Real Estate Agent Cynthia  Fowler
Cynthia Fowler
(469) 582-0282  Phone icon
Sign up to get new listings emailed daily! SIGN UP LOG IN

Date Archives: February 2022

DFW Real Estate News Home

Subscribe and receive email notifications of new blog posts.




rss logo RSS Feed
Allen TX | 8 Posts
Buying a House | 7 Posts
Coming Soon! | 2 Posts
Coppell, TX | 1 Posts
Covid | 1 Posts
Covid-19 Update | 2 Posts
Dallas TX | 15 Posts
DFW | 5 Posts
DFW Real Estate | 30 Posts
Economy | 42 Posts
Exurb Counties | 2 Posts
Financial News | 1 Posts
Forth Worth TX | 1 Posts
Frisco TX | 5 Posts
Home Appraisals | 1 Posts
Home Prices | 7 Posts
Home Sales | 4 Posts
Home Showings | 1 Posts
Homebuyers | 1 Posts
Homeowner Tips | 1 Posts
Homeownership | 5 Posts
Housing Starts | 5 Posts
iBuyers | 1 Posts
In The News | 4 Posts
Inflation | 1 Posts
Las Colinas TX | 1 Posts
New Build | 1 Posts
Plano, TX | 2 Posts
Relocation | 1 Posts
Renting | 1 Posts
School News | 3 Posts
Taxes | 4 Posts
The Economy | 4 Posts
Zillow | 1 Posts
Dallas | Foreclosure | Fort Worth | Jobs | Home Sales | Coppell | Carrollton | Flower Mound | Real Estate | Plano | Frisco | Relocation | Moving | New Construction | New Building | Home Prices | Home Prices | New Contruction | Growth | Forclosure | real estate | dallas | fort worth | remax | search for homes | Schools | Taxes | Dallas-Ft Worth | Growth | Trophy Club | 55+ Retirement Communities | Frisco | Roanoke | Byron Nelson | New Construction | Jobs | Texas | Schools | Little Elm | Little Elm | Frisco | DART | Commuter Rail | Public Transportation | Argyle | Lantana | New Construction | Fort Worth | RE/MAX | Real Estate | RE/MAX | Real Estate | Southlake | RE/MAX | Sales | Agents | Coppell | Flower Mound | Carrollton | Plano | Frisco | Irving | Relocation | Dallas | real estate | remax dfw | Dallas-Fort Worth | Housing | Real Estate | Economy | buying a house | buying a home | home buying tips | RE/MAX DFW Associates | Colleyville | Grapevine | Selling a house | Las Colinas | Valley Ranch | DFW neighborhoods | Keller | Arlington TX | Bedford TX | Euless TX | Hurst TX | Keller TX | Southlake TX | Selling a Home | area information | Denton TX | homeowner tips | First-time Home Buyer | RE/MAX DFW Associates | purchase offer | Buying a condo | First-time Buyers | Millennial Buyers | Baby Boomers | Retirement Community | Kitchen Remodel | Increase Home Value | Local businesses | St. Patrick's Day | Financing a home | For sellers | Painting tips | Downsizing | Homeownership | Homebuying tips | For buyers | Frisco, TX | Plano, TX | Addison TX | Allen TX | Anna TX | Aubrey TX | Celina TX | Corinth TX | Farmers Branch TX | Garland TX | Grand Prairie TX | Gunter TX | Highland Village TX | Justin TX | Lewisville TX | McKinney TX | Melissa TX | Mesquite TX | Murphy TX | Prosper TX | Richardson TX | Rockwall TX | Rowlett TX | Sachse TX | The Colony TX | Wylie TX | The Market | Zillow | Renting | DFW Metroplex | Interest Rates | Covid | Pandemic | Omicron | Homeschool | Christian Schools | IBuyers | Investors | Showings | Listings | Homebuilding | inflation | Homebuilding Permits | Home Showings | Appraisals | Exurbs | Suburbs
February
27

Covid Omicron Has Peaked and Dropping Rapidly

Just as expected once the Omicron variant had peaked there would be a rapid drop in the number of people testing positive on a daily basis across the United States.    The peak date was Sunday, January 16th, and just 15 days later the number of people testing positive daily has decreased by half.

