Posted by Randy Kelley on December 31, 2008
San Antonio home buyers always balance the pros and cons of purchasing a new home as opposed to a resale home. Based on my experience as a San Antonio Realtor(R), here are some important things that a buyer should think about.
In the San Antonio area, the appeal of new homes is so great that, over the 8 years I’ve been in the real estate business, 80% of my buyers have bought a new home. It’s easy to see why.
Each year, San Antonio builders seem to have more and more enticing features built into their products. Their new homes & neighborhoods are fresh and unspoiled. The new houses don’t have the expected wear and tear found in resale homes, no matter their age.
The builders’ lending programs are very competitive and the builders offer additional incentives to encourage the buyer to use their affiliate lenders. But, here’s a word or caution. Because home buyer incentive programs are sometimes not what they seem, it’s a good idea to have a Realtor(R), or another knowledgeable person, listen carefully to the builder’s sales pitch & advise you if there are hidden pitfalls.
Often, buyer incentives offered by builders at the end-of-the-year are particularly appealing. For example, I recently had an active duty AF buyer who was given a home buyer incentive package by a nationally recognized production builder that simply couldn’t be turned down. The contract was written in the second week of December, the sale closed on the 27th of December and the family was settled in the house in time to celebrate the new year.
The exceptional speed in closing that sale was motivated by the builder’s strong need to sell an inventory home before the end of the year. Yes, builders are like retail merchandisers. They hate to have inventory on hand at the end of the year.
Here are some other considerations favoring buying a new home.
Texas law requires the builder to warrant a newly constructed home’s structure for 10years. The home’s new appliances are warranted by their manufacturers in accordance with their standard warranty programs. The home’s non-structural components & systems are usually warranted for a minimum of 1 year and sometimes up to 3 years.
Now, let’s consider the other side. Here are some things to think about if you’re considering buying a resale home.
If a resale home is less than 10 years old, what remains of the state mandated builder’s structural warranty will convey with the property. After 10 years, there’s no structural warranty left to convey.
Even when some of the structural warranty remains, I encourage the buyer to negotiate for a seller paid 1 year home protection plan to cover repair or replacement of some of the home’s more costly appliances and systems. Usually the seller will agree to buy the plan in order to sweeten the deal and help seal the sale.
Resale homes usually come with owner installed features that new homes don’t have - things like upgraded blinds, curtain rods, garage shelving, etc. If a buyer is short on the money needed to improve a new construction home, then a resale home might work out better.
In terms of settlement costs, for a new construction home, the buyer’s cost can usually be reduced by using the builder’s cash incentive, if one is offered. For example, by using the builder offered cash incentive, my AF buyer payed no settlement charges and got back $850 at the closing table. What a deal! See why they chose new over resale?
If you need help with a resale home’s settlement costs, your Realtor (R) should help you negotiate for the seller to contribute to your closing costs. Sometimes it works, sometimes not. And, keep in mind that, for some types of mortgage loans, the lender will limit the seller’s contribution to 3% of the sales price and for other types, the lender won’t let the seller contribute at all. Conversely, for VA home loans, the seller is required to pay some of the veteran’s settlement charges.
Because the lending rules are complicated, it’s highly advisable to develop a comfortable relationship with a qualified mortgage loan officer who’ll take the time to carefully explain the best loan alternative for your circumstances.
In summary, when balancing the pros and cons of buying a new vs. resale home, there are many factors to consider and many opinions to be heard and evaluated. You usually won’t have a feel of the way you’ll go until you’ve personally seen quite a few resale and new homes, listened to some sales pitches, and driven around new vs. established neighborhoods, preferably accompanied by a Realtor(R) who can advise you about local home values, neighborhoods, and builders.
If you want to know more about San Antonio realty opportunities, visit SanAntonioHomeQuest.com, a very user friendly site for finding information about real estate listings, things to do in San Antonio, local weather, military bases, etc.
If you have questions or need advice or assistance regarding buying or selling San Antonio real estate, don’t hesitate to call me at (800) 201-9145 or (210) 863-2661 or send me an E-mail at kelleybus@aol.com. I’m honored to help.
Randy Kelley, Realtor(R) at Keller Williams Legacy, San Antonio
Wednesday, December 31, 2008
Tuesday, December 30, 2008
December 30, 2008 | Leave a Comment
The following Associated Press article addresses the pros and cons of acquiring a property via a “lease to own” agreement. Because of the many associated risks , both the seller/landlord & the buyer/tenant must be well informed and extremely cautious about lease to own contracts.
