Texas-Housing-Insight-December-2024

Texas Housing Insight December 2024 Summary

by Real Estate ArticlesResourcesStats

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

In a sign of stabilization, Texas’ home sales rose significantly in December to deliver a strong fourth-quarter finish going into 2025. Rising sales were seen broadly across all major markets (Austin, Dallas-Fort Worth, Houston, and San Antonio) as well as in smaller markets outside the Big Four. 4Q2024 marks the first time since the beginning of the housing recession that home sales rebounded strongly to end the year with double-digit year-over-year (YoY) growth.           

Home prices remained steady and ended the year higher than a year ago. Positive year-end trends also captured rising new listings and rising inventory amid strong fourth-quarter sales momentum. Mortgage rates remained high going into 2025 despite a third round of interest rate cuts by the Federal Reserve in December. Mortgage rates are likely to stay near where they are during persisting signs of market jitters over inflationary pressure.

December’s Seasonality: Small Market Sales Up, Big Four Sales Down 

In most years, sales rebound in December after a weak November, and this year is not any different. What was different was that December’s seasonal rebound was driven by strong sales in markets outside the Big Four. Statewide, there were 28,868 home sales in December, up 1.6 percent from November. In the major metros, aggregate sales volume (19,066) declined by 9.4 percent, driven by a 21 percent drop in DFW and a 4.9 percent drop in Houston. Sales were up 4.9 percent in Austin and 0.5 percent San Antonio. Outside the major markets, total home sales (9,802) surged 33.5 percent from November (Table 1).

First Positive YoY Sales Since 2022

Total statewide home purchases were up 10.7 percent from a year ago, marking the first time since the 2022 housing recession that sales volumes came in higher than the year before. These strong fourth-quarter sales were broadly seen across various markets. In the Big Four, was Austin saw 7.6 percent sales growth, DFW 16.4 percent, Houston 16.5 percent, and San Antonio 8.2 percent. Home sales were up an average of 6.7 percent in smaller markets.   

Positive Trends in New Listings and Inventory  

Statewide new listings were up slightly in December on a month-over-month (MoM) basis. Among the Big Four, new listings rose 2.7 percent in Austin, 2.6 percent in San Antonio, and 1.6 percent in Dallas, but declined in Houston by 2.4 percent. On a YoY basis, new listings were up 7.6 percent statewide, 7 percent in Austin, 10.8 percent in DFW, 14.9 percent in Houston, and 8.4 percent in San Antonio.  

During December, statewide average days on market (DoM) was 63 days, comparable to the pre-pandemic turnover pace. Average DoM was 58 days in DFW, 77 days in Austin, 53 days in Houston, and 75 days in San Antonio.  

At year-end, statewide active listings totaled 123,364, slightly lower than the previous month. Austin’s MoM decline (12.3 percent) was its slowest pace of MoM decline for a December since 2021. Active listings were down slightly in San Antonio (1.5 percent) and DFW (1.4 percent). Houston’s active listings were relatively unchanged in December.  

Interest Rates Remain High During Inflation Concerns 

In December, the average yield on the ten-year U.S. Treasury bond increased by 3 basis points to 4.39 percent despite the Fed cutting its policy rate target by another 25 basis points. Inflation has remained persistently above the Fed’s 2 percent target, and the December Consumer Price Index (CPI) data showed signs of re-acceleration. The Freddie Mac Primary Mortgage Market Survey’s 30-year fixed-rate mortgage ended December at 6.85 percent, up 16 basis points higher than at the start of the month.  

New-Home Starts Increased 

Statewide, building permits increased a sharp 17.7 percent MoM in December. Newly authorized permits surged 24.7 percent in DFW, while Houston and San Antonio maintained a modest upward trend, rising 5.8 percent and 2.5 percent, respectively. Building permits were relatively flat in Austin, down 1.7 percent.  

Seasonally adjusted statewide single-family starts increased 9 percent MoM to 14,207 units. Houston and DFW had the highest increases at 14.4 percent (4,491) and 11.6 percent (3,670), respectively. New housing starts were up 8.4 percent (1,567) in Austin. Despite a small positive increase in building permits, San Antonio’s new single-family starts (802) dropped 14.8 from the previous month.  

The state’s total value of single-family starts climbed from $29.8 billion in December 2023 to $40 billion in December 2024.

Texas HPI Up 2.1 Percent 

Texas’ median sales price was $335,971 in December, a 0.3 percent MoM drop (Table 2). San Antonio was up 4 percent to $314,621, Austin 3.5 percent to $454,916, DFW 0.9 percent to $404,813, and Houston 0.7 percent to $334,930.   

The Texas Repeat Sales Home Price Index, which more accurately captures home price change over time than median sales price, fell 0.1 percent month over month in December but increased 2.1 percent from a year ago.  

Source: Texas Housing Insight | December 2024 | Texas Real Estate Research Center – By Yanling Mayer, Joshua Roberson, and Junqing Wu

Texas-Housing-Insight-November-2024

Texas Housing Insight November 2024 Summary

by Real Estate ArticlesResourcesStats
November 2024 data dashboard with the following metrics: a 2.2% decrease in total home sales, $336,838 in median home price, a 6.81% increase in mortgage rates, and a 8.9% increase in single-family starts.

