The Texas Housing market insights and

TEXAS HOUSING MARKET INSIGHTS AND PREDICTIONS

Johnnie Morine

The Texas 2020 real estate market has been a mixture of ups and downs as the pandemic continues to wreak havoc on the economy. In August, when all other markets were slowly adjusting to the recovering economy, Texas’s housing market slowed down, according to the Real Estate Center at Texas A&M University. This happened after a surge of built-up demand that inflated sales numbers for the previous months.

“Sales activity is no longer catching up from the economic shutdown that hindered the showing of homes and closings at the beginning of the spring buying season,” said Dr. James Gaines, chief economist for the Real Estate Center at Texas A&M University. “Existing homes sold through Texas Multiple Listing Services peaked in July as the economic consequences of the ongoing pandemic continued to develop.”

SALES

Texas market total home sales dropped by 4.1% in August from July but remained 3.1% higher than the same time last year. “Low mortgage rates supported the year-overyear increase, but the effect of that stimulus may dwindle if persistent unemployment shrinks the number of qualified homebuyers,” Gaines says.

The current low housing inventory accompanied by high demand has contributed to the shift in sales distribution to higher-priced homes and pushed the median home price up by 8.4% year-over-year as of August.

SUPPLY

The Texas Residential Construction Cycle (Coincident) Index, which determines current construction levels, inclined in August for the third consecutive month as industry employment, wages, and construction values increased. This happened amid the rising permit issuance, indicating the expected housing activities in the following months.

On the other hand, the number of new listings in August failed to meet the growing demand, pulling Texas’ months of inventory (MOI) down to a record 2.4 months, whereas a total MOI of around six months is what is considered a balanced housing market.

Inventory of homes valued below $300,000 was more constrained in August, sliding to an MOI of less than 1.8 months. On the other hand, the MOI for luxury homes (valued above $500,000) increased 6.3 months, representing a drop for a third consecutive month.

PRICES

Texas’s median home price was at $261,300 in August, representing an 8.4% increase from the same time last year.

On the other hand, the Zillow Home Value Index reveals that a typical home value of homes in Texas was $223,107, as of September 30. With the Texas home prices having increased by 4.1% YOY, Zillow predicts that they will rise 6.5% by September 30, 2021.

Going forward, the Texas real estate market is expected to be a beehive of housing activities as more homebuyers are getting in the market while the interest rates remain historically low. If you’re planning to buy real estate in Texas, this is the perfect moment in time. There is no better time to buy and sell real estate with so many uncertainties surrounding the ongoing pandemic than this.

Work cited.

https://www.worldpropertyjournal.com/realestate-news/united-states/dallas-real-estate-news/ dallas-real-estate-news-real-estate-center-at-texasam-university-dallas-home-prices-houston-housingdata-austin-home-prices-james-gaines-covid-19-impacton-texas-home-sales-in-2020-12141.php. https://www.recenter.tamu.edu/articles/technicalreport/Texas-Housing-Insight#:~:text=The%20 number%20of%20Texas’%20sales,the%20same%20 period%20in%202019.

Carolyn SUNSERI

Carolyn Sunseri, a Sacramento resident, CA, is the Marketing Director at Golden State Finance Authority (GSFA). At GSFA, Carolyn is responsible for state-wide communications and marketing initiatives for a leading Housing Finance Authority, providing affordable housing programs for single-family, multi-family, and energy-efficient financing.

She is also in charge of developing and implementing a marketing strategy and media and public relations to increase business-tobusiness participation and provide solutions to meet California residents’ affordable housing needs. Carolyn also supervises the timely dissemination of information to internal and external audiences. Moreover, she oversees the content and design of publications, marketing, online communications, web sites, presentations, advertising, and trade-show participation.

Additionally, Carolyn is directly involved in training and educating lenders, realtors, and other business partners seeking affordable housing solutions for California residents.

The Golden State Finance Authority (GSFA) is a California Joint Powers Authority and a duly constituted public entity and agency, the mission of providing affordable housing and contributing to the social and economic well-being of California residents. The Authority was organized in 1993 and existed under and by virtue of Articles 1-4 of Chapter 5 of Division 7 of Title 1 of the State of California’s Government Code.

EDUCATION

In terms of education, Carolyn graduated in 1997 from California State University, Chico with a Bachelor of Arts specializing in Public Relations. Carolyn has over two decades of experience in marketing and public relations, mostly within the mortgage industry. Additionally, she has extensive experience in public speaking and various graphic design platforms.

