Texas-Housing-Insight-January-2023

Texas Housing Insight January 2023 Summary

by Real Estate ArticlesResourcesStats

January home sales increased month over month (MOM), but it was the slowest start since January 2017, a far cry from January levels from both 2021 and 2022. Other housing metrics, such as median price and inventory, may be showing early signs of stabilizing with only minor changes in recent months compared with the major swings experienced during the pandemic.

Supply1

Single-family construction permits had been sliding down in demand since March 2022. January 2023’s permit level fell 6.9 percent MOM to 8,897 permits. The other two months during the past three years that monthly permits dipped below 9,000 were during the initial pandemic shock in April and May 2020. Construction permits fell in all major metros except Austin. While housing demand in Houston (2,842 permits) was mostly flat, Dallas (2,249 permits) dropped more than 15 percent MOM. Austin’s monthly construction demand (1,082 permits) rebounded 10 percent, issuing twice as many permits as San Antonio (481 permits).

Texas single-family construction starts have likewise plummeted since March 2022 but started 2023 with a positive month in January with 9,090 units. Although construction starts rebounded in every major metro, the January metric was the lowest level reported in Texas since 2016, suggesting a meek outlook for the housing industry.

The state’s total single-family starts value diminished from $3.8 billion in January 2022 to $2.2 billion in 2023. Houston and Dallas continue to account for more than half of the states total, coming in at 27.5 percent and 26.1 percent, respectively. Further pressing the point home that housing activity is down from the previous year, Austin and San Antonio had their construction values nearly cut in half in the first month of 2023.

The rebound in active listings had been aggressive since March 2022. However, the acceleration slowed in the past two months as the metric fell flat at a seasonally adjusted rate of 91,000 units. Compared with the first half of 2022 when inventory was 50 percent short of pre-pandemic levels, housing inventory was only 4.5 percent short in January. Active listings in Austin have more than tripled from a year ago, reaching 8,500 units. Amid the recent flattening, months of inventory (MOI) dipped for the first time in the past eight months. The MOI for the four major metros ranged from 2.5 months to 3.4 months. While Dallas, Austin, and San Antonio all either hovered back or beyond pre-pandemic levels, Houston’s housing supplies still needed more homes to restock.

Demand

Total home sales inched up 3.4 percent MOM to a seasonally adjusted rate of 27,475 sales. This uptick marked the largest MOM jump since the second half of 2022. Sales in Austin and Houston rebounded greatly, with the former metro surpassing San Antonio’s sales volume and the latter surpassing Dallas’ (Table 1). While the housing market opened robustly in 2023, Texas’ sales still diminished by over 20 percent compared with last year’s January metric.

Sales grew across all price cohorts. While homes below $300K still make up 40 percent of the market, this sector’s sales volume rebounded least at 0.5 percent MOM. The remaining price cohorts ascended moderately at a low-single-digit growth, but homes above $750K grew at an impressive rate of 21.6 percent MOM, accounting for almost 9 percent of the market. 

With sales activity picking up, the Texas’ average days on market (DOM) continued to climb but at a slower pace of 54 days. Compared with the five-year average of 59 days before 2020, this is still converging to historic norms; and it is tilting toward a weaker market that favors buyers. Quadrupling since March 2022, Austin posted a first dip in DOM—balancing at 61 days.

Across all price cohorts except one, DOM rose to a range of 50 to 58 days, a three-day average increase across all the cohorts. The $400K-$500K housing sector’s DOM declined by 5.8 days over the previous month. Meanwhile, homes priced over $750K had a 55 DOM, one day higher than the $300K-$400K cohort.

Compared with a surge to 69 percent in 3Q2020 during the pandemic frenzy, Texas’ homeownership rate had been cooling, hovering around 63.6 percent in 2022. At the metropolitan level, the Dallas-Fort Worth (DFW) area was lowest at 56 percent, while Houston was highest at 67 percent. Austin and San Antonio were at 65 and 60 percent, respectively.

Prices

Texas’ median home prices started off the new year with a strengthened housing market. The 2.1 percent MOM rebound was the largest monthly gain since April of last year. All metros posted positive price growth except for San Antonio (Table 2). Median price per square foot (PSF) corroborated with the trend, as San Antonio’s price PSF dropped 1.6 percent MOM to $168.8.