Home sales typically cool off by October following the busy summer homebuying months. This year is a little different as sales in both September and October came in higher than they did during the summer. With the sales momentum extending into early fall, November total home sales took an expected seasonal downturn. Housing inventory is on the rise as homes take longer to sell. This more than offsets a decline in new listings (a decline that reflects a more cautious stance among prospective sellers amid higher mortgage rates). Home prices, in the meantime, have remained relatively the same. Interest rates increased for the first time since spring 2024, defying the Federal Reserve’s second interest rate cut on Nov. 7. New single-family construction slowed down in November. Smaller markets outside the “Big Four” metros led the declines in privately-owned housing units authorized by building permits.  

Sales Decrease, New Listings Follow

November home sales came in 2.2 percent lower than the previous month at a total of 28,399 transactions, driven largely by a seasonal contraction in the Houston market, where sales dropped 10.7 percent to 7,153. Austin followed with a 3.9 percent decline to 2,454 total sales. Sales were up 1.2 percent in San Antonio, totaling 3,003 transactions, while sales in Dallas remained relatively stable, edging up by 0.7 percent to 8,445 transactions.  

Table 1. Home Sales Volume containing data for October, November and MOM Change for San-Antonio-New Braunfels, Houston-Pasadena-The Woodlands, Texas, Austin-Round Rock-San Marcos, and Dallas-Fort Worth-Arlington

November’s new listings saw a notable decline, reflecting a more cautious stance among prospective sellers amid higher mortgage rates and a seasonal market slowdown. Among the Big Four, Dallas had the most significant month-over-month (MoM) drop, down 8 percent to 11,353 active listing at the end of November. Houston followed with a 3.5 percent decrease (14,022), while San Antonio and Austin recorded more moderate declines of 1.3 percent (4,338) and 1.2 percent (3,742), respectively. The overall contraction in new listings may indicate sellers are adjusting expectations in response to mortgage rates defying the Fed’s interest rate cuts. Following the Fed’s second interest rate cut in November, mortgages rates moved in the opposite direction.  

Statewide average days on market (DOM) edged up by one day to 62 days in November. In Austin, DOM was up from 73 to 75 days. DOM was up by one day in Houston (52) and Dallas (57). San Antonio was the only major metro to see a decrease in DOM, improving from 74 to 73 days, a reflection of increased buyer activity and more competitive pricing in the region. 

Statewide housing inventory was up in November. Total active listings increased by 1.1 percent to an inventory of 124,195 by the end of the month. Among the Big Four, San Antonio and Houston saw inventory rising by 2 percent and 1.8 percent to a month-end inventory of 13,939 and 30,553, respectively. Dallas’ housing inventory remained relatively stable, edging up by just 0.2 percent. In Austin, active listings declined 0.8 percent from the previous month to 10,501 by the end of November.   

Statewide pending listings increased in November by 2.2 percent, rising from 28,340 to 28,971. Across the Big Four, pending listings exhibited mixed trends, reflecting varying levels of buyer activity. Austin led with a 7.9 percent increase, rising from 2,644 to 2,852, suggesting a rebound in buyer interest despite broader market conditions. Houston saw pending listings up 6 percent for a total of 7,770. Pending listings declined in Dallas, down 4.6 percent from 8,491 to 8,101. San Antonio saw a more moderate decline of 2.1 percent, with pending listings decreasing from 3,095 to 3,029.  

Interest Rates Up Again

In November, both Treasury yields and mortgage rates experienced notable increases, defying the Fed’s second interest rate cut on Nov. 7. The average yield on the 10-year U.S. Treasury Bond rose by 26 basis points (bps) to 4.36 percent, reflecting heightened capital market expectations of inflationary pressures building up in the economy. Similarly, the Federal Home Loan Mortgage Corporation’s 30-year fixed-rate mortgage climbed 38 bps to 6.81 percent. 

New-Home Starts Decline

Statewide building permits declined by 10.5 percent from October to November. The declines were led by smaller markets, where November’s privately-owned housing units authorized by building permits were 37.8 percent below October’s. In the Big Four metros, the declines were more moderate: Dallas (9.7 percent), Austin (7.1 percent), Houston (6.7 percent), and San Antonio (5.1 percent). 

Seasonally adjusted statewide single-family housing starts decreased by 8.9 percent since October to 13,037 units. All Big Four metros had a downturn. San Antonio and Dallas had the sharpest decrease at 18.9 percent (941) and 13.4 percent (3,289), respectively. Houston was down by 9 percent (3,925), while Austin fell 7.4 percent (1,445). 

The total value of single-family housing starts climbed from $27.73 billion in November 2023 to $34.51 billion in November 2024. At $12.14 billion, Houston accounted for 35.2 percent of the state’s total starts value. Dallas followed with $9.39 billion (27.2 percent). 

Home Prices Remain Steady

Texas’ median home price remained relatively stable in November, inching down by 0.1 percent from $336,428 in October to $336,838. Among the Big Four, Houston had the most significant decline, with prices falling 2 percent from $339,079 to $332,298. San Antonio followed with a 0.7 percent decrease, from $304,564 to $302,398. Dallas only saw a marginal 0.1 percent decrease from $402,046 to $401,744, indicating relative price stability. Austin recorded the highest price appreciation, rising 0.5 percent MoM to $436,142 amid strong pending listing activities. 

Table 2. Median Housing Prices containing data for October, November and MOM Change for Dallas-Forth Worth-Arlington, Austin-Round Rock-San Marcos, San Antonio-New Braunfels, Texas, and Houston-Pasadena-The Woodlands.

The Texas Repeat Sales Home Price Index (Jan 2005=100), which is a more accurate reflection of home price changes, fell 0.4 percent MoM in November but was up by 2 percent year over year (YoY). Austin’s annual appreciation remains below the state’s average and fell by 0.8 percent YoY in November. 

