As the housing market in Abilene experiences notable shifts, it’s crucial to stay informed and adapt to the evolving conditions. In this blog, we’ll discuss the changing market trends and provide valuable guidance for both sellers and buyers.
Market Analysis:
1. Increased listing inventory: We’ve observed a substantial rise in available listings, indicating a more competitive market environment.
2. Slight pullback in sales prices: While prices have experienced a minor adjustment, it’s important to note that certain price ranges continue to demonstrate resilience.
3. Impact of interest rates and banking turmoil: Buyer activity may have been tempered by fluctuations in interest rates and banking uncertainties.
Seller Recommendations:
1. Align expectations with market conditions: If your home falls outside the updated and well-maintained criteria within the desirable price range, it’s time to reassess pricing and be realistic about your selling prospects.
2. Prioritize curb appeal and updates: Enhancing your home’s curb appeal and making necessary updates are key factors in attracting buyers in the current market. Work with your REALTOR to identify areas for improvement.
3. Price competitively: Setting the right price based on current market dynamics is crucial for attracting potential buyers and expediting the selling process.
Buyer Guidance:
1. Interest rate outlook: It is anticipated that interest rates will remain around 6% or potentially lower by year-end. However, it’s essential not to rely on substantial rate changes and base your financial planning accordingly.
2. Local lender recommendation: Work closely with a local lender recommended by your REALTOR to explore the diverse loan programs available. Establishing a strong relationship with a trusted lender can enhance your chances of securing favorable financing terms.
3. Property qualification and pre-approval: Avoid potential financing obstacles by obtaining a pre-qualified letter from a reputable local lender. Online pre-qualification may overlook critical information, whereas a thorough assessment from a trusted lender can strengthen your offer.
Conclusion:
Navigating the changing housing market requires adaptation and informed decision-making. By aligning expectations, enhancing your property’s appeal, and leveraging the expertise of your REALTOR and local lender, you can position yourself for success in this evolving market. Stay proactive, flexible, and responsive to emerging trends and opportunities. Contact us to get started!
Buying a home can be a stressful process, especially when it comes to financing. Many people turn to big banks and online lenders for their mortgage needs, but there are significant benefits to working with a local lender. In this blog post, we will discuss the importance of working with a local lender and the benefits it can bring to your real estate transaction.
BENEFITS
Personalized Service – Local lenders offer personalized service that larger institutions simply cannot match. A local lender is more likely to take the time to get to know you and your unique financial situation. They can provide customized solutions and tailor their services to your needs.
Local Market Knowledge – Local lenders are familiar with the local real estate market and can provide insight into the unique conditions of your area. They understand the local market trends and can help you navigate the process more efficiently. They can also advise you on the best loan programs and rates available in your area.
Accessibility – A local lender is more accessible than a large institution. You can often meet with them in person or over the phone, and they are more likely to be available during off-hours. They can also answer your questions quickly and provide you with prompt updates on your loan application.
Faster Closing Times – Working with a local lender can lead to a faster closing time. Local lenders have more control over the loan approval process, and they can work quickly to get your loan approved and closed. They also have a better understanding of the local real estate market, which can help them to avoid delays and quickly resolve any issues that arise.
Community Involvement – Local lenders are invested in the community they serve. They are more likely to support local businesses and charities, and they understand the importance of a healthy local economy. When you work with a local lender, you are supporting your community and helping to strengthen the local economy.
THE REALTOR VIEW
Use Our Resources – One of the main benefits of hiring a REALTOR in the first place is to utilize our connections for a smoother transaction. The lender-REALTOR relationship is a key part of that!
Transaction Failures – When a deal does fall through because of a lender a majority of the time it is an out of town lender. It’s not uncommon for this to occur outside of protected windows for buyers and late into the process. This can cost you several thousand dollars in forfeited earnest money, inspections, appraisals, and other costs.
Review Your Quote – There is a lot of fine print in lending. We find that more often than not the deal you think you’re getting online isn’t quite as good as it may initially appear. Take that quote to one of our local lending partners and have them review it with you so you can be sure you are making the correctly informed decision.