  • 890,000 daily – Sunday, January 16th
  • 690,000 daily – Sunday, January 23rd
  • 523,000 daily – Sunday, January 30th
  • 397,000 daily – Sunday, February 6th
  • 223,000 daily – Sunday, February 13th
  • 102,000 daily – Sunday, February 20th  

  • New York Times, February 20, 2022
February
26

Homes Sales Surge; Investors Pushing Out First-Time Homebuyers

U.S. home sales unexpectedly increased in January, but investors paying in cash are squeezing out first-time buyers from the housing market amid record low inventory and higher prices.  Existing home sales surged 6.7% to a seasonally adjusted annual rate of 6.50 million units last month. Sales rose in all four regions, with strong gains in the Midwest, the most affordable region. Sales jumped 9.3% in the densely populated South, which is experiencing an influx of residents from other regions as companies embrace remote work.

First-time buyers accounted for 27% of sales last month, compared to 33% a year ago. Rising mortgage rates could make home buying even less affordable for this group.  Individual investors or second-home buyers, who make up many cash sales, bought 22% of homes, up from 15% a year ago. Investors are renovating, and either reselling or renting the homes to take advantage of the hot housing market. All-cash sales made up 27% of transactions compared to 19% last January.

  • Reuters News, February 18, 2022
February
25

Inflation Runs Hot Sending Rents Soaring Across the Country

First gas, then heating and now rents. Runaway inflation is driving rents skywards across America, delivering an average of a 20 percent increase in the U.S.'s biggest 50 cities over the past 12 months, a study details.  The rent spike has stung wallets nowhere more than in the Miami metro area, where the median rent surged to an eyewatering $2,850, 49.8 percent higher than the previous year.  Other cities across Florida — Tampa, Orlando and Jacksonville — and the Sun Belt destinations of Texas and Tennessee, all saw spikes of more than 25 percent in some cities during that time period. Rising rents and high inflation are moving hand-in-hand to become one of the nation's top economic problems.  Economists worry about the impact of rent increases on inflation because the big jumps in new leases feed into the U.S. consumer price index, which is used to measure inflation.

  • Breitbart, February 21, 2022
February
24

But Building Permits Boom in Far-Out Exurbs

Go further North young family, go further North!  The building permit decline didn't occur across the board.   January building permits jumped 87% in Anna.  Permits in Melissa also rose, from 59 in January 2021 to 89 in January of this year, which is a 51% increase.  Denton new home permits jumped 171%, from 77 in January 2021 to 209 in January 2022.  Sherman rose 69%, from 32 in January 2021 to 54 in January 2022.

  • Dallas Business Journal, February 16, 2022
February
23

January homebuilding permits plunge in Celina, Frisco, Little Elm, Prosper

Building permits fell sharply in January in Celina, Frisco, Prosper and Little Elm — some of the hottest markets in North Texas and the nation for new home construction last year.  Celina, the top residential construction market in North Texas last year, dropped 51% in the number of homebuilding permits issued in January compared to the same month last year.  Frisco's building permits fell 48% year over year in January.   Prosper dropped 44% in homebuilding permits issued in January.  The January permit plunge was similar in Little Elm which fell 56%. Homebuilding permits also fell in McKinney, which posted a 22% year-over-year decline in January.

The downturn in some of North Texas' hottest homebuilding markets isn't a sign of diminished demand as much as it is a reflection of higher construction costs. The costs of construction nationwide are the highest seen in 50 years with contractors and homebuilders feeling the effects.    Homebuilding costs jumped by 17.5% year-over-year from 2020 to 2021, the largest spike in this data from year to year since 1970, recent data from the U.S. Census shows.  Homebuilders in North Texas last year were hit by an unprecedented swell of housing demand that prompted the industry to boost its production pace, said Ted Wilson, principal with Dallas-based housing analyst Residential Strategies Inc.  But a shortage of labor and materials has driven up costs and stretched out average building timelines, according to Residential Strategies' most recent quarterly market update.