The Texas Real Estate Commission (TREC) considers a lease to own agreement to be a ”contract for deed.” A contract for deed is the most complicated and riskiest way to acquire Texas real estate. Consequently, TREC (1) has no standard form for writing a lease to own agreement and (2) requires real estate agents to refer their clients to a licensed attorney for preparation and/or review of lease to own agreements. A licensed real estate agent should be prepared to advise a client about the risks and benefits of a lease to own agreement and can help the client find an attorney that’s well versed in Texas real estate law.
To see listings or learn more about San Antonio, please visit or website at sanantoniohomequest.com or send questions or comments to kelleybus@aol.com.
Here’s the article.
By J.W. ELPHINSTONE - Associated Press
Not quite an owner, but more than a renter: A lease-to-own agreement is a bit like housing purgatory.
But the arrangement is increasingly popular in today’s market because more sellers are having trouble unloading their homes and buyers are having more trouble getting a mortgage.
Through a rent-to-own contract, a renter locks in the right to buy a home at a later date at a set price. The renter puts down a nonrefundable deposit, and sometimes — depending on the contract — part of the monthly rent goes toward the down payment.
There are pros and cons on both sides. These agreements can help a seller get through a slow market with a little cash in the pocket, but a bad tenant can spoil the deal. Renters potentially can build home equity now even though they’re not ready to buy. But it might be better to wait until you’re financially settled before jumping into a large commitment.
The Web site ForSaleByOwner.com is receiving more requests for rent-to-own listings from both buyers and sellers, and it’s working overtime to make searching for that option on their site easier, says Greg Healy, vice president of the company’s operations.
And anecdotal evidence from real estate agents around the country suggests that these types of deals are on the rise, especially in the old boomtown markets where housing prices are still unaffordable despite recent sharp declines.
“We’re seeing more of these than in a normal market,” says Steve Goddard, a broker manager for Re/Max Marquee Partners in Manhattan Beach, Calif.
The arrangement is complicated with many moving parts. Think of it as combining a purchase and rental agreement. Both parties should go into it with help from a real estate attorney or at least a real estate agent well-versed on rent-to-own arrangements.
“You need to have a strong contract to make it work, not just a good handshake,” Goddard says.
To start, the renter and seller agree on a fair price for the home. This can be tricky. A renter could lose out if the home declines in value before he or she can buy it. Or, the seller could get the short end if home prices appreciate more than expected.
Once a price is set, the renter pays a deposit, or option payment, to the seller, guaranteeing his or her right to buy the home in a set time. For example, a seller may ask for $10,000, or 2 percent, on a $500,000 home.
The two parties also must agree on a monthly payment and determine if any of it goes toward the down payment. Often, rent-to-owners are willing to pay up to 10 percent above market rents to secure the home, especially if part of the money goes toward adding to the down payment, Goddard says.
In addition to the purchase price and rent, there are many other important conditions that should be outlined in the agreement. Consider the gamut of scenarios for the sale and the rental arrangement and try to head off conflict before running into one of them.
For example, can the terms be extended if the renter can’t buy at the set time? If so, for how long and should the renter be required to increase his or her deposit? What happens if the renter falls behind on the monthly payments? Who pays for the maintenance and repairs of the house?
The eventual buyer should be ready for a vetting process that mirrors most rental applications. Prudent sellers will run credit checks and ask for income and employment verification to make sure the renter can afford the monthly payments.
The worst-case scenario for a seller is getting a tenant who can’t pay rent, trashes the place and doesn’t buy it.
Similarly, renters should treat the agreement like they’re buying a house. Get an appraisal and a home inspection. Check into the seller’s mortgage status, too. He should be making his monthly bills on time.
“You’re taking the normal steps of purchasing a home. You’re not skipping out on the work,” Healy says.
However, if you’re not financially ready to buy a home, don’t rent-to-own, says Chris Krehmeyer, a housing counselor with Beyond Housing in St. Louis. Skip the shortcuts. Wait a few years. Create a financial game plan. Clean up your credit. Save a little cash each month for a down payment.
He worries that people will jump into agreements without fully understanding the financial considerations, similar to buyers during the housing boom who signed up for exotic loans they didn’t understand and ultimately couldn’t afford.
He also suggests contacting a nonprofit credit or housing counseling service to help with the planning.
“We can set you on the path to the American Dream,” he says.
Posted by Randy Kelley | Filed Under Randolph AFB, Lackland AFB, Brooks AFB (Edit)
The following Associated Press article addresses the pros and cons of acquiring a property via a “lease to own” agreement. Because of the many associated risks , both the seller/landlord & the buyer/tenant must be well informed and extremely cautious about lease to own contracts.
