The Modern Realtor
A Keller Williams Group
2016 Could Be Your Year For Relocation!
With January in full swing, we're all trying to fit in to our wardrobes after all the holiday treats. The gym is packed with New Year's resolutions and every magazine on the rack has tips and advice on how to make 2016 the best year. If you have been thinking about a major change, 2016 could be your year for relocation!
Get ahead of those waiting to list in March or April by listing now. There are buyers already relocating due to the massive amount of job growth in Plano, Texas alone. FedEx, Toyota, Liberty Mutual, and now JPMorgan are creating opportunity for home owners who have been thinking of selling to take advantage of the buyers flying and driving in as you read this newsletter. We have not even talked about the multi-tower development for State Farm!
If you wait until April to list, your home will hit the market on the MLS alongside hundreds of others and will need to compete with those properties. Buyers are buying right now and there are not a lot of houses listed for them to choose from.
If you have questions about listing or relocation, call Corrie at 972-608-0777.
HAVE A RELO? CALL CORRIE!
When your company has a relocation client coming to Texas, give Corrie a call. We have agents that service all of DFW and Austin. If we do not currently service the area... we have a connection that does. Your relocation client is in good hands with us.
Corrie is our Director of Business Development and Relocation
Who do you know...
Every year we grow by referrals from our friends, family, and valued clients. We appreciate you!
From the Desk of the CEO
How's the market? Will we see a dip? Is North Texas going to crash? Are we headed for a second downturn? Should I buy or sell now....or wait? These are questions we hear in the real estate industry everyday. Although we cannot see into the future, we can predict where the market might shift based on three areas.
2. Interest rates
3. Year over year appreciation
With Texas as a whole giving strong incentives for employers to move jobs and headquarters here, Dallas/Fort Worth has the largest concentration of Fortune 500 Headquarters than any other metropolitan area in the country. We are still seeing a continuation of new jobs coming to DFW and Texas as a whole, so if there is a second downturn, this will insulate us to some degree. When jobs are strong, housing is strong. We typically follow the job market in the housing market by 6-9 months.
The most important topic is interest rates, the Fed has almost all but guaranteed that they will raise interest rates in 2016. This means that the home a buyer could buy at $350,000 if interest rates go up as little as 1%, will cost the buyer $35,000 more in interest paid over the life of the loan. So today a home at 350,000 at a 4% interest rate would be like buying a home at $385,000 at a 5% on the same monthly payment.
Year over Year Appreciation
In the past "crash" North Texas on average saw declines of 11-13% on the high end. There is a possibility with rising interest rates and a softer economy we could see a second dip occur. We would have to lose a lot of jobs in North Texas at a breakneck speed along with some form of a stock market crash to see declines in the double digits (knock on wood). So if we see a 5% decline, let's say for numbers sake, that would mean a $350,000 house would decrease in value $17,500. An increase in 1% in interest rates would offset double that amount in a decrease. We also know that although prices go up and down in a yearly cycle, over a 30 average they go back up if you wait long enough to sell.
So what does this mean for you?
Based on the math we run from those key indicators, we forecast in the spring of 2016 prices will be comparatively lower for the year and interest rates will not hold. Any duo in market will be offset when interest rates go up, and this will greatly affect buying power. We don't know what the rest of the year will bring. If you are considering a purchase or sale in 2016, THIS SPRING IS THE TIME.
If you or anyone you know is looking to buy, sell, or invest in real estate, please contact Corrie Harris at 972-608-0777 or email at Corrie@VanPoole.com
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