Chase-promo-blog

Promotion Announcement: Chase Evans Promoted to COO of Republic Title

by Commercial ResourcesInside Republic Title

Title insurance industry leader Republic Title is pleased to announce that Chase Evans has been named Chief Operating Officer of Republic Title of Texas, Inc. As Chief Operating Officer, Chase will provide companywide leadership, team management and vision as he oversees the implementation of Republic Title’s forward-focused strategies. With over twenty years of experience in the title industry, Chase is exceptionally qualified for this role and in many ways, Chase’s promotion recognizes a role he has already played. He most recently served as Senior Vice President, managing the residential and commercial plant operations as well as managing the commercial closing operations and numerous strategic initiatives.

“Chase is a consummate professional that will greatly contribute to the continuous growth of our company” said Bo Feagin, President of Republic Title of Texas, Inc. “His work ethic, knowledge of the industry and creative thinking will allow Republic Title to continue to be a leader in our industry.”

Chase earned his Bachelor of Science in Business Management from Trinity University. He serves on the Children’s Health Foundation and Finance Board and The Real Estate Council Foundation Board. Chase is active in the Uplift Education HERO program and is a former Chairman of the City of Dallas TIF Board (Deep Ellum). Outside of work, Chase enjoys spending time with his wife and two children.

About Republic Title of Texas
Republic Title of Texas, Inc., is a full-service title insurance company that handles the transfer of title for our customers’ real estate transactions and protects the title to their largest financial investments. Founded in 1991 and locally operated, Republic Title is the authority in real estate transactions and is distinguished by its proven experience, dedicated service and lasting relationships.

Republic Title is distinguished by its proven experience, dedicated service and lasting relationships.

International-Womens-Day-2021-blog

Celebrating International Women’s Day

by Inside Republic TitleResources

With 318 women making up 75% of our workforce, we are surrounded by smart and talented women at Republic Title. In celebration of International Women’s Day, we’d love for you to meet 3 amazing women who have made an impact at Republic Title and our culture. 

felicia farnsworth

Felicia Farnsworth
Executive Vice President/Human Resources

Felica Farnsworth is Executive Vice President of Human Resources and has been with our company for 22 years. In her role, Felicia oversees the benefits of our employees and works hard to keep our employees safe, healthy and happy. Felicia says that the best leadership advice that she has ever received is to be a student of your job – receptive; flexible; embracing; and willing. She says that Republic Title’s culture is incredibly special and that all employees pull together to help each. You don’t even have to ask twice.  A recent new hire recently commented on how great it is to see how everyone is so willing to help. When asks what energizes her at work, Felicia says” Witnessing the positive, optimistic and can-do attitudes that our employees possess.  The camaraderie our employees have and the willingness to help one another is truly amazing.  Every day is a great day when the people you work with shine with so much positivity.”

Favorite Leadership Quote: “That which we manifest is before us; we are the creators of our own destiny.  Be it through intention or ignorance, our success and our failures have been brought on by none other than ourselves.”  Garth Stein, The Art of Racing in the Rain 

Sheri Groom
Executive Vice President/Residential Operations

Sheri Groom is Executive Vice President and oversees all aspects of our residential operations including our corporate departments and thirteen branch offices. Sheri’s best leadership advice is to be authentic, cast a vision to your teams and the plan for how to get there as well as build teams where everyone has different strengths. Sheri says that the teamwork is what makes the Republic Title culture so special adding, “Everyone has each other’s back. The people who care about people outside of themselves and truly want to make a difference and leave something better than they found it.” With 24 years at Republic Title, the past year has brought new challenges to our company and employees. Sheri credits Republic Title’s success to the spirit of our employees and their “can do” attitude. Sheri says, “I have always known that all great teams have to overcome adversity and challenges and that the measure of our success will not be determined by how we act during great times in our life but rather how we think and respond to the challenges of our most difficult moments and our employees were simply amazing.”

Leadership Podcast Recommendation: The Brendon Show with Brendon Burchard

sheri groom republic title
lisa murray republic title

Lisa Murray
Executive Vice President/Chief Financial Officer

Lisa Murray is Executive Vice President and Chief Financial Officer where she oversees all financial aspects of our company. Lisa is also passionate about creating a great culture at Republic Title and is active on our Employee Relations Committee. Lisa says that Republic Title’s culture is special because of the focus on working together as a team to provide the best service to the customer and the ability for everyone to make a difference in the process. When asked the best leadership advice that she has ever received, Lisa said, “Leaders need to continually learn and grow, adapt to the changing world with a positive solution-oriented mindset and provide clarity on the vision ahead.” At work, Lisa enjoys making a difference by adding value to the team through solving problems, inspiring others and helping people grow. Outside of work, she enjoys spending time with family and friends, travelling, hiking, biking, skiing, giving back to others, and bringing a sense of joy and hope to people around her. 