The ten-year U.S. Treasury bond yield continued its four-month decline, reaching 3.5 percent2 in January 2023, while the two-year counterpart decreased to 4.2 percent. The spread between the ten- and two-year bond yields continued to widen for the seventh month straight. The negative spread indicated persistent market uncertainties, and the ten-year bond yield was still far below 2007’s peak of 5.1 percent. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate moderated slightly this month to 6.3 percent, down 0.1 percent from December.

Rapidly rising mortgage rates have continued to pester the housing market over the past year. 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 January metric was essentially the same as the month before. However, January’s index value of 220 was still 3.9 percent higher than the year before. The same trend also affected the major metros as growth rates shrank from double to single digits, except in Austin, which had a net loss in home values.

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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. 

Source – Joshua Roberson, Weiling Yan, and John Shaunfield (March 20, 2023)

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

Spring-Festivals

Spring Festivals and Events in DFW

by Resources

Spring is a wonderful time to explore the Dallas-Fort Worth area and experience some of the exciting festivals and events that take place during this season. From cultural celebrations to food festivals, there’s something for everyone to enjoy. Here are some of the top Spring festivals and events in DFW that you won’t want to miss.

The Dallas Arboretum’s Dallas Blooms Festival is a month-long celebration of Spring features over 500,000 blooming bulbs throughout the gardens, including tulips, daffodils, and hyacinths. Visitors can also enjoy live music, special exhibits, and food vendors on select weekends. It’s the perfect way to welcome in the new season and take in the beauty of nature.

Check out our full list of Spring festivals and events and get out there and have some fun!

Dallas Arboretum’s Dallas Blooms Festival  | Dallas | February 25th – April 16th

Fort Worth Food & Wine Festival | Fort Worth | March 30th – April 2nd

Dallas Arts Month | Dallas | month of April 

Dallas Reggae Festival | Addison | April 7th -9th 

Scarborough Renaissance Festival | Waxahachie | April 8th – May 29th

Ennis Bluebonnet Trails Festival | Ennis | April 14th-16th 

Arts in Bloom Festival | McKinney | April 14th -16th 

Grand Prairie Main Street Fest | Grand Prairie | April 21 

Earthx | Dallas |  April 21st – 23rd 

Main Street Art Festival | Fort Worth | April 20th – 23rd 

Spring Japanese Festival | Fort Worth | April 22-23

Art In The Square | Southlake | April 28th – 30th

Mayfest | Fort Worth | May 4th – 7th 

Wildflower Arts & Musical Festival | Richardson | May 19th – 21st  

Rockwall Founders Day Festival | Rockwall |  May 20th  

Taste of Addison | Addison | June 2nd – 3rd

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February 2023 DFW Area Real Estate Stats

by ResourcesStatsVideo

Attention home buyers and sellers! The February real estate stats are in and it’s important to stay informed. Active listings are up in every county compared to last year, providing more choices for home buyers. However, days on market are also up in every county, indicating a more competitive market for sellers. In Dallas County, new listings are down 7.4% from last year, but Collin County and Denton County are seeing an increase in new listings. It’s a unique moment in the housing market, so stay informed before making any decisions!

Our stats infographics include a year over year comparison and area highlights for single family homes broken down by county. We encourage you to share these infographics and video with your sphere.

For more stats information, pdfs and graphics of our stats including detailed information by county, visit the Resources section on our website at DFW Area Real Estate Statistics | Republic Title of Texas.

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

Preparing Your Home for Spring

Preparing For Spring

by Resources

Spring Cleaning and Maintenance Tips To Get Your Home Ready For The Season

Interior
□ Inspect and change out HVAC filters.
□ Clean kitchen sink disposal.
□ Clean range hood filters.
□ Inspect your fire extinguisher(s).
□ Get your air conditioning system ready for summer; empty drain pans, check hose connections for leaks. Consider getting an HVAC technician to service your system biannually. This will help it run optimally year-round.
□ Inspect your attic crawl spaces. Look for signs of vermin infestation. Contact a pest control professional if any concerns arise.
□ Run water and flush toilets in unused spaces.
□ Check water softener and add salt if needed.
□ Test your water heater’s pressure relief valve.
□ Test smoke/carbon monoxide detectors and replace batteries if necessary.
□ Spring cleaning! Now is the time to give your house a deep clean.

