For the Haggard farm, one of Plano’s last open tracts, the end is near
Plano’s Last Big Subdivision
An aerial photograph of the Haggard farm (right) shows its proximity to residential development.
By THEODORE KIM , Dallas Morning News
Call it progress. Or unfortunate. Or inevitable. Or maybe all of the above.
The Haggard farm — one of Plano’s first tracts to be settled and a longtime holdout of suburbia’s grip — will soon become a subdivision. Its owners have announced plans to turn the farm, located in the heart of Plano, into a 459-home development that also includes restaurants and retail. The proposal, which has stirred opposition from some nearby residents for traffic and other concerns, still requires city approval. More noteworthy than the project is the demise of the familiar farm at Park Boulevard and Custer Road. It has reached iconic status among locals with its silver windmill, hay bales and llamas grazing by the roadside.
Few tracts might tempt homebuilders more than the flat 119-acre Haggard farm, which is already surrounded by shopping plazas and subdivisions. Yet in a community increasingly defined by its sprawl, the farm offers perhaps the last best glimpse of Plano’s rural roots. “I remember driving down Park Boulevard and seeing families lined up on the fence petting the cows,” City Council member Lissa Smith said. “That’s part of what brought me to Plano. Progress is always there, but we all lament that loss.”
To understand how embedded the Haggard family and farm are in Plano’s history, one must turn back to the 1850s when Clifton Shepard Haggard and his father, John, were among the area’s first settlers. They came from Kentucky and farmed wheat and oats and raised cattle, attracted to the region’s dark soil and prairie. They were here long before the highways were built, before the railroad came, before the Civil War was fought and before Plano was even called Plano.
These days, Rodney Haggard, the great-grandson of Clifton Shepard Haggard, minds the farm, which started in 1884 and still raises crops and cattle. He said the family always planned to sell at some point. Yet even the family grieves the coming changes. “It’s sad in a way. We’ve just been here for so long and we’ve enjoyed it,” said Haggard, 63, who works in real estate. Plano has paid back the family in reverence. There is a Haggard Library, a Haggard Middle School, a Haggard Street and a Haggard Park. The state has recognized the farm as one of a handful in Texas that has operated with the same owners for more than 100 years. Other descendants, many of whom live in Plano, own parcels elsewhere, including much of the city’s open farmland along the Dallas North Tollway. “You can’t talk about Plano without talking about the Haggards,” said Rory Fischer, a neighbor of the Haggard farm. But the farm has always served as home base. It has been the site of countless Haggard family gatherings and Sunday dinners.
Park Boulevard sheep
In some ways, the family’s colorful stories reflect just how much the city has transformed. Rodney Haggard recalls herding sheep along Park Boulevard and Alma Drive as a youngster, an almost farcical idea today as both of those streets are now bustling thoroughfares.
And then there are the farm’s celebrated llamas, which the Haggards brought in years ago to protect their sheep from packs of coyotes. Only three llamas are left, while the sheep are gone.
Now full-time grazers in semi-retirement, the llamas tend to keep close to the roadside, prompting smiles and double takes from the thousands of motorists who travel by the farm daily.
“The farm is a great reminder that not long ago, this was an agricultural community,” Plano Mayor Phil Dyer said. “It’s a reminder of where we came from.”
Its sense of worth and history has only grown as stores and subdivisions have gobbled up the surrounding land.
About 500 acres of undeveloped residentially zoned land is left in Plano, although much of it is scattered throughout the city in small parcels. The Haggard farm represents more than a fifth of that total and is believed to be the largest contiguous piece.
Plano last year agreed to purchase a 51-acre plot of land owned by other Haggard descendants just down the road from the Haggard farm. Plano intends to turn the tract into a park.
Plans for the Haggard farm are more substantial — and controversial.
The preliminary proposal calls for single-family homes, as well as townhouses and easy-to-walk-to shops and restaurants. Builders will develop the land gradually over a years-long period starting on the northern side should the project receive city approval, Rodney Haggard said. Plano’s zoning board discussed the project last week and is expected to take it up again on Oct. 17. Once the board takes action, it will then move to the City Council for a final vote.
The early plans have received mixed reviews. Some homeowners object to building retail on the site, while others are concerned the influx of homes will generate far more traffic than nearby roads are meant to handle. Recent public meetings on the project have drawn scores of neighbors. The concerns have fostered some awkwardness at City Hall since many in Plano, including those opposed to the subdivision’s design, have embraced both the Haggards and the farm as their own. “It’s their property and they have a right to build on it,” said Fischer, who has helped marshal neighborhood groups in reviewing the project. “The Haggards are a great family and part of the overall Plano community. But there are some concerns that neighbors have.”
Life in the big city
But it is becoming clear the farm’s days are numbered as the city engulfs it. Trash often drifts onto the property. Vehicles routinely breach the farm’s cattle fences, while traffic has made it difficult for workers to bring in farm equipment. The family regularly gets phone calls from passing motorists swearing that the llamas and cows appear dead, sick or tangled in the fences. (They almost always are not.)