Favorite Leadership Author: John Maxwell is a well-known expert on leadership.  He has a great podcast, and has written many books that are an incredible resource.   On a recent podcast he said that during times of crisis or adversity we need to make the choice to learn and grow from the experience and decide how we can add value.

The past year has been unprecedented to say the least. We are encouraged by these three women – and the 315 others that make up Republic Title – who have adapted to change, risen to the challenges, and who make Republic Title shine.

Texas Housing Insight – 2020 Annual Summary

by Real Estate ArticlesResourcesStats

The Texas housing market was off to a solid start at the beginning of 2020 as mortgage interest rates declined. Sales activity plummeted in March and April, however, due to the emergence of COVID-19 and a mandated economic shutdown across the state. Nevertheless, homebuying demand accelerated during the summer for those less affected by the pandemic as remote-work-and-school spaces prompted the desire for additional space in the house, interest rates continued to fall, and more millennials entered the housing market. Almost 393,200 homes were sold through the Multiple Listing Services (MLS) during 2020, a near double-digit percentage increase from activity the previous year. On the other hand, homeowners were cautious about listing their homes on the market and hosting in-person showings, contributing to a plummet in available inventory, particularly for homes priced less than $300,000. In an environment of robust demand and shrinking supply, home-price appreciation surged, pressuring housing affordability.

The same factors that defined 2020 will remain relevant in the new year. The housing market will continue to be characterized by strong demand but constrained inventory and substantial price growth. Nevertheless, the Texas Real Estate Research Center expects single-family sales to increase 8.4 percent in 2021. Containment of the coronavirus and government support is essential for a positive economic and housing outlook during ongoing pandemic-related uncertainty. (For additional commentary, see the 2021 Texas Housing & Economic Outlook.)

Supply*

The Texas Residential Construction Cycle (Coincident) Index, which measures current construction activity, flattened in 2020 as industry hiring was sluggish during the pandemic. The Texas Residential Construction Leading Index, however, reached an all-time high in 2020 due to record low interest rates and strong building permits and housing starts, indicating construction activity will pick up in the new year. These metrics in Texas’ major Metropolitan Statistical Areas (MSAs) trended upward, especially in Austin and Houston, supporting a positive outlook.

In response to supply shortages, developers accelerated activity at the earliest stage of the construction cycle. According to Zonda, formally known as MetroStudy, the number of new vacant developed lots (VDLs) in the Texas Urban Triangle elevated 8.8 percent annually in 2020 to reach 116,500, four-fifths of 2006 levels. Lot development in Houston and San Antonio rose for the third straight year, climbing 12.0 and 29.8 percent, respectively, with improvement in all price ranges except for homes priced less than $200,000. Dallas-Fort Worth (DFW) activity rebounded 4.5 percent after contracting in 2019, but the increase was limited to the upper-end of the price spectrum. Meanwhile, Austin’s metric normalized after skyrocketing the previous year.

Strong lot development was matched by a near-record 153,600 single-family housing construction permits issued in Texas. The statewide metric accelerated 21.9 percent and comprised 16 percent of the national total during 2020. Austin posted an all-time high of 21,400 permits while the growth rate in DFW exceeded the state average at 24.2 percent to issue more than 43,500 permits. Activity in Houston and San Antonio increased by one-fifth, resulting in 48,100 and 10,700 permits, respectively.

Total Texas housing starts fell into double-digit negative growth territory during the first half of the year amid pandemic-related declines in activity. Despite soaring lumber prices, the metric rebounded strongly in the third quarter, pushing overall annual improvement up 9.5 percent. Per Zonda, single-family starts in the Texas Urban Triangle rose 18.9 percent, largely due to increased activity in the $200,000-$400,000 price range as starts for homes priced less than $200,000 stepped back after a brief reprieve the previous year due to rising construction costs. Single-family starts in North Texas and Houston skyrocketed 21.0 and 20.2 percent, respectively. San Antonio starts sustained strong growth, jumping 19.2 percent. Although the pace decelerated in Austin, the metro still started more than 21,300 single-family homes, leading the Texas Urban Triangle in per capita terms. Tariffs on Canadian lumber were reduced from 20 to 9 percent in December, providing some relief to construction costs in 2021, although lumber prices remain extremely high.

Even with the economic shutdown in spring, $37.9 billion of new construction poured into Texas’ single-family market amid growing demand stemming from population growth and a shift in preferences for more livable space. Single-family private construction values climbed 13.9 percent annually after adjusting for inflation. Similar to other supply-side indicators, DFW and Houston accounted for the majority of the statewide increase after sluggish activity in 2019. Austin recorded a decade of growth while San Antonio posted double-digit percent improvement for the second consecutive year.