Exterior
□ Get your lawn ready for the warm temperatures. Clear your yard of any debris and aerate your lawn if needed (you might need a professional to do this.) Early spring is the best time to lay pre-emergent herbicide. This will prevent weeds from growing.
□ Check exterior drainage.
□ Clean out gutters.
□ Inspect the exterior of your home. Look for soil erosion and add fill dirt/sod if needed.
□ Inspect roof for damage, leaks and missing shingles.
□ Inspect exterior walls including eaves for any cracks or holes where insects or critters could enter.
□ Check seals around windows, caulk if necessary.
□ Check for loose, warped or splintered boards on your deck/patio. Now is a good time to seal/stain if needed.
□ If you stored your lawn furniture for the winter, bring it outdoors and give it a rinse or wash
with a mild detergent.
□ Go ahead and have a little fun! Plant seasonal flowers to add color to your landscape. Flowers that thrive in spring in North Texas are cosmos, marigolds, zinnias and pentas.

Click here for printable version

Homestead-Exemptions

Homestead Exemptions

by ResourcesVideo

In our newest video, Republic Title’s Sheri Groom and Matt Visinsky discuss what you need to know about homestead exemptions. A homestead is a house or other residential structure that is used for residential purposes. To qualify for homestead in Texas the owner must be an individual (a corporation or other business entity cannot have a homestead), and use the home as his or her principal residence.

Listen in as Republic Title’s Sheri Groom and Matt Visinsky explain:

  • What is a homestead?
  • What are some of the benefits and protections of homesteads?
  • Who can apply for a homestead exemption?

For more informative videos from the Republic Title Legal Team, check out our YouTube channel: https://youtu.be/OHUe02-4c4c

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January 2023 DFW Area Real Estate Stats

by ResourcesStatsVideo

January 2023 stats are in!

In January 2023, new listings are up in all North Texas counties that we report on over December 2022 so the much-needed inventory is coming to market.

Active listings are up across the board compared to this time last year ranging from 71% increase in Dallas County to 195% increase in Denton County. Compared to January 2022, average sales price has increased in each county except Denton which was down slightly.

Dallas is expected to be the top buyer’s market in the nation by year-end 2023 so all eyes are on the Spring selling season!

Our stats infographics include a year over year comparison and area highlights for single family homes broken down by county. We encourage you to share these infographics and video with your sphere.

For more stats information, pdfs and graphics of our stats including detailed information by county, visit the Resources section on our website at DFW Area Real Estate Statistics | Republic Title of Texas.

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

Texas-Housing-Insight-December2022

Texas Housing Insight December 2022 Summary

by Real Estate ArticlesResourcesStats

Housing was one of the primary contributors to inflation in 2022. The pandemic-induced housing frenzy officially ended when the Federal Reserve began raising interest rates in June in an attempt to curb inflation. Since then, mortgage rates and the possibility of a recession sidelined many potential buyers. Demand in Texas plummeted as annual housing sales fell more than 10 percent. Supplies started returning to pre-pandemic levels. Amid 2022’s drastic changes, many housing indicators improved as homebuilders and buyers quickly adapted.

Supply1

Homebuilders initiated fewer building projects than they did before the pandemic. Year-end single-family construction permits had a net loss of 8.4 percent year-over-year (YOY), shrinking from 170,557 permits to 156,189 permits in 2022. Monthly permits were flat in December, with fewer than 10,000 permits issued. Construction permits fell in all major metros. While housing demand in Dallas (2,786 permits) was mostly flat, Houston (2,886 permits)—the metro with the most construction permits in the nation—dipped 10 percent month-over-month (MOM). The gap between Austin’s (982 permits) and San Antonio’s (592 permits) housing expansion narrowed, as Austin’s monthly construction demand fell below 1,000 monthly permits for the first time since 2016.

Construction generally slows during the winter, and Texas’ single-family construction starts plummeted 33.5 percent from December 2021 to 10,203 units, corroborating a slowdown in the housing industry when accounting for the winter slump. According to Zonda, quarterly construction starts continued the fall from 3Q2022 in Texas’ four major metros except for Dallas-Fort Worth (DFW). While DFW’s construction starts rebounded 26.4 percent quarter-over-quarter (QOQ) and surpassed pre-pandemic levels, the remaining three metros fell short of 4Q2019 levels.

The state’s total single-family starts value diminished from $44.5 billion in 2021 to $38.4 billion. Houston and Dallas together contributed more than half of the state’s total at 29.6 percent and 26.6 percent, respectively. Austin’s market share was double that of San Antonio at 12.8 percent.

