Preowned home prices in the Dallas area ended 2014 with a 7.5 percent gain from 2013, according to the latest Standard & Poor’s/Case-Shiller Home Price Index.
December’s price increase was slightly lower than the 7.7 percent annual rise reported in November. It’s in line with year-over-year price appreciation during the second half of last year.
“As long as we have a tight sellers’ market, it’s going to be in that area,” said Dr. James Gaines, an economist at the Real Estate Center at Texas A&M University. “The good news is it’s not 12 or 15 percent. “We can live with this for a while.”
The Dallas-area price rise was well above the 4.6 percent nationwide appreciation rate in December.
Dallas had the fourth-highest increase among the 20 major markets that Case-Shiller surveys for its monthly report.
“Movements in home prices show clear regional patterns,” said S&P’s David Blitzer. “The western half of the nation plus Miami and Atlanta enjoyed year-over-year increases of 5 percent or more.
“San Francisco and Miami were the strongest,” he said. “Dallas, Denver, Las Vegas and Atlanta also experienced solid gains.”
San Francisco prices were up 9.3 percent from December 2013 levels. Prices in Miami were up 8.4 percent.
Dallas-area home prices are now almost 13 percent higher than they were before the recession and have risen more than 30 percent since early 2012.
“The affordability is coming down,” Gaines said. “It’s particularly hitting the low- to moderate-income groups.”
Case-Shiller’s study tracks over time the prices of specific single-family homes in each metropolitan area. The index survey does not include condominiums and townhouses.
The median price of homes sold in North Texas by real estate agents through their multiple listing service was 11 percent higher in December from a year earlier.
Source: Dallas Morning News
Steve Brown’s recent article in the Dallas Morning News, “Dallas home prices continue to gain with 7.6% rise over last year” reported the Dallas area is among the top five markets in the country for home price increases in the latest Standard & Poor’s/Case-Shiller Home Price report.
The article also quotes, Metrostudy’s David Brown to say “The Dallas-Fort Worth market is heading into 2015 with even less inventory than was in the market a year ago.”
The Dallas-Fort Worth Metroplex encompasses 13 counties, 9,286 square miles and is a very large housing market. There are several RAC members in the Dallas-Fort Worth area, so if you need information concerning a specific sub-market, please do not hesitate to give them a call.
A recent article in the Wall Street Journal “Dodgy Home Appraisals Make a Comeback” expressed concern over a growing occurrence of appraisals with inflated values.
Digital Risk found that some appraised values were off the mark based on discrepancies that appeared unintentional, though, “at other times, the appraiser’s selection of [comparable properties]…is very hard to justify,” said Thomas Showalter, chief analytics officer at Digital Risk.
Falling mortgage volume is bringing out some of the bad practices that dominated the prior housing boom and makes the need for qualified and experienced appraisers essential – something that an organization like RAC is built with.
One of our members with extensive appraisal experience was able to thwart the pressure because he understood the local market, something not emphasized by lenders today as in year’s past.
Tom Allen, who says he has been an appraiser for 44 years, recalled appraising a house in April for about $450,000 for a loan application with J.P. Morgan Chase & Co. About a week later, Mr. Allen, 68 years old, says he received a request from the appraisal-management company to use two different properties as comparables that had recently sold for around $525,000 and $540,000. Mr. Allen says he refused because the homes were larger, in a more expensive neighborhood and built about 10 years after the property in question.
On September 5, 2014, Relocation Appraisers & Consultants, Inc. (RAC) became the newest member of The Appraisal Foundation Advisory Council (TAFAC). RAC member, Thomas E. Allen, CRP, recently attended the TAFAC’s general membership meeting in Washington, D.C.
TAFAC is composed of 58 non-profit organizations and government agencies, which represent appraisers, users of appraisal services and government agencies. TAFAC serves to involve the public in the appraisal standards and appraiser qualifications development process.
