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Reflection on Real Estate in Dallas/Fort Worth in 2016 & Zooming into 2017

By Arun Innasimuthu_CML

2016 was another great year for real estate sales throughout many areas of the Dallas-Fort Worth market. The demand was high, the inventory was low and the bidding wars where in full force. As we rounded toward the last few months of 2016, the Dallas-Fort real estate prices where up 15% in November. This would put Dallas-Fort Worth in the Top 5 price increases in the country. With Honolulu, Hi in the top spot of 17.7% increase and Seattle, WA rounding out the top five with a 13.2% price increase.

As we looking into 2017 inventory levels are down as we enter the first full week of January. Both existing and new construction costs are rising as the inventory levels remain tight. This would be a good time if you have been sitting on the fence to make your move in 2017.

We all learned that the interest rates where going to rise and the question is how does that change the real estate market in DFW? The good news is that Dallas-Fort Market continues to grow in many areas of commerce.

We know that the amount of people, companies and small business continue to eye Dallas, Frisco, Flower Mound, Coppell, Alliance, Keller Fort Worth and other areas of DFW for making one of these communities home for their company headquarters.

In 2017 the maximum loan amounts/limits for Conventional (Fannie Mae & Freddie Mac), FHA and VA are increased effective January 1st, 2017.

Conventional Loans will increase to $424,100, was $417,000.

VA Loan Limit for 100% financing is also increasing to $424,100 up $417,000, (see VA loan limit below).

FHA Loans in the DFW metro area are increasing by $27,600, the new max loan amount will be $362,500, for a single-family residence. With just a 3.5% down payment a FHA borrower can purchase a $375,647 home, Wow!

One of the most significant misunderstandings by VA borrowers, lenders and real estate agents is thinking the VA has a maximum loan amount. The VA does not impose a maximum loan amount, the VA has a maximum loan limit for 100% financing. A VA borrower can purchase a home above the maximum loan limit, they just need to bring 25% of the difference between the purchase price and “max” loan limit. For example, if the home price is $464,100 they would need to bring $10,000 plus closing costs ($464,100 - $424,100 = $40,000 * 25% = $10,000).

MAKE YOUR MOVE IN 2017, Call us today at 972.657.0364

Lori Lesnansky
SoSimple Home-Keller Williams