Real Estate Market News for January – Leslie Lerner Properties – Houston Realtor

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Happy New Year!  The holiday season came and went and the real estate market never slowed down. Leslie Lerner Properties was fortunate enough to list and sell several homes during the last few months of the year and 2014 is starting out with a bang.  Phones are ringing and people are ready to start listing and buying houses.  If you are thinking about selling, now is a great time.  Inventory is low and people are snatching up homes as soon as they come on the market.  If 2014 is the year you are thinking about buying or selling a home, always feel free to call Leslie Lerner Properties to discuss the current market data or to find out more about our flat fee listings and rebated commissions.  You can save thousands of dollars with our cost-saving approach to real estate commissions.

Continue reading to learn more about the latest Houston area real estate market news and Rob Hanlen’s overview of new lending laws that were implemented this month. Also, remember to browse our current listings. You never know, you may find a home you or a friend may like.

2013 WAS AN AMAZING YEAR FOR REAL ESTATE SALES

While home prices rose and inventory shrunk to new record lows, December marked the 31st consecutive month of positive home sales. The outpouring of home sales in the Greater Houston area has been influenced by the addition of more than 86,000 jobs that drew buyers and renters from all around the country and world.

According to the latest monthly report prepared by the Houston Association of REALTORS® (HAR):

  • Single-family home sales increased 14.3 percent year-over-year, accounting for the market’s 31st consecutive monthly increase;
  • Total dollar volume jumped 24.2 percent, increasing from $1.4 billion to $1.8 billion on a year-over-year basis;
  • Single Family Home Sales Broken Out by Price Range:
    • $1 – $79,999: decreased 29.4 percent
    • $80,000 – $149,999: decreased 7.7 percent
    • $150,000 – $249,999: increased 19.6 percent
    • $250,000 – $499,999: increased 40.7 percent
    • $500,000 – $1 million and above: increased 29.8 percent
  • A 2.6-month supply of inventory of single-family homes is the lowest level of all time and is lower than the national average of 5.1 months;
  • 2.9 months inventory of single-family homes is down from 3.1 months in October 2013 and from 4.1 months in November 2012 while comparing to the national average of 5.0 months;
  • Sales of townhouses/condominiums rose 15.4 percent year-over-year;
  • Single-family home rentals rose 7.8 percent compared to December 2012 while rentals of townhouses/condominiums climbed 9.8 percent.

>>Read the full press release.

NEW LENDING LAWS FOR 2014
Provided By: Rob Hanlen, Network Funding, LP
Phone: 713.298.2300  Email:  [email protected]

A new year and new implementation of Dodd-Frank by the CFPB.  New for 2014 is ATR (Ability to Repay) and QM (Qualified Mortgage Policy).   Here is the quick breakdown of how this affects mortgage underwriting going forward.

Overall mortgage debt to income ratios will be a maximum of 43% OR meet approve eligible status when the file is run through the automated underwriting system for Fannie Mae or Freddie Mac.   These systems have a way of qualifying a mortgage through the software system that takes into consideration credit history, credit scores, income, debt, down payment, loan amount and assets to produce a system approval or ineligible.   This system is used to pre-qualify borrowers so we know up-front of the loan is an acceptable loan for Fannie Mae or Freddie Mac based on the applicants information from their loan application.   Of course this does not guarantee loan approval, which is subject to supplying documentation to back up all information from the application.

Also new for 2014 is the 3% rule.  Points and fees for mortgage loans cannot exceed 3% of the loan amount.  This applies only to fees/points collected by the lender.  Appraisal is considered in the 3% rule is that lender also has an interest stake in the appraisal management company.  Loan amounts between 60-100k will have a maximum of $3000 in costs.  Loan amounts from 20-60k will have a 5% max cap.

Borrowers will also be offered a rate without discount points (or cheapest rate available) and also the lowest rate available with 1% discount fee or less.  This will help borrowers decide if paying more for a lower rate upfront is beneficial for them in the long run.[/wpcol_2third][wpcol_1third_end id=”” class=”” style=””]

All of the service, for less money!

LESLIE LERNER PROPERTIES WILL:

  • List Homes $300,000 – $799,999 for $4,500
  • List Homes $800,000  and up for $12,000
  • $200,000 – $299,999 for $1.5%
    >>Read More
  • We will rebate 1.5% of the Buyer’s Agent’s Commission if we show you 1 – 3 homes.
  • We will rebate 1% if we show you 4 – 6 homes.
    >>Read More

**BROWSE OUR CURRENT LISTINGS**

 

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