Texas Home Buyer Assistance Programs

Some Highlights: There is plenty of talk in the media about a pending economic slowdown. The good news is, home values actually increased in 3 of the last 5 U.S. recessions, and decreased by less than 2% in the 4 th . Many experts predict a potential recession is on the horizon. However, housing will not be the trigger, and home values will still continue to appreciate. It will not be a repeat of the crash in the 2008 housing market. source https://www.simplifyingthemarket.com/en/2019/08/30/a-recession-does-not-equal-a-housing-crisis-infographic/?a=489394-750b3ad95b7715aa39b3f5a8d59f5d51

When thinking about selling their house, homeowners have many options. A relatively new option is using an “iBuyer.” What is an iBuyer? According to Jovio , the definition is: “A company or investor that uses Automated Valuation Models (AVMs) to make instant offers on homes. It allows sellers to close on a property quickly. Once sold, the company then turns around and resells the home for a profit.” Today, there are many iBuyer companies such as OfferPad , Zillow Offers , Knock , Opendoor, and Perch . Even some more traditional companies offer the same or similar services (ex. Keller Williams , Redfin , Realogy ). Ivy Zelman reported in her ‘Z’ Report that some traditional brokers are partnering with some of the larger iBuyers too: “Keller Williams announced a partnership with Offerpad, aligning the largest franchise-based brokerage brand in the U.S. with the five-year-old iBuyer. The move follows Realogy’s partnership with Home Partners of America last year as an established

According to the Pew Research Center, around 37% of U.S students will be going back to school soon and the rest have already started the new academic year. With school-aged children in your home, buying or selling a house can take on a whole different approach when it comes to finding the right size, location, school district, and more. Recently, the 2019 Moving with Kids Report from the National Association of Realtors ®(NAR) studied “the different purchasing habits as well as seller preferences during the home buying and selling process .” This is what they found: When Purchasing a Home The major difference between the homebuyers who have children and those who do not is the importance of the neighborhood. In fact, 53% said the quality of the school district is an important factor when purchasing a home, and 50% select neighborhoods by the convenience to the schools. Buyers with children also purchase larger, detached single-family homes with 4 bedrooms and 2 full bathrooms

Mortgage rates have fallen by over a full percentage point since Q4 of 2018, settling at near-historic lows. This is big news for buyers looking to get more for their money in the current housing market. According to Freddie Mac’s  Primary Mortgage Market Survey , “ the 30-year fixed-rate mortgage (FRM) rate averaged 3.60 percent, the lowest it has been since November 2016. ” Sam Khater, Chief Economist  at Freddie Mac, notes how this is great news for homebuyers. He states, “…consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall.” As a potential buyer, the best thing you can do is work with a trusted advisor who can help you keep a close eye on how the market is changing. Relying on current expert advice is more important than ever when it comes to making a confident and informed decision for you and your family. Bottom Line Even a small increase (or decrease) in interest rates can impact your monthly

We’re in the back half of the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the predictions are for the remainder of 2019. Here’s what some of the experts have to say: Ralph McLaughlin, Deputy Chief Economist for CoreLogic “We see the cooldown flattening or even reversing course in the coming months and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.” Lawrence Yun,  Chief Economist  at  NAR “We expect the second half of year will be notably better than the first half in terms of home sales, mainly because of lower mortgage rates.” Freddie Mac “The drop in mortgage rates continues to stimulate the real estate m

Some Highlights: The pumpkin spice latte is launching soon, so you may be tempted to spend your extra cash on a daily caffeine fix, but that small expense can add up to a big number – fast! Saving for a down payment takes a little discipline, so limiting your extra purchases (like a latte a day from your favorite coffee shop) will help you get there faster. Depending on where you live, putting away just a small amount each day will get you to the average down payment you may need for homeownership faster thank you think. source https://www.simplifyingthemarket.com/en/2019/08/23/a-latte-a-day-keeps-homeownership-away-infographic/?a=489394-750b3ad95b7715aa39b3f5a8d59f5d51

When someone is thinking about buying or selling a home, they want to be well-informed. They want to make the right decision for themselves and their family. They scour the internet for any information they can find about the housing market. Today, there is an abundance of information available. It is often conflicting news. It can easily lead to confusion and concern, perhaps even causing a potential buyer or seller to cancel their plans to move altogether. Instead, the best things to do are sit down and take a deep breath. In a recent article , Jeff Davidson, a recognized speaker on the subject of productivity, explained: “The pace at which new information arrives will accelerate every day…Too often, the reflex to take action only exacerbates your time-pressure problems. Do not bite off more than you can chew, and acknowledge that often, the wisest response to too much competition for your time and attention is to simply slow down to assess the best way to proceed.” To that po

Did you know August 21 st is National Senior Citizens Day ? According to the United States Census, we honor senior citizens today because,  “ Throughout our history, older people have achieved much for our families, our communities, and our country. That remains true today and gives us ample reason…to reserve a special day in honor of the senior citizens who mean so much to our land. ” To give proper recognition, we’re going to look at some senior-related data in the housing industry. According to the Population Reference Bureau , “ The number of Americans ages 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060, and the 65-and-older age group’s share of the total population will rise from 16 percent to 23 percent .” Seniors Believe in Homeownership In a recent report , Freddie Mac compared the homeownership rates of two groups of seniors: the Good Times Cohor t (born from 1931-1941) and the Previous Generations (born in the 1930s).