Robust demand and a decline in the number of new MLS listings contributed to the first annual decrease in active listings since 2015, pulling Texas’ total months of inventory (MOI) down to 1.7 months. A total MOI of around six to 6.5 months is considered a balanced housing market. Inventory fell across all price cohorts, but the metric for homes priced less than $300,000 averaged just 1.3 months. Even the MOI for luxury homes (priced more than $500,000) sank from 5.0 to 2.9 months as constrained supply at the lower end of the price spectrum pushed buyers toward higher-priced homes.

Inventory was most depleted in Austin where the MOI plummeted below 0.6 months. The North Texas metric slid below the state average, falling to 1.2 and 1.1 months in Dallas and Fort Worth, respectively. Houston’s MOI sank for the second straight year to two months but remained the most elevated out of the major MSAs. San Antonio inventory hovered above the statewide metric, although the metro was still supply-limited with an MOI of 1.7 months.

Demand

More than 393,100 Texas homes sold through MLSs in 2020, a 9.4 percent increase over the previous year. The surge in homebuying highlighted the disparate impacts of the pandemic across the socioeconomic spectrum; in general, families who bought a house were more likely to be able to work from home and keep their jobs during the pandemic compared with many lower-income and lower-skilled renter households who struggled financially. The bottom end of the market (homes priced less than $200,000) dragged on overall activity, plunging double-digits in percentage terms amid a severe lack of supply and rising construction costs. Nevertheless, overall sales outpaced the national growth rate (7.1 percent) for the fourth straight year.

At the metropolitan level, San Antonio led with growth of 11.5 percent. Despite year-end declines in activity, Dallas and Austin sales still increased 9.8 and 8.4 percent annually, respectively, after home-price appreciation slowed in 2019. Transactions in Fort Worth accelerated 6.3 percent after modest improvement the previous year, while Houston’s metric climbed 9.2 percent. 

In the new-home market, each major MSA posted double-digit sales growth per Zonda, boosting overall activity. Similar to total sales, San Antonio recorded the greatest annual percentage increase of 17.7 percent, selling 15,000 new homes in 2020. Notably, sales for homes priced less than $200,000 ticked up for the second straight year after the same price cohort accounted for a quarter of the metro’s single-family starts in 2019. Austin’s metric reached 21,000 for the first time, largely due to elevated sales for homes priced $300,000 and $400,000, while DFW registered 40,800 new-home sales. Both locales registered accelerated activity during the second half of the year. Despite a low oil-price environment, new-home sales in Houston surged 12.8 percent to 34,500 compared with three consecutive annual declines between 2015-17.

According to the U.S. Census Bureau’s Current Population Survey/Housing Vacancy Survey, Texas homeownership normalized during fourth quarter 2020 to average 66.5 percent over the year compared with the national rate of 66.6 percent. Homeownership increased annually at the metropolitan level as well despite fourth-quarter declines. The rate in Austin and Houston shot up to 65.4 and 65.2 percent, respectively. DFW’s metric climbed to an all-time high of 64.7 percent (series starting in 2005), while 64.2 percent of San Antonio’s total housing units were owner-occupied. The overall rise in homeownership was largely due to elevated home purchases by millennials spurred by historically low mortgage interest rates. Young adults who moved back home with their parents during the pandemic due to job losses or remote schooling, which decreased the number of households, may have contributed to the elevated rate.

Amid record-breaking sales activity, Texas’ average days on market (DOM) slid to 55 days, corroborating robust housing demand. Austin and Dallas both shed a week off their DOMs, sinking to 45 and 46 days, respectively. The average home sold even faster in Fort Worth after just 42 days on the market. Demand was slightly softer in San Antonio than the rest of the state, but the metric still fell to 57 days. Meanwhile, the Houston DOM ticked down to 54 days.

Economic uncertainty surrounding the COVID-19 pandemic prompted investors to purchase safe-haven assets at an accelerated rate during the first half of the year, pulling interest rates to historically low levels. Expansionary monetary measures by the Federal Reserve and development on the vaccine front generated higher growth expectations, pushing interest rates up in the fourth quarter, but the ten-year U.S. Treasury bond yield still fell 125 basis points in 2020, averaging a record-low 0.9 percent. Meanwhile, the Federal Home Loan Mortgage Corporation’s 30-year fixed-rate sank to 3.1 percent. Mortgage rates slid to decades-low levels within Texas, falling from 4.2 to 3.2 percent for conventional, or non-GSE, loans. For GSE borrowers, the median mortgage rate was slightly higher during 2020 at 3.3 percent but still a significant decline from 4.4 percent the previous year. Texans capitalized on lower rates, pushing mortgage applications for home purchases up 24 percent compared with 2019. Refinance mortgage applications, which are more sensitive to interest rate fluctuations, more than doubled during the same time period after tripling during 2019. The growth rate of refinances is expected to decelerate in 2021 as the pool of households able to refinance shrinks. (For more information, see Finding a Representative Interest Rate for the Typical Texas Mortgagee.)

