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ARG can help make Buying New in Allen TX
THOUSANDS Better!
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2.5% Cash Rebates
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2% Cash Rebates
1.5%+ Cash Rebates
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NEW HOMES PHOTO GALLERIES BY
CITY |
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DALLAS HOUSING MARKET UPDATE FOR WINTER 2008
Why Now may be the best time to Buy a New
Home
by Mike Askins,
Realtor & Partner
11/8/2007 |
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"In Real Estate, Timing is Everything!"
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Buyer Update 01/11/2008!
Now may
be the perfect time to make that new home deal before
the remaining new home inventory is sold out!
Additionally many existing homes and foreclosures are
currently priced at rock bottom prices not seen since
2004. November and December were very active months and
many feel Q1 2008 will continue along the same up trend.
In addition interest rates are down sharply from 2006
levels. If you are a serious buyer, waiting at this
point in time could mean paying more. For sure the jury
may still be out as to overall market direction and only
time will tell if the real estate market has actually
entered phase 1 recovery. |
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Market factors have
changed in 2007 that has
caused many new home
builders to slow down on
new construction starts
in an effort to dry up
inventory and put a
floor under new home
price erosion. This is
especially true in
Allen, Frisco, McKinney,
Prosper, Melissa and the
Collin County region.
What all this may mean
for buyers in the months
ahead will mean steadily
rising prices for new
construction. Why?
Because builders simply
won't agree to build a
new home unless they can
insure a profit for
their efforts. Also
having less finished
'new' homes available
should help builder
specs to sell for a
higher price.
Even though the DFW
market is OK (relative
to other U.S. markets),
it is not as good as it
could otherwise could
be. Much of the local
slow down can be
attributed to tighter
lending requirements
which has reduced the
number of qualified home
buyers. Much of the bad
news coming from the
national news really
does not directly
correlate with what is
happening in the DFW
market because our home
prices are so much less
than the national
average and hence many
forecasters do believe a
rebound in the local
market will begin much
sooner than in other
U.S. markets.
Currently buyers are
realizing 2 excellent
buying factors that in
past time worked in
opposition to each
other. LOW INTEREST
RATES and LOW HOME
PRICES. Normally when
rates are down, prices
go up. However, 2008 is
shaping up to be an
exception to this rule
and this means deals can
be made now while these
2 important factors are
both favoring
buyers.
ARG is committed to
helping our clients find
exceptional home buying
opportunities in
addition to helping them
find the most
competitive area lenders
and the most competitive
home owners insurance
companies. Many of our
clients have also
benefited from cost
savings contractors who
can add important
upgrades to new homes
via an escrow account
that is part of your
mortgage thereby saving
50% - 70% off builder
upgrade pricing. |
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EXAMPLE OF A RECENT
EXISTING HOME SALE
Back in April and May of
2007 a 4300sf 5/4.5/3
NEW home that closed in
April 07 for ~$446K went
back on the market 18
days later when the
owner was suddenly
transferred overseas.
This home took 7+ months
to sell at a price of
~$413K! This gorgeous
modern home is
absolutely stunning! But
this is only 1 example
of what is going on
currently in the local
market place. |
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The chart
below from Hexter-Fair-Title Company shows a
general slow down in real estates sales for
most locations.
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How to Buy LOW
and Sell HIGH |
Generally speaking the yearly and
repeatable "sine wave" pattern affecting real estate prices is
simply a factor of supply and demand. More people are in the market
in the Spring and Summer than in the Fall and Winter and hence
prices tend to be lower in a slower market. No rocket science
aspects about this natural market reaction. Therefore if you are a
buyer, buying in the "off" season and selling during the peak buying
season is a good way to help your personal bottom line.
Depending upon the economic climate of
the year in question price swings of up to 15% or more are not
uncommon.
Additionally interest rates are
typically lower once demand eases in the fall and winter months
which helps to add to the overall savings one can realize when they
purchase a home during this time period.
It has been stated over and over in the McKinney, Dallas area market
that buyers make their equity when they BUY as opposed to when they
sell like in California and other U.S. markets. If you buy during the
"off" months from late August through March you can help yourself lock in
the lowest possible purchase price and hence a probable future equity
position in your new
home should you sell.
2008 is a Presidential election year. Election years,
especially when there is uncertainty in the air about the direction
our country will pursue seems to amplify the down cycle in real
estate transactions and home sales prices. How this will affect our
local market during 2008 is anyone's guess.
During the 2004 Presidential election the Q4 market was non-existent and this lead
to some really sharp discounting which sparked a strong buying surge
in January 2005 when an
incredible number of homes sold. One thing is clear the slow down in
new home construction in the Dallas Area market will certainly
reduce supply and help to stabilize falling new home prices.
If you are trying to find a great
new home bargain, the fall and winter of 2007/2008 may be
your best opportunity for years to come.
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