In conclusion, working with a local lender can bring significant benefits to your real estate transaction. From personalized service to faster closing times, local lenders offer a level of expertise and accessibility that larger institutions simply cannot match. If you are in the market for a mortgage, consider working with a local lender to help you navigate the process with ease and confidence.
Abilene Housing Market Update: What You Need to Know
If you’re thinking about buying or selling a home in Abilene, it’s important to stay up to date on the latest housing market trends. Here’s what you need to know:
Prices and Purchasing Power
Thanks to lower mortgage rates, buyers in Abilene have more purchasing power than they did at the beginning of the year. This has helped drive the median sales price back to levels we saw at the end of 2022. However, prices are expected to remain relatively flat throughout 2023.
Days on Market
As the market returns to a balanced state, we’re seeing an increase in the number of days homes are on the market. If you’re a seller, it’s important to make your home as appealing as possible, both inside and out. This can include cleaning up the yard, staging the inside of your home, or doing a few updates before listing.
Mortgage Rates
Good inflation news has helped mortgage rates pull back this month. While there may be some small fluctuations in rates, they’re expected to remain relatively stable throughout the second quarter. By the end of the year, mortgage rates could drop below 6%.
Spring Selling Season
The spring selling season is in full swing in Abilene, and demand from buyers is high. While the number of homes on the market has increased, so has buyer demand, meaning that conditions are expected to remain relatively unchanged. If you’re thinking about buying or selling, now is the time to act!
Why Choose BHGRE Senter?
With so many options out there, why choose Better Homes and Gardens Real Estate Senter, REALTORS for your real estate needs? Our listings in the last 90 days have sold on average 30% faster than the market average, with sold listings selling at 99.3% of list price. Our advertising packages and experience in pricing homes competitively can help you get the highest profit in the shortest time. Plus, our agents are full-time professionals who are dedicated to guiding you through every step of the buying or selling process.
April is Fair Housing Month, a time to celebrate the strides made in fair housing over the years and recommit to the goal of ensuring everyone has equal access to housing.
What is Fair Housing Month, and why is it important?
Fair Housing Month is observed annually to commemorate the passage of the Fair Housing Act, which was signed into law by President Lyndon B. Johnson on April 11, 1968.
The Fair Housing Act prohibits discrimination in the sale, rental, or financing of housing based on race, color, religion, national origin, sex, disability, and familial status.
The U.S. Department of Housing and Urban Development (HUD) enforces the Fair Housing Act and investigates complaints of housing discrimination.
Fair Housing Month serves as a reminder that everyone has the right to access safe, decent, and affordable housing regardless of their race, ethnicity, gender, religion, or any other protected characteristic, and that it is the responsibility of real estate professionals to ensure that this right is upheld.
As REALTORS, we play a crucial role in promoting fair housing practices in the community. These are some examples of how REALTORS promote Fair Housing Month:
Educate themselves and their clients: REALTORS can attend training sessions, seminars, and webinars on fair housing laws to stay up-to-date on the latest developments in the industry. They can also educate their clients about fair housing laws and their rights as homebuyers and renters.
Use inclusive language in their marketing: REALTORS can use inclusive language in their marketing materials to ensure they’re not inadvertently discriminating against any group. For example, they can avoid using words like “young couple” or “elderly” that could be seen as discriminatory.
Display the Fair Housing logo: REALTORS can display the Fair Housing logo on their websites, marketing materials, and office to show their commitment to fair housing practices.
Participate in community events: REALTORS can participate in local community events that promote fair housing and educate the public on fair housing laws.
Support fair housing organizations: REALTORS can donate to fair housing organizations or volunteer their time to support their mission of promoting fair housing practices.
Advocate for fair housing policies: REALTORS can advocate for fair housing policies at the local, state, and federal levels to ensure that everyone has equal access to housing.
There are a few important points for the general public to be aware of as well:
The Fair Housing Act requires any property owner or organization to make reasonable accommodations for any disability.
Equal access is to be provided by all properties when working with REALTORS, regardless of background.
Be mindful of language and advertising that suggests a preference to ward certain groups – this is against the law!
