Apr
1
Warm weather is upon us, Spring is in full swing and the local real estate market is kicking into high gear. Fueling buyer interest are historically low interest rates from the 4.50% to the 5% range and a fairly stable job market here in the southwest Tarrant and Johnson county areas. New listings are coming on the market daily. Well priced properties in top showing condition in great locations are often drawing multiple offers.
Foreclosures and short sales are still the initial hot topic of interest with buyers. However, the length of time for approval by banking entities on properties such as these coupled with the work needed to fix up these ’as is’ properties have many buyers changing their focus back to move-in ready properties with willing sellers. With the increased minimum down payment requirements of FHA to 3.50%, buyers are often seeking seller concessions on closing costs in order to help them get into a home. Other buyer trends include an emphasis on established neighborhoods with updated interiors including appliances, counter tops, flooring and paint with good curb appeal. As always, deferred maintenance and poor showing conditions, or overpricing a home will slow down or stall the sales process.
Low interest rates are also attracting move-up buyers. Even if a homeowner has to take a bit less for the home they are currently selling than in the recent past, it is a great time to make up that difference in the next home they are buying. Industry experts estimate that the current market shifts have made housing affordability more attractive than it has been in the last 10 years or more. This window of opportunity will not last long as our economy recovers, interest rates rise and buyer demand increases.
Overall, there may never be a better time to buy or sell property in Burleson and Johnson County than this Spring of 2009. For more information, please contact Judy Homan at the Keller Williams Johnson County office.
Treasuries were little changed Monday ahead $67 billion in new supply scheduled for sale this week. Supply issues were weighing on prices somewhat but the bond market was in wait-and-see mode ahead of major policy decisions out of Washington this week. Traders remained uncertain about the stimulus package and the bank bailout plan. The 10-year note was up 2/32 106/14/32 to yield 2.98%.
The Treasury budget deficit totaled $83.8 billion in January compared with a budget surplus of $17.8 billion in January 2008. Shrinking revenues and ballooning outlays related to TARP are resulting in unheard shortfalls in the budget. Fiscal year to date the cumulative budget deficit came in at $569 billion, more than six times greater than the budget gap for the same period last year.
The MBA mortgage applications index plunged 24.5% to 600.6% for the week ending February 6. The bulk of the decline was led by a 30.3% drop in the refinance index, though the purchase index decreased 9.8% as well. The recent uptick in mortgage rates has depleted many favorable refinancing opportunities and weighed on purchase activity. Most all policy actions at this point are aimed at reducing borrowing costs and freeing up credit flows which will be a boon to applications activity and the housing sector.
Retail sales increased unexpectedly last month, breaking a six-month string of declines. Retail sales were up 1.0% in January led by sales gains in autos, electronics and at restaurants. Despite the gain, consumer spending is still trending much, much lower as consumer pull back amid job losses, frozen credit, falling home values and financial market turmoil. It appears as though sales gains in January are a fluke and currently are not sustainable going forward.
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