The signs are ever growing that the American consumer might be loosening the purse strings:

• Retail sales increased 0.6 % in December, following a 1.3 % gain in November
• The US GDP increased at a 4.5% annual rate in 2009, which would be the strongest in 4 years.
• Due to lower inventories, manufacturing output has increase at an 11% annual rate over the past few months
• Labor income rose at a 2.2% annual rate in the 4^th quarter.
• Texas among better performers in the employment numbers only being down 2.9%.

Additionally, areas that are affecting the Texas economy are the Stimulus Packages, Additional bailouts, Pressure on the Fed to keep interest rates low and Tax breaks to encourage real estate investment.

Other areas giving the economy a boost are Area Home Sales.  The last quarter of 09 dollar volume sold in homes stayed neck and neck with the previous 5 years and beat out the volume sold in 08 for the same 4 months.  Homes for sale in certain markets like Frisco, McKinney, Plano, Allen, and Prosper, were very strong.  In those areas the average days on the market had a sharp decrease, averaging below 80 days. 

Many economists feel that the bottom was in mid 2008, Home sales across the US has drastically increase since mid 2008 which further gives credibility to that feeling.  Another indicator that the market has already turned is in the supply of homes on the market.  Mid 2008 the US had the largest amount of homes for sale.  Now the national average for supply is below 6 months.   Housing starts also bottomed out in mid 2008 and have now started a slow increase. 

So in summation most economists feel that the bottom of the recession took place in mid 2008 and for the most part the indicators support that claim.  We are hopefully that the housing market will continue to grow in the DFW area as it has done for the past 4 straight months.  If the housing market continues to grow and the number of months worth of inventory remains low then the new home starts will have to increase therefore increase the jobs in the DFW area.  This is all great news.  Team Decell is looking forward to a wonderful 2010.

If you are interested in talking to someone about your options please call us or if you are interested in Homes for Sale in Allen, Frisco, McKinney, Plano and the surrounding area TEAMDECELL is who you need to call.  We also assist with New Construction, Pre-Owned homes, Foreclosures and Short Sales.  We are your home town experts and offer excellent customer service.  214-975-3210

NEW YORK (Reuters)  reports that the U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed “short sales” of homes and other loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury’s website.

Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.

The incentives, first announced in May, expand on the government’s Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started.

“While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve” or offer a modification, the Treasury said in its announcement.

Financial incentives for completing short sales or similar deed-in-lieu transactions — in which the deed is simply transferred to the lender — include a $1,000 payment to servicers, and a maximum of $1,000 to go to investors who sign off on payments to subordinate lien holders, the Treasury said. Borrowers would receive $1,500 in relocation expenses.

Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower’s credit rating and leave the property in better condition than when a homeowner is evicted. While primary lenders typically realize steep losses, their recovery is typically far better than under foreclosure.

But short sales have been frustrating for borrowers and real estate agents, often hung up by negotiations with multiple lien holders and mortgage insurance companies. Real estate agents have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.

Among requirements, mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt.

It also prohibits mortgage servicing companies from reducing real estate commissions on the sale, a practice that has dissuaded many agents from taking short sale listings.

In one of the most contentious issues gumming up negotiations between lenders, the guidance caps the aggregate proceeds to subordinate lien holders at $3,000.

Second lien holders in recent months have begun demanding more money from the first lender, seller, buyer or agent in exchange for releasing their claim, agents have said. Because primary lenders would face larger losses in a foreclosure, some subordinate lenders have felt empowered, the agents said.

The largest second-lien holders are Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co and Citigroup Inc.

Second lien holders may proceed with a short sale outside of the Treasury program, if they felt the cap was too low, a Treasury official said in October.

“If there was a short sale program that didn’t recognize the second lien holder position, it could have pretty damaging consequences for the industry,” Sanjiv Das, chief executive officer of CitiMortgage, said in an interview last week.

Contact TEAM DECELL for assistance with selling your home.  We have assisted many home owners facing difficult times.  We have completed many short sales and pre-foreclosures transactions.  Call us if you have any questions 214-975-3210.  Don’t wait until the last minute we can help you take an informed strategy that helps you the most. 

WASHINGTON (Reuters) reported that  – Sales of previously owned U.S. homes rose in October at a faster-than-expected pace to the highest in more than 2-1/2 years as home buyers rushed to take advantage of a popular tax credit, a survey showed on Monday.

The National Association of Realtors said sales surged a record 10.1 percent month-over-month to an annual rate of 6.10 million units, the highest since February 2007, from a downwardly revised 5.54 million-unit pace in September.

Analysts polled by Reuters had expected October home sales to jump to a 5.70 million-unit pace from the previously reported 5.57 million units in September. Compared to October last year, home sales were up by a record 23.5 percent.

U.S. stock indexes extended gains on the data, while Treasury debt prices were little changed.

