will agree on this is a cycle and it to will end.  Maybe not as soon as we would like but it won't last forever.  So sing the song if you want to but don't "Let rainy days and Monday's get you down."

Are You Worried About SE Texas' Housing Market?

Yesterday, an AP Poll released some new statistics on how U.S. homeowners are feeling about the current state of the National housing market. 

• 59% think now is a good time to buy.
• 66% think its harder for a first-time homebuyer to buy today than it was five years ago.
• 43% worry their home's value will drop in the next two years.
• 14% worry they may soon fail to make their monthly payments.

How are you feeling about Southeast Texas' housing market?   

Texas has faired better than most of the country in terms of the current housing situation.  Our state continues to have one of the highest percentages of population growth.  A growing population helps keep the inventory of homes for sale at healthy levels. Forbes.com recently ranked Austin and San Antonio as two of the top ten markets in the country.  If Beaumont was a larger market we could have made the list in my opinion.

Southeast Texas has a healthy housing market, but many people hear and listen to the National press. Do you agree with the AP Poll?  Are you worried about the housing market?  Share your thoughts...

The Slide Has Stopped. Homes sales rise in February.

Can it be so?  Is there positive housing news in the national headlines?  With all the negativity that's been written, published and broadcast over the past 18 months, it is a refreshing change to see some positive press for the housing market. 

Making headlines today...

Home sales rise click to read full story.

Existing-home sales end six month skid click to read full story.

If you've read the blog before you know our market here in SE Texas has been immune to much of the woe suffered by the rest of the national housing market.  Our inventory levels remain healthy.  Last check we had a little over a 6 month supply of homes on the market.  The Real Estate Center at Texas A&M tracks the Beaumont housing sales statistics.  In January 2008, they are reporting 122 sales in Beaumont.  A little over 18 million in dollar volume changed hands from one homeowner to the next.  For our area, January is historically a slow sales month. 

Once spring arrives Beaumont's housing sales jump up.  Last year August won the "month with most sales" award.  Over 250 homes were bought and sold in August of 2007.  Which month will be the best month in 2008?  Stay tuned time will tell.  Until then, if the national housing sales are on the rise, hang on SE Texas, our sales should be headed way up. 

SE Texas Home Won't Sell. Call on St. Joseph.

Frustrated because your home hasn't sold? 

Maybe its time to ask for some divine intervention.  There's a Urban Legend well known in many REALTOR circles, that claims burying a plastic statue of St. Joseph in the yard will help a home sell. 

Its not hard to find testimonials from sellers who are believers. Read more.  If you want the whole real estate sales ritual to help speed up the sale of your home you can check out the Lucky W Amulet Archive. 

There are even websites that sell St. Joseph statues.  Here's three:

1. Buy St. Joseph Statue Here
2. Or Here
3. Or Here at Good Fortune On-line

We all like to believe divine intervention will help us in our time of need.  Does it really help to bury a St. Joseph statue?  Its up to you and each home seller to decide.  If it gives you comfort, bury the statue.  Before you ask for help from St. Joseph, you should do these three things first:

1. Talk to your REALTOR
2. Do the three C's:  Clean your house.  Remove the clutter.  Carefully, make needed repairs.
3. Use the three P's:  Pricing strategy, price competitively, price appropriately.

After doing that.  If your home still hasn't sold, then by all means call on St. Joseph.

The Winds Are Changing: National media now saying its a good time to buy a home.

For the past 18 months it has been next to impossible to find a news story by the National media that was positive about buying a home.

The winds appear to be changing!

Here are SIX articles from National Sources that say, "Its a good time to buy a home".

1. Why Now Is A Smart Time To Buy
2. A Good Time To Buy A House If You Can Afford One
3. Open Season For Bargain Hunters
4. Texans Hold Winning Hand In High-Stakes Real Estate Game
5. Flat Existing-Homes Sales Likely Before Gradual Recovery
6. Housing: Best time to buy in four years

SE Texas never suffered the real estate woes that much of the country has experienced the past 18 months.  If the rest of the country starts to recover that gives our market even more strength.  Haven't bought a home in SE Texas yet?  Now is the time. 

Bad MLS photo of the day: Growing trend.

Good photographs sell homes. Bad photographs don't.

70%-80% of home buyers are starting their home searches on the Internet these days.  On-line photographs often determine which homes the home buyers choose to see in person.  A great photo will generate more calls to the real estate agent and lead to more showings.

A clever and funny trend has emerged dealing with the topic of bad photographs. Real Estate Blogs across the country have started keeping a daily log of bad MLS photographs that have been submitted to various MLS boards and marketing sites. 

Some of these photos are really funny!  If you need a laugh today check out some of the "Bad MLS photos blogs".

• Connecticut Real Estate Blog featuring Bad MLS photos of the day. This one was written up in a major newspaper.
• Norm Fisher's Video presentation of Unbelievably Bad Real Estate photos -Very Funny!  Guaranteed laughs from this video.
• Very Vintage Vegas - Las Vegas Blog- Bad Photo of the Day -The first blog I heard of the idea from.

If you are going to sell your home in Southeast Texas insist on good photographs.  It is part of the full-service you are paying for.  Some real estate agents are better photographers than others.  During the listing presentation ask about photographs.  The Beaumont MLS allows for nine photographs of each listing.  Make sure you get at least six.  Coldwell Banker insists that all homes featured on their website have at least six photographs.  This change just went into effect.  If you are surfing older listings on the net you may see less than six.  But, no more.  Its six photographs or else.  The exception is undeveloped land or new unfinished construction.  Who wants to see six photos of 2x4s and a concrete foundation.

Remember good photographs sell homes. 

Bad photographs - may give home buyers a good laugh- but they aren't going to rush to call their REALTOR and say, "I must see that home!  Yep, the blurry gray one with the newspaper blowing through the yard. I must see it today."

To borrow a line from Uncle Jack at Very Vintage Vegas, "The only thing worse than a bad photo is no photo at all."

If you are selling your home ask the REALTOR about the photographs they will be taking.  If you have more questions about listing your home ask me.   

What are your thoughts.  Would you like to see a bad MLS photo of the week?  Would you rather see the best MLS photo of the week?  SE Texas Real Estate Talk wants your opinion.