“Plano’s a big city now and the world is moving so fast,” said Cary Gorman, 56, of Van Alstyne, who manages operations on the farm. “It’s sad to see it. But as they say, they’re not making any more land these days.”
courtesy of: Dallas Morning News
Wednesday, September 28, 2011
Tuesday, September 27, 2011
Weatherford is the fifth-best place to retire
Weatherford is the fifth-best place to retire
Sep. 27, 2011
According to Money magazine, Weatherford is the fifth best place to retire. Weatherford is recognized for maintaining its own identity despite the growth of the nearby Dally/Fort Worth area, providing affordable wide-open spaces, and lacking in a state income tax. Also making the list of the “25 best Places to Retire,” Austin and Georgetown ranked at 16th and 25th, respectively. Read more at CNNMoney.
Friday, September 23, 2011
Buying a home a safer bet than buying gold (INFOGRAPHIC)
Buying a home a safer bet than buying gold (INFOGRAPHIC)
Survey: 401(k) ranks near homeownership as favored long-term investment
By Inman News, Thursday, September 22, 2011.Editor's note: The results of a biannual survey, released this week by real estate search and marketing portal Trulia, found that 80 percent of homeowners plan to buy another home, and that most survey participants view homeownership, and placing money in a 401(k) or other retirement account, as the best long-term investments. Market research firm Harris Interactive conducted the survey, which drew responses from 1,392 homeowners and 758 renters, from Aug. 30, 2011, to Sept. 1, 2011.
Source: Trulia American Dream survey.
Source: Trulia American Dream survey.
Thursday, September 22, 2011
August Existing-Home Sales Rise Despite Headwinds, Up Strongly from a Year Ago
Walter Molony 202/383-1177 wmolony@realtors.org
August Existing-Home Sales Rise Despite Headwinds, Up Strongly from a Year Ago
Washington, DC, September 21, 2011
Existing-home sales increased in August, even with ongoing tight credit and appraisal problems, along with regional disruptions created by Hurricane Irene, according to the National Association of Realtors®. Monthly gains were seen in all regions.
Total existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 7.7 percent to a seasonally adjusted annual rate of 5.03 million in August from an upwardly revised 4.67 million in July, and are 18.6 percent higher than the 4.24 million unit level in August 2010.
Lawrence Yun, NAR chief economist, said there are some positive market fundamentals. “Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations,” he said. “Investors were more active in absorbing foreclosed properties. In additional to bargain hunting, some investors are in the market to hedge against higher inflation.”
Investors2 accounted for 22 percent of purchase activity in August, up from 18 percent in July and 21 percent in August 2010. First-time buyers purchased 32 percent of homes in August, unchanged from July; they were 31 percent in August 2010.
All-cash sales accounted for 29 percent of transactions in August, unchanged from July; they were 28 percent in August 2010; investors account for the bulk of cash purchases.
“We had some disruptions from Hurricane Irene in the closing weekend of August, when many sales normally are finalized, along the Eastern seaboard and in New England,” Yun said. “As a result, the Northeast saw the smallest sales gain in August, and some general impact is expected in September with widespread flooding from Tropical Storm Lee. Aberrations in housing data are possible over the next couple months as markets recover from disrupted closings and storm damage.”
Yun said an extremely important issue currently is the renewal and availability of the National Flood Insurance Program, scheduled to expire at the end of this month. “About one out of 10 homes in this country need flood insurance to get a mortgage, and we would see significant negative market impacts without it,” he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.27 percent in August, down from 4.55 percent in July; the rate was 4.43 percent in August 2010. Last week, Freddie Mac reported the 30-year fixed rate fell to a record low 4.09 percent.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the market is remarkably affordable for people with secure jobs, good credit and long-term plans. “All year, the relationship between home prices, mortgage interest rates and family income has been hovering at historic highs, meaning the best housing affordability conditions in a generation,” he said.
“The biggest factors keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers, and appraised valuations below the negotiated price. Buyers may be able to find more favorable credit terms with community and small regional banks, and Realtors® can often give buyers advice to help them overcome some of the financing obstacles,” Phipps said.
Contract failures – cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price – were reported by 18 percent of NAR members in August, up from 16 percent July and 9 percent in August 2010.
The national median existing-home price3 for all housing types was $168,300 in August, which is 5.1 percent below August 2010. Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 31 percent of sales in August, compared with 29 percent in July and 34 percent in August 2010.
Total housing inventory at the end of August fell 3.0 percent to 3.58 million existing homes available for sale, which represents an 8.5-month supply4 at the current sales pace, down from a 9.5-month supply in July.
Single-family home sales rose 8.5 percent to a seasonally adjusted annual rate of 4.47 million in August from 4.12 million in July, and are 20.2 percent above the 3.72 million pace in August 2010. The median existing single-family home price was $168,400 in August, which is 5.4 percent below a year ago.
Existing condominium and co-op sales increased 1.8 percent a seasonally adjusted annual rate of 560,000 in August from 550,000 in July, and are 8.3 percent higher than the 517,000-unit level one year ago. The median existing condo price5 was $167,500 in August, down 3.3 percent from August 2010.
Regionally, existing-home sales in the Northeast increased 2.7 percent to an annual pace of 770,000 in August and are 10.0 percent above a year ago. The median price in the Northeast was $244,100, which is 5.1 percent below August 2010.