“Many first time home buyers have been rushing to beat the deadline for first-time buyer credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November,” said Lawrence Yun, NAR’s chief economist.

Distressed transactions accounted for 30 percent of sales last month and continued to weigh on house prices. First-time buyers made up a third of home sales in October.

The national median home price fell 7.1 percent from October last year, the smallest decline in over a year, to $173,100. Homes in foreclosure typically sell for 15 to 20 percent less than traditional homes for sale.

“Existing home sales have already bottomed. Home prices are almost there. We are seeing a less of a decline in house values,” said Yun.

The housing market is slowly mending after a three-year decline, which contributed to tipping the U.S. economy into its worst recession in seven decades. Housing construction contributed to economic growth in the third quarter for the first time since 2005.

Recovery is being supported by the $8,000 tax credit for first-time buyers, low mortgage rates and falling house prices. The government this month extended the incentive into next year and added a $6,500 credit for home owners buying a new residence. It had been due to expire on November 30.

“The tax benefits going into the housing market are working, and that’s a relief,” said William Larkin, portfolio manager at Cabot Money Management in Boston. “Everything is about housing and jobs right now.”

The improvement in October sales was broad-based, with sales of single-family homes, the biggest segment of the market, rising 9.7 percent to an annual rate of 5.33 million units, while condominium and co-ops increased 13.2 percent to a 770,000-unit rate.

Sales were up in all four regions of the country. Prices rose 1.1 percent in the Midwest, which didn’t see the same boom as the rest of the country, while declining in the other three. The rise in the Midwest was the first price increase in any region since November 2008.

Analysts are cautiously hoping a sustained housing market recovery will help to improve the psychology of households, which has been shaken by rising unemployment.

The inventory of existing homes for sale in October fell 3.7 percent to 3.57 million units from the previous month, NAR said. At October’s sales pace, that represented a supply of 7.0 months, the lowest in 2-1/2 years, from September’s revised 8.0 months.

Two Frisco schools named in the top 20 best public schools in Texas, based on a new assessment that more comprehensively critiques student progress.

Clark Middle School and Wester Middle School were the only Frisco schools named in top 20 lists, but the study came with a number of caveats. Children at Risk, which ranked more than 5,900 schools statewide, left out some high-achieving schools due to missing data or because the high schools didn’t encompass 9-12th grade for the 2007-2008 school year. That kicks out newer schools like Liberty High that started out with fewer grades.  

If you would like to see Frisco homes for sale that feed into Clark Middle School or Wester Middle School, please click on their respective links.

The City of Frisco voted to raise property taxes 1.5 cents to 46.5 cents per $100 of value.  That would mean on a home valued at $280,000 your tax increase will be $42.00.  The Counsel sited the loss of revenue from building permits was one of the determining factors for the decision to raise the property taxes.  Frisco Taxes are still almost the lowest taxes in the area.  

If you are interested in refinancing your current home or homes for sale in Frisco, homes for sale in Plano, homes for sale in Allen and homes for sale in McKinney area TEAMDECELL is who you need to call.  TEAMDECELL sells homes in the Frisco, Plano, Allen and McKinney Area primarily.  They are your home town experts and offer excellent customer service.  214-975-3210

Frisco Home Foreclosures are predicted to rise over the next several months.  Many home owners who are trying to renegotiate their loans, but were unable and the lift on the moratorium on foreclosures will ignite a new group of Foreclosure in the Frisco Market.  This will mean a lot of good deals will be available.  The banks have become very aggressive in pricing these homes to sell and then are accepting even lower offers.  For example 10731 Astoria Dr in Frisco is priced at $64.82 per foot for a 3624 sq foot, all brick home making the sales price $234,900.  Also, 10903 La Grange Dr in Frisco is priced at $65.10 per foot for a 4224 sq foot home making the sales price $275,000.  Both of these homes are located in the prestigious neighbor hood Panther Creek. 

Prior to Foreclosure many banks are very willing to work with homeowners who need to sell but owe more than the house is worth.  This process is called a short sale.  Unfortunately the process isn’t short but rather lengthy.  But it is an alternative for some Frisco Home owners.  You need to make sure that your realtor is experienced in this process because it takes a lot of work of the realtor’s side.  On the short sale side your realtor will communicate with your mortgage company directly to successfully sell your home.  Your realtor will have to develop the package that is sent to the bank.  Once your package is approved the wait is on, and you are waiting on a contract on the home.  At that point the mortgage company will order an appraisal of the property in as is condition then let you know how low they will actually go.   TEAM DECELL will guide you through the process.  They have successfully negotiated many Short Sales and worked with numerous people to buy Foreclosure Homes.

If you are interested in talking to someone about your options please call us.  If you are interested in refinancing your current home or homes for sale in Frisco, homes for sale in Plano, homes for sale in Allen and homes for sale in McKinney area TEAMDECELL is who you need to call.  TEAMDECELL sells homes in the Frisco, Plano, Allen and McKinney Area primarily.  They are your home town experts and offer excellent customer service.  214-975-3210

Homes sales in Frisco are definitely on the rise.  Homes sales in Frisco July 2008 were at 277.  Homes sales in Frisco for July 2009 were at 320.  That’s about a 15% increase over previous year sales.  Homes sales in Frisco for June also had the same increase over the previous year sales.  With the positive out look in the stock market and interest rates remaining low has definitely boosted home sales.  Buyers are feeling more comfortable so that is great news.  Mortgage interest rates have remain in the low 5% range and may inch down even more over the next few weeks.   

If you are interested in talking to someone about your options please call us.  If you are interested in refinancing your current home or homes for sale in Frisco, homes for sale in Plano, homes for sale Allen and homes for sale in McKinney area TEAMDECELL is who you need to call.  TEAMDECELL sells homes in the Frisco, Plano, Allen and McKinney Area primarily.  They are your home town experts and offer excellent customer service.  214-975-3210

Appraisal Process Has Changed!  For some of you out there that want to do a quick closing you need to read this.  On a conventional loan the loan officer can no longer call up his appraisal buddy and ask him to appraise the house that you want to buy.  He must submit the request for appraisal to a board that will assign a random appraiser to go out and look at your home.

Why does this make a difference, because this new requirement can add up to 10 days to the process.  So if you want a quick close you will need to act fast…get all your paperwork to you lender, so he can submit it to Under Writing.  Shorten your option period…most lenders don’t want to order appraisals until after you made it through your option period and all your inspections.  Get that inspection done immediately and do what you need to do.

If you are interested in refinancing your current home or homes for sale in the Frisco, homes for sale in Plano, homes for sale Allen and homes for sale in McKinney area TEAMDECELL is who you need to call.  TEAMDECELL sells homes in the Frisco, Plano, Allen and McKinney Area primarily.  They are your home town experts and offer excellent customer service.  214-975-3210

With mortgage interest rates remaining below 5.5% and home prices are holding steady, now is the most opportune time to purchase a home.  In the coming months most of the forecasters are predicting that the mortgage interest rates will head up and stabilize at 6.5%.

 In the Frisco, West Frisco and surrounding area, home prices also are predicted to begin increasing because the number of home on the market has begun dropping.  When the supply goes down the price always does the opposite, at least that’s what they teach in economics 101.  Real Estate Agents have been seeing an upward trend in the number of offers that are 94 – 96% of the asking price.  Many agents are reporting that in the homes priced below $250k they are receiving multiple offers or offers within 14 days of going on the market.

Many people are worried about what to do with their money.  The stock market seems to be a crap shoot, whether you’re invested in mutual funds or stocks.  Right now Real Estate is the place to be.  Think about investing in a rental home, or as I call them a 401K with a driveway.  Real Estate in the Frisco, McKinney, Plano, and the surrounding area has always been a good investment.  Even if you bought a home in the 80’s when the oil crisis took place and property values dropped 20%, if you had waiting a few short years you would have recouped all your losses plus some.  Real Estate in the Frisco, Plano, and McKinney area has never dropped in value by 20% or more like the stock market.

Another strategy to consider if you have money to invest is pay down on your current mortgage.  Your money may not bring you a huge return but it won’t lose value like the stock market seems to do way too often.

For more information on the Frisco, West Frisco and surrounding area or Builders and Home Foreclosures call TEAM DECELL at 214-957-3210.  TEAM DECELL is here to meet all your real estate needs.

The Dallas Morning news reported that Frisco ISD approved a teacher salary increase that surpasses the state’s new mandatory requirement by more than a $1 million.

Teachers and nurses will receive a $1,500 raise and all other employees will get a 3 percent increase from their midpoint salaries. New teacher salaries will see a $750 boost.

Board of trustee members made this decision as part of the district’s 2009-2010 budget, which was finalized at Monday’s board meeting.

This comes at a time when neighboring districts are also assessing their teacher salaries. Plano ISD, for example, recently approved a 2.5 percent increase at its midpoint salaries. This change will keep Frisco competitive with other Collin County districts. 

McKinney ISD and Allen ISD were also making decisions about teacher pay at their board meetings on Monday.

The budget, set at a projected revenue of $254, 473,000, could still change if the tax rate shifts significantly before September.

It’s not this coming year as much as the following one that the district may need to worry about, said Interim Director of Finance Rick Bankston.

“We’re going to have to keep close scrutiny next year with the impact of the tax base and six new campuses,” he said. 

With the continued growth in the West Frisco, Frisco and surrounding areas this is definitely a needed step to stay ahead of the growth curve.  Real Estate in Frisco Area is also on the up swing which also goes to show the continued growth in the area, unlike many states across the Nation that are still experiencing a down turn.  For more information on the Frisco and surrounding area real estate go to out website TEAM DECELL.