Texas Real Estate

Bombshell: Houston Agents Caught Steering Buyers Away From Homes With Lower Commissions

On November 2020 the National Association of Realtors settled its antitrust case with the Department of Justice, agreeing to a number of reforms over how MLS boards operate. The settlement also addressed how Realtors compete in their local markets. We now have more understanding of why the case was filed, and why it was settled. The Houston Chronicle is reporting on how several Houston area agents were caught on tape steering buyers away from homes which did not offer three percent commissions. Last year the Department of Justice announced the lawsuit against NAR and the [...]

North Texas Real Estate Market Partying Like It’s 1999

The North Texas real estate market continued to ramp higher in August. Median home prices in Denton County jumped 6.3 percent last month, with average prices rising 7.4 percent compared to a year ago. Denton County home sales increased 10 percent, while pending sales for Denton County homes shot 33 percent. Home buyers are still riding that wave of liquidity, and who can blame them. Mortgage rates just hit a new record low in the latest weekly survey, with the rate on the 30-year fixed dropping to 2.86 percent. Those low rates helped push North [...]

Denton Texas Employment Stalls With Fading Govt Stimulus

Denton Texas employment stalled in July as stimulus benefits for many Americans came to an end. While Denton and Denton County showed slight increases in employment from June levels, North Texas as a whole actually lost jobs during the month. The Dallas-Fort Worth-Arlington MSA region saw unadjusted nonfarm employment fall by 12,900 jobs from June levels. Employment for the North Texas region was down by 150,500 jobs compared to July 2019. The latest numbers from the Texas Workforce Commission in July are a stark reminder that the real economy has not fully recovered, even if [...]

Denton TX Home Prices Go Parabolic With Fed Liquidity

2020 is going to be memorable for a number of reasons, and the housing market is certainly one of them. With the Federal Reserve injecting $trillions in Covid stimulus to prop up the flailing U.S. economy, Denton Texas home prices managed to completely detach from traditional fundamentals in July. Denton TX home prices skyrocketed 14.8 percent to an average price of $316,601 last month, easily shattering the all-time record. 3647 fewer people had jobs in Denton according to the latest employment report, but apparently it didn't matter. 2020 is all about central bank liquidity and [...]

New Home Sales Continue Covid Rebound, Up 6.9% Year-over-Year

The Census Bureau reported new home sales for June at a seasonally adjusted annual rate of 776,000. That was a 13.8% jump from May sales and a 6.9% increase compared to June 2019. This was far better than June existing home sales reported by the National Association of Realtors this week which were still down 11.3% compared to the same time a year ago. According to Census estimates for June, median and average new home prices rose to $329,200 and $384,700 respectively. Both figures are sharp increases from May, and even June 2019. The non [...]

DFW New Home Buyers Getting Squeezed By Fed Asset Inflation

New home buyers in the DFW housing market are getting squeezed. Despite the continued trend of lower overall new home prices, the price buyers are paying on a square foot basis continues to shoot higher. This is particularly the case if you look at the median new home buyer in the Dallas-Fort Worth market. The median price of a new home in the DFW area fell by 3.2 percent in April while the average price of a new home was 4.4 percent lower compared to April 2019. Even with record low mortgage interest rates, Dallas-Fort [...]

By |2020-05-28T10:33:55+00:00May 26th, 2020|Texas Real Estate|0 Comments

U.S. New Home Sales Fall 9.5% To 627,000 SAAR

The Census Bureau reported new home sales (contracts) for March at a seasonally adjusted annual rate (SAAR) of 627,000. That was 15.4 percent below the revised February rate and down 9.5% from the same time a year ago. As a reminder, the Census counts a new home sale at the time of contract signing, not the actual closing. In the context of the Covid-19 pandemic we actually have a more relevant, forward-looking indicator of new home sales activity, similar to the pending sales metric we would use in the MLS. The median new home sales [...]

Dallas Fed Manufacturing Survey Crashes, Hit To Texas Housing Market Awaits

The Dallas Fed Texas Manufacturing Outlook Survey for March just crashed to the worst levels since the survey began. The production index cratered from 16.4 to negative 35. New orders dropped to negative 41.3, and the growth rate of new orders index fell to negative 44.9. The employment index fell to negative 23.0, and the hours worked index fell to negative 22.4 "The general business activity index plunged from 1.2 to -70.0, and the company outlook index fell from 3.6 to -65.6. Both March readings are the lowest since the survey began in June 2004." [...]

Market Chaos Hits Mortgage Market, iBuyers Disappear

Chaos is hitting the mortgage markets, and iBuyers have suddenly disappeared from the real estate landscape quicker than a cat on a hot tin roof. The Fed is in utter panic mode, and we are only beginning to find out how fragile the U.S. economy really is. Here's the QE to Infinity announcement from the Fed: "Federal Reserve announces extensive new measures to support the economy." If you thought the Fed's response to 2008 was extreme, this week's actions by the Federal Reserve make 2008 look tame in comparison. During the height of QE 1, [...]

Reckoning Awaits For Inflated North Texas Real Estate Market

The reckoning awaits for the hyper-financialized north Texas real estate market.  It may take a few months for reality to sink in, but the writing is on the wall regardless of the efforts of housing industry pundits and professional economists to downplay the damage. The hopes of a v-shaped recovery are vanishing faster than the toilet paper on the shelves of your local grocery store. Many of the supposed experts, like the PhD economists employed at the Texas Real Estate Center at A&M, have turned a blind eye to the artificial inflation in Texas real [...]

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