Temple Realty Blog

Close to Home

Halloween is right around the corner and the fall festivals are in abundance. The Tech hockey team plays tonight and tomorrow night against Lindenwood. The puck drops at 7:15 pm both nights. They have been in the news quite a bit as of late so let’s go out and support them. They are the only hockey we have. Then on Sunday the 26^th, a Greyhound Meet and Greet will be held at the PetSmart West.

What’s Happening in DC

Some good news regarding the bailout if there is any is that $250 billion of the allocated funds will be used to buy preferred stock in financial institutions rather than just buying bad debt and troubled loans. At least with this proposal, the stocks can be sold and is less likely to be worth nothing. Buying a property that is up for foreclosure has significant expense before you can even think about selling it, much less hoping for a profit.

National Economy

Stocks are down again for the week, but worldwide as well as here in the U. S. The volatility just seems to keep on going. This will probably be the case at least through the election due to the uncertainty of who will be elected.

Existing Home Sales

There is good news in this economic sector with a 5.5% increase in sales in September. According to the National Association of Realtors, the increase is due to homes being more affordable. This could be due in part to prices of existing homes decreasing, foreclosure and short sales, the later two of which made up approximately 40% of the total volume. Regionally, the Northeast is the only area that showed a decreased in volume of sales. All other regions had increase. Median prices have been falling, but with the increase in sales volume so are inventories. However, this trend will likely be temporary as job losses and the continuing credit crisis will hamper individuals capable of buying a home.

Key Interest Rates

Locally as of  4:52:58 PM,  Friday, October 24, 2008

According to the Lubbock MLS for Lubbock County

Active Listings:

• There are currently 1,414 residential properties being actively marketed.
• These properties range in list price from $16,700 to $2,000,000 with an average of $187,714.
• These properties have been on the market for an average of 94 days.

Currently Under Contract:

• There are a total of 239 residential properties that are under contract that have not yet closed.

Sold Properties:

For the week of 10/17/2008 to 10/24/2008

• 29 residential properties have been sold and closed.
• Prices range from $26,083 to $400,000.
• Average Price of these sold $144,702.
• Average DOM 116.

Year to date totals

• 2,807 residential properties have been sold and closed.
• Prices range from $4,000 to $2,000,000.
• Average price $135,483.
• Average DOM 98.

Close to Home

This Saturday is the Oktoberfest at the Hope Lutheran Church and School which is located at 98^th Street and Frankford Avenue.  Lunch will be served from 11:00 am until 1:00 pm.  This is a traditional German fest and bake sale. There will be games, food, and fun. Early voting begins on Monday.

What’s Happening in DC

Luckily, the politicians have not been doing much. Too close to election time I guess.  It seems that lately every time they get together the markets tank. I think this is a sign that many of them should be voted out.

National Economy

The markets have recovered somewhat, but are still trending down. They have leveled off and are not quite as volatile as they have been over the last couple of weeks.  I believe much of this was a much needed correction in the market.  It is my opinion that the stock market has been highly overvalued for several years now. 

For the third straight month new home construction starts have fallen. The weakest area is in the single-family housing sector falling 12% in September. Housing permit have fallen as well which indicates that this sector will continue to decline. The September decline is the lowest since 1991.

Key Interest Rates

Locally as of  5:15:59 PM,  Friday, October 17, 2008

According to the Lubbock MLS for Lubbock County

Active Listings:

• There are currently 1,1416 residential properties being actively marketed.
• These properties range in list price from $16,700 to $2,000,000 with an average of $187,977.
• These properties have been on the market for an average of 92 days.

Currently Under Contract:

• There are a total of 231 residential properties that are under contract that have not yet closed.

Sold Properties:

For the week of 10/10/2008 to 10/17/2008

• 29 residential properties have been sold and closed.
• Prices range from $35,000 to $325,000.
• Average Price of these sold $136,153.
• Average DOM 89.

Year to date totals

• 2,770 residential properties have been sold and closed.
• Prices range from $4,000 to $2,000,000.
• Average price $135,343.
• Average DOM 98.

That is the first post of the last quarter.