Existing-home sales in the Midwest rose 3.8 percent in August to a level of 1.09 million and are 26.7 percent above August 2010. The median price in the Midwest was $141,700, down 3.5 percent from a year ago.
In the South, existing-home sales increased 5.4 percent to an annual pace of 1.94 million in August and are 16.9 percent higher than a year ago. The median price in the South was $151,000, which is 0.8 percent below August 2010.
Existing-home sales in the West jumped 18.3 percent to an annual pace of 1.23 million in August and are 20.6 percent higher than August 2010. The median price in the West was $189,400, down 13.0 percent from a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
courtesy of: National Association of Realtors®.
Existing-home sales increased in August, even with ongoing tight credit and appraisal problems, along with regional disruptions created by Hurricane Irene, according to the National Association of Realtors®. Monthly gains were seen in all regions.
Total existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 7.7 percent to a seasonally adjusted annual rate of 5.03 million in August from an upwardly revised 4.67 million in July, and are 18.6 percent higher than the 4.24 million unit level in August 2010.
Lawrence Yun, NAR chief economist, said there are some positive market fundamentals. “Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations,” he said. “Investors were more active in absorbing foreclosed properties. In additional to bargain hunting, some investors are in the market to hedge against higher inflation.”
Investors2 accounted for 22 percent of purchase activity in August, up from 18 percent in July and 21 percent in August 2010. First-time buyers purchased 32 percent of homes in August, unchanged from July; they were 31 percent in August 2010.
All-cash sales accounted for 29 percent of transactions in August, unchanged from July; they were 28 percent in August 2010; investors account for the bulk of cash purchases.
“We had some disruptions from Hurricane Irene in the closing weekend of August, when many sales normally are finalized, along the Eastern seaboard and in New England,” Yun said. “As a result, the Northeast saw the smallest sales gain in August, and some general impact is expected in September with widespread flooding from Tropical Storm Lee. Aberrations in housing data are possible over the next couple months as markets recover from disrupted closings and storm damage.”
Yun said an extremely important issue currently is the renewal and availability of the National Flood Insurance Program, scheduled to expire at the end of this month. “About one out of 10 homes in this country need flood insurance to get a mortgage, and we would see significant negative market impacts without it,” he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.27 percent in August, down from 4.55 percent in July; the rate was 4.43 percent in August 2010. Last week, Freddie Mac reported the 30-year fixed rate fell to a record low 4.09 percent.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the market is remarkably affordable for people with secure jobs, good credit and long-term plans. “All year, the relationship between home prices, mortgage interest rates and family income has been hovering at historic highs, meaning the best housing affordability conditions in a generation,” he said.
“The biggest factors keeping home sales from a healthy recovery are mortgages being denied to creditworthy buyers, and appraised valuations below the negotiated price. Buyers may be able to find more favorable credit terms with community and small regional banks, and Realtors® can often give buyers advice to help them overcome some of the financing obstacles,” Phipps said.
Contract failures – cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price – were reported by 18 percent of NAR members in August, up from 16 percent July and 9 percent in August 2010.
The national median existing-home price3 for all housing types was $168,300 in August, which is 5.1 percent below August 2010. Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 31 percent of sales in August, compared with 29 percent in July and 34 percent in August 2010.
Total housing inventory at the end of August fell 3.0 percent to 3.58 million existing homes available for sale, which represents an 8.5-month supply4 at the current sales pace, down from a 9.5-month supply in July.
Single-family home sales rose 8.5 percent to a seasonally adjusted annual rate of 4.47 million in August from 4.12 million in July, and are 20.2 percent above the 3.72 million pace in August 2010. The median existing single-family home price was $168,400 in August, which is 5.4 percent below a year ago.
Existing condominium and co-op sales increased 1.8 percent a seasonally adjusted annual rate of 560,000 in August from 550,000 in July, and are 8.3 percent higher than the 517,000-unit level one year ago. The median existing condo price5 was $167,500 in August, down 3.3 percent from August 2010.
Regionally, existing-home sales in the Northeast increased 2.7 percent to an annual pace of 770,000 in August and are 10.0 percent above a year ago. The median price in the Northeast was $244,100, which is 5.1 percent below August 2010.
Existing-home sales in the Midwest rose 3.8 percent in August to a level of 1.09 million and are 26.7 percent above August 2010. The median price in the Midwest was $141,700, down 3.5 percent from a year ago.
In the South, existing-home sales increased 5.4 percent to an annual pace of 1.94 million in August and are 16.9 percent higher than a year ago. The median price in the South was $151,000, which is 0.8 percent below August 2010.
Existing-home sales in the West jumped 18.3 percent to an annual pace of 1.23 million in August and are 20.6 percent higher than August 2010. The median price in the West was $189,400, down 13.0 percent from a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
courtesy of: National Association of Realtors®.
Wednesday, September 21, 2011
Resale store to help aid North Texas
Resale store to help aid North Texas
James Roth/Staff Photo - Volunteers help set up Metrocrest Resale. The grand opening for the store will be Friday at 9 a.m.
By James Roth, jroth@acnpapers.com
Metrocrest Social Services helps families from Addison, Carrollton, Coppell and Farmers Branch in many ways, from providing food and gifts around the holidays to now opening a new resale store to provide clothes and furniture to families.