The Texas Real Estate Commission (TREC) considers a lease to own agreement to be a ”contract for deed.” A contract for deed is the most complicated and riskiest way to acquire Texas real estate. Consequently, TREC (1) has no standard form for writing a lease to own agreement and (2) requires real estate agents to refer their clients to a licensed attorney for preparation and/or review of lease to own agreements. A licensed real estate agent should be prepared to advise a client about the risks and benefits of a lease to own agreement and can help the client find an attorney that’s well versed in Texas real estate law.
To see listings or learn more about San Antonio, please visit or website at sanantoniohomequest.com or send questions or comments to kelleybus@aol.com.
Here’s the article.
By J.W. ELPHINSTONE - Associated Press
Not quite an owner, but more than a renter: A lease-to-own agreement is a bit like housing purgatory.
But the arrangement is increasingly popular in today’s market because more sellers are having trouble unloading their homes and buyers are having more trouble getting a mortgage.
Through a rent-to-own contract, a renter locks in the right to buy a home at a later date at a set price. The renter puts down a nonrefundable deposit, and sometimes — depending on the contract — part of the monthly rent goes toward the down payment.
There are pros and cons on both sides. These agreements can help a seller get through a slow market with a little cash in the pocket, but a bad tenant can spoil the deal. Renters potentially can build home equity now even though they’re not ready to buy. But it might be better to wait until you’re financially settled before jumping into a large commitment.
The Web site ForSaleByOwner.com is receiving more requests for rent-to-own listings from both buyers and sellers, and it’s working overtime to make searching for that option on their site easier, says Greg Healy, vice president of the company’s operations.
And anecdotal evidence from real estate agents around the country suggests that these types of deals are on the rise, especially in the old boomtown markets where housing prices are still unaffordable despite recent sharp declines.
“We’re seeing more of these than in a normal market,” says Steve Goddard, a broker manager for Re/Max Marquee Partners in Manhattan Beach, Calif.
The arrangement is complicated with many moving parts. Think of it as combining a purchase and rental agreement. Both parties should go into it with help from a real estate attorney or at least a real estate agent well-versed on rent-to-own arrangements.
“You need to have a strong contract to make it work, not just a good handshake,” Goddard says.
To start, the renter and seller agree on a fair price for the home. This can be tricky. A renter could lose out if the home declines in value before he or she can buy it. Or, the seller could get the short end if home prices appreciate more than expected.
Once a price is set, the renter pays a deposit, or option payment, to the seller, guaranteeing his or her right to buy the home in a set time. For example, a seller may ask for $10,000, or 2 percent, on a $500,000 home.
The two parties also must agree on a monthly payment and determine if any of it goes toward the down payment. Often, rent-to-owners are willing to pay up to 10 percent above market rents to secure the home, especially if part of the money goes toward adding to the down payment, Goddard says.
In addition to the purchase price and rent, there are many other important conditions that should be outlined in the agreement. Consider the gamut of scenarios for the sale and the rental arrangement and try to head off conflict before running into one of them.
For example, can the terms be extended if the renter can’t buy at the set time? If so, for how long and should the renter be required to increase his or her deposit? What happens if the renter falls behind on the monthly payments? Who pays for the maintenance and repairs of the house?
The eventual buyer should be ready for a vetting process that mirrors most rental applications. Prudent sellers will run credit checks and ask for income and employment verification to make sure the renter can afford the monthly payments.
The worst-case scenario for a seller is getting a tenant who can’t pay rent, trashes the place and doesn’t buy it.
Similarly, renters should treat the agreement like they’re buying a house. Get an appraisal and a home inspection. Check into the seller’s mortgage status, too. He should be making his monthly bills on time.
“You’re taking the normal steps of purchasing a home. You’re not skipping out on the work,” Healy says.
However, if you’re not financially ready to buy a home, don’t rent-to-own, says Chris Krehmeyer, a housing counselor with Beyond Housing in St. Louis. Skip the shortcuts. Wait a few years. Create a financial game plan. Clean up your credit. Save a little cash each month for a down payment.
He worries that people will jump into agreements without fully understanding the financial considerations, similar to buyers during the housing boom who signed up for exotic loans they didn’t understand and ultimately couldn’t afford.
He also suggests contacting a nonprofit credit or housing counseling service to help with the planning.
“We can set you on the path to the American Dream,” he says.
Posted by Randy Kelley | Filed Under Randolph AFB, Lackland AFB, Brooks AFB (Edit)
Monday, December 29, 2008
A look back at S.A.'s 2008 housing market
The following article from the San Antonio Express News attests to the strength of the San Antonio realty market at the close of 2008.
Visit http://sanantoniohomequest.com to research San Antonio listings.
