Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

May 18, 2022

Sellers Can Save on Capital Gains

A way for sellers to save money on capital gains when they close.

 

Do you want to keep more of your money when you sell your home? Homeowners are often dismayed when they see how much money they lose to capital gains taxes. Fortunately, you can file for a capital gains exemption.

The first step to getting a capital gains exemption is to pass the ownership-use test. In other words, the home you’re selling must have been your primary residence for at least two of the last five years. You also can’t have sold another primary residence during that period.

You’ll have to report the sale using a 1099-S form. You need to report the gain, even if it is an exemptable amount. If you go over the exemptable amount, you still have to report the gain. If you’re single, the exemptable amount is $250,000, and if you’re married, it’s $500,000.

This exemption is an awesome way for you to save money on your home sale. If you have any questions about the exemption, contact your tax advisor. For any questions about real estate, don’t hesitate to give us a call or send an email. We’d love to help you.

 

 

Posted in Home Selling
May 3, 2022

Can You Buy While Having Student Debt?

Student debt is certainly a burden but you can still buy a house.

 

Is it possible to buy a home if you have student loan debt? 51% of non-homeowners said that their student loans were delaying their home purchases, but your goal may be closer than you think. Homeownership is entirely possible even with student debt.

Recent data from the National Association of Realtors shows that 47% of non-homeowners said that their student loans make it harder to save for a down payment. 45% said that they think they can't qualify for a home loan because of existing debt. Meanwhile, 43% percent said they believe the delay is necessary even though they've never applied for a mortgage.
 

 

“Homeownership is possible even with student debt.”

 

Nearly a quarter of all buyers and 37% of first-time buyers have student loan debt. The average amount is close to $30,000. This means that many other people in a similar situation were able to qualify to buy their homes when they thought they couldn't because of their debt. You may be able to do the same, especially if you have a steady source of income.

You don't have to figure it out on your own; lean on the experts to get the information you need to make an informed decision. Many other buyers with student loan debt are already achieving their homeownership dreams. It's time to take the next step toward making your dreams a reality.

Give us a call or send us an email if you have questions about this or any other real estate matter. We'd love to discuss your options.

 

Posted in Home Buying
April 22, 2022

What Buyers & Sellers Should Know About Inflation

How does inflation impact the real estate market?

 

We’ve been hearing a lot of questions about inflation lately, specifically about how it affects the real estate market. Will home prices drop? Is the market going to crash? Today we’re bringing you the facts about inflation, how it affects real estate, and how it doesn’t.

Inflation is the rate at which the cost of goods increases over time. Experts like to see 2% inflation each year based on the consumer price index (CPI). In the same way that the price of other goods appreciates over time, real estate values go up as well. On average, home values rise 3% to 4% year over year, which tells us right away that real estate tends to outpace inflation.

In 2022, the CPI increased 6.8% over last year, which is abnormally high. During that same time frame, housing values have increased by 16% in the Houston metro.

If you’re thinking about selling your home, know that prices will only continue to rise. This is still one of the best seller’s markets we’ve ever seen. However, inflation will affect other things like gas and groceries, so buyers will have to restructure their budgets, possibly reducing how much they can spend on a home.

 

“If you don’t need to move right now, this is probably not the market for you.”

 

If you’re looking to buy a home, this is a must-move market—you should only move if you really must. If you need to move, you can still take advantage of today’s low interest rates. Rates are on the rise, but you’d be buying in one of the fastest-growing housing markets we’ve ever seen.

Chances are that after you close the transaction in 30 to 45 days, your home will already be worth more than what you bought it for. Keep in mind that it’s hard to say where home values will go, but that may not matter if you plan to stay in the home long term.

If you don’t need to move right now, this is probably not the market for you. It may be better to keep renting or stay in your current home. That way, when inflation normalizes, you can be ready to attack the market.

When that time comes, or if you’re ready to buy a home now, I’ll be right here, waiting to help you. Don’t hesitate to give me a call or send me an email if you have any questions or need assistance. Hope to hear from you soon!

Posted in Home Buying
April 11, 2022

How Should You Price Your Home?

Here’s how you can price your home correctly and get top dollar.

 

Are you looking to sell your home? If so, you need to know how to price your house correctly. Your list price is an important part of your marketing strategy, and if you do it right, you can create a multiple-offer situation and get a fantastic deal. 