Corroborating tightening lending standards during the economic downturn, the debt-to-income ratio (DTI) constituting the “typical” Texas non-GSE mortgage decreased from 37.6 to 36.3 in 2020. The median credit score increased from 738 to a multidecade high of 746 as average consumer credit scores rose due to relief actions taken by the federal government and lenders that helped some households pay off debt and save money. The median loan-to-value ratio (LTV) flattened at 86.7 for non-GSE loans, while the GSE metric sank from 86.2 to 85.9. The DTI for GSE borrowers also ticked down, falling from 37.2 to 35.8. Despite a projected rise in delinquencies in the new year, lending standards are predicted to ease somewhat in 2021 due to expectations of overall better loan performance.

Prices

Robust demand and dwindling inventory pushed home-price growth to its highest level since 2013 when prices were still recovering from the Great Recession. The Texas median home price skyrocketed 7.9 percent annually to $259,000 relative to a 3.2 percent pace in 2019. The $19,000 increase is partially due to a distributional shift in sales activity away from the lower-end of the price spectrum to higher-priced homes. Central Texas led the major metros in median price growth with the metric rising 9.2 and 8.4 percent to $344,000 and $249,400 in Austin and San Antonio, respectively. The Dallas metric rose to $311,000 while the median price in both Fort Worth and Houston jumped to $260,000.

The Texas Repeat Sales Home Price Index, a better measure of changes in single-family home values, provides insight into how Texas home prices evolve. Home-price appreciation accelerated 5.2 percent annually during 2020 amid strong demand during the second half of the year. In Austin, the index soared at its fastest clip since 2014 at 8.3 percent. The North Texas metric increased 5.1 and 4.3 percent in Fort Worth and Dallas, respectively, while San Antonio landed in the middle, posting 4.9 percent growth. Houston’s index rose at a more moderate rate of 3.9 percent.

Elevated home prices offset historically low mortgage rates, capping affordability gains during 4Q2020 after strong improvement in 2019. Houston was the most affordable major MSA with an index of 1.9, indicating that a family earning the median income could afford a home costing 90 percent more than the median sales price. The metro also posted the largest percentage increase relative to year-ago levels, followed by Fort Worth, where the metric jumped to 1.8. The index flattened at 1.7 in both Austin and San Antonio, as well as in Dallas. Housing affordability is important to Texas’ demographic advantages that have supported the state’s economic prosperity over the past decade.

Single-Family Forecast

The Center projected single-family housing sales using monthly pending listings from the preceding period (Table 1). Only one month in advance was projected due to the uncertainty surrounding the COVID-19 pandemic and the availability of reliable and timely data. Texas sales are expected to decline 2 percent from December 2020. At the metropolitan level, transactions are predicted to flatten in Dallas and San Antonio but may increase 1.7 and 1.6 percent in Austin and Houston, respectively. On the bright side, activity relative to January 2020 was largely positive across the state and in each of the major MSAs, corroborating strong demand and an overall healthy housing market to start the new year.

Household Pulse Survey

According to the U.S. Census Bureau’s Household Pulse Survey, 8 percent of Texas homeowners were behind on their mortgage payments during December, greater than the national share of 7 percent (Table 2). Both geographies, however, registered a decrease in the proportion of households delinquent on their mortgage payments from the previous month; this was also true of DFW and Houston, where 6 and 12 percent of households were not caught up on their mortgages, respectively. Twenty-two percent of the Texas respondents who were not current expected foreclosure to be either very likely or somewhat likely in the next two months compared with 18 percent nationwide (Table 3). Those delinquent in North Texas and Houston were overall less at risk of foreclosure than the state average. Since the survey was taken, the Federal Housing Finance Agency extended the foreclosure and REO eviction moratoriums for properties owned by Fannie Mae and Freddie Mac (the Enterprises) until March 31, 2021. Similarly, the Centers for Disease Control and Prevention’s federal eviction moratorium has also been renewed through the end of March. Continued stability in the housing market is essential to Texas’ economic recovery.

________________

* All measurements are calculated annually, unless stated otherwise. 