Member organizations of TAFAC represent various professions and occupations. TAFAC currently includes organizations representing appraisers, home builders, real estate brokers, financial institution regulators, federal land acquisition agencies, the secondary mortgage market and the private mortgage insurance industry.
TAFAC makes recommendations to the Appraisal Standards Board (ASB), Appraiser Qualifications Board (AQB) and Board of Trustees (BOT) on major issues pending before the Boards. In addition, recommendations are also made regarding agenda of projects, the selection of task forces, amendments to the Uniform Standards of Professional Appraisal Practice (USPAP), Statements or Advisory Opinions under development by the ASB and revisions to the AQB Appraiser Qualification Criteria and Interpretations/Clarifications.
RAC is very excited about being a member of TAFAC and this opportunity to serve the appraisal industry.
The best U.S. small city to live in has a median household income around $100,000, a healthy but not booming economy, high home values, very low property taxes and isn’t in the Northeast.
Many members of RAC are entrepreneurs, breaking out on their own to startup an appraisal practice. One of our distinguished members, Joseph T. Sodano SRA, SCRREA, SCRP who covers the counties of Morris, Union, Essex, Somerset and Hunterdon in New Jersey, has launched Sodano Appraisal Services, LLC.
As a relocation industry thought leader, Joe has been providing relocation appraisal services since 1977, earning his SRA in 1983 and his SCRP in 2013. He was awarded WERC Distinguished Service Award 2014. His professional accomplishments are too numerous to place in the blog.
Please email Joe and wish him well!
RAC member Ernest “Ernie” Durbin, SRA, CRP, was elected for a three year term to the Appraisal Practices Board of the Appraisal Foundation.
The Appraisal Practices Board is described on the Appraisal Foundation web site as follows:
The APB was officially formed by The Appraisal Foundation Board of Trustees on July 1, 2010. The APB has been charged with the responsibility of identifying and issuing opinions on Recognized Valuation Methods and Techniques, which may apply to all disciplines within the appraisal profession. The APB will offer voluntary guidance in topic areas which appraisers and users of appraisal services feel are the most pressing.
Ernie is also on the RAC board of directors and a never-ending resource of new ideas to RAC members and the industry in his quest to help appraisers become more efficient, making his election to the APB a perfect fit.
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One of the key characteristics of the US housing market in 2014 has been limited supply of inventory. That lack of supply is placing upward pressure on housing prices as demand persists.
Long time RAC member, appraiser and current Secretary/Treasurer Gregg Mitchell, SRA of Mitchell & Associates of Omaha was recently quoted in The Omaha World Herald describing the events that brought us to this condition:
Mitchell described the last two years as an exceptional rebound period where record low interest rates and pent-up demand spurred sales. The spurt peaked last spring and was followed by unsettling national events such as the federal government’s partial shutdown and a rocky rollout of Obamacare. With winter now past and interest rates still low, Mitchell said, activity should pick up.
Here is what he expects for 2014:
“We are really seeing a surge in demand and we’re going to see prices move this spring,” Mitchell said.
For those of you that don’t know me, I’m Jonathan Miller, a long time member of RAC who dabbles in social media. At our recent conference in Dallas I was asked by the RAC Board to help share our membership’s wide array of valuation expertise with the public. This web site seems like a perfect vehicle to do that.
One of the reasons I’ve remained a RAC member for more than half of my 28 year appraisal career is because RAC members are the best residential (and commercial) appraisers in the country. I always wanted to be aligned with RAC – even though my market area has always seen limited relocation work. I knew it was important to maintain access to their collective knowledge so I could continue to grow as a valuation professional…and the membership is comprised of a great group of people.
What began as an organization that literally “wrote the book on relocation appraising” for ERC is really much more than that. RAC members are also known for their appraisal expertise of complex residential properties including litigation support, testimony and reviews. So much so that RAC has incorporated that message into their new tag line – “RAC: Providing valuation solutions for complex residential properties.”
We’ll soon be providing other ways to keep connected and informed so stay tuned!