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

Source: Texas Housing Insight | Texas Real Estate Research Center (By Yanling Mayer, Joshua Roberson, and Junqing Wu – February 24, 2025)

7-Reasons-homebuyers-need-Title-Insurance

7 Reasons Why Every Homebuyer Needs Owner’s Title Insurance

by Real Estate ArticlesResourcesTitle Information

BUYING A HOME IS AN EXCITING AND EMOTIONAL TIME FOR MANY PEOPLE. TO HELP YOU BUY YOUR HOME WITH MORE CONFIDENCE, MAKE SURE YOU GET OWNER’S TITLE INSURANCE. HERE’S WHY IT’S SO IMPORTANT FOR YOU:

  1. PROTECTS YOUR LARGEST INVESTMENT
    A home is probably the single largest investment you will make in your life. You insure everything else that’s valuable to you—your life, car, health, pets, etc., so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you own your home.
  2. REDUCES YOUR RISK
    If you’re buying a home, there are many hidden issues that may pop up only after you purchase your home. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen title discrepancies. Don’t think it will
    happen to you? Think again.
    Title claims can include:
    – outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
    – pending legal action against the property that could affect you
    – an unknown heir of a previous owner who is claiming ownership of the property
    – boundary disputes, fraud and forgery, clerical and filing errors and more.
  3. YOU CAN’T BEAT THE VALUE
    Owner’s title insurance is a one-time fee that’s very low relative to the value it provides.  It typically costs around 0.5% of the home’s purchase price. 
  4. COVERS YOUR HEIRS
    As long as you or your heirs own your home, owner’s title insurance protects your property rights. 
  5. NOTHING COMPARES
    Homeowners insurance and warranties protect only the structure and belongings of your home. Getting owner’s title insurance ensures your property rights are protected.
  6. 8 IN 10 HOMEOWNERS AGREE
    Each year, more than 80% of America’s homebuyers choose to get owner’s title insurance.
  7. PEACE OF MIND
    If you’re buying a home, owner’s title insurance lets you rest assured, knowing that you’re protected from inheriting possible debts or legal problems, once you’ve closed on your new home.

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Texas-Housing-Insight-October-2024

Texas Housing Insight October 2024 Summary

by Real Estate ArticlesResourcesStats
October 2024 summary card title

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

October 2024 data dashboard: Total Home Sales +8.8%, Median Home Price $335,773, Mortgage Rates 6.4%, Single-Family Starts 8.7%

Home sales typically cool off by October, but this year is a little different with sales in both September and October higher than they were during the summer. The rate of new listings is still on the rise resulting in rising inventory levels. Home prices, on the other hand, have remained the same. Interest rates increased for the first time since spring 2024. Finally, new-home permits were flat this month, but housing starts made a strong month-over-month (MOM) push.

Sales Increase, New Listings follow

Unlike most years when sales activity is high in July and August and low in the last quarter, 2024 showed the opposite. Sales dipped in August and increased in October by 8.8 percent (28,859) (Table 1). San Antonio had the highest sales increase, reaching almost 17 percent (2,906), followed by Houston with 12 percent (8,066) and Austin at 7 percent (2,488). Dallas was the only city among the Big Four to see a decline in sales (1 percent, or 7,432).  

Table 1. Home Sales Volume containing data for September, October and MOM Change for San-Antonio-New Braunfels, Houston-Pasadena-The Woodlands, Texas, Austin-Round Rock-San Marcos, and Dallas-Fort Worth-Arlington

New listings have been increasing since July 2024 and continued to increase in October. Among the Big Four, Houston and San Antonio experienced MOM increases of 10.3 percent (14,627) and 8.6 percent (4,447), respectively. San Antonio has been almost at a vertical incline since mid 2024. Dallas and Austin grew by 7.3 percent (12,063) and 5 percent (3,774), respectively.  

The state’s average days on market (DOM) fell to 61 days in October, a two-day drop. Houston had the largest decrease—from 53 to 50 days, a 4.3 percent decrease. Austin also fell from 73 days to 71 days, a 3.3 percent decrease, followed by San Antonio, which went from 74 days to 73 days, a 2.1 percent decrease. Dallas was the only Big Four city to see an increase in DOM—from 54 to 56 days, a 4 percent increase.   

Texas’ number of active listings increased from 122,192 to 124,663 (2 percent). There has been no significant activity in October across the Big Four. Houston increased by 2.4 percent (30,345) followed by Dallas at 1.8 percent (28,704). Austin had a 0.6 percent decrease in active listings (28,704), while San Antonio had almost no activity, remaining at 14,000 listings. 

Statewide pending listings have decreased from 29,006 to 28,516, a 1.7 percent overall drop. Dallas saw a 5.4 percent increase in pending listings, from 7,717 to 8,133, followed by Austin at 2.4 percent (2,565). Dallas has been consistently increasing since August 2024. Houston rose by 2 percent (7,577), while San Antonio fell by 0.6 percent (2,854).

Interest Rates Bounce Back

Treasury and mortgage rates both increased in October with the average ten-year U.S. Treasury Bondyield up by 38 basis points, reaching 4.1 percent. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate rose by 25 basis points to 6.43 percent. October was the first month of increase for both rates since spring 2024. Additionally, both rates have increased even as the federal funds rate has continued to drop.

New-Home Starts Rally

Statewide, building permits increased by 0.9 percent MOM in October. Except for Dallas, the Big Four had an upward trend with Austin at 17.7 percent, San Antonio at 7.6 percent, and Houston at 1.6 percent. Dallas fell by 8.6 percent.   