Formerly known as the Metrocrest Thrift Store, the new Metrocrest Resale store is located at 2661 Midway Road, suite 207, and is scheduled to have its grand opening at 9 a.m. Friday. The new 8,238-square-foot shop will help aid people in need who cannot afford to shop at regular retail stores.
"This store used to be located at Belt Line Road and Josey Lane, but our lease expired at that location," said Rachel Mehl, development director for Metrocrest Social Services. "We are excited for our location. The shopping floor is the same size as our previous store, but our stock room is much larger."
Mehl said since the stock room is bigger, the store can receive more donations that can be sold. Items at the store include racks of clothes of all different styles and sizes, furniture such as sofas, tables and beds and various shoes.
"Many people will buy the furniture we have in stock. Those are very popular items," Mehl said. "Having a bigger space we are able to accept larger furniture donations so it is a win-win for everyone."
Mehl said the process of finding the new location and moving all the items was a process but not a difficult one. Thanks to many volunteers who gave their time, the moving process was quick and efficient.
"We have had so many volunteers lend a helping hand and it made the process much easier," she said. "We are very thankful for their help."
The store is in a prime location for the families that Metrocrest serves. Mehl said many families that they support live in the 75287 zip code which is in close proximity to the store.
"We want to be close to our client base, and it was one of the main reasons we chose this location," she said. "Another reason is that while we help families around this area there are many donors who live close to the store as well. We feel that it is a very centralized location for all."
Mehl encourages anyone to donate items to the store. From luggage and small electronics to clothes and jewelry, almost everything is welcome.
"The only thing we have not been able to take is any children's clothing or children's items," she said. "There was a law passed several years ago that stores like ours must have a machine that detects lead. Older toys with lead paint get on clothes and are not considered safe. We unfortunately are not able to purchase that machine due to our current budget."
Mehl said there is a chance of the law being lifted but it is not official yet.
Store hours for Metrocrest Resale will be 10 a.m. to 7 p.m. Monday through Saturday, closed Sunday. Donations should be dropped off during store hours and receipts are provided to donors for tax purposes.
For information call 972-250-1900 or go to www. metrocrestresale.com.
Article provided by Local Star News
Monday, September 19, 2011
5 bright spots in real estate recession
Mood of the Market
By Tara-Nicholle Nelson
Inman News™
Inman News™
Share This
September 19, 2011
The real estate market meltdown was much more severe and has lasted much longer than even the most bearish housing market observer would ever have predicted. Rather than values taking a dip, they've taken a double dip in many places; and the housing sector drama has infected the job market and the entire world's economy.
Yet, there are some very shiny silver linings to this whole mess -- a handful of ways in which our mindsets, habits, behaviors and approaches to money, mortgage and even life decision-making -- have been changed by this real estate market debacle. As I see it, here are the five best things about this otherwise terrible housing recession:
People now buy for the long term. Even Jeff Lewis, that reality TV house flipper extraordinaire, has declared that he's tapped out of the flipping business for the foreseeable future, trading in his real estate wheeling and dealing for the design business.
Recently, he mentioned having lost six homes in the real estate market crash. While Lewis flipped homes as his business, just five years ago, many Americans -- homeowners and investors alike -- took a short-term view on their homes, buying them with the idea that they could count on refinancing, pulling cash out or even reselling them anytime they wanted, at a profit.
Reality check -- those days are gone. Now, buyers know they'd better be prepared to stay put for somewhere between seven and 10 years (shorter in strong local markets, longer in foreclosure hot spots) before they buy if they want to break even. And this is causing them to take mortgages they can afford over time, and make smarter, longer-term choices about the homes they buy.
Dysfunctional properties are being weeded out and creatively reused. Municipalities like Detroit and Cleveland are demolishing blighted and decrepit properties in dead neighborhoods en masse, intentionally shrinking their cities to match their shrinking populations. These efforts are also eliminating breeding grounds for crime, and focusing resources on the neighborhoods that have a better chance of surviving and thriving in the long term.
In the so-called "slumburbias" of central California, Nevada and Arizona, McMansions are being repurposed into affordable housing for groups of seniors, artist communities and group homes.
American housing stock is getting an energy-efficient upgrade. The news would have you believe that every American has lost his or her home, walked away from it, or is now renting by choice. In fact, the vast majority of homeowners have simply decided to stay put.
Instead of selling and moving on up, homeowners are improving the homes they now plan to stay in for a long(er) haul. And this generation of remodeling is focused less on granite and stainless steel, and more on lowering the costs of "operating" the home and taking advantage of tax credits for installing energy-efficient doors, windows, water heaters and more. And while the first-time homebuyer tax credit is a thing of the past, the homeowner tax credits for energy-optimizing upgrades are in effect until the end of this year.
People are making more responsible mortgage decisions, and building financial good habits in the process. Buyers are buying far below the maximum purchase prices for which they are approved. They are reading their loan disclosures and documents before they sign them. And, thanks to the stingy mortgage market, they are spending months, even years, in the planning and preparation phases before they buy: paying down their debt; saving up for a down payment (and a cash cushion, so that a job loss wouldn't be disastrous); being responsible and sparing in their use of credit to optimize their FICO scores; and creating strong financial habits in one fell swoop.