Close to Home

There is not much going on this weekend here in Lubbock, no fair, no music festivals. Even Tech is on the road. I just read an article in the “Texas Realtor” magazine on safety and security. There are some great tips for prevention in there for agents that are out showing property. But, you still have to show them the property and sometimes it is by yourself. It’s great to let people know where you are, who you are with, etc. What happens though when they give you false information or trick you. What if you are just out to dinner with your family, or at the convenience store, and some nut job picks that time to rob the place or just go nuts. What can you do to protect yourself and your family? The police are just minutes away, when this will all be over in seconds. Your best defense against criminals is yourself. That’s why 963 people in Lubbock County got their Concealed Handgun Licenses in 2007. Shouldn’t you be one of those? Give me a call to find out how you can be proactive and get yours too.

What’s Happening in DC

President Bush signed the $700 billion bailout bill this afternoon. We will be sure to hear about the repercussions and who gets the money in the coming weeks. I sincerely hope that the money earmarked for European banks was removed from the bill. We need our money to remain in the U. S.

National Economy

The stock market fell despite the bailout bill passing into law. It appears that investors fear that credit lines will still be tied up, resulting in an overall slowdown of the economy.

Construction Spending

For August, overall spending in construction remained flat, which is better than the slight decline that was expected. This sounds somewhat like good news, except the previous two months were revised downward from their previously stated levels. Surprisingly, residential construction rose slightly in August.

Credit Conditions

This is a quarterly report that I receive that delves into the current and projected credit trends. Categories include bankruptcy, delinquencies, loan standards and household income. According to this report, current bankruptcy levels are high and expected to increase. Delinquencies in consumer credit are rising, as are delinquencies in mortgages. Mortgage applications for both purchases and refinances are low and falling. I believe this trend will continue for sometime. Loan to value ratios are high but falling. Lenders are not willing to lend in consumer loans or for credit cards. Unemployment is increasing and personal income is slowing. These factors have consumer confidence low and falling even lower. With regard to household assets, both stock prices and house prices are falling.

Key Interest Rates

Key Fed Rates	Current	After29-Oct	After 16-Dec	After 28-Jan
Prime Rate	5.00%	4.75%	4.75%	4.75%
Discount Rate	2.25%	2.00%	2.00%	2.00%
Fed Funds Rate	2.00%	1.75%	1.75%	1.75%

Key Interest Rates	Current	1/WK	1/MO
30- Yr Fix/Freddie	6.10%	6.18%	6.18%
15-Yr Fix/Freddie	5.78%	5.85%	5.85%
1-Yr ARM/Freddie	5.12%	5.33%	5.33%
3-Mo LIBOR/Fannie	4.33%	4.76%	4.96%

 

Locally as of  Friday, October 03, 2008,  4:51:17 PM

According to the Lubbock MLS for Lubbock County

Active Listings:

• There are currently 1,382 residential properties being actively marketed.
• These properties range in list price from $16,700 to $2,000,000 with an average of $191,423.
• These properties have been on the market for an average of 90 days.

Currently Under Contract:

• There are a total of 240 residential properties that are under contract that have not yet closed.

Sold Properties:

For the week of 9/26/2008 to 10/3/2008

• 77 residential properties have been sold and closed.
• Prices range from $25,000 to $252,000.
• Average Price of these sold $116,629.
• Average DOM 93.

Year to date totals

• 2,698 residential properties have been sold and closed.
• Prices range from $4,000 to $2,000,000.
• Average price $135,296.
• Average DOM 98.

Close to Home

The fair is winding down with the last day tomorrow. The fourth annual Lubbock Music Festival is tonight and tomorrow. K C and the Sunshine Band are the feature performers tonight and Wade Bowen is tomorrow night. I would also like to announce that I am starting a firearms school specializing in self-defense and personal protection. This summer, I took the Texas Concealed Hand Instructors course so that I could help people get their Concealed Handgun Licenses. I am planning flexible class schedules that will meet anyone’s schedule, as well as women’s only classes and for those interested, private instruction. In addition to concealed handgun classes, I have classes for those with no or little firearms experience. Give me a call for upcoming classes.

What’s Happening in DC

Bailout. That pretty much sums everything going on in Washington. My biggest concern is how much are the presidents and CEO’s of these companies going to make for their poor decision-making. I know that in my business, if I make a decision that loses money, no one comes to bail me out and give me millions of dollars. What our representative do in the coming weeks will be critical to those of us that are in the real estate and finance industries. As far as whether we should bail these companies out or not remains to be seen. My personal opinion is that each individual, business or corporation should face the consequences of their own actions and decisions. On the flip side, I do feel for those who have invested their life savings, pensions, and retirement accounts in these companies and through no fault of theirs will lose big time.

National Economy

Thought it was volatile last week. Nobody knows what is going to happen. I don’t even think the best economist can figure this one out.

