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7 Reasons to Own Your Home

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.

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Tax credit fuels skyrocketing Dallas-area preowned home sales

07:28 AM CST on Tuesday, December 8, 2009
By STEVE BROWN/ The Dallas Morning News

The North Texas housing market came roaring back in November.

Pre-owned home sales rose 31 percent last month from a year ago – one of the biggest increases on record and the second consecutive month of rising sales.

Median home sale prices were up 5 percent, the largest gain in more than two years.

“This is another positive signal that the local housing market may have turned the corner,” said D’Ann Petersen, business economist with the Federal Reserve Bank of Dallas. “It is probably still too soon to declare a rebound, but two months of positive sales certainly suggest improvement.”

Throughout North Texas, real estate agents sold almost 5,500 pre-owned homes in November through the Multiple Listing Service, according to statistics released Monday by North Texas Residential Information Systems and the Real Estate Center at Texas A&M University.

The jump in residential transactions came as homebuyers rushed to take advantage of the federal homebuying tax credit, which has been extended into the spring.

“While the tax credit likely played a role in some of the activity, increased sales in areas unaffected by the tax credit suggests buyers are becoming more confident that the worst is behind us,” Petersen said. “Home prices have firmed locally and nationally, and that may be spurring buyers to make decisions now, especially given that mortgage rates remain very attractive.”

Indeed, many neighborhoods that weren’t affected by the federal homebuying incentive saw dramatic spikes in home sales.

In the Park Cities, pre-owned home sales soared 81 percent in November from a year ago. Sales in close-in North Dallas neighborhoods were up by 60 percent.

Condominium and townhouse sales were up more than 60 percent from a year ago.

A different year

November’s robust sales activity is the latest in a string of recent indicators that suggest that the North Texas home market has bottomed out and may be turning the corner.

Through the first 11 months of 2009, North Texas home sales are still down 12 percent from the same period last year.

One reason last month’s home sales look so strong is that the market almost came to a halt a year ago at the height of the economic spiral.

“A year ago, we thought economic Armageddon was at the doorstep,” said Bernard Weinstein, an economist with Southern Methodist University. “So no one was doing anything, including buying homes.

“The percentage gains in home sales are very impressive,” he said. “But remember, they come off of significantly depressed numbers a year ago.”

Still, the unexpected spike in home sales in affluent areas – where buyers had all but pulled out of the market in recent months – is a strong positive sign.

High-end home sales had been down more than 40 percent earlier this year.

James Gaines, an economist for the Real Estate Center at Texas A&M University, said that it shows “lenders opening coffers for high-priced, credit-worthy borrowers.”

“Most people with money can’t figure out where to invest, so buying a home in the best locations for the long term is not a bad investment,” he said.

Limited inventory

But buyers who decide to test the waters in the home market might not find as many options as they expect. The number of homes listed for sale in the MLS is at its lowest level in more than three years.

And at the end of November, the inventory of unsold homes on the market fell below six months, which is considered a balanced market.

“If the inventory remains below a six-month supply like it is now, prices should continue to firm up,” said David Brown, who heads the Dallas office of housing analyst Metrostudy Inc.

But Brown cautions not to expect continued big increases in monthly home sales.

“I won’t be surprised to see a drop-off in sales during December and January now that the urgency of the tax credit deadline has passed,” he said. “The expansion of the tax credit to include move-up homebuyers should help spur sales early next year and into the spring.

“Beyond next spring, job growth will need to re-emerge to maintain the increased sales pace.”

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House Hunters, “Revel in the Redrocks”

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House Hunters, “Planning for the Future”

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House Hunters – “A Second Home for Snowbirds”

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Don’t Forget the Trees

When you’re buying a home, it’s common to consider the kitchen, bathroom, living space, and other indoor amenities, but don’t forget the outside, especially the trees.

Trees are a bigger part of real estate than you may think. For one thing, you may find that you prefer older neighborhoods, and established trees are a big part of the appeal of these areas.

Trees also affect property values: well-cared-for, mature trees add value, whereas poorly maintained trees can be a significant detraction. According to the International Society of Arboriculture, a tree’s value is based on four factors: tree size, tree type, tree condition, and overall tree location based on its functional and aesthetic purposes.

Residential lots with good trees are a wise investment because landscaped homes are more valuable than non-landscaped homes.

It’s not just about how the house looks, either. Rising energy costs are a concern these days—you can use trees to save on energy. Well-placed, established shade trees are a good way to keep the sun away from your home and lessen your cooling needs during our long Texas summers. It’s difficult to quantify the savings due to many variables, but savings can approach or surpass 10% of a summer electric bill.

Trees don’t just provide relief in the summertime, either. Consider a species like cedar for use as a windbreak from the cold northern air that blows during winter. You may find that you can enjoy similar savings from keeping that wind off your home during the heating season.

There are benefits to large trees, but there are maintenance issues and cost to consider, as well. What’s the tree’s life cycle? Is it healthy and in a smart place? Will the tree need trimming? Also, remember that trees spread out underground as much as they do above ground, so consider the proximity of the tree to the home’s foundation and underground plumbing.

Additionally, pruning or removing trees, especially large ones, can be dangerous work. Work of this nature should be done only by those trained and equipped to work safely in this environment.

Even when weighed against the cost of purchase and maintenance, trees are an important consideration in a real estate transaction. Strategically placed trees can improve energy efficiency in both the summer and winter, make your home more desirable, and have a positive environmental impact.

Texas Association of Realtors®

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5742 Brushy Creek Trl., Dallas $300,000 (Another One Sold!)