Seasonally adjusted statewide single-family starts increased 8.7 percent MOM to 14,332 units. Most of the Big Four had an uptick. San Antonio and Dallas had the highest increases at 30.3 percent (1,164) and 25.6 percent (3,813), respectively. Austin was up by 1.5 percent (1,555), while Houston fell 0.7 percent (4,393).

The state’s total value of single-family starts climbed from $25.4 billion in October 2023 to $32.07 billion in October 2024. Houston accounted for 35.3 percent of the state’s total starts value, followed by Dallas with 27.2 percent.

Home Prices Remain Steady

Texas’ median home price didn’t change in October, remaining at $335,000 (Table 2). Dallas grew the most—3 percent, from $393,340 to $404,995. Austin followed at 1.8 percent ($430,304 to $437,835). San Antonio rose by 0.3 percent, an increase slightly above $1,000, and currently stands at $306,624. Houston fell 0.1 percent to $337,852.   

Table 2. Median Housing Prices containing data for September, October, MOM Change for Dallas-Forth Worth-Arlington, Austin-Round Rock-San Marcos, San Antonio-New Braunfels, Texas, and Houston-Pasadena-The Woodlands.

The Texas Repeat Sales Home Price Index (Jan 2005=100), which is a more accurate reflection of home price changes, fell 0.3 percent MOM in October but increased 1.6 percent year over year (YOY). Austin’s annual appreciation remains below the state’s average and fell by 1.5 percent YOY in October.

Source: Texas Housing Insight | Texas Real Estate Research Center (By Joshua Roberson, Rhutu Kallur, and Junqing Wu – January 13, 2025)

Sold house sign in Midwest suburban setting. Focus on sign.

What You Should Know About Buying a House in 2025

by Real Estate ArticlesTitle Information

As we welcome 2025, the North Texas real estate market is shaping up to be one of the best in the country. Ranked No. 1 for real estate investment in the Urban Land Institute’s annual Emerging Trends in Real Estate forecast, DFW continues to attract attention for its stability, affordability, job growth, and economic diversity. With several years as a top contender in this report, it’s no surprise that investors and homebuyers alike are keeping a close eye on the region. And if you are in the market to buy or sell a home this year, Republic Title is here to make your real estate transactions as smooth and successful as possible.

The Bigger Picture: A Balanced Market

DFW is one of the fastest-growing metro areas in the country, now home to more than 8 million people, according to the latest census estimates.

After several years of extreme market activity, the real estate landscape in North Texas is shifting to a more balanced, buyer-friendly environment.

Home prices across the metro area have remained mostly flat over the past year, and forecasts suggest this trend will likely continue into 2025.

One of the most significant developments for the housing market in 2024 has been the increase in inventory levels. According to Realtor.com’s September 2024 housing market report, active real estate listings in the DFW area surged by 50% year-over-year. This surge provides a much-needed boost to housing supply, giving homebuyers more options and greater negotiating power.

Pent-Up Demand from First-Time Buyers

A significant pent-up demand exists among young buyers and first-time homebuyers. In 2024, only 24% of homebuyers were first-time purchasers, a notable decline from previous years. Many younger buyers have been waiting on the sidelines due to high mortgage rates, limited inventory, and escalating home prices. However, as the market stabilizes, these buyers are expected to reenter in 2025, contributing to increased demand.

Price Reductions and Negotiating Leverage

Data from Redfin and other sources show that up to 40% of homes listed for sale in the DFW area have undergone a price reduction in recent months. The frequency of these price cuts has steadily increased since the start of 2024, signaling two key market shifts:

  1. Sellers are becoming more flexible when pricing their homes.
  2. Buyers have more negotiating power than they have in recent years.

This is a stark contrast to the market conditions seen in the post-pandemic housing frenzy, where bidding wars and skyrocketing prices left buyers scrambling. In 2025, buyers can approach the market with confidence, knowing they have more room to negotiate and less pressure to make hasty decisions.

Mortgage Rates: The New Normal

One of the most critical factors influencing home affordability is mortgage rates. Recent reports indicate that the Federal Reserve may implement fewer cuts to the federal funds rate than initially anticipated, focusing on maintaining stability in the economy. However, mortgage rates are expected to remain steady around 6%, reflecting the “new normal” for borrowing costs.

For buyers who have been sidelined by rising borrowing costs in recent years, the slight stabilization of rates, combined with stable home prices, makes homeownership more accessible and attractive heading into 2025.

Why DFW Continues to Shine

DFW’s appeal extends far beyond real estate. Its growing economy, favorable cost of living, and thriving job market make it a magnet for businesses and families. Industries like technology, logistics, healthcare, and finance continue to expand, attracting talent from across the country. This sustained population and job growth underpin the housing market’s resilience, ensuring demand for homes remains steady.

Furthermore, North Texas’ affordability relative to other major U.S. markets remains a significant advantage. Despite rising costs in recent years, DFW offers a quality of life and value that’s difficult to match in cities like Los Angeles, New York, or San Francisco. This affordability factor keeps DFW attractive to first-time buyers, move-up buyers, and real estate investors alike.

