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DFW Housing Market

29 Oct

Forget stocks.  After four years of plunging home prices, the most attractive asset  in America is housing.

Don’t let the national news scare you off.
Foreclosures in Florida, California and Nevada are irrelevant if you’re
thinking of buying in Texas.  The big picture is that interest rates are
ridiculously low, housing prices have crashed and in most places its cheaper to
buy than to rent.

Right now rates on 30 year mortgages are around 4.5% and
3.75% on a 15 year.  Assuming rates will stay at this level or even go
down more seems risky at best.  All forecasts point toward a continuing
upward trend through 2012.  If you purchased a $200,000 home today on a 30
year fixed rate at 4.5% your monthly principle and interest payment would be
$1,013.  But lets say you wait to see how much lower home prices may get
and during that time rates go to 5.625%.  You would need home prices to
fall nearly 12% to come in at the same monthly payment as you could get
now.

I believe that since the market peak of 2006 the worst of
the price decline is likely over.  I’m not suggesting we will see
surging price gains but I do believe we are at a turning point where we are
moving from steeply falling home values to an extended period of
stabilization.  Look at supply and demand. DFW is leading the nation in
job growth and has been one of the top job and population growth centers over
the last decade.  Our population is increasing and our inventory  is
and will be getting thinner.

More people than ever have been renting due to a number
of reasons.  The days on market for a rental property is less than we have
seen in a long time and in turn, rental rates have increased.  With home
prices and interest rates at an all time low, combined with the mortgage
interest tax deduction, purchasing is a much more affordable and sound
financial decision.

I understand there are still some road blocks
along the way to recovery. People may be worried about their employment and economic uncertainties.    However, most likely the economy will
continue its uneven recovery into 2012 along with the DFW housing market.
If that’s the case, and your in the market, this is a great time to buy.

Jeff Barnes at Willow Bend Mortgage

FIND A HOME             SELL YOUR HOME

 

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1 Comment

Posted by on October 29, 2011 in The Market, Uncategorized

 

Tags: , , , , , , , , , , , ,

One response to “DFW Housing Market

  1. E-bike

    November 15, 2011 at 7:41 PM

    Thanks for the info. And a response from you.

     

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