Source – James P. Gaines, Luis B. Torres, Wesley Miller, Paige Silva, and Griffin Carter (February 23, 2021)

https://www.recenter.tamu.edu/articles/technical-report/Texas-Housing-Insight

RON-Prevails-During-Winter-Storm-Uri

RON Prevails During Winter Storm Uri

by Digital SettlementReal Estate ArticlesResourcesTitle Information

As most things go lately every event seems to be of a historical nature.  Winter Storm Uri that blanketed the state in a frigid white frosting and forced millions of people to improvise on the little things like heat and water was nothing short of such an event.  However, the real estate market kept pushing forward through the bitter cold, frozen roads and rolling blackouts.  Thanks to a new, technology-driven notarial process called Remote Online Notarization (“RON”), real estate closings continued and Buyers and Sellers were able to keep their contractual commitments even though mother nature was trying to dictate otherwise.

“The level of satisfaction expressed by our customers was maintained and even excelled despite freezing temperatures, power outages, icy roads and diminished water levels.  This was in large part due to the expedient technology of RON.  RON has empowered our team of professionals to be at their most productive in accomplishing superior customer satisfaction levels, all while executing their duties in remote locations.” said Audriana J. Laws, Vice President/Escrow Officer with Republic Title’s eVolve Division.

What exactly is Remote Online Notarization?

Remote Online Notarization (”RON”) is a technology-driven notarial process that allows the signer to appear before the notary over a live audio-video feed when executing digital documents. Our dedicated team of professionals provide our customers with a clear understanding of what is being signed and why it’s needed ensuring a virtual closing experience with the signing party being located practically anywhere in the world.

In the case of Winter Storm Uri, that meant signing parties were closing virtually during the rolling blackouts or in some cases no power at all from their homes, hotel rooms, vehicles, and other numerous locations where some variation of power and internet was available.

“Having the capability to close so many transactions and service our customers during the most treacherous weather we have seen in our state was a true testament to the value of the RON eClosing model and the technology Republic Title has available.  The roads were so bad that a typical mobile notary was not an option.  As long as we had an internet connection and electricity, or in some cases a full charge on the laptop battery, we were able to close transactions via live audio-video feed seamlessly.  The sheer volume of closings we completed under these circumstances would not have been possible without Remote Online Notarization. The software platforms that we use to conduct these virtual eClosings provide a painless experience for both the Digital Closer and the Signer.” said Robin Riggs, Vice President/Escrow Officer with Republic Title’s eVolve Division.

So how does Remote Online Notarization work?

Through a technology-driven notarial process the signer will go through the below five steps:

  1. RON Vetting Requirements | Signers must be able to verify minimum personal information and personal device vetting requirements to conduct a RON session.
  2. Identity Verification | Using the latest identity verification technologies, the signer will take a knowledge-based identity quiz and submit ID for review.
  3. Audio-Video Conference | The notary and signer talk over webcam in real-time and observe the necessary digital signatures and seals being added to the digital documents.
  4. Tamper-Sealed Documents | The notary adds a tamper-seal to date/time-stamp the notarized documents. The signer downloads a PDF of the completed, digitally signed and digitally notarized document.
  5. Audit Trail and Notary Records | Like with traditional notarizations, the notary keeps a journal logging the basic details of the notarization.

Republic Title has fully embraced the digital closing experience and has a dedicated division, eVolve, focused on the digital settlement approach of the real estate transaction. eVolve is able to provide a new, convenient and alternative experience in buying/selling real estate.  We invite you to eVolve with Republic Title in your approach to closing on your next real estate transaction.

For information on digital closings, please visit www.republictitle.com/evolve

January 2021 DFW Area Real Estate Stats

by Real Estate ArticlesResourcesStatsVideo

The January 2021 DFW area real estate statistics are in and we’ve got the numbers! Our stats infographics include a year over year comparison and area highlights for single family homes and condos broken down by MLS area. We encourage you to share these infographics and video with your sphere.

To see past month’s reports, please visit our resources section here.

For the full report from the Texas A&M Real Estate Research Center, click here. For NTREIS County reports click here.

Texas-Relocation-Report

Texas Relocation Report

by Real Estate ArticlesResources

February 10, 2021 — Austin

Texas ranked second in the nation for relocation activity in 2019, according to the 2021 edition of the Texas Relocation Report released today by Texas REALTORS®, which analyzes the latest available migration data from the U.S. Census Bureau and U-Haul.

“Once again, Texas welcomed more than half a million new residents from other states,” said Marvin Jolly, 2021 chairman of Texas REALTORS®. “Some move here for a lower cost of living than where they’re from, a great quality of life, diverse job opportunities, good weather—there are many reasons people continue coming to Texas.”

According to the Census estimates, Texas welcomed 537,000 – 582,000 new residents in 2019. This is the seventh year in a row that Texas attracted more than 500,000 new residents from out of state. The Census also estimated 435,000 – 471,000 Texans moved to other states, yielding a net gain of approximately 100,000 people. The Lone Star State also welcomed approximately 192,000 – 222,000 new residents from outside the United States in 2019. 