Many buyers are wondering where to find houses for sale in today’s market. It’s a true dilemma. We see an increase in buyer demand, but the supply available for purchase isn’t keeping up. The number of new housing permits issued prior to the great recession increased for 15 years until 2005 (from 1.12 million in 1990 to a pre-recession peak of 2.16 million in 2005). According to Apartment List , “ From 1990 to 2005, the number of single-family permits issued more than doubled, while the number of multi-family permits grew by 49 percent. ” When the housing market crashed, the number of new homes permitted decreased to its lowest level in 2009 (see below): Since then, supply and demand have been out of balance when it comes to new construction. According to the same report, “ Construction of single-family homes has recovered much more slowly — the number of single-family housing units permitted in 2018 was barely half the number permitted in 2005 .” Why is new construction so i

Every three years, the  Federal Reserve conducts its  Survey of Consumer Finances . Data is collected across all economic and social groups. The latest survey data covers 2013-2016. The study revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter. Owning a home is a great way to build family wealth. As we’ve said before, simply put, homeownership is a form of  ‘forced savings.’  Every time you pay your mortgage, you are contributing to your net worth by increasing the  equity  in your home. That is why  Gallup   reported Americans picked real estate as the best long-term investment for the sixth year in a row. According to this year’s results, 35% of Americans chose real estate. Stocks followed at 27%, then savings accounts and gold.

Some Highlights: Buying a home can be intimidating if you’re not familiar with the terms used throughout the process. To point you in the right direction, here’s a list of some of the most common language you’ll hear when buying a home. The best way to ensure your home-buying process is a positive one is to find a real estate professional who will guide you through every aspect of the transaction with  ‘the heart of a teacher.’ source https://www.simplifyingthemarket.com/en/2019/08/16/buying-a-home-do-you-know-the-lingo-infographic-2/?a=489394-750b3ad95b7715aa39b3f5a8d59f5d51

It seems you can’t find a headline with the term “housing affordability” without the word “crisis” attached to it. That’s because some only consider the fact that residential real estate prices have continued to appreciate. However, we must realize it’s not just the price of a home that matters, but the price relative to a purchaser’s buying power. Homes, in most cases, are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another major piece of the affordability equation is a buyer’s income. The median family income has risen by 3.5% over the last year. Let’s look at three different reports issued recently that reveal how homes are very affordable in comparison to historic numbers, and how they have become even more affordable over the past several months. 1. National Association of Realtors’ (NAR) Housing Affordability Index : Here is a graph

Over the last couple of years, we’ve heard quite a bit about rising home prices. Today, expert projections still forecast continued growth, just at a slower pace . One of the often-overlooked benefits of rising home prices is the positive impact they have on home equity. Let’s break down three ways this is a win for homeowners. 1. Move-Up Opportunity With the rise in prices, homeowners naturally experience an increase in home equity. According to the Homeowner Equity Insights from CoreLogic, “In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year .” This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to move up into their next home. 2. Gain in Seller’s Profit ATTOM Data Solutions recently released their Q2 2019 Home Sales Report , indicating the seller’s profit jumped at one of the fastest rates since 2015. They said : “A look at the natio

Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there, watching entire seasons of shows like “Property Brothers,” “ Fixer Upper,” and “Love It or List It,” all in one sitting. When you’re in the middle of your real estate-themed TV show marathon, you might start to think everything you see on the screen must be how it works in real life. However, you may need a reality check. Reality TV Show Myths vs. Real Life: Myth #1: Buyers look at 3 homes and decide to purchase one of them. Truth: There may be buyers who fall in love and buy the first home they see, but according to the  National Association of Realtors,  the average homebuyer tours  10 homes  as a part of their search.    Myth #2: The houses the buyers are touring are still for sale. Truth: Everything is staged for TV. Many of the homes shown are already sold and are off the market.   Myth #3: The buyers haven’t made a purchase decision y

Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae ’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions. Great News! The index reached its highest level since Fannie Mae began their survey. Breaking it down, the report revealed: The share of Americans who say it is a good time to buy a home increased from the same time last year. The share of those who say it is a good time to sell a home increased from the same time last year. The share of Americans who say they are not concerned about losing their job over the next 12 months increased dramatically (16 percentage points) from the same time last year. The share of Americans who say mortgage rates will go down over the next 12 months increased dramatically (24 p

