July Real Estate Market Report for Fort Worth, Texas
The current real estate market trends in Fort Worth, Texas is best described as “The Good, The Bad and The Ugly”. We’ll address the real estate market trends, interest rates, inventory, and our outlook for the second half of 2010.
The Good News
Real estate mortgage interest rates in Fort Worth, Texas have fallen to historic lows in the last couple of weeks. So before we all anguish over the passing of the Home Buyers Tax Credit, which by the way the extension to get contracts closed, passed the House yesterday, from June 30 to September 30. Now consider this if you are one of these people that waited too long or had your contract fall through. Get back in the game.
Let’s do the math. This week a 30 year fixed rates for real estate in Fort Worth, Texas fell to 4.25% and 3.75% on 15 year loans, for credit worthy consumers. So on a $200,000 loan that’s $154,196.80 paid in interest over the life of the loan. Compare 2 month ago, rates were at 5.25% which the interest paid over the life of the loan is $197,587.80. The First Time Buyer received a $8000 tax credit compared to a savings of over $43,000 in interest for a purchase today. I’m no math wizard but $43,000 is a bigger savings than a $8000 tax credit.
Here’s my observation…interest rates are lowest in History! They aren’t going to zero. The odds are look for a rise in rates from where they are currently. Enormous Government debit will lead to higher rates this year and into next and in my opinion for some time. I don’t believe I’ll see interest rates this low in my lifetime ever again. My advice is… if you are on the fence about buying property, you better get in the game.
Real Estate Market Report for Fort Worth, Texas
Despite a noticeable up tick in housing sales year to date in Fort Worth, Texas, we should be prepared to end the year flat according to David Brown, Director of Metrostudy. Brown was a speaker at the Fort Worth Builders Association’s mid-year Housing Forecast 2010. According to Metrostudy the first half of 2010 sales were 12% higher than the same time in 2009. I think the historic low interest rates will temper that forecast plus Fort Worth, Texas has relative stable employment and continues to enjoy population growth.
I think new home starts in Fort Worth, Texas will continue to be slow mostly because of lack of commitment from investors and banks for their financing.
After dropping last month to the lowest level in 15 moths, the foreclosure postings in the Fort Worth, Texas area were up 7%. That’s 5,654 new postings in the Dallas-Fort Worth, Texas Metro-Plex. Year to date almost 12,000 filings have been posted in Tarrant County alone.
I have enclosed a couple of Market Reports. For all of our detailed weekly market reports for Fort Worth, Aledo, Benbrook, Weatherford, and Burleson Texas go to The Reata Report.
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