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LUBBOCK REALTOR® September 30, 2013 Phone (806) 795-9533 Fax (806) 791-6529 5015 Knoxville Avenue, Lubbock Texas 79413-4039 2013 Board Officers

AUGUST MONTHLY MARKET COMPARISON

Coby Crump, President

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Nancy Rawls, President Elect Rusty DeLoach, Treasurer Charles Kearney, Secretary Debora Perez-Ruiz, Chairman of the Board DIRECTORS Cynthia Arriaga, 2013—2014

Aug 2012

Aug 2013

Percent Change

Total Residential Property Sales

361

368

1.9%

Total Residential Dollar Volume

$53,633,940

$59,334,674

10.6%

Average Single-Family Sales Price

$148,570

$161,236

8.5%

Median Single-Family Sales Price

$119,750

$132,000

10.2%

Jef Conn, 2013—2014

Total Active Residential Listings

1,662

1,224

-26.4%

Mary Ann Grafft, 2012—2013

Total Pending Residential Sales

216

303

40.3%

Frank Harmon, 2013—2014

Months Inventory*

6.5

3.8

-41.5%

Jacky Howard, 2013—2014

*Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity.

Tara Newton, 2012—2013

Year-to-Date Comparison

Gary Owen, 2012—2013 Jeff Sellers, 2012—2013

Jan-Aug 2012

Jan-Aug 2013

Percent Change

Total Residential Property Sales

2,404

2,956

23.0%

Dan Williams, 2013—2014

Total Residential Dollar Volume

$353,782,947

$454,880,958

28.6%

Jana Wuthrich, 2013—2014

Average Single-Family Sales Price

$147,164

$153,884

4.6%

EX OFFICIO DIRECTORS Cheryl Isaacs, 2011-2013 TAR

Median Single-Family Sales Price

$119,825

$125,000

4.3%

Susan Shakespeare, 2012—2013 Scott Toman, 2012—2013

Director John Walton, TAR Director Lifetime

Categories

Notice on this information:  Multiple Listing Service data is reported to the Real Estate Center at Texas A & M and the National  Association of REALTORS® on the eighth of each month.  Year‐to‐date data may be corrected for information reported after  the eighth.  Neither the association nor its MLS guarantees or is in any way responsible for its accuracy.  Data maintained by  the association or its MLS may not reflect all activity in the real estate market. 

2014 Officers and Directors Elected The following members were elected as Directors for a twoyear term on September 19, 2013:

Currently serving directors that will remain in 2014:

Leigh Anne Brozo

The WestMark Companies

Cynthia Arriaga

Exit Realty of Lubbock

Vanessa Dirks

The WestMark Companies

Frank Harmon

The WestMark Companies

Nathan Jordan

Century 21 John Walton, REALTORS®

Jacky Howard

Coldwell Banker Rick Canup, REALTORS®

Tara Newton

Keller Williams Realty

Dan Williams

The WestMark Companies

Jeff Sellers

The Sellers Realty

Jana Wuthrich

Exit Realty of Lubbock

Susan Shakespeare

The WestMark Companies

2014 Officers  President – Nancy Rawls, RE/MAX Lubbock (ascends automatically per Bylaws)  President Elect – Rusty DeLoach, RE/MAX Lubbock  Treasurer – Charles Kearney, Kearney & Associates, REALTORS®  Secretary – Jef Conn, Coldwell Banker Rick Canup, REALTORS® They will be installed at the Installation & Awards Banquet, January 10, 2014 at the McKenzie-Merket Alumni Center.

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MEMBER NEWS Total Members 825 (↑ 8.3% YTD) 173 Companies │ 648 Salespersons

Video Series Helps You Manage Your Money REALTOR® Magazine is working with REALTORS® Federal Credit Union—a Division of Northwest Federal Credit Union, to publish a monthly video series, “Your Money Matters.” The first video features Victoria Gillespie, national director of business development for the credit union, discussing how real estate pros can minimize surprises at tax time. It seems like a no-brainer to deduct your home-office expenses at tax time, but how big of a deduction do you take? Gillespie has a useful rule of thumb: if your home office takes up 30 percent of your house, then deduct your household expenses at that same rate. That means deducting 30 percent of your mortgage payment, utility costs, and so on. Of course, any tax-deduction decision you make should be done in consultation with an attorney or tax advisor. But Gillespie’s rule gives you something to take to the professionals to see what they say. Gillespie, who has 20 years of banking and investment experience, says incomplete record keeping is the number one reason real estate professionals and other independent contractors don’t take all of the deductions that are available to them. As you can see, correcting that deficiency opens the door for saving a lot of money on your annual tax bill. But how do you know what records to keep? Gillespie suggests you act as if you’re going to be audited tomorrow and keep those records you need to create a clear audit path for all of your deductions.