Report discrimination. If you encounter discrimination in the real estate industry, make sure to report it. The National Fair Housing Alliance has a hotline where you can report discrimination, and the Department of Housing and Urban Development (HUD) also accepts complaints.
Everyone has a role to play when it comes to fair housing. By staying informed, working with REALTORS, and providing education we can all work together to make fair housing a reality for everyone.
Days on the market has increased significantly in the last 90 days.
Sales prices have pulled back slightly to start the year.
High demand price ranges are still low on inventory, but improved from most of 2022.
Still a Seller’s Market
While things are much calmer than they were 6-9 months ago, it’s still a seller’s market.
Seller’s are still have to adjust their expectations as multiple offers become less common.
The number and frequency of price reductions has been much higher the last 90 days as the market has adjusted.
Overpricing your property is still one the worst mistakes you can make when preparing to list your home, listen to the advice of your REALTOR!
Homes that are updated between the $200,000-$350,000 price range have a greatly reduced time on the market compared to the overall statistics above.
With the increased marketing time and more calm market having a marketing plan and paid advertising run is more important than it was for most of 2022.
Don’t let your home just be listed, make sure the REALTOR you work with is going to market it!
Interest Rates and Buyers
Interest rates are expected to fluctuate around the 6.5% median for the next several months.
Interest rates are projected to fall below 6% by the end of the year.
The slight pull-back in prices is most likely temporary.
Overall home prices are projected to increase by 2-4% by the end of the year.
Due to price increases these small rate changes are not going to have any significant impact in the near future.
Don’t be afraid to buy the home you like now, and refinance in a few years if interest rates go down.
Our team of specialized experts is standing by! If you have any questions about the market, interest rates, or other questions call us at (325) 695-8000. We will have a specialist in your residential or commercial market interest ready to help you and guide you every step of the way.
Pending sales are in a much better place looking at February
Prices have stayed in the $230,000-$250,000 median range since April of 2022
Mortgage Rates
Mortgage rates are expected to remain in the low 6% range for most of the year. There is a pullback anticipated to occur in the back half of 2023 where we might see rates closer to 5.5%. However buyers should not expect any significant changes up or down. Take a look at the quick thoughts below from one of our National Association of REALTORS economists.
There is plenty of opportunity in the market, it’s just a normal market. Sellers have to reign in their expectations and buyers have to embrace slightly higher mortgage rates while getting to enjoy a balanced market. Mortgage rates are still some of the lowest they’ve been in the past 20 years.
With property rental rates being at an all time high there are many paths to home ownership! Give us a call at (325) 695-8000 to be connected with one of our residential specialists to discuss the various options to get you in a home. It’s a great start to building wealth, and to avoid paying 100% interest on your rental!
Getting mortgage approval is inevitable for most homebuyers unless you pay cash. A mortgage pre-approval letter is a powerful way to get an edge in a bidding war. Plus, mortgage pre-qualification lets buyers know how much house they can afford. Discover how to get through a successful mortgage approval, one of the most crucial steps in the homebuying process.
Consult with a Mortgage Lender First
Eager homebuyers may feel tempted to attend open houses before obtaining a mortgage. However, most sellers expect qualified buyers to receive a lender pre-approval letter. Therefore, the first step to housing success is meeting with a mortgage lender. Your real estate agent can often refer you to reliable resources based on your unique circumstances. Always be honest, so you have the groundwork for turning your situation into approval.
Pre-Qualification vs. Pre-Approval
Often buyers use online loan calculators to see how much money can borrow. While these are helpful tools, they are meant to provide information rather than approval. Usually, a soft credit check is required for pre-qualification, while a hard credit check is necessary for pre-approval. Many factors, such as your current credit score and time at employment, play a role in the approval process. Only a formal letter from your lender stating the mortgage approval amount proves you’re a qualified buyer.
Time to Shop Around
Once you understand the differences between pre-qualification and pre-approval, it’s time to shop around for the best lender. Some lenders may offer better rates and terms than others, depending on your creditworthiness and resources. If you don’t get immediate approval or the rates are high, work with your real estate agent and financial advisor to find a viable lender who works with buyers in your circumstances. Additionally, some borrowers get pre-approval with conditions that must be met before qualifying for a mortgage loan.