  • Dallas Business Journal, February 16, 2022
February
22

Out-of-town homebuyers are willing to spend more than DFW homebuyers – what's another 10%

Homebuyers looking to move to Dallas from other regions last year, especially from California and the west coast, were willing to pay 10.6% more than locals, new research finds.  People looking to move to Dallas are willing to pay an average maximum budget of $701,760, while locals are willing to pay up to an average of $634,465, according to a recent report from Redfin.   The company compiled the average maximum list price filters for homes in the saved home searches of its users. The analysis includes cities with at least 3,000 home searchers from inside the metro and 3,000 from outside the metro last year.

North Texas suburbs Plano and Frisco are prime examples of out of state transfreees willing to pay more.  Plano's average maximum for migrants was $695,729 and the average maximum was locals was $646,383 for a difference of 7.6% more. Frisco had an average maximum for migrants of $784,688 and the average maximum for locals was $802,154 for a difference of 2.2% less.

States without income taxes such as Texas and Tennessee are seeing many transplants from California who see that as a deal, said Redfin.   "People moving from the West Coast will pay way over asking price without batting an eye," Geyer said. "It's really hard for locals to compete right now, and it can be devastating for first-time buyers who aren't able to offset high prices by selling a home before they buy a new one."   The number one out of state buyer into Dallas-Fort Worth is from the Los Angeles suburbs.

  • Dallas Business Journal, February 16, 2022
February
11

Builder's Dilemma, "We Can't Just Have a Market Where Only Californians Can Afford It"

After a year of record-breaking construction, North Texas homebuilders are starting 2022 with a backlog of sales and not enough supply.  Dallas-Fort Worth builders sold almost 46,000 single-family homes in 2021.  Even though local builders started more homes than in any market in the country, they can't keep up with demand for new housing units in North Texas.  Don't look for the supply-demand imbalance to end this year, housing analysts warn.  "2021 turned out to be one of the most extraordinary years in D-FW housing history," said Ted Wilson, principal with Dallas-based housing analyst Residential Strategies. "Builders were enveloped by an unprecedented swell of housing demand that prompted the industry to rev up its production pace.  "Unfortunately, as builders rushed to sell houses to the wave of buyers, the resulting surge in starts was quickly met by the reality that there were limitations to the North Texas construction capacity."  A lack of labor, materials shortages and other constraints have driven up costs and stretched out average building timelines, Wilson said Thursday in his firm's quarterly market update.  Unlike in previous housing cycles, North Texas builders can't meet the appetite of consumers.  "There appears to be ample demand to sell houses at healthy margins but the reality is that no one is able to get houses constructed and completed as quickly as they would like," Wilson said.  North Texas housing demand is being driven by a combination of demographics and relocations to the state.  D-FW led the country in single family new home starts last year.

 

Phil Crone, executive director of the Dallas Builders Association, said most of the area's builders are focused on overcoming the unprecedented challenges of the pandemic-impacted industry.  And with the prospect of both higher mortgage rates and construction costs this year, affordability issues will continue to plague D-FW builders.    "We can't just have a market where only Californians can afford it."

  • Dallas Morning News, February 11, 2022

Inflation Concerns Are Sweeping the Nation

February
10

U.S. Housing Costs Surge, No End in Sight

The U.S. housing market shifted into overdrive during the pandemic, with more than 6 million homes selling in 2021 despite skyrocketing prices in many cities.    The median selling price for a home in November, $416,900, was nearly 25% more than it was in February 2020.   In the early weeks of 2022, there's no sign that cutthroat bidding and rising prices won't continue. The total inventory of homes on the market dipped below 300,000 nationwide in early January — less than half of the inventory available before the pandemic.   "It's uniquely challenging for first-time buyers, since they're not benefitting from the increase in home prices," said Realtor.com chief economist Danielle Hale, who predicts more record-high home prices this year. "We don't have prices decreasing in any area of our housing forecast, calling into attention that many of these issues are nationwide." 