Our feelings about debt and equity have been reformed. Americans no longer use their homes like ATM machines, to pull out cash, pay off their credit cards and then start the whole overspending cycle over again. Many can't, because their homes are upside down and cannot be refinanced in any event -- much less to pull cash out.
Others have been reality-checked by the recession, and are dealing with their non-mortgage debt the old fashioned way: by ceasing the pattern of spending more than they make, and applying the self-discipline it takes to pay their bills off.
Home equity, in general, is no longer viewed as an inexhaustible source of cash. Rather, we see it as a fluctuating asset to be protected and increased -- not so much through the vagaries of the market, but through the hard work of paying the principal balance down. Many of those refinancing into today's lower rates aren't doing it to pull cash out, as was the norm at the top of the market; instead, they are refinancing into 15-year loans to pay their homes off sooner than planned, or reducing their required payment so their extra savings can be applied to principal.
Of course, it remains to be seen how lasting these changes will be if and when home prices go up and mortgage guidelines loosen up. But since neither of these things look likely to happen in the short term, hopefully there's a chance that these behavior shifts will become part of a permanent mindset reset for American housing consumers.
Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, http://www.rethinkrealestate.com/.
Yet, there are some very shiny silver linings to this whole mess -- a handful of ways in which our mindsets, habits, behaviors and approaches to money, mortgage and even life decision-making -- have been changed by this real estate market debacle. As I see it, here are the five best things about this otherwise terrible housing recession:
People now buy for the long term. Even Jeff Lewis, that reality TV house flipper extraordinaire, has declared that he's tapped out of the flipping business for the foreseeable future, trading in his real estate wheeling and dealing for the design business.
Recently, he mentioned having lost six homes in the real estate market crash. While Lewis flipped homes as his business, just five years ago, many Americans -- homeowners and investors alike -- took a short-term view on their homes, buying them with the idea that they could count on refinancing, pulling cash out or even reselling them anytime they wanted, at a profit.
Reality check -- those days are gone. Now, buyers know they'd better be prepared to stay put for somewhere between seven and 10 years (shorter in strong local markets, longer in foreclosure hot spots) before they buy if they want to break even. And this is causing them to take mortgages they can afford over time, and make smarter, longer-term choices about the homes they buy.
Dysfunctional properties are being weeded out and creatively reused. Municipalities like Detroit and Cleveland are demolishing blighted and decrepit properties in dead neighborhoods en masse, intentionally shrinking their cities to match their shrinking populations. These efforts are also eliminating breeding grounds for crime, and focusing resources on the neighborhoods that have a better chance of surviving and thriving in the long term.
In the so-called "slumburbias" of central California, Nevada and Arizona, McMansions are being repurposed into affordable housing for groups of seniors, artist communities and group homes.
American housing stock is getting an energy-efficient upgrade. The news would have you believe that every American has lost his or her home, walked away from it, or is now renting by choice. In fact, the vast majority of homeowners have simply decided to stay put.
Instead of selling and moving on up, homeowners are improving the homes they now plan to stay in for a long(er) haul. And this generation of remodeling is focused less on granite and stainless steel, and more on lowering the costs of "operating" the home and taking advantage of tax credits for installing energy-efficient doors, windows, water heaters and more. And while the first-time homebuyer tax credit is a thing of the past, the homeowner tax credits for energy-optimizing upgrades are in effect until the end of this year.
People are making more responsible mortgage decisions, and building financial good habits in the process. Buyers are buying far below the maximum purchase prices for which they are approved. They are reading their loan disclosures and documents before they sign them. And, thanks to the stingy mortgage market, they are spending months, even years, in the planning and preparation phases before they buy: paying down their debt; saving up for a down payment (and a cash cushion, so that a job loss wouldn't be disastrous); being responsible and sparing in their use of credit to optimize their FICO scores; and creating strong financial habits in one fell swoop.
Our feelings about debt and equity have been reformed. Americans no longer use their homes like ATM machines, to pull out cash, pay off their credit cards and then start the whole overspending cycle over again. Many can't, because their homes are upside down and cannot be refinanced in any event -- much less to pull cash out.
Others have been reality-checked by the recession, and are dealing with their non-mortgage debt the old fashioned way: by ceasing the pattern of spending more than they make, and applying the self-discipline it takes to pay their bills off.
Home equity, in general, is no longer viewed as an inexhaustible source of cash. Rather, we see it as a fluctuating asset to be protected and increased -- not so much through the vagaries of the market, but through the hard work of paying the principal balance down. Many of those refinancing into today's lower rates aren't doing it to pull cash out, as was the norm at the top of the market; instead, they are refinancing into 15-year loans to pay their homes off sooner than planned, or reducing their required payment so their extra savings can be applied to principal.
Of course, it remains to be seen how lasting these changes will be if and when home prices go up and mortgage guidelines loosen up. But since neither of these things look likely to happen in the short term, hopefully there's a chance that these behavior shifts will become part of a permanent mindset reset for American housing consumers.
Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, http://www.rethinkrealestate.com/.