By Aïssatou Sidimé - Express-News
As the year draws to a close, the San Antonio real estate industry saw home sale trends fall into some pretty familiar categories.
Sales and price appreciation were strong in the Hill Country. First-time and entry-level buyers were most interested in square footage while those spending $200,000 or more wanted plenty of storage, energy efficiency and privacy.
Looking at year-to-date numbers as of November, sellers saw the biggest price gains in Comal and Kendall counties and some areas in San Antonio that traditionally make the hot list, including the area south of Loop 1604 west of U.S. 281 with Deerfield, Hollywood Park and Hill Country Village, according to the San Antonio Board of Realtors.
New to the hot list this year was Southeast San Antonio.
The Smithson Valley and Bulverde areas in Comal County showed the largest increase at 7.2 percent for a median price of $252,800. Kendall County, including Boerne, saw a 0.5 percent median price to $286,000.
Area 6, which includes Deerfield, Hollywood Park and Hill Country Village, saw appreciation of 1.5 percent for a median price of $244,900.
Also tops for price growth was lower southeastern Bexar County around Loop 410 between Interstate 10 and U.S. 281. Area 20 there saw its median price go up 4.6 percent for a median price of $99,100, and area 19 saw its median price go up 3 percent to $79,100.
In other price trends, buyers were most likely to snap up homes priced under $150,000, located conveniently to main thoroughfares and that appeared to offer more space for the money.
Among first-time home buyers, the biggest draw were homes offering more space than comparably priced homes, according to real estate agents.
Scott Caballero, a real estate broker with Caballero and Associates Realty, mostly sold homes in the northwestern area between Marbach Road and Texas 151 to customers that usually were first-time buyers seeking maximum space for young families. Buyers preferred homes with lighter colors and lots of windows.
“They wanted more square footage for the buck. A big open floor plan,” Caballero said. “They like the bright, light and airy interior, which helps the home seem bigger.”
His average sale was $145,000.
For homes in the $200,000 price range, buyers sought energy-efficient features with homes in move-in ready condition, according agent Jackie Galvan of Re/Max Preferred.
“Buyers are being more savvy and looking at items such as programmable thermostats, ceiling fans, low-E windows,” said Galvan, who sold several homes in that price point in Deerfield. “They have to be move-in ready and updated. There were so many homes on the market, (buyers) could be picky. Every room had to be painted in neutral colors; if something was painted in a nursery theme, it could be a turnoff.”
Buyers of higher-end homes tended to balance demands for space with features offering storage and privacy, according to Judy Dalrymple, agent with The Phyllis Browning Co.
She saw the biggest demand for homes on large lots in Bluffview off Bitters Road and U.S. 281, Hill Country Village, Summerglen south of Loop 1604, Shavano Creek, and Elm Creek off Lockhill Selma Road near Wurzbach Road.
Out-of-state buyers sought larger lots in Kendall County.
“We're seeing more and more sales out in Boerne,” Dalrymple said. “It's a little bit less hectic for people who want a quieter place to raise children. When they are coming from D.C. or Maryland, they are used to pretty heavy traffic and think ours is not too bad.”
For local buyers of homes priced between $200,000 and $400,000, Dalrymple's sales were strongest in Deerfield, Oakwood, Rogers Ranch and The Vineyard because of their proximity to key roads.
“They're easily accessible to 1604, (U.S.) 281 and (Interstate) 10,” Dalrymple said. “Inside 1604 is getting pretty popular because of traffic.”
For homes priced above $400,000, buyers were more focused on three-car garages, outdoor kitchens for entertaining and landscaped backyards that evoked secluded oases.
“Privacy is real popular,” she said. “They don't want people looking down at them into their yards.”
Among empty nesters, buyers sought homes that offered easy access to work centers or retirement lifestyles.
Among working empty nesters, the preference was for posh townhomes in downtown locales, Caballero said.
“They want to be closer to work,” he said. “They will downsize furniture but want upscale features, granite and stainless steel. Even though the home is smaller, it is nicer.”
Retirees tended to seek single-story homes in communities catering to active lifestyles, according to Annette Slater, broker for Exit Slater Realtors. She helped several empty nesters buy garden homes in Northern Hills off Thousand Oaks Drive near Nacogdoches. She said the buyers were attracted to the community's golf course and country club.
But even among senior buyers, square footage was a determining factor in a home sale, Slater said.
“Everybody is after price per square foot,” Slater said. “If you can qualify for a $150,000 house and get 3,000 square feet, that's grand. They are going to go for that.”
Visit http://sanantoniohomequest.com to research San Antonio listings.