  • Bloomberg, February 6, 2022
February
9

Spring 2022 – Expect the Most Competitive in History

Homebuyers got crushed last year as home prices soared at their highest clip on record. Housing economists saw that price growth—which peaked at a year-over-year rate of 20% last year—as simply unsustainable. Their economic models agreed: Among the seven forecast models reviewed by Fortune heading into 2022, every single one predicted home price growth would slow significantly this year.

But over the past few weeks, that consensus is no longer so unified. Now, more industry insiders are throwing out their previous forecasts and replacing them with more bullish short-term outlooks. Indeed, some experts say the 2022 spring housing market might go down as one of the most competitive on record.

Look no further than Zillow. Back in December, the home listing site predicted that U.S. home values would climb 11% this year. Economists at Zillow now say that forecast is too conservative. Their latest forecast finds home prices are set to spike 16.4% between December 2021 and December 2022. If it comes to fruition, it would mark another brutal year for home shoppers.

  • Fortune, February 7, 2022
February
8

ShowingTime Reports – Only 610 Active Listings in the Metroplex

When North Texas homes hit the market, they're getting plenty of attention from potential buyers. The number of showings per home listing is among the highest in the nation.  That's according to the latest data from ShowingTime, a home-showing management and market stats firm.   But the bigger news is the declining available inventory.  As of this past weekend according to a broker report there were only 610 active listings in the Dallas Fort-Worth area, down from over 13,000 active listings at the same time period some five years ago.

  • Dallas Business Journal, February 7, 2022
February
6

When will it be a buyer's market?

Rates are rising, inventory remains historically low and prices are sky high. Is a buyer's market on the horizon? Even as forecasters predict an uptick in homes hitting the market early this year, the most homes under construction since before the Great Recession, and more buyers to be priced out due to already high prices and rising mortgage rates, economists told Inman they don't foresee a return to what has traditionally been known as a buyer's market any time soon.  Sellers remain in the driver's seat, and economists told Inman the country still has a long way to go to settle into potentially new ways of thinking about just what is a normal housing market in the modern age.  So while December 2021 saw more new homes hit the market than at any other time, the country is working its way through a supply backlog that is helping to keep sellers in control.  If you look at demographics, you can say that the current level of construction is pretty close to normal. But what that doesn't tell you is how much behind that total supply is.   "It's still going to take a really, really long time to make up for the last 15 years of a lack of supply coming in," said Nicole Bachaud, economist for Zillow.

  • Inman News, February 1, 2022
February
5

IBuyers flipped 1 in 5 homes to institutional investors in 2021

Image by: Flo Pappert.

One in five homes resold by iBuyers Zillow, Opendoor and Offerpad in 2021 ended up being flipped to institutional investors and other private entities, "a secret pipeline" with the potential to exacerbate inventory shortages in markets where iBuyers are active, according to a Bloomberg analysis.  Bloomberg's analysis of 100,000 property records compiled by Attom Data Solutions found that iBuyers were 60 percent more likely to flip homes to investors in predominantly non-white areas, with thousands of homes sold to landlords backed by KKR & Co., Cerberus Capital Management, Blackstone Inc., and other private ventures.  "These companies go around saying, 'We're going to help mom and pop and inject liquidity into the market,'" Inman contributor Mike DelPrete told Bloomberg. "They don't say, 'We're going to suck up houses from the ordinary market and sell them to Wall Street.' "

  • Inman News, January 10, 2022
February
4

Explosive Growth: Christian Schools and Homeschooling Enrollment

Christian Schools – 12% growth in 2021, 15% Growth Expected in 2022, Homeschooling Tripled in Past 3 Years

You want a Christian School for your child?  Expect a waitlist to enroll.  Homeschooling – unprecedented growth as well.  Some 16.1% of all Black children are now homeschooled.   It's happening in the city.  It's happening in the suburbs.  It's happening in small towns.  Parents are opting for reading, writing, arithmetic – and moral and spiritual values.   Over 35,000 North Texas children have been pulled from public schools in the past three years going to Christian schools or homeschooling.  And this phenomena may accelerate.

