Dear readers,
Our national media bombards us daily with news of significant reductions in home values, waves of foreclosures and frozen credit markets. Because the Brazos Valley isn't following the national pattern, it is important that homeowners keep abreast of LOCAL market information.
For over a year now, I have carefully watched local residential housing statistics for a sign of a market shift. Here are the October single-family sales numbers.
· Total Monthly Sales for October 2008 were $20,703,142, down only slightly from $20,723,427 in 2007.
· Total Units Sold were 126, which is exactly the same value as 2007.
· The average sales price of a single-family home in the Brazos Valley fell $161 compared with October 2007 to $164,311.
· Average days on the market fell nine days, from 111 days in 2007 to 102 days this year. This number is usually the first to dip during a market shift.
• New listings in October 2008 are up 29 units from 2007, at 324.
I met recently with Marty Cangelose of M. G. Cangelose & Associates, one of the area's busiest residential property appraisers. According to Marty, local home values continue to climb at around 3% per year, as they have done for many years. He says he often includes articles from The Eagle and reports from Texas A&M's Real Estate Center in appraisals documenting the area's strong market.
Mortgage rates today, November 13, 2008, stand at 6.125% for conventional loans requiring a credit score of at least 750. Government backed FHA and VA loans are available at 6.5%. These rates have been steady, with some dips into the upper 5% range.
Local mortgage lenders report an excellent October. Much of the change in the home mortgage industry occurred several months ago, well before we became of aware of the current commercial credit crisis.
Most new loans are through the Federal Housing Administration (FHA), which still allows credit scores as low as 620 and down payments as low as 3.5%. A borrower must have acceptable credit, employment to service the note, a down payment and some reserve.
For parents investing in housing for students, it is very important that your son or daughter have a credit score prior to the application. Do this by adding them as an authorized user to a parent's credit card, or getting the student his or her own card.
Speaking of lenders, I again want to emphasize how important it is to use local lenders. I have a list of several, topped by Brenda Williams at City Bank Mortgagee, that have years of experience, and more importantly, will be there standing by your side through closing. Five out of five of my clients who used out-of-town lenders last summer had difficulty with their mortgage companies on closing day!
Despite our steady market, I would be remiss if I didn't plan for contingencies. Keller Williams International began training our agents for the shift two years ago, and has documented the success of agents in markets that have turned ugly. I know what to watch for, and what works and does not when the market turns.
Details regarding our October housing sales numbers, including graphs, are available on my market reports Website, http://samwhiteproperties.com/mreports.html .
As always, if you have any questions I'm just a phone call, e-mail or text message away.
Best regards,
Sam White
979.574.0626
www.SamWhiteRealty.com
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