REALTOR® Applications Companies Kim Snow

Kimberly Realty

Jay House

Jay House

Salespersons Jordan Brunner

Dustin Jones Realty

Daniela Garcia

Desire Realty

Amy Horton

Keller Williams Realty

Wendy Hinkle

Scarlet Matador Realty

Sharon Mirll

Exit Realty of Lubbock

Kayleen Widder

Coldwell Banker Rick Canup, REALTORS®

Linda Day

Coldwell Banker Rick Canup, REALTORS®

Sylvia Espinoza

The WestMark Companies

Jana Adkins

Coldwell Banker Rick Canup, REALTORS®

Morgan Harder

Keller Williams Realty

Vickie Kern

RE/MAX Lubbock

Jackie Jennings

Keller Williams Realty

Jeremy Wells

Payne Family Realty

Pam Staples

Keller Williams Realty

Zach Kopriva

Today in Lubbock Real Estate

Andy Ellis

The WestMark Companies

Vikki LeMond

Lubbock Discount Realty

Larry Hamilton

HomeIndex International Realty

Lance Sampley

Exit Realty of Lubbock

These and Gillespie’s other tips are intended to help you, as Abby Louder Real Living Greg Garrett, REALTORS® an independent contractor, prepare for your taxes all year long. That way, when tax time comes, you have the money Austin Davis Keller Williams Realty set aside to pay your tax bill, and the taxes you pay are the smallest amount, based on your use of all the deductions Bayley Mitchell The WestMark Companies and other benefits open to you. Membership Cancellations You can get these and other ideas on managing your tax Lubbock Real Estate Group (deceased) liability in this five-minute video, which REALTOR® Magazine Lou Ann Flores produced in cooperation with REALTORS® Federal Credit The WestMark Companies Union. In the video, Gillespie talks about being smart about Wylea Brown taxes. It’s the first in a series on managing your money as an Bridget Gonzales Coldwell Banker Rick Canup, REALTORS® independent contractor. The next video will look at the up and down nature of your income. Look for that in another Billy Wilborn Coldwell Banker Rick Canup, REALTORS® month.

Everything That’s Great About zipFormTM Plus Explained in 1 Minute If you haven’t tried zipForm Plus, watch this one-minute video to find out why you should. It details the improvements and new features that you’re sure to love in the latest version of your zipForm member benefit.

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The Dangers of Surfing the Hyper Market by Jeremy Conaway

Across much of the country a new real estate market has either arrived or will be arriving over the next few months. One can feel its energy and potential. It is renewing the passions, and regenerating the energies, of brokers and real estate professionals nationwide. Communities that are already experiencing it declare it to be glorious and exciting, the kind of thing of which real estate dreams are made. Others are eagerly awaiting its arrival by drawing up daring schemes and crafty proposals that will guarantee that they will score big with this new opportunity.

REALTORS® on the Move Mindy Douglas

RE/MAX Lubbock to Keller Williams Realty

Howard Halford

The WestMark Companies to Kearney & Associates, REALTORS®

Christi Salyer

RE/MAX Lubbock to Kearney & Associates, REALTORS®

Rhonda Vanderburg

RE/MAX Lubbock to The WestMark Companies

Chad Bridges

Exit Realty of Lubbock to Keller Williams Realty

Debbie Kirby

Keller Williams Realty to The WestMark Companies

Liz Tilson

Keller Williams Realty to Kauffman & Humphreys Real Estate

The new environment is being referred to as the “hyperOther Changes market.” This article represents an attempt to create a “Hyper-market” warning label, to beseech real estate professionals and industry leaders to take a moment to Cami Paston understand the unique characteristics of this new market, and to work to ensure that brokers and agents alike adopt Ecotrade a long-term approach to both the opportunities and threats it will be presenting.

Reinstated membership with The WestMark Companies Affiliate company change name to Green Futures