Key Predictions for 2025

Given the trends we’re seeing today, the following forecasts highlight what we can expect from the DFW real estate market in 2025:

  • Stable Home Prices: Home values are likely to remain flat or experience only modest gains, providing a balanced environment for buyers and sellers.
  • Increased Inventory: The supply of homes will continue to rise, giving buyers more choices and reducing competition.
  • Pent-Up Demand: More young and first-time buyers are expected to reenter the market, boosting activity and demand.
  • Mortgage Rates Around 6%: While federal funds rate cuts are anticipated, mortgage rates will likely stabilize at this new normal.
  • Buyer-Friendly Market: With sellers showing increased flexibility and price reductions becoming more common, buyers will have more negotiating power than they’ve had in years.

The North Texas real estate market remains a leader in 2025, offering stability, affordability, and opportunities for both buyers and investors. With increased inventory, pent-up demand, and a return to a more balanced market, the conditions are ripe for buyers to take advantage of this moment. If you’re looking to buy or sell in 2025, Republic Title would love to work with you. As your trusted title partner in North Texas, Republic Title is committed to making your real estate transactions smooth, efficient, and successful. Contact them today to learn how they can help you navigate this exciting market. Happy New Year!

Source: Republic Title Boils Down What You Should Know About Buying a House in 2025 – CandysDirt.com

2025-TREC-Contract-Changes

2025 TREC Contract Changes – Important Things You Need to Know & Highlights of the Changes

by Real Estate ArticlesResources

On November 4, 2024 the Texas Real Estate Commission adopted form revisions recommended by the Texas Real Estate Broker-Lawyer Committee. “The updated Condominium Resale Certificate (TREC No. 32-5) is a voluntary-use form. All remaining contract forms adopted by reference are available for voluntary use until January 3, 2025, when their use becomes mandatory.”

THE FOLLOWING FORMS HAVE BEEN UPDATED/CHANGED:

Purchase Contracts:

Addendum & Amendments:

Other:

HIGHLIGHTS OF THE 2025 TREC CONTRACT CHANGES

 T-47 & T-47.1

Which Form(s) and Section(s)?

Unimproved Property Contract (TREC 9-17), One to Four Family Residential Contract (Resale) (TREC 20-18),  New Home Contract (Completed Construction) (TREC 24-19), Farm and Ranch Contract (TREC 25-16)Paragraph 6C

What’s changed?

To be consistent with a recently updated Texas Department of Insurance procedural rule, Paragraph 6C(1) is amended to include the option of providing the T-47.1 Declaration (which does not need to be notarized)—in lieu of the T-47 Affidavit—when the Seller furnishes the Buyer an existing survey. In lieu of providing a “no survey required” option, Paragraph 6C(2) is amended to read “Buyer may obtain a new survey” instead of “Buyer shall obtain a new survey”, and adds that if the Buyer ultimately fails to obtain the survey, the Buyer does not have the right to terminate the contract under Paragraph 2B of the Third Party Financing Addendum because the survey was not obtained.

Mold Remediation Certificate

Which Form(s) and Section(s)?

Most Contract Forms including One to Four Family Residential Contract (Resale) (TREC 20-18), Paragraph 6E

What’s changed?

Because Texas law requires a seller to provide a buyer a copy of any mold remediation certificate issued during the five years preceding the sale of the property, new Paragraph 6E(11) is added to provide information regarding this requirement (except in the Unimproved Property Contract).

 Termination due to lack of Buyer Approval for Third Party Financing

Which Form(s) and Section(s)?

Third Party Financing Addendum Paragraph 2A
What’s Changed?

In the Third Party Financing Addendum, to ensure the buyer is terminating appropriately, Paragraph 2A, Buyer Approval, has been changed to require both a notice of termination and a copy of a written statement of the lender’s determination like in Paragraph 2B, Property Approval.

 Option and Earnest Money in a Back-Up Contract

Which Form(s) and Section(s)?

Addendum for “Back-Up” Contract, Additional language added in Sections A thru F.

What’s Changed?

The Addendum for “Back-Up” Contract is modified to provide more clarity on the timing and payment of the earnest money and option fee by incorporating similar language from Paragraph 5 of the contract and by addressing timing and payment of additional fees.

Visit the TREC website for all the updated forms, listed changes and red-lined versions:

https://www.trec.texas.gov/article/trec-form-changes-effective-january-3-2025

For a PDF download of these changes in a printer-friendly format, click here.

Selling-out-of-an-Estate

Selling an Estate After a Death

by Real Estate ArticlesResourcesTitle Information

Selling a property out of an estate after an owner has passed away can be a complex and emotional process. For many, it’s a first-time experience that comes with a steep learning curve. This guide will help clarify common misconceptions, address frequent complaints, and explain the key steps to ensure a smooth transaction. Whether you’re navigating affidavits of heirship, probate proceedings, or trust documentation, Republic Title is here to support you. As the preferred title partner in North Texas, Republic Title provides the expertise and responsiveness needed to guide you through even the most complicated real estate transactions.

Key Terminology to Understand

Selling After a Death

Power of Attorney (POA): A legal document granting authority to act on someone else’s behalf. Not valid after death.

Affidavit of Heirship: A sworn statement identifying heirs when no will exists or a will is not probated, often used to transfer ownership.

Probate: A legal process to give a will legal effect and aid in the distribution of assets. Necessary to confirm the executor’s authority to sell.

Trusts: A legal arrangement that is often used in estate planning to help avoid probate and simplify sales of property after a death. Title is held by a trustee for the benefit of the trust beneficiaries and the powers of the trustee are defined in the trust document.

Executor: A person named in the will who is given authority by a probate court to manage the estate and sell property.

Administrator: A person appointed by the court to manage an estate when there is no will, or a named executor is not willing or able to serve.