Start With a Budget
While mortgage qualification and approval indicate how much house you can afford, budgeting is crucial to maintaining this asset. A home is often the most significant investment of a lifetime. Though you may qualify to buy a house up to a specific amount, consider expenses such as taxes, homeowners’ insurance, mortgage insurance, and home maintenance. Then think about your monthly budget and how much you want to pay for a monthly mortgage. Some buyers decide to get a lower-priced home to ensure they can afford it. Ideally, your housing payment should be about 25 percent of your monthly income.
What Should I Expect for Mortgage Pre-Approval?
A mortgage pre-approval requires a hard credit check, and borrowers often must provide documentation to prove certain financial information. For example, lenders typically look at your credit history, income, employment history, and FICO score. Also, lenders consider your debt-to-income (DTI) ratio and the loan-to-value (LTV) ratio on a potential home for sale. As a result, an appraisal is ordered on the house you want to buy to ensure you don’t pay more for the home than it is worth. Finally, the lender also considers the home’s condition and works with a title company to confirm ownership of the house and verify there are no claims or liens against it before issuing a formal mortgage pre-approval letter.
How Do I Get Mortgage Pre-Approval?
Lenders will look at your finances and expect the documentation to prove the numbers, such as:
Employment verification
Personal identification
Proof of income, including child support, disability, and other payments
Credit history, often a score of 600 or higher is required, with some exceptions
Proof of assets, including bank accounts, property, and vehicle
Debt-to-income ratio (DTI) to show you have the income to cover all financial obligations
Bank statements for the past sixty days
Recent pay stubs
W-2 statements
Social security number
Tax returns and Schedule K-1 (Form 1065) for the previous two years, especially for those who are self-employed, who may also need to supply a profit and loss statement
Divorce papers, if applicable
Death certificate, if applicable, such as a widowed spouse applying for a VA mortgage
A gift letter, if all or part of the downpayment is a gift
Once you submit this evidence to the lender, it takes up to three business days to get your loan estimate and determine whether you are pre-approved for a mortgage. Depending on the mortgage loan, the downpayment may be between zero and twenty percent of the property price. Usually, a pre-approval lasts for one to six months, which gives you enough time to find your dream home. Always check the expiration date to avoid going through this process again.
What if I Don’t Get Pre-Approval?
Some borrowers may be declined by several lenders. Instead of getting frustrated, use the process to determine if financial areas need improvement. For example, paying down debt and saving for a larger down payment could mean the difference between mortgage approval and denial. Determined buyers often change their circumstances within months or a year to get into the right situation to purchase a house.
What is the Difference Between Pre-Approval and Final Mortgage Approval?
A pre-approval letter proves to sellers you are a qualified buyer. A pre-approval can put you ahead of other buyers making an offer in a hectic housing market. Once you make an offer on a home, the formal mortgage approval process begins. First, a home inspection is scheduled to ensure the house is in the proper condition to qualify for a mortgage loan. An appraisal is also done to verify that the house is worth your price. Then the underwriting process begins when your lender verifies your income, debts, and assets to qualify for a loan. If the lender contacts you for more information or documents, respond quickly to ensure you close the deal. Once the formal mortgage approval is issued, you’re ready to schedule a closing.
The homebuying process starts with a dream and mortgage approval. Knowing how much house you can afford makes it easier to shop around and make an offer. With some financial planning, you’ll soon enjoy the advantages of homeownership!
The market is changing, and the wild ride of the past two years is over.
Quick Thoughts
The closed sales decline should be taken with a grain of salt. A slowing market happened right as the holidays began which are a historically slower time.
Annually closed home sales for Abilene are down just over 8% which is a better metric to work with.
Inventory has increased drastically in the last half of 2022.
Prices have remained mostly flat since April, and are expected to remain so for most of 2023.
Seller Expectations
The sweet ride for sellers is over. An important aspect of the rising inventory is also how many new construction homes that are on the market. Your home value is always competing against what buyers can acquire in the new construction market, and they’ve got a lot of options. As of the time of me writing this there are 95 new construction homes sitting active on the market! The lower end price of these options is still in the $225,000-235,000 range.