Across the country, sales are dramatically increasing while inventories remain extremely low and prices are beginning to precipitously increase. Much of this activity is being driven by pent up consumer demand, the reticence of homeowners to enter the market, artificially low mortgage rates (even after record increases over the past month), and residually low prices. Accompanying these symptoms, and appearing amazingly early on in this new market, are observations that suggest real estate professionals at both the brokerage and agent levels may be demonstrating behaviors that are inconsistent with their own long-term interests. There is a growing sense that both brokers and agents are so focused on making up for the lost time and revenues brought on by the crisis events of 2005 through 2011 that they are willing to risk destabilizing critical institutions and relationships to meet their objectives. “Off MLS” marketing activities are rapidly increasing and in some markets are reaching levels that may well threaten the stability of the Multiple Listing Services (MLS). At least one major market is now experiencing brokerage commercials that promote the availability of properties not yet on the market. The MLS related circumstances that emerged during the NAR mid year meetings offer further evidence that potentially dangerous trends are afoot. Other markets are reporting increased levels of consumer related stress and anxiety brought about by a number of factors. Apparently many real estate professionals are still in the dark regarding the contemporary real estate consumer and the simple fact that this consumer is not going to accept the tricks or the manipulative behaviors of the past. Even beyond the “Off MLS” situation another classic example can be found with real and/or artificial multiple offer situations that are being routinely converted into auction events with resulting sales prices that are far above sustainable market levels. In many markets brokerage and agent competiveness is being raised to new levels that include direct and often unproductive behaviors between agents and agents, brokers and brokers, agents and brokers, brokers and organized real estate and, most dangerous of all, agents and consumers. This is not to suggest that enlightened and effective competiveness is not a quality to be encouraged within this or any industry. Quite the contrary. However, what is emerging is not the work of qualified marketing strategists or skilled tacticians following an enlightened business plan or blueprint. Usurping the dominant role are the actions of those who fail to grasp the big picture of the housing industry, the long-term perspective of the consumer or the current political and regulatory environment. There is nothing more wonderful than a vibrant real estate market. What was demonstrated on many occasions Page 3


between 1992 and 2005 was that everyone involved can receive real benefit from markets that are consistent, sustainable, accountable and internally regulated by respect and common sense. A new and successful market would, if managed correctly, provide an economic space to make up for lost time and revenues, a time to reposition oneself or firm in the marketplace, and opportunities to create an environment that benefits professionals and consumers alike.

The Flood-Insurance Disclosure That Could Keep You Out of Trouble Changes to FEMA's flood-insurance rate guidelines mean that premiums will likely go up. So could your liability if you're not making the proper disclosures.

 If you know that flood insurance has been However, the current situation doesn’t appear to be headed in such a required in the past for one of your listings, noble direction. For many these observations paint a picture of a that information must be disclosed to market that is artificial, unsustainable and out of control. Unless buyers. actions are taken, the growing situation could well lead to any  If you have knowledge that the area around number of ill effects. Consider the following possibilities: the property has had previous flooding or many property owners in the area have  Destruction of long-standing business relationships that represent purchased flood insurance because of the the “health” of the market. risk of flooding, that information must be  Destruction of long standing institutions that play key “under the disclosed to buyers. water line” roles.  Legal ramifications of a growing propensity to ignore rules and For either of the above scenarios, you also regulations, considering them irrelevant to personal production and should let buyers know that flood insurance financial objectives. premiums are likely to be higher than in the  Further deterioration of the existing professional value proposition. past.  Driving increased consumer support for the already successful and empowered Internet based and alternative brokerage. NAR's Legal Department has drafted a sample  Further damage to homeownership, the flagship experience of the flood-insurance disclosure statement (look on American family that could easily become even more illusive to a the second page of this document) members whole generation of Americans. can use.

Consider that the ultimate disaster which might be ignited from these circumstances could be a round of unfettered regulation from various levels of government. While historians will spend the next twenty-five years articulating the lessons of the past five years, the one thing that is clear is that they will universally come to the conclusion that an out of control real estate market can and did mortally damage the national economy. Any suggestion that this reality is not fresh in the minds of the present administration, the regulatory mindset or the consumer memory suggests that someone is not following the current adventures of the Consumer Financial Protection Bureau. Is it reasonable to presume that the powers to be are going to allow the actions of a very few to interfere with an economic recovery that has been so long in coming? As is often the case the ultimate solutions here will be gleaned from creative, innovative and focused leadership at all levels of the industry. The basic question is not whether the market is going to be regulated but, rather, who will be responsible for the task. Will it be internal or external? There is every reason to believe that unless influenced by some manner of community respect and common sense the hyper-market could and will deteriorate into a “wild west” environment as the various industry constituencies relentlessly drive their conflicting and confrontational business and financial agendas forward. Unfortunately these circumstances could not have occurred at a worse time given the fact that the very institutions established by the industry to resolve such situations have, over the past several years, abdicated their assigned role in favor of participation in the business and financial aspects of the industry. There are a number of respected industry voices that are suggesting that this transition has left the industry without the moral or ethical leadership necessary to affect a non-governmental resolution of this situation. It isn’t clear whether or not we can, or wish to, meet this challenge but if we are going to try we better get started soon. Jeremy Conaway is a keynote speaker, conference facilitator, and consultant to the real estate industry. He is President of RECON intelligence Services, and may be reached at Jeremy.conaway@reconis.com.

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Lubbock REALTOR 09-30-13