Some Highlights: Owning your own home vs. renting may lead to some great options, such as locking in your monthly payments and having the freedom to customize your living space. Whether you rent or own, you have to cover someone’s mortgage costs. You may as well be doing so to build your own wealth, rather than that of your landlord. Renting and owning both have up-front fees when you sign your lease or close, respectively. Think about putting that money to work for you!   source https://www.simplifyingthemarket.com/en/2019/08/09/rent-vs-own-infographic/?a=489394-750b3ad95b7715aa39b3f5a8d59f5d51

The U.S. Census Bureau recently released their 2019 Q2 Homeownership Report . Some began to see the sky falling, believing the report showed Americans may be stepping back from their belief in homeownership. The national homeownership rate (Americans who owned vs. rented their primary residence) increased significantly during the housing boom, reaching its peak of 69.2% in 2004. The Census Bureau reported that the second quarter of 2019 ended with a homeownership rate of 64.1%, which is down from the 64.8% rate for the fourth quarter of 2018. Based on this news, some started to question the consumer’s belief in the idea of homeownership as a major part of the American Dream. Everyone Calm Down… It is true the homeownership rate did fall. However, if you look at the national rate over the last 35 years (1984-2019), you can see that the current homeownership rate has returned to historical norms. The 64.1% rate is equivalent to the rates in 1984 and 1994. What Will the Future Bring?

There’s no doubt that today’s housing market is changing, and everything we see right now indicates it is time to sell. Here’s a look at why selling now is likely to drive the greatest return on your largest investment. Home values have been appreciating for several years now, growing at a strong, steady, and impressive pace. In fact, the average annual appreciation rate since 2012 has nearly doubled the average rate from the more normal market of the 1990s (think: pre-bubble). Appreciation, however, is projected to shift back toward normal, meaning home prices will likely keep climbing over the next few years, but they are not projected to continue to increase at such a high rate. Here’s What That Means for Homeowners: As noted in the latest Home Price Expectation Survey (HPES) powered by Pulsenomics , experts forecast an average annual appreciation rate closer to 3.2% over the next five years , which is more in line with a historically normal market (3.6%). The good news is, th

Whether you’ve owned a home before, or you’re ready to jump into homeownership for the first time, there are always a lot of questions swirling around about what is truly required for a down payment, and how to best source down payment assistance. Let’s tackle these two today. 1. How much do you really need for a down payment? There is a long-standing misconception about down payment requirements. A survey from Fannie Mae shows only 17% of consumers know the minimum options are actually between 1 – 5% of the purchase price and 40% don’t know how much they need at all. There are many mortgage loans available that require as little as 3% down for first-time buyers, and some ask for only 3.5% down from repeat buyers. There are even loans available for Veterans that provide 0% down payment options too. We’ve mentioned recently that you don’t need to come up with a 20% down payment to buy, and we’ve also shared how quickly you can save for a 3% or 10% down payment, depending on wher

On his personal website , self-made millionaire David Bach makes a striking statement:  “ Not prioritizing homeownership is the single biggest mistake millennials are making.”  He further stated,  “Buying a home is an escalator to wealth.” Bach explains: “Young adults in particular aren’t hopping on this escalator, and it’s a costly mistake…If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.” He then elaborates on the game of homeownership: “Start by crunching the numbers…actually do the math…This way, you’re really clear on your goals and you won’t just say to yourself, ‘I’ll never afford this!’ A good rule of thumb is to make sure your total monthly housing payment doesn’t consume more than 30 percent of your take-home pay.” Bach concludes by saying, “Oftentimes, buying your first home means you’re not buying your dream home…You’re just getting into the market.” Bottom Line Whenever a well-respected m

Some Highlights: Existing Home Sales dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. Low inventory levels are still a factor in the market. The current supply of homes for sale is at 4.4 months, which is less than the optimal 6-month supply. Median home prices were up 4.3% from June 2018, hitting $285,700. This marked the 88 th consecutive month with year-over-year price gains. source https://www.simplifyingthemarket.com/en/2019/08/02/existing-home-sales-point-toward-a-good-time-to-sell-infographic/?a=489394-750b3ad95b7715aa39b3f5a8d59f5d51

We’ve experienced economic growth for almost a decade, which is the longest recovery in the nation’s history. Experts know a recession can’t be too far off, but when will this economic slowdown actually occur? Pulsenomics just released a special report revealing that nearly 6 out of 10 of the 90 economists, investment strategists, and market analysts surveyed believe the next recession will occur by the end of next year. Here’s the breakdown: 9% believe a recession will occur this year 50% believe it will occur in 2020 35% believe it will occur in 2021 6% believe it will occur after 2021 When asked what would trigger the next recession, the three most common responses by those surveyed were: Trade Policy Stock Market Correction Geopolitical Crisis How might the recession impact real estate? Challenges in the housing and mortgage markets were major triggers of the last recession. However, a housing slowdown ranked #9 on the list of potential triggers for the next reces