Existing Home Sales

Even though existing home sales fell again in August, they remain relatively stable. They are still 10.7% lower than levels from one year ago. Since their peak in September 2005, existing home sales are down 32.3%. The stability in number of sales appears to becoming at a price as median home prices have continued to fall. The median home price is $203,100 as opposed to $224,400 in August of 2007. Inventories of existing homes for sale are down as well.

New Home Sales

New home sales really took a beating with sales being down 11.5% from August 2007 levels. July 2005 was the peak for new home sales and is down 66.9% since that time. The inventory dropped harshly last month, but this is due to decreases in construction. Median prices fell in this category as well from $263,900 last year to a current price of $221,900. This trend is expected to continue.

Key Interest Rates

Locally as of  Friday, September 26, 2008,  4:16:59 PM

According to the Lubbock MLS for Lubbock County

Active Listings:

• There are currently 1,396 residential properties being actively marketed.
• These properties range in list price from $16,700 to $2,000,000 with an average of $190,164.
• These properties have been on the market for an average of 91 days.

Currently Under Contract:

• There are a total of 297 residential properties that are under contract that have not yet closed.

Sold Properties:

For the week of 9/19/2008 to 9/26/2008

• 53 residential properties have been sold and closed.
• Prices range from $17,850 to $380,000.
• Average Price of these sold $156,713.
• Average DOM 95.

Year to date totals

• 2,616 residential properties have been sold and closed.
• Prices range from $4,000 to $2,000,000.
• Average price $135,874.
• Average DOM 98.

Close to Home

It’s time for the South Plains Fair, and that means that fall is right around the corner. It started last night and goes through Saturday, September 27. The concerts this year included Candy Coburn with Mike Pritchard, Night Ranger, Emerson Drive, Los Palominos, John Anderson, Gin Blossums, James Otto, and the Turtles. A lot to do and see besides the concerts, with the exhibits, the midway, and the wonderful fair food. That’s the reason I go. I hope to see you all there.

What’s Happening in DC

The big news is what is Washington going to do about bailing out Wall Street? It appears the markets have rebounded somewhat due to the Washington stepping in. My biggest beef is the way these corporate heads that get the boot and their “severance” package. Why in the world should someone that drove these companies into troubled times be getting millions of dollars to step away and leave the rest of us tax payers to come to the rescue. Woops, I wasn’t going to turn this into a belly aching blog, so I will stop. But I am interested in your views. Come on everybody, let’s start posting some comments. I bet together we can solve the worlds problems.

I just want to remind everyone about the “Daily Rate Lock Advisory.” The button down the left side of the page about half way down.

National Economy

Can we say volatility? The stock market has rebounded closing up yesterday nearly 349 points and is currently up over 330 points. Much of information I am hearing sounds exactly like back in 1985 and 1986. People cannot get a loan unless they have better than stellar credit scores and a substantially down payment to buy anything, automobiles, houses, businesses. I have even heard some talking about bringing back the Resolution Trust Corporation. That may be the only way to get true picture of the problem, and what it is going to cost all of us. Right now, nobody knows how bad it truly is.

Fed Announcements

Tuesday, the Fed held rates unchanged which the stock market took as negative news. Inflation is a strong concern and any decrease in the rates could send it skyrocketing.

Housing Starts

Multifamily and single-family new construction starts are down for a combined decrease of 6.2% in August. Single-family starts are down 34.9% from their levels a year ago and multifamily is down 28.2% for the same period. Reports indicate that builder sentiment along with tighter credit requirements will push new home construction down even further.

Key Interest Rates

Locally as of  5:23:15 PM,  Friday, September 19, 2008

According to the Lubbock MLS for Lubbock County

Active Listings:

• There are currently 1,410 residential properties being actively marketed.
• These properties range in list price from $16,700 to $2,000,000 with an average of $191,645.
• These properties have been on the market for an average of 90 days.

Currently Under Contract:

• There are a total of 303 residential properties that are under contract that have not yet closed.

Sold Properties:

For the week of 9/12/2008 to 9/19/2008

• 48 residential properties have been sold and closed.
• Prices range from $32,500 to $365,000.
• Average Price of these sold $135,420.
• Average DOM 98.

Year to date totals

• 2,564 residential properties have been sold and closed.
• Prices range from $4,000 to $2,000,000.
• Average price $135,553.
• Average DOM 99.

