Home prices are rising at a higher rate than incomes are growing. While income has ticked up 1-2%, home prices have been growing 5-6% per year. This is creating an affordability crisis. Now homes owned are at a 50 year low at 63.5% of households. Although mortgage rates are at a low of 3.5%. When the supply reaches closer to 6 months – the definition of a balanced market- we will see the best of all worlds: RISING new homes sales, existing-home sale, home and finally a RISING home ownership rate.
Monthly Archives: September 2016
A CONTINUING SHORTFALL of HOMES
Sales of homes in the 2nd half of 2016 face more challenges. That’s because too few homes are available to keep up with demand. The supply level hit 4.7 months. In contrast, when home prices were falling several years ago, the supply hovered between 10 and 12 months. This lead to depressed home prices and rising foreclosures. The next housing “crisis” will be due to a collapse in supply, according to Lawrence Yun, chief National Association of Realtors economist. MORE TO COME!!
5 BILLION DOLLAR EXPANSION of PANAMA CANAL IMPACTS ALL of US
The new Panama Canal expansion will open the canal to larger vessels to land not only in Corpus Christi but Houston and other ports on the Gulf Coast, which impacts all of us. More goods that businesses depend on can be brought to our ports + the economic impact on those ports. It will not only be oil products but items we all live with day-to-day. These larger container ships now have a shortcut to all of us in Texas and the U.S. EXCITING NEWS!!
PROPOSED TAX INCREASE
with the City of Tyler taxes or 22 cents to 23 cents per $100 property valuation. Extra penny will be dedicated to road maintenance projects, specifically seal coats and sealing cracks in roads. Asphalt overlay will be funded through the 1/2 sales tax fund. The average Tyler home with a value of $175,902 will see a property tax bill increase of $17.59 per year of $1.47 per month. Those over 65 years of age OR disabilities will see no increase. Sales taxes make up 42% of the City of Tyler revenues.
5 TOP INDUSTRIES in TYLER & SMITH COUNTY
(1) Health Care & Social Assistance employs 24.5% of workers. (2) Retail Trade employs 12.2% of workers. (3) Accommodation and Food Services employs 9.1%. (4) Educational Services employs 8.8% of workers and (5) Manufacturing 5.7% of workers. About 25.5% of the Smith County workers have attended college or have an associate degree and 16.9% have received a bachelor’s degree or advanced degree.