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Greater McAllen Real Estate News & Market Trends

You’ll find my blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because I care about the community and want to help you find your place in it. Please reach out if you have any questions at all. I’d love to talk with you!

July 28, 2019

56% Of Homes Sell In Under A Month

If you're shopping for a house this summer, you should be prepared to move fast. That's because, homes are selling quickly so far this season and new numbers from the National Association of Realtors show the trend continuing through June. In fact, 56 percent of the homes sold during the month were on the market for less than a month. The typical property lasted just 27 days, which is up from 26 days the month before. Lawrence Yun, NAR's chief economist, says the housing market is imbalanced and it's leading to higher prices and more competition for available homes. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” Yun said. However, like all things real estate, your location will determine the conditions you encounter when shopping for a house. For example, home sales in the Midwest and Northeast – where inventory isn't quite as tight – increased in June. The South and West, on the other hand, saw declines. More here.
Market Rate Homes are Sold

Posted in Market Updates
July 28, 2019

What's Happening In The New Home Market?

New homes only represent about 11 percent of all home sales. But, though they're a small slice of housing market activity, they do play an important role. That's because, when new homes are selling, builders build more houses. And, since adding new homes to the housing stock can help alleviate upward pressure on home prices, a healthy new home market can make buying conditions better for everyone. These days, though, the market faces some challenges. For example, the increasing cost of land and materials means builders struggle to build new homes in price ranges affordable for first-time and entry level buyers. For example, new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show that the median sales price of new homes sold in June was $310,400. The average price was $368,600. By comparison, at the end of 2018, the average price of homes purchased by first-time buyers was $219,300. Since a significant share of housing demand these days comes from younger buyers, new home sales are held back by the lack of affordable options for this demographic. More here.

New Home Sales Effect Home Prices

Posted in Housing Market
June 1, 2019

Summer Is The Best Time To Sell A Home

According to the popular Christmas song, the holidays are the most wonderful time of the year. But not if you're trying to sell a home. After all, winter is typically not the time home buyers go out shopping for a house. So what is the best time of the year if you're a homeowner with a house to sell? Well, according to a new analysis from ATTOM Data Solutions, spring and summer are the seasons when sellers see the biggest premiums. In fact, of the nine days of the year that sellers saw a premium of 10 percent or more, eight of them occurred during summer months. Todd Teta, chief product officer with ATTOM, says this is no surprise. “Since Summer is a time for vacations and outings, it's no surprise that it's also a time when people are most likely to move,” Teta said. “Families start their home search when they know their kids will be out of school and when the weather is ideal for home viewing and moving, giving home sellers an upper hand in price negotiations.” Specifically, May and June are the best months for selling a house, with homes sold in June selling for an average of 9.2 percent above estimated market value. More here.

Summer is hot for selling your home

Posted in Housing Market
June 1, 2019

How Much Of Your Money Should Go Toward Housing?

No matter how much money you have, you still have to make choices about how to spend it. Spending too much on one thing means not having as much for another. This is simple budgeting. And, since your mortgage will likely be among your biggest monthly bills, you'll want to give some thought to how much of your income you'd be comfortable putting toward it. Conventional wisdom says you shouldn't spend more than 30 percent of your income on housing. But historically, Americans' mortgage payments have been closer to 21 percent of their income. These days, it's even lower. At the end of last year, the mortgage payment on a typical home required about 17.5 percent of the median income, according to a recent analysis. But that, of course, also depends on where you live. For example, the percentage you'd spend on a mortgage payment in Cleveland is about half of what the typical New Yorker spends. Wherever you are, though, giving some consideration to your household expenses, income, and prospective payment before heading out to find a house will help you avoid buying more than you can comfortably afford. More here.

How Much Money Should Go Towards Housing

May 26, 2019

30-Year Rate Now At Lowest Level In Over A Year

According to the Mortgage Bankers Association's Weekly Applications Survey, average rates for 30-year fixed-rate mortgages with conforming loan balances fell again last week. Rates for jumbo loans, loans backed by the FHA, and 15-year fixed-rate mortgages remained mostly flat from the week before. Joel Kan, MBA's associate vice president of economic and industry forecasting, said the average 30-year fixed-rate is now at its lowest point in more than a year. “Mortgage rates fell for the fourth straight week, with the 30-year fixed-rate mortgage hitting its lowest level since January 2018, leading to a rebound in refinances,” Kan said. And while it's true that there was an 8 percent increase in refinance activity last week due to decreasing rates, purchase activity was actually down from the week before. Kan says home buyers may be delaying their search due to economic uncertainty. But though demand for loans to buy homes was down from the week before, it remains 7 percent higher than at the same time last year. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here