Close to Home

The 13^th Annual Apple Butter Festival is this weekend. Events include various music and children can enjoy a petting zoo, crafts, games and other activities. These events will take place at Apple Country Orchards which are located 4 miles east of Idalou on Highway 62/82. The Tech-SMU football game is scheduled for Saturday. There is a tailgate party starting at 3:00 pm at Raider Ranch. On, Sunday, greyhound owners are having a meet at greet at the new PetSmart on Brownfield Highway. This is a way to meet retired greyhound racing dogs, and see several that are available for adoption. It appears that roller derby is making a comeback as on Sunday, September 14, Roller Derby Revealed will be presented by the West Texas Roller Dollz It will be held at the Civic Center.

What’s Happening in DC

There is not much to report this week out of Washington. It appears the campaigns are just going to battle it out. I still have not received any comments regarding the candidates or their stands on policies and issues. So, once again, I invite you all to post your comments and let’s have a healthy discussion.

I want to direct everyone to a new feature on the website. It is the “Daily Rate Lock Advisory.” This can gives lenders and borrowers information on what is happening on a daily basis that could affect mortgage rates. Look for the button down the left side of the page about half way down.

National Economy

There were several reports due out today. However, none of them have been posted as of this writing. Most will be of little effect to the real estate market.

Key Interest Rates

Locally as of

According to the Lubbock MLS for Lubbock County

Active Listings:

• There are currently 14174 residential properties being actively marketed.
• These properties range in list price from $16,700 to $2,000,000 with an average of $190,738.
• These properties have been on the market for an average of 88 days.

Currently Under Contract:

• There are a total of 308 residential properties that are under contract that have not yet closed.

Sold Properties:

For the week of 9/05/2008 to 9/12/2008

• 43 residential properties have been sold and closed.
• Prices range from $16,000 to $525,000.
• Average Price of these sold $125,888.
• Average DOM 100.

Year to date totals

• 2,508 residential properties have been sold and closed.
• Prices range from $4,000 to $2,000,000.
• Average price $135,696.
• Average DOM 99.

Close to Home

The National Cowboy Symposium & Celebration is this weekend. This is a lot of fun for the whole family. Our son is back in Iraq for his second tour. It almost appears that fall has come early. I have completed all of my continuing education and am legal for another two years as a broker and an appraiser. So get those orders in here. I was selected again to call the state tournament for Little League in Waco. It was a lot of fun, even though it was 100+ degrees everyday, plus that Waco humidity. I will share more exciting news about what’s going on in next week’s edition. Now, on to the business portion. As I told you last week, the format is going to change somewhat. This section and the “What’s Happening in DC” as well as the “Lubbock Real Estate” section will remain pretty much the same. The big change is going to be in the “National Economy” section.

What’s Happening in DC

The Republican selection for vice presidential nominee was quite surprising. The scary thing about that, Sarah Palin is the most exciting candidate of the four. She might actually make the election process a little more exciting.

Congress has been out of session for the summer and is set to return this month. Congressman Neugebauer has been going around the 19^th District on an Energy and Economy Tour. He was speaking with is constituents about what was on our minds. I was unable to attend any of these meetings; however, if any of your were able to go please, post a comment on this blog. Just go to the bottom of this post and click on the Post a Comment, link.

National Economy

This section is going to be a little more detailed with respect to the different subsections below.

Existing Home Sales

This report came out last week from NAR. This report indicated that sales were up in July 3.1%. This included not only single-family, but also co-ops, condominiums, and town homes. The increase in volume is due to buyers coming back to the market as prices have fallen. Even with the increase, sales are still over 13% below the levels from a year ago. However, sales fell here in the South. Inventories are still increasing and prices decreasing with continued foreclosures. Approximately 33% of the volume of sales is from foreclosure and short sales. Housing prices have fallen over 7% during the last twelve months. It appears that the trend is going to continue with increasing supplies and limited buyers due to credit restrictions.

New Home Sales

Good news came out from the new home sales market that came out last week as well. July sales increased 2.4%, but it came on the footnote that June sales were adjusted downward significantly from 530,000 to 503,000 units. Once again, the South region showed declines. It appears that builders have slowed down as the overall inventory of new homes has decreased. Prices are also down for new homes.

Construction Spending

This was the only major report that came out this week, and it confirms that the builders are pulling back with construction spending falling in July by 0.6%. This results in a 4.8% decline over the last year. As referred to in the “New Home Sales” section above, residential construction is down considerably.