BEFORE JOINING GSFA

Before joining the Golden State Finance Authority, Carolyn has worked in several posts relating to public relations and interaction with people. At one point, Carolyn was the sales and marketing manager at Sierra Tel Communication Group, where she headed a team and formulated marketing strategies and sales team management for the cell services provider. After about three years, Carolyn would head the sales support manager role at Citi, one of the US’s big financial providers.

At Citi, Carolyn was exposed to the world of financial services, which perhaps amplified her passion in the field. Soon after leaving Citi in February of 2006, Carolyn joined the National Homebuyers fund as the marketing director. She was mostly responsible for marketing, sales, and public relations for non-profit housing finance instrumentality in the various US States, mortgage lending, down payment assistance.

Carolyn’s Advocacy for Homeownership with GSFA Golden State Finance Authority (GSFA) develops and administers programs that provide a source of financing for residential home purchases or refinances commercial and residential energy efficiency improvement projects, multifamily housing construction and rehabilitation projects, and city and/or county infrastructure improvements.

GSFA has distinguished itself as a housing finance leader in California for over two decades, helping more than 79,700 persons and families purchase a home. GSFA has provided more than $585.7 million in down payment assistance and financing $809.6 million in energy efficiency improvement projects. There are various ways in which GSFA is also helping communities in California to bolster their economies through housing-related initiatives. Research has shown that when families have safe, stable, and affordable homes, they can better find employment, achieve economic mobility, perform better in school, and maintain better health. Carolyn has been at the core of this program. The main focus has been to provide financial assistance programs to help Californians purchase homes and/or make energy efficiency improvements to properties. GSFA also engages in philanthropic endeavors feasible to create and maintain healthy communities.

GSFA has stepped up to help communities in California through emergency disaster Assistance, where GSFA has provided over $3.5 million in emergency disaster assistance to address the impact of forest fires on California residents. The funds were provided to assist residents with

temporary housing and rebuild or obtain future long-term residences.

The initial shock and damage from fires are tremendous, but like any crisis, the long-term effect upon survivors and the entire community can be long-lasting. Fires have displaced thousands of California residents due to destroyed or damaged residences in recent years. Many residents suffer the loss of income as well, which can impair their ability to obtain or maintain housing due to various fires.

Here’s what Carolyn had to say:

“You’re probably familiar with the phrase, ‘knowledge is power?’ It has always resonated with me. The more you know, the more informed your decisions can be. But, the idea doesn’t just apply to individuals. Knowledge can set one apart in their profession. By learning about the resources, products, programs, and services available to meet the needs of today’s homebuyers, one can become a guide, an advocate, an educator themselves. You won’t just cultivate more successful home sales or mortgage loans, you will build a reputation of quality service and care that can lead to future referrals, repeat business and set you apart from your colleagues.” She continues to add, “Often, I receive letters from clients who recently utilized the GSFA down payment assistance programs to purchase a home. Many times, they share with me how when they heard about this type of assistance, they thought it was too good to be true.”

“Or they tell me how they had all but given up hope of owning their own home because the challenges to qualifying or saving for the down payment seemed insurmountable until they found out there was help out there. It’s those personal stories that mean so much to me. The couple who raised a whole family working full-time, moving from city to city, apartment to apartment, and who now in their 70’s are elated to have bought their first home. The single mother who prayed every day that she would find a way to buy a home in a good neighborhood where she could work from home and care for her special-needs child. The couple who after an unfortunate foreclosure several years ago, are proud to be returning to homeownership, a dream they thought was forever shattered. The personal stories move me. I feel like I am a part of someone’s success story. I share their enthusiasm, knowing that the products and programs my company makes possible are enhancing lives, strengthening communities through homeownership. I can’t describe how good that feels.

I’m proud to work for an organization that is constantly moving, innovating, enhancing products and programs whenever possible to meet the needs of lenders and homebuyers. We just passed a milestone recently, having helped over 80,000 individual and families in California to purchase a home, and provided more than $600 million in down payment and closing cost assistance.”

Carolyn is a homeownership advocate and a hero to many people. Anyone passionate about helping other people bridge the gap between poverty and wealth creation is a hero. You can find Carolyn almost every week on The Power Is Now Real Estate Roundtable, where she shares valuable information to guide you on the path to homeownership. To learn more about Carolyn and the GSFA, catch her on the next episode of The Power Is Now Real Estate Roundtable.