As a seller you need to take your REALTOR’s advice to heart. You need to be hyper aware of what your pre-existing home offers when a buyer could go buy a brand new everything home for $230,000.
Buyers overwhelmingly show they prefer homes that need little to no work. Why is that? Remodeling is expensive, stressful, and can be difficult. Like many other things in the world supplies are more expensive, schedules are longer, and labor is more expensive. You can spend $20,000 updating a home much quicker these days than you could a few years ago. That is a crucial aspect of pricing your home against new construction when you consider the cost, and hassle, it would take to complete those updates.
It’s a different market, and you need a REALTOR who can give you the good data and advice. Seller concessions can play a crucial role in this, and having a REALTOR who can help you navigate which concessions are the most effective is equally important.
Buyers Get Relief, but Affordability Issues Remain
Getting qualified for a loan can still be a huge barrier for buyers. Rising interest rates, increased cost of living, and tighter lending requirements all play a factor here. The affordability of housing is becoming increasingly more of a problem combined with the price increases of homes the past two years.
Buyers, in most cases, no longer have to worry about trying to see a home the first hour it hits the market to put an offer in. Home buyers are not often having to submit prices significantly above asking price and/or waiving their due diligence items.
For the buyers that can get qualified for a mortgage the market is a much less stressful one. There are still areas with inventory shortage, but it’s much less than it has been.
Looking to 2023
Interest rates are expected to remain in the low 6 range for most of the year.
Prices are expected to remain mostly flat.
Number of sales is expected to slightly decline, which we’ve already seen begin.
Sellers have to adjust their expectations.
Buyers need to be diligent in managing debt and not buying more than they can really afford.
Set two company records for most under contract sales in a single month
Highest company sold volume in 20 years at 66.2 million in closed sales!
Celebrated 65 years of being a locally owned and operated Abilene business
Over 30 non-profits and events supported in 2022
Quality over quantity with outstanding numbers in the image above
Commercial Real Estate Success
31 closed and funded commercial real estate transactions in 2022
1031 Exchange and NNN Investors successfully represented
Retail, Office, and Medical were a majority of transactions
See some of the highlights in our video below:
It’s been a crazy market, and even crazier when you realize there are now more than 730 licensed REALTORS in Abilene. I work hard to make sure they have the best support system in real estate, but none of that matters without their dedication and expertise they bring to clients.
2023 will not be without challenges, but I couldn’t ask for a better team to face it with. So long 2022, but it was a pretty good way to celebrate our 65th year in business here in Abilene.
Happy 2023 and give us a call if we can help you with any of your commercial or residential real estate in Abilene and The Big Country!
November is historically a slower month, and overall home sales were very low
The lower median sales price is largely a factor of the limited volume
Interest rates peaked during November which impacted buyer activity
Moving Forward
Interest rates have pulled back, and are expected to stay closer to 6% moving forward
Prices are expected to remain mostly flat in 2023
Total number of sales is expected to decline
Interest Rate Buy Downs
This is a powerful tool for buyers. Seller concessions are becoming increasingly common again as the housing market returns to a more balanced position. An interest rate buy down is an option you should discuss with your REALTOR and lender when writing your offers. This is the absolute best way to reduce your monthly mortgage payment. A typical concession cost can result in $300-500 reduction in your monthly payment. This is looking at average and slightly above average home prices in Abilene, TX.
There are additional options that can be more short term. The benefits of this would be looking at refinancing in a few years, or even if you might move in a shorter period of time.
With interest rates being so low for several years before this recent rise this tool hasn’t been used in a while. We believe it is highly effective and our team of Abilene REALTORS are here to answer your questions and guide you through the process.
Happy Holidays!
The Better Homes and Gardens Real Estate Senter, REALTORS team is thankful this holiday season. We’re thankful for our amazing team, our wonderful clients, and to have called Abilene home for over 65 years now. The donations and support we’ve been able to give back over this holiday season are only possible because you choose to trust us with your business.
There’s never been a more important time to have an experienced expert on your side. Give us a call if you have any questions about homes or commercial real estate in Abilene, TX!
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