Some 750 attendees are expected in March to the Christian Schools Conference in San Diego.  One of the hosts, Association of Christian Schools International (ACSI), state that the growth of faith-based schools in the United States is unprecedented.    One of the reasons is that over 90% of Christian schools remained in-person open over the past two years.  Consequently, student testing and academic excellence continued.  The other reason of course is the parent's belief that the religious schools help provide the moral and spiritual compass for their children.  Based on April 2020 statistics, some 11% of all students in the United States are now homeschooled, up from 3.3% some four years ago.   In addition, approximately 11% of all students now attend either Catholic or Evangelical Protestant schools – a huge increase particularly in the Evangelical schools.

  • Dr Susan Berry, University of Minnesota (excerpts)
February
3

Covid Omicron Has Peaked and Dropping Rapidly

Just as expected once the Omicron variant had peaked there would be a rapid drop in the number of people testing positive on a daily basis across the United States.    The peak date was Sunday, January 16th, and just 15 days later the number of people testing positive daily has decreased by half.

  • 890,000 daily – Sunday, January 16th
  • 690,000 daily – Sunday, January 23rd
  • 523,000 daily – Sunday, January 30th
  • 457,000 daily – Monday, January 31st

  • New York Times, January 31, 2022
February
2

Five to Seven Interest Rate Hikes in 2022

In recent days, investment bank after investment bank has published revised forecasts, and they all predict the same thing: That the Federal Reserve will raise interest rates at a quicker pace this year than anybody would have anticipated just a week ago.  The latest is from Goldman Sachs, which now sees five rate hikes this year, joining Deutsche Bank at that number. Bank of America thinks the central bank will be even more aggressive. It predicts seven 25-basis-point hikes this year, one for each of the remaining FOMC meetings. That would bring the federal funds rate to 1.75%-2% by year-end, essentially hiking up borrowing costs for Americans after years of rock-bottom lending rates.   At last week's meeting, Fed Chairman Jerome Powell gave a clear signal that the central bank will move to raise interest rates as often as needed to tame run-away inflation. "The striking thing about Chair Powell's press conference this week was that he in effect made a compelling case that the Fed should have already hiked rates in the second half of last year," said Ethan Harris, global economist at Bank of America, in noting tell-tale signs of a slowing economy, a turbulent labor market and rising prices. "The only thing missing from the narrative was: 'and so, we are behind the curve and are hiking today.'"

  • Fox Business, January 31, 2022
February
1

Rents Were Up 29% in the DFW Metroplex in 2021

Rising rents are expected to be a driving force in inflation this year

Average rents rose 14 percent last year nationwide with cities like Austin, New York and Miami notching increases of as much as 40 percent, according to real estate firm Redfin. The DFW Metroplex increased 29 percent.  And Americans expect rents will continue to rise — by about 10 percent this year — according to a report released this month by the Federal Reserve Bank of New York.  "Rents really shot up in the second half of 2021," said Daryl Fairweather, chief economist at Redfin. "The pandemic was kind of a pause on the economy and now that things are reopening, inflation is picking up, rents are going up and people are realizing they don't have as much disposable income as they might have thought they had."  Higher rent prices are also expected to be a key driver of inflation in coming months.   The share of first-time home buyers has dropped to its lowest level in eight years, according to the National Association of Realtors. The group estimates that nearly 1 million renters were priced out of the housing market last year because of rising real estate prices and increased competition from wealthier, all-cash buyers.

  • Washington Post, January 30, 2022