Active listings were flat at a seasonally adjusted rate of 91,600 units. Compared with the five-year average of 94,800 units before the pandemic, housing inventory was only 4.5 percent away from returning to the pre-pandemic volume. A year prior, inventory fell 50 percent short of pre-pandemic levels. Active listings in Austin fell 7 percent from November’s peak to 8,400 units, the first monthly dip since March 2022. This modest decline suggests Austin’s housing market may have returned to the traditional ebbs and flows seen before covid. Amid the recent slowdown, statewide months of inventory (MOI) ticked up to three months. The MOI for the four major metros ranged from 2.6 months to 3.4 months. While Dallas, Austin, and San Antonio inventories returned to pre-pandemic levels, Houston’s inventory was still below. 

Demand

Nearly 30 percent of total home sales vanished from December 2021 to December 2022.  In the past 12 months, sales volume sank from 37,200 to 26,300 closed listings. On a yearly basis, Houston lost the most in terms of both percentage and total volume, losing close to 35 percent and 3,500 units. On a monthly basis, Austin and Dallas lost the most in terms of YOY percent decline at 4.4 percent (Table 1).

Rising mortgage rates affect home sales disproportionately across price cohorts. For example, when the housing frenzy started to cool in the first half of the year, the affordable home market (homes below $300K) was hit first, beginning a streak of quarterly declines. Next, as the Fed’s interest rates became more aggressive in the second half of the year, the higher-end home market (homes above $750K) was hit worst, shrinking in a downward trend twice as fast as the affordable home market’s declining rate. Thus, affordable housing was hit first by rising mortgage rates with pricier homes following suit later in the year. 

With sales activity slowing, homes are sitting on the market longer. Texas’ average days on market (DOM) rose to 52. Compared with the five-year average of 59 days before 2020, the latest DOM metric suggests the housing market is quickly approaching historic norms. Annually, Austin’s DOM rose most aggressively, jumping from 19 days to 67 days. Constrained by diminishing sales, Houston had the most moderate DOM rebound, rising from 32 to 51 days.

Before the pandemic, the state’s DOM ranged from 55 days to 83 days. Now, DOM ranged from 48 days to 59 days. The relatively truncated DOM interval implies the housing market still has room to improve. Another metric that signals the housing market can be more relaxed is DOM for pricier homes. Typically, the most expensive homes sit on the market the longest. However, DOM for homes priced over $750K was 50 days—shorter than homes in the $400K-$500K price cohort.

Prices

Texas’ median home price peaked in May at $349,900 and has since been falling. Despite the price correction in the second half of the year, the state’s median price still rose 3.7 percent compared with a year ago. Homes in the Austin metro were most volatile, as the median price fell more than $78,000 from its peak, settling at a seasonally adjusted rate at $463,900 (Table 2). Austin was also the only metro area that reported a net loss YOY, while Dallas, Houston, and San Antonio reported YOY growth between 4.4 and 6.1 percent.

Median home price for new construction was over 15 percent higher than existing homes.

The ten-year U.S. Treasury bond yield dropped 27 basis points to 3.6 percent2 in December, while the two-year counterpart was at 4.3 percent. The spread between the ten- and two-year bond yields continued to widen. The negative spread indicated persistent market uncertainties, and ten-year bond yield was still far below 2007’s peak of 5.1 percent. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate moderated slightly this month to 6.4 percent, dropping from an all-time high of 6.9 percent in October.

Rapidly rising mortgage rates hit home prices hard over the past 12 months. The Texas Repeat Sales Home Price Index accounts for compositional price effects and provides a better measure of changes in single-family home values. Compared with December 2021’s 20.1 percent YOY increase, Texas’ index accelerated 5.5 percent YOY in December 2022, indicating price normalization. The same trend also affected the major metros as growth rates shrank from double- to single-digits, except in Austin, which had a net loss in home values.

According to the Texas Housing Affordability Index (THAI), purchase affordability decreased to 1.1 in 4Q2022, indicating median family income was 10 percent more than the required income to buy the median-priced home. This metric was down 35 basis points from 1.45 in 4Q2021, and it suggested that despite slowing home price appreciation, households faced more financial burden to buy a home due to the higher mortgage rate. For more information on how higher interest rates affect homebuying, read “How Higher Interest Rates Affect Homebuying.” 

