Collin Country CCAR Pulse Stats

Collin County’s Real Estate Market Hits Several New Milestones in May

Collin County real estate continued to build momentum in May, setting records for new listings, listings under contract, and median sales price. Data from the Collin County Association of Realtors (CCAR) is indicative of the busy housing market that has witnessed a significant boost in the past few years.

“DFW, in general, is in a strong seller’s market right now,” says Jonna Fernandez, CCAR Chief Operating Officer. “The boom in the Collin County real estate market can be attributed to many things, including the companies and corporations that have chosen to relocate here, the great school districts, employment opportunities, and much more.”

A record-breaking 6,919 homes were listed during the month of May. This was a 17.6 percent increase from May of last year, making it the highest number of new listings ever recorded in a single month. Year-to-date, new listings are up 8.1 percent.

Median home prices also experienced a surge, rising to $319,678—11.1 percent higher than in May 2016. This is the highest median sales price ever recorded in CCAR history. The intense interest in Collin County can be credited to the area’s growth.

The number of listings under contract also increased 6.4 percent last month, as compared to May 2016. This is the highest number of listings under contract ever recorded in a single month.

 Year-to-date, projected closed sales are up 12.6 percent, with no signs of slowing down as an influx of new residents and a spike in new home construction are expected. Fernandez said this offers an optimistic outlook for Realtors and their clients.

“There are no guarantees in real estate; however, we see the rest of the year definitely continuing with the seller’s market we have now,” she says. “May through August are always strong months for real estate, as most people plan their moves to occur during this time of year. While the end of the year may not necessarily be record-breaking as compared to the summer months, it will still remain stronger than what we’ve seen in years past.”

Millennials, Baby Boomers Impact Housing Market

For those either anxious to seek out their starter home or anticipate their final move as they embark on their retirement years, the topic of home ownership is imperative for the two largest generations: Millennials and Baby Boomers. Since the two account for the largest population segments in the United States, it comes as no surprise then that the two also have the greatest impact on the housing market.

Generally categorized as individuals born between 1980-1995, Millennials seem to have a unique view of the world and their living situation. “Many reports show that Millennials tend to live with their parents during and after their college years,” said Melissa Hailey, CCAR President-Elect and owner of North Texas Top Team. “This generation is still finding out how expensive it is in the ‘real world.’” Hailey said Millennials oftentimes have to consider which takes precedence: Having their own place or continuing the lifestyle they are accustomed to, which places a value on acquiring the hottest new technology, dining out frequently, and shopping on a regular basis­.

“Many times, they find that living with family is a more affordable option–or maybe the only option–to continue that lifestyle,” she said. “However, my children are in this generation, and none of them are living at home with us…yet.”

In decades past, there was a stigma associated with being an adult who still lived with his or her parents. Today, however, this is common for 20- and 30-somethings. In a 2014 Pew Research Center census data report, it stated that “for the first time in more than 130 years, 18- to 34-year-olds in the U.S. were more likely to be living in their parents’ home than with a spouse or partner in their own household.”

Some experts have alluded to debt caused by the cost of rising college tuition as one possible reason behind this growing phenomenon. Others cite the lack of high-paying jobs, the cost of living, and the lack of affordable housing.

Although the percentage of Millennials who opt to stay with their parents has increased significantly, other Millennials have found ways to make home ownership both possible and affordable. “I believe that Millennials are open to other housing options,” Hailey said. “Those could include renting long-term, roommates, tiny houses, condos, and multi-generational housing.”

For Baby Boomers, their concern is not primarily focused on the cost of homes. Rather, they seek homes that adapt to the challenges of aging. Baby Boomers usually elect to transition from larger to smaller homes as they generally look to down-size their living arrangements.

“The catch is that many of them want the upgrades and updates that they are accustomed to in their current homes,” Hailey said. “Our market definitely has room for building upscale, smaller, single-story homes for this generation.”

According to the National Association of Home Builders, Baby Boomers, individuals born between 1946-1964, want a variety of options that suite their more active and sophisticated lifestyles. These include home offices for second careers or part-time work, wider doors and hallways for wheelchair accessibility, bigger windows and better lighting, and low-maintenance exteriors and landscaping.

While some Baby Boomers consider townhomes as an option, others prefer a single-level residence to accommodate their long-term living plan. “They are concerned with aging in place and while stairs may not be an issue today, it could pose problems in their future,” Hailey said.

A Seller’s Delight: Demand for Housing Incite Competitive Buyers

For CCAR Chief Operating Officer Steve Haid, rising home prices and the scarcity of inventory strengthens the current seller’s market. Coupled with increases in mortgage interest rates, buyers are most affected. “Agents who work mostly with buyers will want to make sure buyers are prequalified or preapproved and prepared to write an offer on the home they choose,” he said.

Although it cannot be said of all major cities, the Dallas-Fort Worth metroplex has witnessed a strong seller’s market since 2011. This presents a great opportunity for sellers to not only sell their homes quickly, but to maximize their investments as well.

“It follows the basic economic principles of supply and demand,” Haid said. “When demand is high and supply is low, prices increase.”

Collin County is a perfect example of this. In 2008, houses were on the market an average of 100 days. In 2012, houses spent typically 61 days on the market. Fast forward to 2016, and the days on the market dwindled to 34.

Melissa Hailey, CCAR President-Elect and owner of North Texas Top Team, attributes a portion of the supply-and-demand imbalance to growth and economic development. “Houston and Dallas-Fort Worth led the nation in the number of single-family permits issued,” she said. “Job growth continues, and new construction building is continuing strong.”

Mortgage Rates Hit Highest Level in Years and Continues to Soar in 2017

Since early November, several hikes to the mortgage rates took place. Financial experts expect them to continue to surge in 2017. According to a November report released by the Real Estate Center at Texas A & M University, “the Federal Home Loan Mortgage Corporation ticked up 30 basis points to a 3.77 percent average rate on a 30-year-fixed-rate mortgage, while the ten-year U.S. Treasury bond yield edged up to 2.14 percent from 1.76 the month prior.” In December, the interest rate increased by .25%.

“The rate increase indicates that the U.S. economy may be on a rebound, and consumers and businesses can afford to pay more to borrow money.”

– Melissa Hailey, CCAR President -Elect and owner  and REALTOR® of North Texas Top Team

While it is predicted that up to three additional hikes totaling up to 1.25% will take place within the year, CCAR Chief Operating Officer Steve Haid said the overall outlook remains optimistic.Despite these small interest rate hike projections, mortgage rates are very low in comparison to other times in our history, such as the 1980s,” he said.

Melissa Hailey, CCAR President -Elect and owner of North Texas Top Team, advices REALTORS® to become knowledgeable about interest rates and how the changes affect their consumers’ decisions to purchase a home. “With the possibility of rates continuing to rise, first-time home buyers looking for more affordable housing may want to consider buying now before rates increase and home sale prices rise any further,” she said.

 

Top 3 Real Estate Trends of 2017

Like most milestones, purchasing a house is an exciting time in one’s life. Along with the anticipation of settling into a new home, feelings of uncertainty and anxiety are common. For those looking to purchase a home this year, here are three notable changes that will impact your decision.

  1. Mortgage interest rates are expected to steadily increase over the next year. Due to several hikes that began in late 2016, mortgage rates are the highest they have been in two years.
  2. It is a competitive seller’s market. The demand for houses surpasses the supply, limiting the amount of available houses.
  3. Home prices will continue to rise. When one couples the reduction of available homes with the growth and economic development of the Dallas-Fort Worth area, the result is an inflation of the median sales price.

Top 10 Fastest-Growing US Cities 2016

The tides are turning in terms of where people choose to live these days. Forbes recently compiled their list of fastest-growing US cities. The results are interesting.

When I was growing up everyone wanted to live in New York City or Los Angeles. Maybe it was the East Coast/West Coast rivalry of the 1990s that made all of us want to live on the coast? These days we are seeing cities in the Midwest and south enter the fray. Why is that? Honestly, after living in both LA and NYC I can tell you the value and cost of living is not all it is cracked up to be. But that is just my opinion.

The following cities topped Forbes’ list as the fastest-growing populations and economies :

1. Austin, Texas

  • 2015 population growth rate: 3.15%
  • 2016 projected growth rate: 1.56%

2. San Francisco, Calif.

  • 2015 population growth rate: 1.24%
  • 2016 projected growth rate: 0.77%

3. Dallas, Texas

  • 2015 population growth rate: 2.16%
  • 2016 projected growth rate: 1.58%

4. Seattle, Wash.

  • 2015 population growth rate: 1.68%
  • 2016 projected growth rate: 1.34%

5. Salt Lake City, Utah

  • 2015 population growth rate: 1.05%
  • 2016 projected growth rate: 1.40%

6. Ogden, Utah

  • 2015 population growth rate: 1.64%
  • 2016 projected growth rate: 1.37%

7. Orlando, Fla.

  • 2015 population growth rate: 2.31%
  • 2016 projected growth rate: 2.03%

8. San Jose, Calif.

  • 2015 population growth rate: 1.27%
  • 2016 projected growth rate: 0.93%

9. Raleigh, N.C.

  • 2015 population growth rate: 2.28%
  • 2016 projected growth rate: 1.44%

10. Cape Coral, Fla.

  • 2015 population growth rate: 2.84%
  • 2016 projected growth rate: 2.15%

See the full list of the fastest-growing cities at Forbes.com.

Source: “America’s Fastest-Growing Cities 2016,” Forbes.com (March 8, 2016)

NTTA Prepares for Continued Collin County Growth

It is no secret that Collin County is growing exponentially. The ongoing boom along the Dallas North Tollway in Collin County is causing toll agency officials to wonder if they are truly ready for an avalanche of new residents and businesses. New lanes are currently being constructed between President George Bush Turnpike and the Sam Rayburn Tollway. However, that construction falls south of where new housing communities and businesses are flooding the area at a record pace.

Recently, the NTTA voted to add a fourth lane in each direction of the toll road south of the President George Bush Turnpike. Estimates suggest that after new lanes are added, traffic could reach the road’s capacity in five to 10 years. Learn more about the NTTA’s concerns.