30 Year Rate at Lowest in Over a year

Posted in Market Updates
May 26, 2019

Report Shows Buying Conditions Are Improving

The National Association of Realtors most recent existing-home sales report shows sales were essentially flat in April, falling 0.4 percent from the month before. But though flat sales to begin the spring selling season may seem like trouble, a closer look at the data shows conditions are gradually improving for home buyers and may lead to more activity. Lawrence Yun, NAR's chief economist, says he believes the improvements will soon help spur more sales. “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” Yun said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.” Additionally, inventory continues to improve, with the number of homes available for sale up nearly 2 percent from last year at the same time. However, though the market is becoming more favorable for buyers, it's still competitive. In fact, 53 percent of homes sold in April were on the market for less than a month. More here.

Home Buying Conditions Improving

Posted in Market Updates
May 1, 2019

Do Open Houses Lead To Faster Sales?

When you have something to sell, half the battle is getting it in front of the people who'll want to buy it. No matter what you're selling – or how great it is – if no one knows it's for sale, you're not going to have much success. This, of course, is also true when you're trying to sell a house. Even in a seller's market, you're going to get the best results if your home is accessible to as many home shoppers as possible. Proof of this is found in a recent analysis that looked at homes listed last year to determine the effectiveness of open houses. The analysis found that homes that had an open house within their first week on the market sold for more money and in fewer days than homes that didn't have one at all. Of course, like everything else, the benefits of having an open house depended on location. And it's also true that, in a lot of cases, homes that had open houses were the ones that were already attractive to home buyers. But, in the end, it makes sense. Getting more buyers to your home increases your odds of selling it quickly and having multiple offers. More here.

The effectiveness of open houses

Posted in Market Updates
April 30, 2019

How Long Will You Live In The House You Buy?

Choosing a house to buy takes a little bit of vision. After all, it's easy to know what you want in a home today, but more difficult to know for sure what you'll want years from now. Things change and your life will undoubtedly take some unexpected twists and turns. But just how long should you expect to live in the house you buy? Well, according to ATTOM Data Solutions' Q1 2019 U.S. Home Sales Report, homeowners who sold in the first quarter of this year had lived in their home an average of 8.05 years. For comparison, that's close to double what it was prior to the housing crash, when homeownership tenure averaged 4.21 years. In short, you're likely going to spend close to a decade in the house you buy. That means, home buyers need to be thinking of, not only what they need from a house today, but also what they hope and plan for over the next several years. More here.

How long will you live in your home

Posted in Housing Market
April 30, 2019

The Where And Why Of Millennial Moves

Where and how you live has a lot to do with your job and money. After all, if money were no issue, you'd likely have a far different list of priorities when it came time to buy a house. But since most of us have to stick to a budget, we choose what type of house to look for and in which neighborhood based on our financial situation. That's why it's not surprising that a recent report on where millennials want to move found that the most popular areas for younger home buyers are those that offer good jobs and affordable homes. Naturally, these aren't just priorities for millennials, as older buyers also want to live somewhere close to work that won't break the bank. But because younger home shoppers are at the beginning of their careers and are often first-time home buyers, who have to come up with a down payment from scratch, this is especially true. That's why the list of most popular areas for millennial buyers is made up of metro areas that have lower rates of unemployment, higher wages, and more homes in entry-level price ranges. More here.
How Mellenials Make Home Choices

April 16, 2019

How Much Do Sellers Spend On Home Improvement?

The typical home seller lives in their house for more than a decade before they put it up for sale. And during that 10 years, there are probably a few things they let go. So it's no surprise that the vast majority of them feel the need to fix their place up before putting in on the market. In fact, according to one recent analysis, nearly 80 percent of home sellers complete one home improvement project before they invite potential buyers to have a look. This can include anything from a fresh coat of paint to a bathroom remodel. Fortunately, the money sellers spend sprucing up their home often helps them sell it for more than their asking price. So, if you're thinking about selling, how much should you expect to spend on home improvement projects? Well, the national average is $6,570, though it does depend a lot on where you are. For example, in San Francisco, sellers usually spend closer to $8,000, while in St. Louis the cost is under $4,000. Wherever you are, though, it's good to consider not only what needs to be repaired and refreshed but also which projects are most likely to provide some return on your investment. More here.

Home Repair Costs for Making Home Ready to Sale

Posted in Housing Market