The highest number of new Texans from other U.S. states relocated from California and Florida, respectively. Other top states for people moving to Texas included Louisiana, Illinois, Oklahoma, New Mexico, Georgia and Arizona.

California ranked first in the United States for the number of residents moving out of state in 2019, with Texas coming in second. The most popular out-of-state relocation destinations for people moving out of Texas included California, Colorado, Oklahoma, Florida and Georgia. While California was the top state new Texans moved from and existing Texans moved to, about double the number of Californians moved to Texas compared to the migration of Texans to California.   

From 2014 to 2018, the top counties for people moving to Texas from out of state included Harris, Dallas, Tarrant, Bexar and Travis. On the metropolitan statistical area (MSA) level, the Dallas-Fort Worth-Arlington MSA and Houston-The Woodlands-Sugar Land MSA recorded the highest number of incoming residents from out-of-state during the same time frame.

“Though we don’t have 2020 relocation statistics yet, increased remote-work opportunities and company relocations continued to fuel moves from other states to Texas during the pandemic,” said Jolly. “No matter what part of the state these new residents are moving to, no one is better positioned to help them realize their real estate dreams than a Texas REALTOR®,” he said.

Source: https://www.texasrealestate.com/

rentingvsbuying

Renting vs. Buying – Is this your year?

by Real Estate ArticlesResources

New year, new house?  Could this be the year you finally buy a house and get out of renting for good? There is a lot to consider with this decision so we’ve put together a list of the advantages of buying and some reasons to keep renting in the event buying is not in your best interest at the moment.  Take a look and think it over!  If you have any questions on buying vs. renting, there’s no better person to talk to than a Realtor.  They are your industry experts and can get you going on the path towards buying.

Advantages of Buying

  • Interest rates are generally low right now, making it a great time to buy.
  • When you buy a house, you will know that the mortgage rate for the next 5 to 30 years is going to be the same every month. Rent may continue to increase each year.
  • With each payment, you will build equity and increase the amount of total home ownership.
  • There may be down payment programs available in your area that can help you purchase your first home.

You Should Consider Buying If

  • You want to build wealth.  Investing into real estate is the fastest way to add zeros to the end of your net worth.
  • You want to settle down, build community and know you will be in the same city or town for at least 2 years.

You Should Keep Renting If

  • You need flexibility and don’t want to commit to staying in the same location for the foreseeable future.
  • You have limited income or are unsure about your current job.  Renting allows you the flexibility to downsize your living space.

If you are thinking about buying a home, reach out to a REALTOR® to get started.

Click here for a printable version.

5-benefits-of-an-eclosing

5 Benefits of eClosing

by Digital SettlementReal Estate ArticlesResourcesTitle Information

Many types of documents need to be signed in a real estate transaction.  A number of factors are driving the real estate industry to transition from traditional paper and wet-ink signings to electric signatures on digital paperless documents.  This is known as a digital closing or more commonly called an eClosing.

CONVENIENT

Review documents in advance and ask questions of the appropriate parties.

Close from any location.*
If wet-signing is required a mobile closer or in a few instances a mobile notary may be utilized.

ECO-FRIENDLY

Reduced use of paper.

Reduced carbon footprint of shipping and storing physical documents.

EFFICIENT

Earlier document delivery.

No redundant paperwork.

Shorter signing appointments.

Shorter funding times.

NEW EXPERIENCE

Streamlined closing.

Automated data validation.

Close on your real estate transaction interactively through a virtual closing room.

SECURITY

Multi-factor authentication (MFA).

Knowledge-based authentication (KBA).

Quickly identify any altered documents.

Click here for print version.

*A remote online notary may be required

December 2020 DFW Area Real Estate Stats

by Real Estate ArticlesResourcesStatsVideo

The December 2020 DFW area real estate statistics are in and we’ve got the numbers! Take a look at our stats infographics, separated by county, with MLS area stats on each county report as well! These infographics and video are perfect for social sharing so feel free to post them!

To see past month’s reports, please visit our resources section here.

For the full report from the Texas A&M Real Estate Research Center, click here. For NTREIS County reports click here.

Texas-Housing-Insight-Graphic

Texas Housing Insight – November 2020

by Real Estate ArticlesResourcesStats

Total Texas housing sales stabilized in November following record-setting levels the previous month. Building permits and housing starts normalized after months of strong activity. On the other hand, average days on market fell to just 44 days, indicating steady demand as mortgage interest rates reached all-time lows. Depleted inventory contributed to double-digit annual growth in the median home sales price as an extreme shortage of homes priced less than $300,000 pushed buyers toward higher-priced homes. The Texas Real Estate Research Center’s Repeat Sales Home Price Index also accelerated, revealing threats to recent improvements in affordability.

