Quoting from an AP report today...
National numbers
Sales rose 2.9 percent in February, the National Association of Realtors said. They last rose in July. In another encouraging sign, the inventory of homes for sale fell. It would take 9.6 months to exhaust the supply of homes for sale at the February sales pace, down from 10.2 months in January.
Local numbers
North Texas existing-home sales, reported earlier, fell in February for the 12th month in a row, to 5,556. However, the pace is off only 10 percent from a year ago.
And although North Texas median home prices fell in February, they are down only 3 percent from February 2007, according to the North Texas Real Estate Information System.
My Opinion...
Personally, I am seeing more buyers in the marketplace vs. a few months ago, less overall inventory (especially inventory of "special" homes), & more sign calls and internet inquiries. The most strength seems to be in the $140,000 to $175,000 range right now. Also, all homes with swimming pools do not have very much direct competition, so they are doing well.
Tuesday, March 25, 2008
Thursday, March 06, 2008
What are mineral rights really worth?
Charles Newman, an attorney with Landamerica Title recently spoke to a group of Realtors in Arlington and shared some very interesting numbers as far as the true value of mineral rights after the gas companies start producing from the well. I have seen many buyers and sellers recently that are expecting a major financial windfall from their lease and this might help quantify what someone could expect..
BARNETT SHALE PRODUCTION PROJECT
Premise: A well produces 2,400,000 cubic feet per day for the first year; production drops in half in second year and to 300,000 cubic feet per day for years 3, 4, and 5. Gas valued at $7.00 mcf.
Monthly royalty of 25% for a 1/3 acre lot in a 400 acre pool.
First year - $105.00/month
Second year - $42.00/month
Third then Fifth year - $13.00/month
TOTAL for 5 years: $2,232.00
If natural gas sold for $9.00 for the 5 years period;
TOTAL would be: $3,033.50
BARNETT SHALE PRODUCTION PROJECT
Premise: A well produces 2,400,000 cubic feet per day for the first year; production drops in half in second year and to 300,000 cubic feet per day for years 3, 4, and 5. Gas valued at $7.00 mcf.
Monthly royalty of 25% for a 1/3 acre lot in a 400 acre pool.
First year - $105.00/month
Second year - $42.00/month
Third then Fifth year - $13.00/month
TOTAL for 5 years: $2,232.00
If natural gas sold for $9.00 for the 5 years period;
TOTAL would be: $3,033.50
Saturday, March 01, 2008
Keeping the Foreclosure Numbers in Perspective
The foreclosure crisis is a regional problem, not a systemic problem.
It could become a systemic problem, of course, but we're a long way from that now.
While the national rate of foreclosure had increased by a whopping 79 percent in the previous year, it was still only 1.033 percent. Since about 30 percent of homes are owned mortgage-free, this means that only 7/10 of 1 percent of all homes are in foreclosure.
In the top 100 housing markets, the average foreclosure rate was somewhat higher, 1.38 percent. Many of the areas suffering the highest increases in the foreclosure rate were rising off a rate that was tiny.
The top 10 foreclosure areas in America are generally areas of extreme price change – changes far from the national average of 46.92 percent home price appreciation over the last five years.
Seven of the top 10 foreclosure areas experienced major price spikes in the last five years.
That pattern continues when you examine the top 25 foreclosure areas as well.
The seven areas with the top price appreciation for the last five years averaged a stunning 91.6 percent increase, nearly double the national average.
It could become a systemic problem, of course, but we're a long way from that now.
While the national rate of foreclosure had increased by a whopping 79 percent in the previous year, it was still only 1.033 percent. Since about 30 percent of homes are owned mortgage-free, this means that only 7/10 of 1 percent of all homes are in foreclosure.
In the top 100 housing markets, the average foreclosure rate was somewhat higher, 1.38 percent. Many of the areas suffering the highest increases in the foreclosure rate were rising off a rate that was tiny.
The top 10 foreclosure areas in America are generally areas of extreme price change – changes far from the national average of 46.92 percent home price appreciation over the last five years.
Seven of the top 10 foreclosure areas experienced major price spikes in the last five years.
That pattern continues when you examine the top 25 foreclosure areas as well.
The seven areas with the top price appreciation for the last five years averaged a stunning 91.6 percent increase, nearly double the national average.
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