Friday, September 9, 2011
Dallas area sees August home sales spike 27%
By STEVE BROWN, Real Estate Editor, Dallas Morning News, September 8, 2011
Related
North Texas home sales surged in August by 27 percent — the biggest gain in more than a year.
Local real estate agents sold more than 6,800 pre-owned single-family homes last month. It was one of the highest monthly sales totals recorded since federal homebuying incentives ended in early 2010.
August was the second month in a row that the area has seen double-digit home sales increases from a year earlier, according to the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems.
Condominium and townhouse sales were also up in August, by 34 percent from a year earlier.
Housing analysts had predicted that Dallas-Fort Worth home sales would rebound from last year, after the expiration of homebuying incentives.
“The market really fell apart in July and August of last year,” said Ted Wilson of Residential Strategies, a Dallas-based housing analyst. “It’s kind of hard to sell Christmas trees the day after Christmas, and it was that way last summer for houses when the tax credit expired.”
Home sales fell for 12 straight months after the end of the federal tax credits in April 2010. “It’s great news we are doing better,” he said. “Consumers are finding some good deals out there from a pricing standpoint.” And with home mortgage rates near record low levels, it’s never been cheaper to finance a purchase, Wilson said.
“The low mortgage rates have to be helping,” said James Gaines, an economist with the Real Estate Center. “And Dallas continues to do well businesswise — employment is still going up. “This home sales rebound is a lot better than we thought it would be,” Gaines said. “If the pattern continues, we could be up 10 percent or more for the year.” The last time North Texas home sales were up by August’s rate was when buyers were rushing to take advantage of the tax credits before they ended.
Home sales last month were higher in all but a few Dallas-area neighborhoods. Some of the biggest sales increases from a year ago were in Carrollton-Farmers Branch (60 percent), northeast Dallas (59 percent) and the Park Cities (49 percent). With big jumps in both July and August, North Texas home sales are now down just 4 percent for all of 2011 from the same period last year. Area home sales prices for the year are flat and were up 2 percent in August. The median price of houses sold last month through the Realtors’ multiple listing service was $154,000. August median sales prices were up 54 percent from a year earlier in Oak Cliff , 26 percent in Cedar Hill and 25 percent in Fairview.
The number of homes listed for sale in the 29-county North Texas area is the lowest since early 2010.
The inventory of houses on the market in August was down 17 percent from a year earlier and equaled just over a seven-month supply. Six months of inventory is considered a balanced market.
D-FW home resales update
Comparisons of August sales and prices of pre-owned homes in North Texas with figures from a year earlier:
CategoryHomesChangeCondosChange
Resales6,822+27%385+34%
Median price$154,000+2%$126,500-9%
Average days on market86+10%106+7%
Pending sales5,521+17%344+45%
Listed for sale34,754-17%2,745-28%
SOURCES: Real Estate Center at Texas A&M University; North Texas Real Estate Information S
Related
North Texas home sales surged in August by 27 percent — the biggest gain in more than a year.
Local real estate agents sold more than 6,800 pre-owned single-family homes last month. It was one of the highest monthly sales totals recorded since federal homebuying incentives ended in early 2010.
August was the second month in a row that the area has seen double-digit home sales increases from a year earlier, according to the Real Estate Center at Texas A&M University and North Texas Real Estate Information Systems.
Condominium and townhouse sales were also up in August, by 34 percent from a year earlier.
Housing analysts had predicted that Dallas-Fort Worth home sales would rebound from last year, after the expiration of homebuying incentives.
“The market really fell apart in July and August of last year,” said Ted Wilson of Residential Strategies, a Dallas-based housing analyst. “It’s kind of hard to sell Christmas trees the day after Christmas, and it was that way last summer for houses when the tax credit expired.”
Home sales fell for 12 straight months after the end of the federal tax credits in April 2010. “It’s great news we are doing better,” he said. “Consumers are finding some good deals out there from a pricing standpoint.” And with home mortgage rates near record low levels, it’s never been cheaper to finance a purchase, Wilson said.
“The low mortgage rates have to be helping,” said James Gaines, an economist with the Real Estate Center. “And Dallas continues to do well businesswise — employment is still going up. “This home sales rebound is a lot better than we thought it would be,” Gaines said. “If the pattern continues, we could be up 10 percent or more for the year.” The last time North Texas home sales were up by August’s rate was when buyers were rushing to take advantage of the tax credits before they ended.
Home sales last month were higher in all but a few Dallas-area neighborhoods. Some of the biggest sales increases from a year ago were in Carrollton-Farmers Branch (60 percent), northeast Dallas (59 percent) and the Park Cities (49 percent). With big jumps in both July and August, North Texas home sales are now down just 4 percent for all of 2011 from the same period last year. Area home sales prices for the year are flat and were up 2 percent in August. The median price of houses sold last month through the Realtors’ multiple listing service was $154,000. August median sales prices were up 54 percent from a year earlier in Oak Cliff , 26 percent in Cedar Hill and 25 percent in Fairview.
The number of homes listed for sale in the 29-county North Texas area is the lowest since early 2010.
The inventory of houses on the market in August was down 17 percent from a year earlier and equaled just over a seven-month supply. Six months of inventory is considered a balanced market.
D-FW home resales update
Comparisons of August sales and prices of pre-owned homes in North Texas with figures from a year earlier:
CategoryHomesChangeCondosChange
Resales6,822+27%385+34%
Median price$154,000+2%$126,500-9%
Average days on market86+10%106+7%
Pending sales5,521+17%344+45%
Listed for sale34,754-17%2,745-28%
SOURCES: Real Estate Center at Texas A&M University; North Texas Real Estate Information S
Thursday, September 8, 2011
How to get rid of your PMI
Private mortgage insurance (PMI) is required for mortgage loans where the buyer contributes less than 20% of the purchase price as downpayment. Lenders require PMI on most conventional mortgages because there's a correlation between borrower equity and default.
The less money a borrower has invested in a home, the greater the probability of default. So, PMI is a financial guarantee that protects lenders against loss in the event that a borrower defaults. Without it, the 20% down payment that lenders typically require shuts many potential homebuyers out of the housing market.
PMI not only puts people in homes — it also allows them to buy the homes where they want to live. Consider that two out of five homebuyers who use PMI may not otherwise be able to buy a home, according to the Mortgage Insurance Companies of America, a mortgage industry trade group.
PMI also allows buyers to get more house. With $15,000 down, the most home you can buy while avoiding PMI is a $75,000 home. If you use the $15,000 to put 10% down with an insured loan, you can buy a $150,000 home. Of course, that assumes you've got the income to handle the mortgage payment.
Cost of PMI
But there is a cost. PMI certainly helps borrowers get into a home, but it's darn expensive. Borrowers usually pay a half of one percent of the loan amount per year. On a $100,000 loan, that's about $500 to $600 to ensure the top $20,000 of the loan you didn't put down in cash.
But there is a cost. PMI certainly helps borrowers get into a home, but it's darn expensive. Borrowers usually pay a half of one percent of the loan amount per year. On a $100,000 loan, that's about $500 to $600 to ensure the top $20,000 of the loan you didn't put down in cash.
And, lenders can charge PMI until you've reached 20% in equity. On a $100,000 loan with 10% down ($10,000), PMI might cost you $40 a month. If you can cancel it, you can save $480 a year and many thousands of dollars over the life of the loan. Check your annual escrow account statement or call your lender to find out exactly how much PMI is costing you each year.
With a 30-year fixed-rate loan, it could take up to 15 years to chisel it down until you have 20% equity, unless you're paying extra on your loan every month. Homeowners can cancel PMI when there's 20% equity in the home, based on the original property value and provided your mortgage payments are current.
How to get rid of your PMI
The good news is that the Homeowners Protection Act of 1998 (which became effective in 1999) established rules for automatic termination and borrower cancellation of PMI on home mortgages. According to the Federal Trade Commission, these protections apply to certain home mortgages signed on or after July 29, 1999 for the purchase, initial construction, or refinance of a single-family home. (Note: These protections do not apply to government-insured FHA or VA loans or to loans where the lender is paying PMI.)
The good news is that the Homeowners Protection Act of 1998 (which became effective in 1999) established rules for automatic termination and borrower cancellation of PMI on home mortgages. According to the Federal Trade Commission, these protections apply to certain home mortgages signed on or after July 29, 1999 for the purchase, initial construction, or refinance of a single-family home. (Note: These protections do not apply to government-insured FHA or VA loans or to loans where the lender is paying PMI.)
For home mortgages signed on or after July 29, 1999, your PMI must be terminated automatically when you reach 22% equity in your home based on the original property value, if your mortgage payments are current.
If you signed your mortgage before July 29, 1999, you can ask to have the PMI canceled once you exceed 20% equity in your home. But federal law does not require your lender or mortgage servicer to cancel the insurance, so it's important to stay on top of it. Here are other points covered by the law:
- New borrowers must be told — at closing and once a year — about PMI termination and cancellation.
- Mortgage servicers must provide a telephone number for all their mortgage borrowers to call for information about termination and cancellation of PMI.
- Even though the law's termination and cancellation rights do not cover loans that were signed before July 29, 1999, or loans with lender-paid PMI, lenders or mortgage servicers must tell borrowers about the termination or cancellation rights they may otherwise have under those loans (such as rights established by the contract or state law).
Contact your lender or mortgage servicer to learn whether you're paying PMI. (You can also look on your mortgage-payment stub to see if it's listed there.) If you are, ask how and when it can be terminated or canceled. For more information, contact the FTC by visiting http://www.ftc.gov/ or call toll-free, 877/FTC-HELP (877/382-4357); TTY: 866/653-4261.
provided by: Texas Real Estate.com
Five Ways to Fight a Low Appraisal
Five Ways to Fight a Low Appraisal
By Steve Cook 
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What do you do when the appraisal on the dream home you want to buy comes in below the price in the offer the seller has accepted—even as much as 10 to 20 percent below?Chances are that raising the cash for your down payment and closing cost has tapped you out. Finding thousands more to make up the difference between the appraised value and the contracted amount is out of the question.
You’re not the only buyer who has hit the low appraisal snag. This past June and July, 16 percent of real estate pros reported a cancelation in a sale, mostly due to a large number of low appraisals.