By Aïssatou Sidimé - Express-News
As the year draws to a close, the San Antonio real estate industry saw home sale trends fall into some pretty familiar categories.
Sales and price appreciation were strong in the Hill Country. First-time and entry-level buyers were most interested in square footage while those spending $200,000 or more wanted plenty of storage, energy efficiency and privacy.
Looking at year-to-date numbers as of November, sellers saw the biggest price gains in Comal and Kendall counties and some areas in San Antonio that traditionally make the hot list, including the area south of Loop 1604 west of U.S. 281 with Deerfield, Hollywood Park and Hill Country Village, according to the San Antonio Board of Realtors.
New to the hot list this year was Southeast San Antonio.
The Smithson Valley and Bulverde areas in Comal County showed the largest increase at 7.2 percent for a median price of $252,800. Kendall County, including Boerne, saw a 0.5 percent median price to $286,000.
Area 6, which includes Deerfield, Hollywood Park and Hill Country Village, saw appreciation of 1.5 percent for a median price of $244,900.
Also tops for price growth was lower southeastern Bexar County around Loop 410 between Interstate 10 and U.S. 281. Area 20 there saw its median price go up 4.6 percent for a median price of $99,100, and area 19 saw its median price go up 3 percent to $79,100.
In other price trends, buyers were most likely to snap up homes priced under $150,000, located conveniently to main thoroughfares and that appeared to offer more space for the money.
Among first-time home buyers, the biggest draw were homes offering more space than comparably priced homes, according to real estate agents.
Scott Caballero, a real estate broker with Caballero and Associates Realty, mostly sold homes in the northwestern area between Marbach Road and Texas 151 to customers that usually were first-time buyers seeking maximum space for young families. Buyers preferred homes with lighter colors and lots of windows.
“They wanted more square footage for the buck. A big open floor plan,” Caballero said. “They like the bright, light and airy interior, which helps the home seem bigger.”
His average sale was $145,000.
For homes in the $200,000 price range, buyers sought energy-efficient features with homes in move-in ready condition, according agent Jackie Galvan of Re/Max Preferred.
“Buyers are being more savvy and looking at items such as programmable thermostats, ceiling fans, low-E windows,” said Galvan, who sold several homes in that price point in Deerfield. “They have to be move-in ready and updated. There were so many homes on the market, (buyers) could be picky. Every room had to be painted in neutral colors; if something was painted in a nursery theme, it could be a turnoff.”
Buyers of higher-end homes tended to balance demands for space with features offering storage and privacy, according to Judy Dalrymple, agent with The Phyllis Browning Co.
She saw the biggest demand for homes on large lots in Bluffview off Bitters Road and U.S. 281, Hill Country Village, Summerglen south of Loop 1604, Shavano Creek, and Elm Creek off Lockhill Selma Road near Wurzbach Road.
Out-of-state buyers sought larger lots in Kendall County.
“We're seeing more and more sales out in Boerne,” Dalrymple said. “It's a little bit less hectic for people who want a quieter place to raise children. When they are coming from D.C. or Maryland, they are used to pretty heavy traffic and think ours is not too bad.”
For local buyers of homes priced between $200,000 and $400,000, Dalrymple's sales were strongest in Deerfield, Oakwood, Rogers Ranch and The Vineyard because of their proximity to key roads.
“They're easily accessible to 1604, (U.S.) 281 and (Interstate) 10,” Dalrymple said. “Inside 1604 is getting pretty popular because of traffic.”
For homes priced above $400,000, buyers were more focused on three-car garages, outdoor kitchens for entertaining and landscaped backyards that evoked secluded oases.
“Privacy is real popular,” she said. “They don't want people looking down at them into their yards.”
Among empty nesters, buyers sought homes that offered easy access to work centers or retirement lifestyles.
Among working empty nesters, the preference was for posh townhomes in downtown locales, Caballero said.
“They want to be closer to work,” he said. “They will downsize furniture but want upscale features, granite and stainless steel. Even though the home is smaller, it is nicer.”
Retirees tended to seek single-story homes in communities catering to active lifestyles, according to Annette Slater, broker for Exit Slater Realtors. She helped several empty nesters buy garden homes in Northern Hills off Thousand Oaks Drive near Nacogdoches. She said the buyers were attracted to the community's golf course and country club.
But even among senior buyers, square footage was a determining factor in a home sale, Slater said.
“Everybody is after price per square foot,” Slater said. “If you can qualify for a $150,000 house and get 3,000 square feet, that's grand. They are going to go for that.”
Key Interest Rate As Low As It Can Go
The following article is describes another of the recent economic indicators that should be very positive for the already highly favorable San Antonio mortgage lending market. It should be encouraging for both home buyers and sellers.