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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. 

Source – Joshua Roberson and Weiling Yan (February 14, 2023)

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

Legal-Team

Meet Our Residential Underwriting and Legal Team

by Ask the ExpertInside Republic TitleResourcesTitle Information

As an industry leader and authority on the local real estate market, you can count on Republic Title’s highly trained teams and in-house attorneys to ensure your transaction closes quickly, with fast turnaround on title searches and underwriting decisions.

We are proud to highlight our Residential Underwriting and Legal team who are available to answer your questions and be a resource for you in working towards a smooth closing. Be on the lookout in the coming days to learn more about our incredible team of attorneys and how they are committed to helping you get to the closing table!

Matt Visinsky is Senior Vice President/Senior Residential Counsel at Republic Title. Matt has been with Republic Title for nearly 25 years. With experience as both an Escrow Officer and Branch Manager, Matt brings a unique perspective to his role. Matt’s attention to detail and extensive knowledge of the real estate transaction make him an invaluable member of our legal team. In his free time, Matt is an avid sports photographer and his work has been published in ESPN’s The Magazine, Sports Illustrated and GQ.

Wade Bogdon is Assistant Vice President/Residential Counsel and has been with Republic Title for over 8 years. Wade has an extensive knowledge in title rules and procedures which allows him to give excellent service to our customers. Wade is quick to respond to questions and is able to clearly communicate rules and requirements. In his free time, Wade enjoys watching Dallas sporting teams, cooking and restoring and researching historic homes.

With over 52  years in the title business, Jay has worked with developers, lenders, real estate agents and attorneys, gaining him a tremendous amount of experience and knowledge in the industry. Jay is known throughout the real estate community for giving back both within our industry and being incredibly active in the community. With a background as a Branch Manager, Jay has a reputation for his incredible customer service which has built many great lasting relationships over his time with Republic Title. In his free time, Jay enjoys spending time with his family as well as traveling, biking and hiking.

 

Steve Holley is a solution-oriented underwriting counsel who has the ability to make everyone comfortable in the transaction which allows our closing teams the ability to close and insure transactions seamlessly. With 30 years of title industry experience, Steve knows title laws and procedures like the back of his hand. Steve is a highly effective communicator with a plethora of knowledge and is one of our highly sought after real estate class instructors. A proud SMU alumnus, Steve is an avid outdoorsman and enjoys spending his free time with his family and at the ranch.  

Sarah Mann has 13 years working in the title insurance industry with experience both in the closing room and resolving title issues. In her 10 years with Republic Title, Sarah has served in many roles including Escrow Officer, Branch Manager and Residential Counsel. Sarah is known for her personal attention to each real estate transaction and getting deals to the closing table. Her experience in the closing room enhances the service she can provide to every customer. We are extremely grateful for Sarah’s experience, wisdom and heart for our clients!

 

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2022 DFW Real Estate Year-End Stats at a Glance

by ResourcesStatsVideo

Our second annual stats report of the DFW real estate market is here!

We’ve taken our monthly stats-at-a-glance reports from January through December of 2022, totaled, averaged, and compared the data to the numbers from 2021.  The result is an annual report of the DFW real estate market in 2022.  

For more stats information, pdfs and graphics of our stats including detailed information by MLS area and condo stats, visit the Resources section on our website at DFW Area Real Estate Statistics | Republic Title of Texas.

December 2022 Stats

December 2022 DFW Area Real Estate Stats

by Real Estate ArticlesResourcesStats

December 2022 Stats are IN!  Collin county shows an increase in all categories except number of sales compared to December of ’22.  Dallas County’s new listings for December were down 22% compared to last year, but active listings were up considerably from where they were a year ago. The average sales price was even down slightly at 1.4% as were the actual number of sales which is in line with the overall market.

In Denton County, the story is the same with new listing down and active listings up along with the average sales price and price per square foot. In Rockwall the numbers reflect generally the same situation.  As we begin 2023 however, the number of listings coming on the market looks strong and it appears that we are still in very good shape in the Metroplex! Happy Selling!

Our stats infographics include a year over year comparison and area highlights for single family homes broken down by county. We encourage you to share these infographics and video with your sphere.

For more stats information, pdfs and graphics of our stats including detailed information by county, visit the Resources section on our website at DFW Area Real Estate Statistics | Republic Title of Texas.

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