Fort Worth-area housing market on the rebound

By Sandra Baker

Megan and Karim Kaissi, married only four months, will move into their first home in early September, an event that can take some young couples years to achieve.

They found a housing market ripe for first-time home buyers -- flush with inventory and low mortgage interest rates that allow them to get more for their money. The Kaissis locked in a 3.65 percent interest rate and are scheduled to close on a 3,400-square-foot home just north of Joe Pool Lake in Grand Prairie in August.

"If the market wasn't where it is now, I don't think we would have jumped in so quickly," said Megan Kaissi, 27, a nurse.

The couple had started looking on a whim and quickly discovered they might be able to buy.

"We both are pretty responsible when it comes to finances," said Karim Kaissi, 28, director of business development with Texas Health Resources. "We have a good leg up. But it moved from fun to let's sit down and think it through. We crunched the numbers and it turned out we could do it."

Their experience is evidence that local housing is bouncing back. Area real estate agents say sales activity has picked up this year as first- or second-time buyers take advantage of low mortgage rates and available homes.

But the market isn't hot in all areas and at all prices. Sellers in some neighborhoods say it's still taking longer than normal to find a buyer, while owners with higher-priced properties are finding that it's a seller's market.

Overall, existing home sales in the 29-county North Texas region are up 16 percent so far this year compared with a year ago, and the median selling price is up 7 percent. That makes the first half of 2012 the strongest six-month period since the housing crisis, other than the period in 2009 and 2010 when a federal first-time homebuying tax incentive spurred a sales surge.

After the tax credit expired on June 30, 2010, North Texas home sales dropped off again. They slowly recovered but were essentially flat last year.

This year, most areas of Tarrant County have seen some increase in home sales. And some have shown no slowdown in activity, such as neighborhoods near Texas Christian University in Fort Worth, central and southwest Arlington, Grapevine and Colleyville.

Sales of condos in downtown Fort Worth have also been strong this year.

A recent report from Texas A&M University's Real Estate Center said Texas has the most affordable homes in the U.S., and Fort Worth is the state's most affordable metro area.

To buy a $150,000 home today at a 4 percent interest rate and 20 percent down, a buyer needs only $37,351 in annual income to qualify and the monthly mortgage would be $572.90, the report said.

"The home purchasing power of a dollar in income increases dramatically as interest rates fall," said Jim Gaines, an A&M research economist. "With an 80 percent loan at 10 percent interest, $1 buys $3 of housing. At 7 percent, it buys $4 of housing. At 4 percent, it buys nearly $5.50."

Suzanne Key with Ebby Halliday in Arlington, who has been a real estate agent for 22 years, said the market is running the gamut for buyers. She was involved in recent months with a buyer in Keller on a moderately priced home where there were three offers, and another in Mansfield where four people were lined up to buy a $600,000 house.

Yet some folks are still trying to sell their homes after two years on the market, she said.

"It's nothing like we've ever experienced," Key said. "The market is so different. We've got the lowest interest rates on record and combined with that, we have lots of foreclosures."

Several recent national housing reports have been quick to say housing markets are turning around, with prices rising and homes on the market for fewer days.

The June Re/Max national housing report called the housing recovery "real," saying increased consumer confidence, historically low mortgage rates and attractive pricing is luring buyers.

Last month, the National Association of Realtors released its Realtors Confidence Index that shows a 57.5 score, where a 50 reflects a moderate level of confidence. A year ago, it was in the low 30s.

"Buyer demand is reported to be growing faster than supply and many respondents are reporting multiple offers," the Realtors report said. "Realtors' confidence about the outlook for the next six months is rising in all residential areas."

And that's happening in Tarrant County.

Britta Hinze, with Alexander Chandler Realty in Fort Worth, started selling homes six years ago just before the housing downturn. She said she mostly works with first-time home buyers who have lots of options. She often shows more than a dozen homes before making an offer, she said.

Hinze said she's been involved in more deals so far this year than in past years and is averaging two to three transactions a month.

"I hope it stays this way," Hinze said.

But selling an existing home varies by location. New home construction makes it tough on sellers, particularly in high-growth areas.

In the Alliance Corridor in far north Fort Worth, for example, Lucy Puniwai, a real estate agent with Fathom Realty, said it's hard for existing home sellers to compete with all the new construction.

"People are seeing a better bang for their buck in buying new," Puniwai said. "It's definitely a buyer's market. If you can be flexible with what you want and need, we can find you a house that can make you happy."

About a month ago, Candace and Eddie Bill listed their 1,400-square-foot house on Little Deer Lane, west of Interstate 35W in north Fort Worth. They had a few lookers before receiving an offer. Ironically, the potential buyers have not been first-time home buyers, but people interested in the home as a place to move an elderly parent.

Candace Bill said she's been commuting to Denton since moving into the house six years ago, but now wants to live closer to work.

"We're actually thinking about doing some improvements and staying here," she said. "My expectations for selling the house are realistic. It's a little discouraging to see so many houses for sale, but some have sold."

Johnny Bennett, principal of Bennett & Associates in Arlington, an agent for 45 years and president of the Greater Fort Worth Association of Realtors, said real estate agents started reporting an uptick in activity in January and the trend has continued.

Interest rates have played a role, drawing out buyers who put their searches on hold a couple of years ago because of the downturn in the economy.

Moreover, Realtors say the bursting of the housing bubble that caused prices to decline rapidly in many U.S. cities didn't really happen in Tarrant County. Prices, they say, had never gotten out of control.

"In our area, Fort Worth and Tarrant County didn't experience what the rest of the country did," Bennett said. "Sales were down, but not like the rest of the country. We are coming out of it."

Sandra Baker, 817-390-7727

Twitter: @SandraBakerFWST

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