Midland home prices

Photo: Dan Moyle

Two new reports from Local Monitor Report are projecting big increases in home values in Midland and Odessa over the next three years, almost double the national average. Prices are predicted to rise even more.

Home values for Midland are forecast to increase by 8 percent over the next 12 months—compare that to national forecast of 4.6 percent. In the second and third years, values are forecast to increase 9 percent each year, a 26 percent increase in three years.

Midland home prices are projected to increase even more, at 30 percent over the next three years. In the last 12 months, prices have gone up by 7 percent, bringing the average home price in Midland to $183,463.

In Odessa, the report is predicting a 7 percent increase in home values over the next 12 months, and 9 percent in each of the next two years. That’s a total projected increase of at least 25 percent.

Odessa home prices are forecast to increase more, at 29 percent over the next three years. Odessa home prices have increased by 5 percent in the last 12 months, and the average home price is now $210,980.

All this adds up to a “low risk” categorization by Local Monitor Report for real estate investments in both Midland and Odessa, good news for homeowners and investors, alike.

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The Texas Association of Realtors April 2015 Texas Remodel Report shows that homeowners are investing in their homes in several key places. The most money is being spent around the front exterior of the home, including front door upgrades, new siding, and stone veneers.

Jump for more details.

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Impact of Texas

Let’s face it: the Texas real estate industry, and that STILL includes Midland-O,  is in Veuve Clicquot mode right now. Texas home sales had their second best year ever in 2014, selling 66,664 homes throughout the Lone Star state just in the last quarter of 2014. Almost 285,000 homes were sold in the state last year, which means 285,000 commissions for agents. And that does not include newly built dream houses.

“The fourth quarter of 2014 marked three-and-a-half years of continual home sales growth for the Lone Star State and the highest annual home sales volume since 2006 – a testament to the strong and enduring demand of Texas real estate,” Scott Kesner, chairman of the Texas Association of Realtors, said in a recent statement.

Because of low inventory, it was a seller’s market and home prices were up 7.76 percent in the fourth quarter, compared to fourth quarter 2013. The median price of a home in Texas is now $185,900.

And not to be Debbie Downer, but I am wondering if we should start to worry about that three-letter word we love so much in Midland: oil. (more…)

Photo courtesy Charleston's TheDigitel via Creative Commons

Photo courtesy Charleston’s TheDigitel via Creative Commons

DFW rents were 6.2 higher last year, averaging $919 per month, but demand still soared, with North Texas leading the nation in apartment rentals, and vacancies at a 13-year low, according to new real estate research from Zillow and MPF Research.

The increased rent translated to an extra $600 million paid to landlords last year, Zillow reported. For North Texans, that meant a median increase of $35 a month, higher than the nationwide rate of $26.

Rising rents are nothing new, said Zillow Chief Economist Stan Humphries.

“Over the past 14 years, rents have grown at twice the pace of income due to weak income growth, burgeoning rental demand, and insufficient growth in the supply of rental housing,” he said. “This has created real opportunities for rental housing owners and investors, but has also been a bitter pill to swallow for tenants, particularly those on an entry-level salary and those would-be buyers struggling to save for a down payment on a home of their own.”

For 2015, expect more of the same.

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Photo courtesy Creative Commons from Flickr user Simon Hadleigh-Sparks

Photo courtesy Creative Commons license from Simon Hadleigh-Sparks

As we see strong job growth in North Texas, and housing inventory remaining low, it follows that office vacancies should be affected by economic conditions in the area.

A new report issued by Cushman & Wakefield confirms this, stating that only 16 percent of DFW’s office space was empty at the end of 2014. This is the lowest vacancy rate in over a decade.

The lowest level of vacancies was found in North Dallas, averaging less than 9 percent during the year.

Cushman & Wakefield’s report says DFW had the highest net leasing in more than 15 years during 2014, translating to about 5 million square feet of office space rented.

There’s plenty of room for more growth: area developers are currently building more than 6 million square feet of office space, which is the largest volume in North Texas since the 1990s. Much of it is happening at the CityLine development in Richardson. That master plan calls for more than 5 million square feet of office space, as well as 300,000 square feet of retail, and 4,000 residential units.

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Happy New Year! Steve Brown posted his year end wrap of Dallas real estate, residential and commercial, calling it one for the history books. Tis true: Dallas Real estate values are at their highest EVER, exceeding where we were even before the bubble. And he is right — this boom is fueled by the right stuff: jobs and population. We did not overbuild in Dallas during the boom. We did not over extend, thanks mostly to state laws that limit how much you can borrow against your homestead. So when the economy turned on — it was just about two years ago January when agents told me that  “a lightbulb had turned on”  — there was no stopping us except for one little bugaboo: inventory.

Steve says : “Construction cranes stretch from Uptown to Frisco.”

I would say even further north — Prosper is the new hot spot you will be hearing more of here on CandysDirt because we are in love and cannot wait to see what they do with Deion’s place. (If that house ever sells…) And then there’s Celina, just north, and it’s rocking. Spent a day at Light Farms which you will soon be hearing about as we are blown away: 3200 homes on the site of an old family farm that has become a veritable condo farm: tractors, gardens, mini farm plots, Saturday morning Farmer’s Market, a holistic food consultant and even a beekeeper! Here’s the way they describe it: ten minutes from downtown FRISCO.  Whoa, now that’s interesting. Oh the public schools — amazing! Here we go with Steve’s biggies and mine:  (more…)

CaseShiller Oct 2014

Graphic: The Dallas Morning News

So here’s the reason why a lot of Realtors, I do mean a lot, will be drinking Veuve Cliquot tonight: Dallas is one of the top five markets in the country for home price increases, according to the folks at Standard & Poor’s/Case-Shiller.

The numbers from October home sales are in, and Dallas home prices rose 7.6 percent in October from the same month in 2013. Makes me kind of proud we are right up there with Miami, San Francisco and Las Vegas — the only cities with higher price appreciation than us.

The October appreciation was almost identical to the annual increase we saw in September,  7.4 percent.

“We are seeing hints that prices could end 2014 on a strong note and accelerate into 2015,” S&P’s David M. Blitzer said in the report. “Two months ago, all 20 cities were experiencing weakening annual price increases.

“This time, 12 cities had weaker annual price growth, but eight saw the pace of price gains pick up,” he said. “Seasonally adjusted, all 20 cities had higher prices than a month ago.”

And you may need a sip or two of bubbly to comprehend this fact : Dallas-area home prices are 13 percent higher NOW than they were before the recession hit. That’s right, we have out-bubbled the bubble.

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4326 Lorraine

Back in the fall a few real estate pros said, “this is the peak”.

Were they right?

Take 4236 Lorraine Avenue, one of my favorite Highland Park homes originally built for Tim Headington, but bought and remodelled by Al Hill who brought in Elizabeth Robertson to completely renovate. The 14-year-old mansion was designed by  architect Patrick Ford. Originally the home was listed at $6.4 million. Then that real estate dynamo Caroline Summers of Briggs Freeman Sotheby’s got the listing and worked it, worked it, worked it.

The home, which is stunning, closed October 24 for $5.7 million. The 6,574-square-foot Mediterranean home in Highland Park sold for $867 per square foot, not too shabby.

And Caroline tells the Dallas Business Journal that she has been involved with three $5 million plus deals in Highland Park just since November.

“In the past 400 days, all of the sudden, the market has turned into a frenzy. This has been a phenomenal year.”

No kidding. (more…)