6.78% more homes sold in 4th quarter 2013 as the same quarter in 2012.  The median price was $172,600, up 8.48% from the years before.  The average price is up 8.88% to $226,216.  This is data collected by the Texas Association of Realtors and commented on by Dr. Jim Gaines at the TX A&M Real Estate Center.  These increases are consistent throughout the state.  This high demand continued to contribute to a shrinking inventory.  The statewide inventory of homes decreased to 3.6 months from a well balanced market of 6.5 months.  TYLER AND EAST TX ARE STILL HIGHER THAN THE STATE AVERAGE. ” The shortage of inventory could inhibit sales volumes.  With interest rates still down, buyers should continue to expect to compete for desirable properties”.

Now the borrower’s ability to maintain their property taxes and homeowner insurance over the life of the loan will be considered.  Was not before.  This change is intended to reduce lenders’ risk that a borrower fails to maintain the property or defaults on key obligations.  Borrowers will need to set aside part of their loan proceeds to pay for property taxes and insurance or withhold part of their monthly disbursements for these payments.  Lenders are now expected to put both spouses’ names on a reverse mortgage, even if both parties don’t appear on the title to the property.  REVERSE MORTGAGES CAN HELP SOME OLDER FOLKS, BUT MUST STUDY CAREFULLY!!

Federal Housing Administration which insures most  reverse mortgages suffered loan losses, due to market factors and borrower misuse of the program.   The lending formulas are complex, most borrowers will now qualify for a lower principal limit (borrowing power) but more in up-front premiums (the cost of the reverse mortgage).  To encourage borrowers to use for long-term planning (instead of crisis management), borrowers will face new limits on the amount of money that can be taken out at closing and during the 1st year  of the loan.  MORE TO COME

The Federal Housing Administration (FHA) yesterday announced that it is granting expanded authority to lenders to accept electronic signatures on documents associated with mortgage loans.  The new policy, which takes effect immediately, allows e-signatures on origination, servicing and loss mitigation documents, as well as FHA insurance claims, REO sales contracts and related addenda.  For now, e-signatures will not be accepted on the mortgage loan itself.  FHA plans to begin accepting e-signatures on forward mortgage notes by the end of the year.  If YOU ARE DOING AN FHA LOAN, BUT SURE TO GET WITH A LENDER WHO DOES MANY OF THEM, as some lenders to NOT.

Houston is the beating heart of Texas’ and the nation’s oil industry.  With a specialized workforce, producers, drilling and service companies, refiners and pipelines and tankers to transport  the oil, Houston supports every sector the oil business.  Texas is home to about 280,000 employees in oil production and oil services.  Texas has 26.5% of U. S. oil reserves & 29.4% of U. S. natural gas.  Reserves are scattered throughout the state from EAST TEXAS to Eagle  Ford to the Permian Basis & Texas oil worker generally follow the drilling rigs.  With skilled geologists and engineers, along with an abundant supply of experienced workers is key to Houston’s role as the headquarters of the Texas oil industries.

Significant market for manufactured homes in TX, but this industry did not contribute to the subprime-lending situation that led to the housing crisis.  Yet the collateral damage inflicted on us will dramatically affect the way we serve these consumers.  The Dodd-Frank Wall Street Reform and Consumer Protection Act was intended to protect low-income homebuyers, but may instead wind up limiting their housing choices.  Its expected the bill will seriously damage the manufactured home industry by making it more difficult for buyers to obtain financing.  MUST CHECK WITH A LENDER CLOSELY TO BE SURE YOU CAN GET A LOAN FOR THESE HOMES AND WHAT WILL YOU DO WHEN YOU WANT TO SELL A MANUFACTURED HOME?

One can spend an endless amount of money on pet products that can be bought almost anyplace now, not only including big box stores, but local small shops.  Scarves can be bought for dogs and the list goes on and on.  These are the items you want REMOVED from your home when it is on the market as they have NO appeal to a buyer and call attention to animals being in the house.  It is OK to put pets outside, but keep the yard cleaned up and warn buyers and agents dogs are in an enclosure in the back yard and may bark.  Again dogs can change disposition when the owners are gone, so BE WARY!  You can sell a house with pets, but must work ahead.

Barking dogs, cats that shed excessively and animals that cause harm are deterrents to the welcoming feel most people desire when they come to see a property.  Also move “pet  furniture”.  Consider “doggy daycare” or take the pet off the property during showings.  Have the pets bathed and ensure all shots, etc. up-to-date in case of an accidential release.  Be sure outdoor landscaping is cleaned up from pets, including chewed wood, fences in good repair and painted appropriately.  Remove scratches by doors where pets scratch.  Another solution is to crate the pet and have seen that and pets OK and seem to be used to that.  MORE TO COME TOMORROW.

A beautiful cat or friendly dog are just the thing for your family, but another STORY WHEN SELLING YOUR HOME!  Sometimes pets “rule the roost” and that is LESS appealing to potential buyers.  Serious problems when too many pets or owner looses ability to care for them properly.  Particular true of cats, as a few folks are allergic to cat fur and dander.  When the air conditioning/heating are adequate allergens should be almost removed from a home.  Gives you an ideal of the efficiency of the units.  Look for obvious signs such as bowls and toys, scratch marks, smell of feces and fur and carpet stains.  CONTINUED TOMORROW

The Texas economy gained 2.5% from November 2012 to November 2013, but 1.7% for the United States, according to the Real Estate Center at TX A&M.  The state’s nongovernment sector grew to 2.8% compared to 2.1% nationwide.  The state’s actual unemployment rate was 5.8%.  Midland has the lowest unemployment rate, followed by Odessa, Amarillo, Abilene and Lubbock.  All Texas metro areas except Wichita Falls and Texarkana had more jobs as well.  Texas’ professional and business services industry ranked first in job creation.  Tyler and East Texas are DEFINITELY included in the uptick of jobs, but lower employment.