However, you don’t have to walk away. In fact, some real estate professionals and economists say that low-ball appraisals are pushing home values down and undermining the housing recovery.
You can fight back. You have options, and chances are you can find a way to make the deal work without increasing your down payment.
Appraisals are largely based on prices recently paid for comparable local properties. Over the past decade, finding “comps” that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust. Discounts paid for foreclosures and short sales have created a dual price structure between “normal” and distress sales.
Finally, today many buyers rely on popular online valuation tools, called AVMs or automated valuation models, instead of a comparable market analysis from a real estate professional. AVMs give fast property value estimates, but they often differ greatly from appraised values because they are determined by algorithms using available local price data, not actual inspections of the property. During this time of record low home values, it’s no wonder that more and more appraisals are coming in below prices that buyers and sellers have agreed on.
It may seem ironic that buyers would want the homes they want to buy to appraise for as much or more than they are willing to pay. Remember, the purpose of the appraisal is not to help you get a better price, but to protect your lender should you default. The lender wants assurance that your home will be worth enough to recoup their investment.
Even if you have a great job, sterling credit, an adequate down payment and money in the bank, your lender will still want a conservative appraisal. In light of losses they have taken on the millions of foreclosures in recent years and the tough times many banks have had on Wall Street, lenders are taking no chances these days. They are more interested in protecting themselves from a loss than they are in giving you a loan.
Here are five steps you can take to save your dream home:
1. Get the seller to lower the price. By far, this is the easiest solution, especially if your appraisal comes in less than 10 percent of the contract price. Obviously, a lower price is a great idea for the buyer, but why would a seller go along? In July, 2011 the average home in America took about 88 days to sell. Demand is soft and time is money. Your seller, particularly if they are selling to buy another home, could be in a real bind if you are forced to back out and they have to put the house on the market again. After all, there is no guarantee that if you walk away, the seller won’t receive a low or even lower appraisal from the next buyer’s lender. Today, many buyers are offering incentives to sellers, such as payment of some or all closing costs. Lowering the price might be a cheaper option for the seller in order to get the deal done on time. Sometimes a bird in the hand is best.
2. Ask the seller to offer to carry a second mortgage for the difference. This solution doesn’t cost the seller anything but the buyer incurs greater debt. If the buyer really wants the home but cannot come up with the difference in cash, making payments or a lump sum payment at a later date to the seller is an option. After the escrow closes, sellers often retain the right to discount the second mortgage, and can sell it for less than face value to an investor.
3. Do your research and dispute the appraisal. Is the contract sales price a fair assessment of the property value based on a well-prepared comparable market analysis (CMA) from your real estate agent as opposed to an online AVM? Was the appraisal done by an appraisal management company that may have used a less-than-expert or out-of-town appraiser?
Disputing the appraisal may sound a little aggressive but you might be the victim of a poorly prepared appraisal. Do some research first and go to war if you have the ammunition.
You have the right to get a copy of the appraisal from your lender and to find out who did it. What is the appraiser’s reputation? Have any complaints been filed with your state appraisal licensing agency? Where is the appraiser based? Did they perform an appraisal in a housing market that they may not know well? Did the appraiser have adequate information about the subject property? If your appraisal was conducted by an out-of-town appraiser unfamiliar with your market, you have every right to demand a new appraisal.
What comparables did they use? Ask your agent and the seller’s agent to put together a list of recent comparable sales that justify the agreed-to sales price. Submit that list to the underwriter and ask for a review of the appraisal. Also, ask the agents to call the listing agents of pending sales to try to find out the actual sales price of those properties. Listing agents do not have to disclose the sales price, but many are happy to help because they could find themselves in the same situation. Pending sales are more current and are not closed, so the original appraiser would not have access to them.
The key to a successful dispute is data. You will need as much data you can get to back up your dispute.
4. Ask the lender for a new appraisal. Should you find that you have a good case that the appraisal wasn’t fair or accurate, ask your lender for a new appraisal, which you may be charged for.
Another strategy is to get two additional, unbiased appraisals and use the average of all three to arrive at a fair price. This is a risky strategy, in light of the fact that another appraisal might not come in higher than your first; it might even be lower if values have fallen.
Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely. If a new appraisal is ordered, talk with your agent about somehow splitting the cost with the seller. Perhaps the listing agent and selling agent will split the fee so the buyer does not have to incur additional costs associated with the transaction. Appraisals cost around $400 or so.
5. Get your own, independent appraisal. If you order your own appraisal and your loan is an FHA loan, ask the lender for a list of approved appraisers. Usually the bank will review your appraisal and ask the previous appraiser if they agree or disagree with the newly submitted one.
If the first appraiser disputes your appraisal, the bank may request a third appraisal done by another appraiser, or they may just reject your appraisal.
However, if the first appraiser agrees with the disputes you present, they may adjust their original appraisal and you may get a better price.
If these tactics fail and you cannot make up the shortfall in the appraised value, you may find yourself moving on. If so, be sure that you were protected by a contingency clause in the sales contract, stating that the transaction can be terminated if the home doesn’t appraise at, or above, the sales price.
For more information visit http://www.realestateeconomywatch.com/.
provided by: RISMEDIA
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