Daily Real Estate News December 17, 2008
Key Interest Rate as Low as it Can Go
The Federal Reserve has lowered its benchmark federal funds rate to a range or zero to 0.25 percent and said it would likely keep rates low for an extended period."The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability," the Fed said.
The Fed also said it was prepared to purchase more debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-sponsored mortgage agencies. And it said it is considering purchases of longer-term U.S. Treasury debt."The focus of the committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level," it said.
Michael Woolfolk, senior currency strategist, at the Bank of New York-Mellon, applauded the Fed’s approach. "We think it's the best possible move for the U.S. consumer and for the financial market," Woolfolk said.
Source: Reuters News, Mark Felsenthal (10/16/08)
Daily Real Estate News December 17, 2008
Key Interest Rate as Low as it Can Go
The Federal Reserve has lowered its benchmark federal funds rate to a range or zero to 0.25 percent and said it would likely keep rates low for an extended period."The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability," the Fed said.
The Fed also said it was prepared to purchase more debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-sponsored mortgage agencies. And it said it is considering purchases of longer-term U.S. Treasury debt."The focus of the committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level," it said.
Michael Woolfolk, senior currency strategist, at the Bank of New York-Mellon, applauded the Fed’s approach. "We think it's the best possible move for the U.S. consumer and for the financial market," Woolfolk said.
Source: Reuters News, Mark Felsenthal (10/16/08)
Sunday, December 21, 2008
San Antonio Realty Market Strongly Favors Buyers
Posted by Randy Kelley on December 20, 2008
San Antonio’s realty market has started to share some of the nation’s economic downturn discomfort. The following San Antonio Express News article tells the tale.
Before reading the article, keep this in mind. In balance, there’s good news in the bad. First, when compared to the impact on the nation’s other large city realty markets, the recession’s impact on San Antonio is disproportionately low. Second, well prepared San Antonio area homes are selling well. Third, for financially capable buyers, the market affords the best opportunity in years to acquire exceptionally good property for a reasonable price at exceptionally good interest rates. Here’s the article:
San Antonio Express News, 12/18/08
"The U.S. still may consider the San Antonio housing market “the benchmark” of the national housing industry, but it’s a pretty low bar these days.
Median home prices dropped 4 percent to $142,000 from $147,400 in November 2007, according to data released this week from the San Antonio Board of Realtors. It was the biggest drop in median homes prices in nearly eight years and removed a key buffer against foreclosures. Sales of existing single-family homes plummeted 32 percent to 1,034 in November compared to 1,526 in November 2007 — the worst decline since January.
And filings for the Jan. 6 Bexar County foreclosure auction jumped 45.6 percent to 1,085 from January 2008, the fourth time in 12 months the increase in postings has exceeded 40 percent, and the single highest number of auction filings for one month since at least 2000, according to RexReport.com. Had it not been for Fannie Mae and Freddie Mac suspending their single-family foreclosures and evictions as of November, the foreclosures could have been higher.
The sharp drop in November’s housing numbers stands in sharp contrast to the national perspective on San Antonio.
Late last month, the Mortgage Bankers Association hailed San Antonio as “the benchmark for the rest of the country in lending and building.” In May, Forbes magazine named the Alamo City one of the top places to ride out a recession, and in October it picked San Antonio as a top place to invest in real estate.
But the slowdown has been in the works for a while. All year, the monthly number of existing-home sales has been down compared to 2007, and for the last few months, the median price has been statistically flat.
Then came November.
Local industry experts said that, basically, the slowdown means the San Antonio market no longer is able to insulate itself from the national crisis. Home sales normally decline in November, but this year’s decline was much larger than expected. “In a November to November comparison, to be down 32 percent is pretty significant,” said Bob Leonard, outgoing chairman of the San Antonio Board of Realtors and agent at Re/Max Associates 2000.
For Pamela Callies, owner and broker of New Home Realty, the November numbers only confirm the massive slowdown she and her team have felt. Callies said her real estate agents have closed just two deals since September. “With every deal, right before the closing, the banks are finding reasons not to approve these people,” she said. “On others, they are re-running the credit and underwriters are saying no.” One of Callies’ clients was denied because the underwriter refused to accept a divorce decree showing the buyer no longer was liable for a debt her ex-husband had left unpaid. In past years, the decree would have been sufficient.
The number of home shoppers is down to a trickle as well, she said. “My listings are not getting any showings at all. (Normally, business) slows down, but it doesn’t stop,” Callies said. “It has really stopped for me.”