 

The first step towards pricing your home correctly is working with an experienced real estate professional. You can plug your house’s information into an online algorithm, but to truly know the value of your home, your agent needs to complete a comparative market analysis. On a CMA, your Realtor will compare your home to those that have recently sold in your area. This is the best way to get an accurate idea of what your property is worth. 


This is why it’s so important to work with an excellent local agent. An experienced and active agent understands your area like the back of their hand, so you can be sure they’re choosing the right pricing strategy for you. An algorithm will just plug in numbers and spit a price out. Meanwhile, a great local agent will consider the unique features of your home.


“To truly know the value of your home, your agent
needs to complete a CMA.”

 

Finding the happy middle when pricing your home is crucial if you want to get top dollar. If you price your house too low, buyers will begin to wonder what’s wrong with it. Then, if a buyer does come, they’ll offer lower than what you could have received otherwise. If you price your home too high, fewer buyers will view your property. This leaves less opportunity to create a bidding war. Instead of pricing your home high off the bat, try to create a bidding war that naturally drives up the price. 

 

Fortunately, you don’t have to price your home by yourself. Reach out to us by phone or email; we’d love to help in any way we can!

Posted in Home Selling
March 17, 2022

Are Home Prices Going To Go Down Anytime Soon?

Four great reasons why our crazy market might slow down soon.

 

Home prices seem like they keep going up and up and up. However, based on our research, we think there may be some relief coming soon. Let's go over the four reasons why that is:

 

1. Investors have been purchasing many homes. In the major cities like Salt Lake City, Utah, or Austin, Texas, investors have purchased more than 50% of homes, especially in the nicer neighborhoods.

 

2. Investors have increased rents. After buying these homes, investors increased the rent to cover their mortgages. Rents have gone up 25%, while the average wage has increased only 5%. That’s a huge difference, and people may stop paying their rent on time because of it. If that happens, investors will have no choice but to put their homes on the market for sale.


“Rising rates might cause some buyers to back out of the market.”

 

3. Interest rates are rising. Last year, interest rates were hovering around 2% at this time. Right now, we’re looking at interest rates around 4% for a 30-year loan, and homes have still gone up in price. This will raise mortgage payments and cause some buyers to back out of the market.

 

4. Gas prices are increasing. Every time gas prices go up, home prices seem to go down. It happened in 2008 and 2001. We’re seeing a huge increase in gas prices, so home prices might drop in a few months.

 

If you’re a buyer who’s exhausted by trying to find a home, we can help. If you are thinking of selling within the year, now is the best time. Just call or email us with any questions; we'd love to help!

Posted in Market Updates
March 11, 2022

Your January 2022 Houston Market Update

Here’s an overview of the market data from January 2022.

 

The Houston Association of Realtors has released the market data for January 2022, so today let’s go through the key details and learn what it means for buyers, sellers, and the market as a whole:

  • Property sales in January rose 9.3% year over year, which shows us that inventory isn’t the problem in today’s market—the real issue is demand. An unprecedented number of people have been moving here from the coasts and up north. Some are moving due to cold weather, and others are seeking more affordable living costs.
  • The total dollar volume has increased by 28.1%, which also shows us that the price of homes has increased.
  • Total active listings on the market were down by 14% between this year and last. That demonstrates that more properties went under contract.
  • The average sales price rose by 16.2% in the last year. In January 2021, it was $325,000, and this January, it was $377,000. 
  • In January of 2021, there were 1.7 months of inventory. That dropped down to 1.4 months this year. This decrease in supply is also due to the level of demand we’re experiencing.
  • Pending sales increased by 15.7% year over year.

“Inventory isn’t the problem in today’s market—the real issue is demand.”

 
If you’re thinking of selling your home, this is the time to do it. Demand is extremely high, so you should expect a lot of showings within the first couple of days after listing. I can walk through your home and give you advice on how to make it look its best and ensure it sells for the most money possible.

 

If you’re a buyer, know that new listings pop up every single day, and one of them might just work for your price range. We’re here to help you find it.

 

Whatever your goal is, if you have questions or need assistance, feel free to give us a call or send an email. We’d love to help you.

Posted in Market Updates
July 31, 2017

Curious About Local Real Estate?

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Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

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You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates