Real Estate Update

The Dallas housing market is incredibly hot right now!
For these cool winter months, that's a big deal. But you'll find that a lot of Realtors and real estate experts are not too thrilled about it.

Dallas' MLS Communications Director Bill Head tells us "Obviously 2014 was a record breaking year for home sales in North Texas. Here are a couple of nuggets that you might find interesting and more than a bit scary related to inventory and sales:The rate of sale is still far exceeding the number of new listings coming into the market so our inventory is still very low at 2.2 months."

Long periods of scarce inventory can lead to a volatile real estate market. The thought of ending up with a tempestuous housing market (like California's) is not appealing to a lot of us.

"In 2014 we had 116,020 new listings put into the MLS (the highest number since 2009) but with our record breaking sales numbers the sales vs. new listings ratio was 78% (90,028 sales to 116,020 new listings)." says Head.

The December 2014 data indicates there were a total of 16,518 active listings in the MLS. The number of listings priced over $250,000 was only 7,800 - that's for the entire North Texas region. Scary indeed.

State of the Dallas Real Estate Market - January 2015

The 2015 Dallas market has started off with a bang. Despite our low inventory of homes for sale, we've got a lot more activity than is typical for this 'slow' time of year. Higher priced homes are experiencing better sales than we've seen in a long time. That's great news for North Dallas sellers, because this is the area with the biggest concentration of higher priced homes.

Take a look at this graph showing North Texas single family home sales by dollar volume. Hexter-Fair Title charts these monthly figures by year. In December 2014, the dollar volume of home sales shot up to $1.78 billion, which is 22% higher than December 2013. This huge gain was achieved with 12% more transactions.

Our housing market is expected to remain strong in 2015 despite the dramatic decline in oil prices. We all love the cheap gas prices, but the oil business drives a lot of area jobs. Oil industry layoffs or loan defaults to banks could put a damper on the positive momentum of our market. Thankfully, the Dallas economy is diversified and healthy. And so are home sales.
[where: 75230]

How to Research a Dallas Realtor

Since a home is likely the biggest purchase or sale of your life, it pays to do some research before deciding who to hire for that important job.
Always check out your real estate agent Before You Hire one.

There are lots of ways to get the scoop on a Realtor before making that decision. Here are the best tips for how to find and research a Dallas Realtor:

1. Get references - either from some you really trust or from the agent you're considering. Just because you see lots of advertisements from an agent, doesn't mean they are qualified to help you. It just means they spend a lot on advertising. Some of the best agents spend very little advertising themselves. Talk to someone who has actually worked with that agent.
2. Check them out on Google. If they don't have an online presence, that's a big clue that they're not internet savvy. Check out their personal website and their profile on LinkedIn. At the very least, you should be able to find information about the agent, areas they service, their knowledge and how they operate their business.
3. Consider agent reviews on sites like Angie's List, D Magazine Best Realtors, and Realtor.com to find recommended agents. But keep in mind that many sites that feature 'agent ratings' are actually ads for agents. To read tips about that, click here.
4. Review their internet marketing materials. The National Association of Realtors reports that more than 90% of homebuyers start their search for a new home online. How is this agent using technology to market both themselves and homes they're selling?
5. Ask the potential agent these important questions:

• Do you work full-time or part-time as an agent?
• How many years and transactions do you have as a Realtor? 
• Will I be working with you directly or an assistant? 
• How well do you know the other agents in this area and do they know you? A large majority of North Dallas homes are sold to buyers represented by other agents.

[where: 75230]

Episcopal School of Dallas wants to expand into neighborhood

ESD has bought up a block of neighboring homes and proposes to build a lower school on the properties. The school has acquired 7.6 acres of land zoned for residential properties along its southern border - all located on Montwood Lane and backing to South Better Drive.

The school campus, located at Midway and Merrell Roads, houses grades 5-12 and they plan to move their lower school students from their location at St. Michael's church in the Park Cities. The proposed expansion would also allow the school to grow from the current 1,168 students to 1,300.

Any time a business or school wants to convert a residential area of North Dallas, you can expect some resistance from neighbors. And while a school is generally considered a little less intrusive than a commercial business, they both can bring some undesirable results for the folks who live next to them. And because a school doesn't pay property taxes, like a business or home owner, the benefits to the city coffers are negative.

I wonder if we'll see the same neighborhood protests like we recently experienced with proposed developments near Preston Center? Given the players in the game ( including the school's influential parents and board members), this should be interesting to watch.
[where: 75230]

Why you have to sell your house TWICE

When you put your house on the market to sell, all you need is a ready, willing and able buyer. Right? Not so fast.

Almost every house in today's market must be sold 2 times - first to a buyer and second to the bank that is financing the mortgage.
That 2nd sale can be more challenging than the first because the appraisal process has gotten so difficult. If a property doesn't appraise, then a buyer can't get a loan to purchase it.

Too many sellers - and their agents - list a property at a price out of wishful thinking. Imagine finding someone willing to over pay for your house only to be heartbroken when the buyer walks away from contract, gets their earnest money back and you're left unpacking. Not to mention the effect of being off the market for weeks and even under contract to purchase your next home.

A good agent should prove to the owner (with valid comps) that a property is worth the price they want. Be wary of an agent who tells you anything you want to hear just to get your business and then comes back later trying to work you down to the realistic price you should have started with.

Mortgage consultant Bill Ajello with The Lending Partners explains "Surveys show that there was a challenge with the appraisal on almost 20% of all residential real estate transactions. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing."

I always want to show my clients my plan to sell their house – TWICE!  [where: 75230]

Do you need earthquake insurance in Dallas?

Given the seismic activity we've seen this week in the Dallas area, lots of folks are wondering about earthquake insurance.

This morning I got the scoop from insurance broker Clay Hart with Home Team Insurance. Here is what you want to know about earthquake insurance in Dallas:

• Earthquake endorsement insurance is available from just a few companies in Texas. Home Team Insurance is one of them.
• It is inexpensive - only $100-$250 a year depending on the value of the property.
• Earthquake insurance is considered to be catastrophic insurance and carries a deductible of about 10%.
• It's used when there is devastating earthquake damage - which we have no records of in Dallas.
• The chances of significant earthquake damage in Dallas are so low that almost no one has earthquake insurance here. 

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Number 1 Dallas residential real estate company named

The Dallas Business Journal just released its annual Book of Lists, its year-end “scorecard” of the people, companies and industries that make up the North Texas economy.

I'm so proud that Ebby Halliday Real Estate once again topped the list of residential real estate brokerages.

Ebby was again ranked No. 1 on the Dallas Business Journal’s list of the Largest North Texas Residential Real Estate Brokerages with more than 19,500 transactions closed last year. Ebby also ranked No. 1 based on sales volume with a total of $6.44 billion in 2014 sales.

This year marks Ebby Halliday's 70th anniversary of serving North Texas. [where: 75230]