Some mortgage brokers have had to rely on refinance activity to make up for the drop in home sales. “November and December are not especially slow for me,” said mortgage consultant Helen Bernatek of Town and Country Mortgages Services. “But November was certainly lighter on the purchase side than December. It’s a good thing people are usually thinking about refinancing before they go into the new year.”
Bernatek attributed the November softness to the uncertainty of the presidential campaign season. “I think people were sort of taking a pause with the political environment.”
The San Antonio slowdown reflects state and national trends. Last month, the 13-county Dallas region saw a 33 percent drop in existing homes sales and 7 percent drop in its median price.
Similarly, Houston had a 32 percent drop in sales and 8 percent drop in median price, according to Jim Gaines, research economist at Texas A&M University’s Real Estate Center.
New forecasts signal the declines will continue into 2009. The most recent National Association of Realtors’ Pending Home Sales Index, which is based on contracts signed in October, dipped 1 percent from last October. A sale usually takes 45 to 60 days to complete.
Local housing experts attributed the San Antonio slowdown to decreased loan access among large national mortgage companies and consumer uncertainty about which way the economy is going. “A lot of money used in the bailout has not trickled down enough to the consumer,” said Travis Kessler, SABOR’s chief executive officer. “Part of what we are looking at is there is a lot of pent-up demand. They are watching the national news and wondering if interest rates will come down after the new administration comes in. This wait-and-see position is having an impact.”
Home sales also have lagged because transplants are finding it difficult to sell their existing homes in other states. Lenders increasingly are requiring that home buyers have sold their existing homes before approving a new mortgage. As a result, San Antonio home sales have contracted much more than they would have in a normal recessionary period, Gaines said.
“In the state, we didn’t have a price bubble, but we had a transaction bubble. For about three years, it’s really jumped up, and then for the last year it’s come down to correct. But it’s over-correcting down below the long-term trend based on the 12-month moving average."
Article by Aissatou Sidime’, San Antonio Express News, 12/18/2008
Republished by:
Randall R. (Randy) Kelley
MS, BS, PA
San Antonio Realtor®
Internet Realty Services Advisor and Buyer Agency Specialist
sanantoniohomequest.com
Keller Williams Legacy
(210) 863-2661 or 867-8743 or (800) 201-9145
San Antonio’s realty market has started to share some of the nation’s economic downturn discomfort. The following San Antonio Express News article tells the tale.
Before reading the article, keep this in mind. In balance, there’s good news in the bad. First, when compared to the impact on the nation’s other large city realty markets, the recession’s impact on San Antonio is disproportionately low. Second, well prepared San Antonio area homes are selling well. Third, for financially capable buyers, the market affords the best opportunity in years to acquire exceptionally good property for a reasonable price at exceptionally good interest rates. Here’s the article:
San Antonio Express News, 12/18/08
"The U.S. still may consider the San Antonio housing market “the benchmark” of the national housing industry, but it’s a pretty low bar these days.
Median home prices dropped 4 percent to $142,000 from $147,400 in November 2007, according to data released this week from the San Antonio Board of Realtors. It was the biggest drop in median homes prices in nearly eight years and removed a key buffer against foreclosures. Sales of existing single-family homes plummeted 32 percent to 1,034 in November compared to 1,526 in November 2007 — the worst decline since January.
And filings for the Jan. 6 Bexar County foreclosure auction jumped 45.6 percent to 1,085 from January 2008, the fourth time in 12 months the increase in postings has exceeded 40 percent, and the single highest number of auction filings for one month since at least 2000, according to RexReport.com. Had it not been for Fannie Mae and Freddie Mac suspending their single-family foreclosures and evictions as of November, the foreclosures could have been higher.
The sharp drop in November’s housing numbers stands in sharp contrast to the national perspective on San Antonio.
Late last month, the Mortgage Bankers Association hailed San Antonio as “the benchmark for the rest of the country in lending and building.” In May, Forbes magazine named the Alamo City one of the top places to ride out a recession, and in October it picked San Antonio as a top place to invest in real estate.
But the slowdown has been in the works for a while. All year, the monthly number of existing-home sales has been down compared to 2007, and for the last few months, the median price has been statistically flat.
Then came November.
Local industry experts said that, basically, the slowdown means the San Antonio market no longer is able to insulate itself from the national crisis. Home sales normally decline in November, but this year’s decline was much larger than expected. “In a November to November comparison, to be down 32 percent is pretty significant,” said Bob Leonard, outgoing chairman of the San Antonio Board of Realtors and agent at Re/Max Associates 2000.
For Pamela Callies, owner and broker of New Home Realty, the November numbers only confirm the massive slowdown she and her team have felt. Callies said her real estate agents have closed just two deals since September. “With every deal, right before the closing, the banks are finding reasons not to approve these people,” she said. “On others, they are re-running the credit and underwriters are saying no.” One of Callies’ clients was denied because the underwriter refused to accept a divorce decree showing the buyer no longer was liable for a debt her ex-husband had left unpaid. In past years, the decree would have been sufficient.
The number of home shoppers is down to a trickle as well, she said. “My listings are not getting any showings at all. (Normally, business) slows down, but it doesn’t stop,” Callies said. “It has really stopped for me.”
Some mortgage brokers have had to rely on refinance activity to make up for the drop in home sales. “November and December are not especially slow for me,” said mortgage consultant Helen Bernatek of Town and Country Mortgages Services. “But November was certainly lighter on the purchase side than December. It’s a good thing people are usually thinking about refinancing before they go into the new year.”
Bernatek attributed the November softness to the uncertainty of the presidential campaign season. “I think people were sort of taking a pause with the political environment.”
The San Antonio slowdown reflects state and national trends. Last month, the 13-county Dallas region saw a 33 percent drop in existing homes sales and 7 percent drop in its median price.
Similarly, Houston had a 32 percent drop in sales and 8 percent drop in median price, according to Jim Gaines, research economist at Texas A&M University’s Real Estate Center.
New forecasts signal the declines will continue into 2009. The most recent National Association of Realtors’ Pending Home Sales Index, which is based on contracts signed in October, dipped 1 percent from last October. A sale usually takes 45 to 60 days to complete.
Local housing experts attributed the San Antonio slowdown to decreased loan access among large national mortgage companies and consumer uncertainty about which way the economy is going. “A lot of money used in the bailout has not trickled down enough to the consumer,” said Travis Kessler, SABOR’s chief executive officer. “Part of what we are looking at is there is a lot of pent-up demand. They are watching the national news and wondering if interest rates will come down after the new administration comes in. This wait-and-see position is having an impact.”
Home sales also have lagged because transplants are finding it difficult to sell their existing homes in other states. Lenders increasingly are requiring that home buyers have sold their existing homes before approving a new mortgage. As a result, San Antonio home sales have contracted much more than they would have in a normal recessionary period, Gaines said.
“In the state, we didn’t have a price bubble, but we had a transaction bubble. For about three years, it’s really jumped up, and then for the last year it’s come down to correct. But it’s over-correcting down below the long-term trend based on the 12-month moving average."
Article by Aissatou Sidime’, San Antonio Express News, 12/18/2008
Republished by:
Randall R. (Randy) Kelley
MS, BS, PA
San Antonio Realtor®
Internet Realty Services Advisor and Buyer Agency Specialist
sanantoniohomequest.com
Keller Williams Legacy
(210) 863-2661 or 867-8743 or (800) 201-9145
Sunday, December 07, 2008
San Antonio Realty Market Report for Dec 2008
As of Saturday, 6 December 2008, here's what sellers and buyers need to know about the San Antonio area’s residential realty market.
The "for sale" home INVENTORY is HIGH, but slowly and steadily decreasing.
CLOSED SALE PRICES are FALLING SLOWLY & STEADILY.
It's a STRONG BUYER'S MARKET. Reasonably priced and well prepared resale homes are selling well. Home builders are offering enhanced buyer incentives in hopes of clearing out their new home inventories before the New Year. Although it’s 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.
ECONOMIC DOWNTURN IMPACT remains MINIMAL. The Mortgage Bankers Association recently identified San Antonio as a top market for home buyers, citing the area's high employment rate, population growth, and better-than-average price appreciation as key factors. (Aïssatou Sidimé, San Antonio Express News, 11/24/08)
AFFORDABLE MORTGAGE AVAILABILITY is VERY HIGH and lenders are aggressively seeking qualified buyers. 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.
The "for sale" home INVENTORY is HIGH, but slowly and steadily decreasing.
CLOSED SALE PRICES are FALLING SLOWLY & STEADILY.
It's a STRONG BUYER'S MARKET. Reasonably priced and well prepared resale homes are selling well. Home builders are offering enhanced buyer incentives in hopes of clearing out their new home inventories before the New Year. Although it’s 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.
ECONOMIC DOWNTURN IMPACT remains MINIMAL. The Mortgage Bankers Association recently identified San Antonio as a top market for home buyers, citing the area's high employment rate, population growth, and better-than-average price appreciation as key factors. (Aïssatou Sidimé, San Antonio Express News, 11/24/08)
AFFORDABLE MORTGAGE AVAILABILITY is VERY HIGH and lenders are aggressively seeking qualified buyers. 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.
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