Common Misconceptions About Selling Out of an Estate

“I Can Sell Right Away After Someone Passes”

Many believe they can immediately list and sell a property after a loved one’s passing. However, without proper documentation, including proof of ownership and authority to sell, the process cannot begin.

“A Power of Attorney (POA) Can Handle Everything”

A POA is only valid while the person granting it is alive. After their passing, the agent no longer has the power to act under the POA and who has authority to act for the estate will be determined by the probate court documents or an affidavit of heirship.

“No Will Means No Sale”

When there is no will, or a will is not probated, properties can still be sold by using affidavits of heirship or court proceedings to determine the heirs of the decedent that will need to sign closing documents.

How to Avoid Common Complaints When Selling Out of an Estate

To ensure a smoother estate sale and avoid common complaints, it’s essential to be prepared and organized. Here are key steps to take:

1. Provide to the Title Company, if applicable:

  • Will (regardless of whether it is probated)
  • Death Certificate
  • Probate Documents, if any
  • Trust, if any
  • Attorney and/or CPA’s contact information handling probate

2. Notify the County Appraisal District (CAD) of the change in ownership and the removal of any exemptions. This helps prevent tax issues and ensures the property records are updated.

3. Review the Commitment: Carefully go over the title commitment with your title company to understand any requirements or exceptions that may impact the sale.

4. Find out the expected timeline from the Seller’s probate attorney: Knowing the timeline for probate proceedings will help set realistic expectations for the closing process.

Following these steps can significantly reduce delays and frustrations, helping to keep all parties informed and the transaction on track. With Republic Title as your partner, you can rely on their expertise and guidance through each step, making this process as smooth as possible.

Selling Out of an Estate With a Power of Attorney

As mentioned earlier, a POA ceases to be valid upon the grantor’s death. However, during their lifetime, it can be instrumental in managing property sales if the property owner is incapacitated. Ensure the POA explicitly grants authority to sell real estate, and provide the document to the title company.

Selling When There Is No Will

Selling After a Death

Here’s how to navigate the process of selling property when there is no will:

1. Affidavits of Heirship:

  • Used to determine legal heirs and transfer property ownership as set out in the Texas Estates Code .
  • Requires signatures from disinterested witnesses who knew the deceased.

2. Probate Proceedings:

  • The court appoints an Administrator to manage the estate and also may determine the heirs of the decedent.
  • The Administrator may be given the authority to sell the property by court order.

3. Trusts:

  • If the property was conveyed to the trustee of a trust, it may be possible to avoid probate to sell the property. The power of the trustee to sell the property is defined by the trust documents.
  • This may simplify the process and avoid many of the potential delays associated with court proceedings.

Republic Title’s experienced team of professionals understands the intricacies of estate sales and will help you through the process of selling after a death and ensure that the necessary documents are signed. With a commitment to proven expertise, dedicated service, and lasting relationships, Republic Title is the trusted partner for estate transactions across North Texas.

*This article is intended to provide basic information about the sale of property after the death of an owner. Nothing contained in this article is intended to be a substitute for legal advice, and Republic Title recommends that anyone seeking wills, estate planning, or probate advice should contact an attorney to provide you with legal advice and help guide you.

Source: Selling an Estate After a Death: A Comprehensive Guide with Republic Title – CandysDirt.com

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Texas-Housing-Insight-September-2024

Texas Housing Insight September 2024 Summary

by Real Estate ArticlesResourcesStats

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

The third quarter ended with an increase in home sales. Pending sales had a stronger increase, which could mean another positive month in October. Home prices increased slightly, and new listings decreased after stronger growth earlier in the year. In the new-home market, both permits and starts dipped in September. Growth was exceptionally strong for both in the spring, but the pace has since leveled out. 

Sales Increase, New Listings Dip 

After a dip in August, statewide seasonally adjusted home sales increased by 4.8 percent month over month (MOM), resulting in 26,165 homes sold (Table 1). Houston had the largest increase among the Big Four at 11.6 percent (7,150), followed by Dallas at 4.6 percent (7,202) and Austin at 2.6 percent (2,331). San Antonio was the only one among the Big Four to have a decrease in September (10.3 percent), resulting in 2,523 homes sold.   

The number of new listings decreased by 490, marking a 1.1 percent fall from August. After Hurricane Beryl, which hit Texas in early July, new listings in Houston plummeted but bounced back in August. Even without the hurricane, the rate of new listings statewide appears to have slowed down after an aggressive start of the year. San Antonio saw an increase of 2 percent (4,104), followed by Austin at 1.2 percent (3,587). Houston and Dallas both decreased by 4 percent each at a current new listing count of 13,412 and 11,002, respectively. 

The state’s average days on market (DOM) has remained at 62 days since August. Austin had the largest increase—from 71 to 73 days, a 2.8 percent increase. San Antonio increased from 75 to 76 days. Dallas fell from 55 days to 54 days while Houston remained at 53 days.   

Texas’ number of active listings increased from 120,019 to 122,760 (2.3 percent). Active listings across the Big Four had mixed results in September, with Dallas and Houston rising at 4.7 (28,191) and 4.3 percent (29,724), respectively, while Austin fell by 2.7 percent (11,153). San Antonio had no significant changes and increased by only 0.15 percent.   

Statewide pending listings have increased from 26,933 to 28,779, which represents 6.9 percent overall. Houston saw a significant increase in pending listings from 7,298 to 8,455 (a 15.8 percent rise), followed by Dallas at 8.2 percent (7,348). San Antonio and Austin had less fluctuation. San Antonio rose by 1 percent (2,702), and Austin fell by 0.5 percent (2,552).  