Nevertheless, Texas single-family sales are expected to maintain a rapid clip in 2021 with an 8.4 percent projected increase, assuming mortgage rates remain relatively low, and the economic reopening continues as vaccines are widely distributed (Table 1). Home sales would be even stronger if not for persistently low inventories. Robust construction activity should provide much-needed injections into the supply of active listings, but home-price growth should still be positive due to solid demand and limited inventory. The pandemic and the associated economic uncertainty remain the greatest headwinds to the Texas housing market in the new year. (For additional commentary, see the 2021 Texas Housing & Economic Outlook.)

Supply1

The Texas Residential Construction Cycle (Coincident) Index, which measures current construction levels, ticked down as real wages and industry employment slowed. Hiring in residential construction, however, has generally been positive since the initial decline in March and April. The Residential Construction Leading Index decreased due to a fall in building permits and housing starts, normalizing after strong growth in the months when the economy first reopened. The real interest rate for the ten-year Treasury bill increased, which also weighed on future improvements. On the other hand, the metropolitan leading indexes trended upward in all but North Texas, where the same statewide factors contributed to a downward adjustment in the metric.

Single-family construction permits flattened around a record-high in November after six straight monthly increases. Nevertheless, the state exceeded its 2007 average in per capita terms. Dallas-Fort Worth topped the national list, issuing 3,641 nonseasonally adjusted permits. Houston followed with 3,630 permits but posted a third consecutive seasonally adjusted decline. Nonetheless, the trend remained on a strong upward trajectory. In Central Texas, 1,974 and 870 permits were issued in Austin and San Antonio, respectively. Texas’ multifamily permits improved on a monthly basis; the year-to-date (YTD) sum, however, fell 8.3 percent compared with the same period last year as demand for single-family homes during the pandemic shifted focus away from the apartment sector.

Although total Texas housing starts decreased 9.5 percent, activity was still on pace to surpass last year’s groundbreakings by about 10 percent. Moreover, the Department of Commerce lowered lumber tariffs from 20 to 9 percent in December, which should help reduce homebuilder costs moving forward. Single-family private construction values mirrored starts as the metric declined 12.8 percent but continued to trend upward. Reduced values in North Texas and Houston accounted for half of the overall drop while Austin and San Antonio recorded more modest contractions.

Although sales activity decelerated, the number of new homes hitting the market flattened for the second straight month after a five-month recovery from pandemic-related declines in March and April. Texas’ months of inventory (MOI) fell to an all-time low of two months. A total MOI of around six months is considered a balanced housing market. Inventory for homes priced less than $300,000 was even more constrained, sliding to just 1.5 months. Even the MOI for luxury homes (homes priced more than $500,000) fell below 4.8 months compared with 7.6 months a year ago.

In Central Texas, listings continued to fly off the market at a rapid pace, chipping away at inventory. The MOI sank to 0.9 months in Austin and matched the statewide average in San Antonio. Dallas’ and Fort Worth’s metrics fell to 1.5 and 1.4 months, respectively. The Houston MOI decreased at a slower rate, hovering at 2.4 months as the metro’s supply of active listings expanded for the second straight month due to new listings in the $300,000-$400,000 and luxury home price ranges.

Demand

Total housing sales were flat in November, ticking down 0.7 percent after reaching record levels the previous month. The modest decline was concentrated in activity for homes priced less than $300,000 as severely limited inventory weighed on sales. Nevertheless, the overall trend remained on a steep upward trajectory with cumulative sales this year exceeding last year’s 11-month sum by 9.0 percent compared with 6.4 percent nationwide. The current rate of growth, however, is likely unsustainable despite stable demand given the state’s depleted inventory.

North Texas and Houston accounted for most of the state’s monthly downtick. Sales declined 2.9 percent in Dallas and 2.3 and 1.2 percent in Fort Worth and Houston, respectively, as decreased transactions at the lower end of the price spectrum offset increases for higher-priced homes. On the other hand, San Antonio posted a record-breaking 3,888 sales after 2.2 percent monthly growth. Austin sales also reached an all-time high, exceeding 4,000 transactions. A list-to-sale-price ratio greater than 1.0 corroborated strong activity in the metro.

Record low mortgage interest rates and shifting homebuyer preferences toward additional living space in residences contributed to robust demand. Texas’ average days on market (DOM) dropped to an all-time low of 44 days, shedding more than two weeks off its year-ago reading. Homes flew off the shelves even faster in the major metros, remaining on the market for only 32 days in Austin and 33 days in Fort Worth. Dallas averaged a DOM of 35 days, while Houston’s metric slid to 43 days. San Antonio’s DOM ticked down to 49 days but persisted above the state average.