Key Interest Rates

Locally as of  Friday, September 05, 2008,  4:49:03 PM 

According to the Lubbock MLS for Lubbock County

Active Listings:

• There are currently 1,424 residential properties being actively marketed.
• These properties range in list price from $16,700 to $2,000,000 with an average of $189,860.
• These properties have been on the market for an average of 87 days.

Currently Under Contract:

• There are a total of 307 residential properties that are under contract that have not yet closed.

Sold Properties:

For the week of 8/29/2008 to 9/05/2008

• 45 residential properties have been sold and closed.
• Prices range from $15,000 to $315,000.
• Average Price of these sold $129,582.
• Average DOM 77.

Year to date totals

• 2,457 residential properties have been sold and closed.
• Prices range from $4,000 to $2,000,000.
• Average price $135,962.
• Average DOM 99.

Close to Home

I apologize for not posting on the site for sometime. This has been an extremely busy summer, especially when Little League got started. I know that is not an excuse, but there it is. I also cannot find the newsletter that I was getting a lot of my information, and have been in search of replacements. I will try to stay more up to date in the future. I will work on getting the next issue out like in the past on Fridays, but this one might end up coming out this coming weekend. Until the next blog, remember that Texas Tech’s first game is this Saturday at Jones Stadium against Eastern Washington at 6:00 pm. The National Cowboy Symposium & Celebration is this weekend from Friday September 4 to Sunday, September 7. This is a lot of fun for the whole family.

What’s Happening in DC

Well, it is an election year, what else can be said. I think Washington and Lubbock put everything on hold until the results are in.

National Economy

This section will probably change pretty drastically as now I am pulling information from several different resources. I will be looking forward to your comments and suggestions in the weeks that follow. 

Close to Home

I apologize for not posting a blog for sometime. I came down with whatever everybody in Lubbock has and that put me way behind in my work. I hope everyone reading has stayed away from whatever is going around and if not, I hope your are feeling better. The good new is our son is back on U. S. soil after his deployment to Iraq. He got back to his home base at Nellis AFB on February 12 and is awaiting his leave to come home and how long he will be here.

What’s Happening in DC

I hate to report that a Farm Bill still has not been passed. The House passed its version about six months ago and the Senate their version about two months ago. Negotiations are in process, but it appears no progress is being made. Neither can even agree on how much to spend.

National Economy

• Prices of imports jumped up in January by 1.7% and over the last year by 13.7%. Most of this gain is due to oil prices.
• According to the NAHB, single-family home sales are up somewhat, projected sales for six month from now are down. This increase has moved the index up from all time lows.
• Housing starts for the last twelve month period are down 27.9%, however, they were up slightly in January. However, this increase was fueled by the multifamily sector. Single-family starts continue their downward trend.
• Mortgage applications plummeted last week 22.6%. Both the refinance and purchase applications index were down sharply. It appears that the Fed’s rate cuts have not flowed into the mortgage market.
• Unemployment figures fell for the week ending February 16, but the four week average rose sharply.
• Stocks for the week declined even after a relatively strong increase on Wednesday. The volatility in the market is continuing on fears of a recessions. Stocks were down most of today but rallied late for the market to close up slightly.
• Next week will be pivotal with an abundance of economic news and data being reported. The Fed is expected to make more large cuts in the rates at the March 18 FOMC meeting. The continuing uncertainty of the economy is fueling these cuts.
• Fixed mortgage rates rose sharply for this week from 5.72% to 6.04% on a 30-year fixed rate mortgage.

Close to Home

Believe it or not, baseball season is fast approaching and I am in the process of recruiting umpires for the upcoming Little League season. If you or anyone you know might be interested give me a call.

What’s Happening in DC

About the only news to report on is the economic package. It seems that there are several hurdles to jump before a final consensus is reached as to what and how much anyone receives.

National Economy

• Mortgage applications increased overall last week according to the MBA. While the purchase index was falling, the refinance index was up sharply.
• The NAR reports that existing home sales fell to their lowest levels since they began keeping these types of records in 1999. It is expected that home sales will remain low or keep falling for the first half of 2008.
• Stocks were falling sharply until the Fed’s emergency discount and fed funds rate reduction. They continued to fall through most of Wednesday, until lower prices entices buyers back into the market. The trend has continued through Thursday, but gave back many of their gains today closing slightly lower.
• The Fed is scheduled to meet again on January 29, and is predicted to cut rates even further by at least 50 basis points and maybe even 75 basis points.
• Rates for fixed rate mortgages have fallen to their lowest levels since 2004. Rates are expected to fall in the short term.