Interest Rates on the Decline 

Treasury and mortgage rates both declined in September but at a slower rate than the month before. The average ten-year U.S. Treasury Bondyield fell 15 basis points to 3.72 percent and has consistently been on the downward slope since April of 2024 September saw the lowest rates since June 2023. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate fell by 32 basis points to 6.18 percent. The Federal Reserve slashed the federal funds rate by 50 basis points and has suggested at least one more rate cut this year.  

Single-Family Permits Fall

Statewide, building permits decreased by 1.2 percent MOM in September. Except for San Antonio, which was up 1.2 percent, the Big Four had a downward trend with Dallas falling 5.4 percent (4,021), Austin 3.4 percent, and Houston 1.2 percent.    

Single-family construction starts fell after monthly increases since July 2024. Seasonally adjusted statewide single-family starts decreased 2.7 percent MOM to 13,170 units. Most of the Big Four fell in September. Dallas fell the most at 8.8 percent (3,126), followed by Houston at 3.7 percent (4,463) and Austin at 1.6 percent (1,524). San Antonio, meanwhile, increased by 4.1 percent (895). 

The state’s total value of single-family starts climbed from $22.77 billion in September 2023 to $28.9 billion in September 2024. Houston accounted for 35.6 percent of the state’s total starts value followed by Dallas with 27 percent.  

Home Price Rose Slightly

Texas’ median home price rose 0.9 percent MOM in September from $334,836 to $337,698 (Table 2). San Antonio grew by 2.9 percent at $307,363 and Houston by 1.3 percent at $337,651. Austin dipped by 1.6 percent to $430,011 while Dallas fell by only 0.1 percent to 394,079.   

The Texas Repeat Sales Home Price Index (Jan 2005=100), which is a more accurate reflection of home price changes, fell 0.4 percent MOM in September but increased 1.7 percent year over year (YOY). Austin’s annual appreciation remains below the state’s average and fell by 0.9 percent YOY in September. 

Source: Texas Housing Insight | Texas Real Estate Research Center

househalloween

Title Insurance Frights: Protecting Your Home from the Unknown

by Real Estate ArticlesTitle Information

At Republic Title, we’ve seen our share of mysterious deeds, ghostly liens, and hidden traps lurking in property transactions. With Halloween just around the corner, it’s the perfect time to share some spine-chilling real estate stories that might make you think twice before signing on the dotted line. But fear not! With Republic Title on your side for title insurance, you can rest assured that with the right support, even the scariest title issues can be managed.

The Curse of the Rollback Taxes

Taxes can be terrifying, especially when they appear out of nowhere—like a ghostly apparition. In one chilling story, an out-of-state investor bought a multi-million-dollar property in Texas without fully understanding rollback taxes. This special tax liability is triggered when agricultural or homestead exemptions are removed. Unfortunately, the buyer’s counsel didn’t account for the potential rollback taxes until just before closing, well past the due diligence period. When they finally calculated the liability, they found themselves facing a hefty $1 million bill. With no other option, they forfeited their earnest money deposit rather than absorb the crushing tax burden.

Lesson learned: Always analyze tax certificates early in the process and estimate rollback taxes before making any big decisions. Don’t let a lack of knowledge become your financial nightmare!

Grave Mistakes: The Haunting of Development Projects

title insurance

Sometimes, it’s not what lies above ground that causes issues, but what’s beneath it. One such story involved a developer who discovered a mysterious gravesite on a survey, right on their future project site. The gravestone was so old that the inscription had worn away, and neither the seller nor the city had any record of it. But until they determined who—or what—was buried there, no permits could be issued.

The seller and buyer hired an investigator, who uncovered that it might belong to a local railroad employee’s dog from decades ago. After a lengthy delay and a permit to move the remains, it turned out that the body beneath was, indeed, a loyal dog. Development could finally proceed, but the months of delay haunted the project’s timeline.

Lesson learned: Thorough surveys and historical research can prevent unexpected delays. It’s
not just about square footage—it’s about what might be resting six feet under.

When Survey Pins Disappear in the Night: The Tale of the Boundary Dispute

title insurance

In a small town, a property buyer thought they had everything squared away after getting a survey. But when they sent their contractor to begin work, an angry neighbor showed up, claiming the land was his. The contractor went back the next day with surveyors, only to find that someone had removed the survey pins overnight, leaving just the empty holes as evidence.

As it turns out, the previous property owner and the neighbor had been feuding over the property line for years—a secret the seller failed to disclose. The dispute escalated into a legal battle that cost thousands in legal fees, all because a ghostly boundary issue resurfaced.

Lesson learned: Always dig deeper—sometimes literally—when it comes to survey details, and ask sellers about any known disputes.

Wire Fraud: The Real-Life Boogeyman

title insurance

Wire fraud might sound like a far-off problem, but it can quickly turn into a real-life nightmare. Imagine a buyer who received new wire instructions through what seemed like a legitimate email from their title company, only to find out that their life savings had vanished into a scammer’s account. Though law enforcement and the bank managed to freeze the funds in this case, many aren’t so lucky. Wire fraud in real estate is a rising threat, with the FBI reporting that losses exceeded $350 million in 2021.

Lesson learned: Always confirm wire instructions with a phone call directly to your title company, and never rely solely on email for sensitive financial transactions. It could save you from a financial horror story of your own.

The Phantom Easement: When Access Vanishes

title insurance

Access to a property is critical, but what happens when that access suddenly disappears? In one story, a property owner owned two adjacent tracts of land.  One had access to a public road, but the other tract was land locked.  The property owner wanted to take out a loan secured only by the landlocked tract.  As a condition for the loan the lender required an easement over the adjacent tract of land to the public road.  The easement was created, but it was created in favor of the lender and their assigns.  When the property owner sold the landlocked tract of land the lender released their lien and the easement went along with it because it was only in favor of the lender and their assigns.  Suddenly, the property was landlocked again, and the title company had to negotiate a new easement, delaying the project and incurring extra costs.

Lesson learned: Review easement agreements thoroughly, and make sure that they’re not tied to specific parties that might change in the future. Otherwise, your access might vanish faster than a shadow at dusk.

Real estate doesn’t have to be a horror story. With Republic Title, you have a partner that’s dedicated to ensuring your property transactions are as smooth and secure as possible. We shine a light on the hidden risks, protecting you from title issues that could turn your investment into a nightmare. Choose Republic Title for peace of mind, and enjoy a Halloween season free from real estate scares. Happy Halloween from all of us at Republic Title!

Source: Title Insurance Frights: Protecting Your Home from the Unknown – CandysDirt.com

Buying real estate and agreement concept. Real estate agents agree to buy a home and give keys to clients at their agency's offices.

Who Picks The Title Company In Texas?

by Real Estate ArticlesResourcesTitle Information
Title Company in Texas

When navigating the complexities of real estate transactions, particularly in Texas, one of the critical decisions involves choosing the title company. A title company plays a pivotal role in ensuring that the transfer of property ownership is smooth, legal, and secure. But who exactly has the authority to pick the title company in Texas? Understanding this process is essential for buyers, sellers, and real estate professionals alike.

The Role of the Title Company

Before delving into who selects the title company, it’s important to understand what a title company does. A title company is responsible for verifying the legal ownership of a property, ensuring there are no liens or encumbrances, and facilitating the transfer of ownership from seller to buyer. In addition, the title company provides title insurance, which protects the buyer and lender against potential liens or disputes over ownership that may arise after the sale is completed.

Title insurance is vital in real estate transactions as it ensures that the buyer receives a clear and marketable title, free from any legal claims that could jeopardize their ownership. Given the importance of this role, selecting a reputable title company is crucial.

Who Chooses the Title Company?

In Texas, the selection of the title company is not set by law, but rather it is often determined by negotiation between the buyer and seller. This decision is typically outlined in the real estate contract during the negotiation process. Here’s how it usually breaks down:

  • Seller’s Preference: In many cases, especially in a seller’s market, the seller may prefer to
    choose the title company. Sellers often have a title company they’ve worked with before or one
    that is familiar with the property often making the process smoother and more efficient.
  • Buyer’s Input: In a buyer’s market or in situations where the buyer has specific preferences,
    the buyer may negotiate to select the title company. Some buyers may prefer a title company
    they’ve worked with in the past or one that is highly recommended by their real estate agent or
    lender.
  • Mutual Agreement: Often, the buyer and seller come to a mutual agreement on which title
    company to use. This agreement is usually based on recommendations from real estate agents,
    past experiences, or the reputation of the title company.
  • Lender’s Role: In some cases, the lender may have a preferred title company, particularly if the
    lender is providing financing for the purchase. While the lender cannot force the buyer or seller
    to use a specific title company, they may recommend one, and their input can influence the
    decision.
Title Company in Texas

Factors to Consider When Choosing a Title Company

Whether you’re a buyer, seller, or real estate professional, selecting the right title company is a significant decision. Here are some factors to consider:

  • Financial Strength: One critical aspect often overlooked when choosing a title company is its
    financial strength. A financially robust title company is better positioned to pay out claims should
    an issue arise after the sale is completed. Title insurance is only as reliable as the company
    backing it; therefore, choosing a title company with a strong financial standing ensures that they
    can fulfill their obligations, offering peace of mind to all parties involved.
  • Reputation: The reputation of the title company is paramount. A company with a strong track
    record, positive reviews, and a history of successful transactions is likely to provide a smoother
    experience.
  • Experience: The complexity of real estate transactions requires a title company with extensive
    experience. Look for a company that has been in business for several years and has handled a
    variety of transactions.
  • Customer Service: Exceptional customer service is crucial in real estate transactions, which
    can be stressful and time-sensitive. A title company that is responsive, communicative, and
    willing to go the extra mile can make a significant difference.
  • Local Knowledge: A title company with deep knowledge of the local real estate market and
    laws can provide invaluable insight and guidance throughout the transaction process.

Why Republic Title Is the Preferred Partner in North Texas

When it comes to choosing a title company in Texas, Republic Title stands out as the preferred partner for many buyers, sellers, and real estate professionals. As a full-service title insurance company, Republic Title handles the transfer of title for real estate transactions with the utmost care, professionalism, and integrity. Their mission is to provide value to every customer through proven experience, dedicated service, and lasting relationships.

Republic Title’s commitment to exceptional, responsive customer service is unsurpassed. With a track record of success and a reputation built on trust, Republic Title ensures that every real estate transaction is handled with the highest level of expertise. Moreover, Republic Title’s strong financial foundation guarantees their ability to pay claims, providing additional security to their customers. Their deep understanding of the North Texas market, combined with their extensive experience in handling both residential and commercial transactions, makes them the go-to choice for title services in the region.

Source: Republic Title Tip: Who Picks the Title Company in Texas? – CandysDirt.com