Expansionary monetary measures by the Federal Reserve and positive news regarding the coronavirus vaccines lessened investors’ urges to buy safe haven assets. The ten-year U.S. Treasury bond yield inched up for the fourth straight month to 0.9 percent2. Still, a resurgence in COVID-19 cases and persistent uncertainty surrounding the pandemic kept interest rates hovering at historically low levels. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate fell to an unprecedented reading below 2.8 percent (series starting in 1971). Mortgage rates hovered around decades-low levels within Texas during October, sinking to 2.89 percent for non-GSE loans, while the median interest rate for GSE loans was 2.95 percent. Although home-purchase applications stabilized in November, the steady drop in rates pushed activity up 16.7 percent YTD. Refinance applications nearly doubled since year-end after tripling in 2019, but the pace is expected to decelerate as the lenders add more requisites and the pool of households able to refinance shrinks. (For more information, see Finding a Representative Interest Rate for the Typical Texas Mortgagee.)

In October, the median loan-to-value ratio (LTV) and debt-to-income ratio (DTI) constituting the “typical” Texas conventional-loan mortgage decreased from 87.5 to 84.2 and 37.3 to 35.3, respectively. The median credit score increased from 739 to 752, exceeding levels during the initial rise in average consumer credit scores, which rose due to early relief actions taken by the federal government and lenders that helped some households pay off debt and save money. The median LTV of the typical Texas borrower who obtained a loan from a GSE ticked up slightly from 85.0 to 85.3 but continued to trend downward, while the median DTI slipped from 35.6 to 35.2. The overall trend of improved credit profiles may reflect tightening lending standards as economic uncertainty prevails.

Prices

The Texas median home price accelerated 12.7 percent year over year (YOY) in November to a record-high $274,800. A shift in the composition of sales toward higher-priced homes due to constrained inventories at the lower end of the price spectrum contributed to the increase in prices. Double-digit annual price growth in the state’s metropolitan areas pushed median home prices to all-time highs as well. Austin’s metric skyrocketed 19.7 percent YOY to $370,800, while the median price jumped 13.2 percent in San Antonio to exceed $260,200. Houston median price ($273,200) hovered near the state average after climbing 11.5 percent. In North Texas, 11.9 percent home-price appreciation pulled the metric up to $328,200 and $278,600 in Dallas and Fort Worth, respectively.

The Texas Repeat Sales Home Price Index accounts for compositional price effects and provides a better measure of changes in single-family home values. The index corroborated increased home-price appreciation amid robust housing activity, rising 7.8 percent annually, but the rate of growth was still less than the surge in the median home price suggested. The pace of San Antonio’s index moderated to 6.8 percent YOY growth, contrary to the acceleration in the metro’s median home price. The metrics in Houston and North Texas picked up speed but still registered below the state average, climbing 6.1 percent in Houston and 7.3 and 7.2 percent in Dallas and Fort Worth, respectively. On the other hand, Austin’s index soared 13.9 percent YOY. Home-price appreciation unmatched by income growth chips away at housing affordability, even as mortgage rates reach new lows.

Household Pulse Survey

According to the U.S. Census Bureau’s Household Pulse Survey, 10 percent of Texas homeowners were behind on their mortgage payments during November, greater than the national share of 8 percent (Table 2). Both geographies registered an increase in the proportion of households delinquent on their mortgage payments from the previous month; this was also true of the Houston metropolitan area, where 15 percent of households were not caught up on their mortgages. In contrast, the metric fell from 12 to 8 percent in DFW. Twenty-six percent of the respondents in Texas who were not current expected foreclosure to be either very likely or somewhat likely in the next two months compared with just 19 percent nationwide (Table 3). Moreover, the percentage of Texas households who reported foreclosure to be very likely in the next two months shot up from 1 to 12 percent in November. Those delinquent in Dallas and Houston were overall less at risk of foreclosure than the state average. Just before the survey was taken, the Federal Housing Finance Agency extended the foreclosure and REO eviction moratoriums for properties owned by Fannie Mae and Freddie Mac (the Enterprises) until Jan. 31, 2021. Since the conclusion of the survey period, the Center for Disease Control and Prevention’s federal eviction moratorium has also been renewed through Jan. 31, 2021. Continued stability in the housing market is essential to Texas’ economic recovery.

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1 All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month over month, unless stated otherwise.

2 Bond and mortgage interest rates are nonseasonally adjusted. Loan-to-value ratios, debt-to-income ratios, and the credit score component are also nonseasonally adjusted. Texas data typically lags the Texas Housing Insight by one month.

Source – James P. Gaines, Luis B. Torres, Wesley Miller, Paige Silva, and Griffin Carter (January 13, 2021)

https://www.recenter.tamu.edu/articles/technical-report/Texas-Housing-Insight