Texas, Dallas, JIM discussed on Jim Bohannon
As we're talking with JP, peach Anini, CEO founder of J P and associates realtors there based on the plano, Texas area near Dallas. And we're looking at some interesting trends, both in terms of housing sales and the approach that apparently a lot of homebuyers. These days bring to the process of what sounds like almost a whimsical by at times, kind of a of an infatuation by just whatever whatever pops into your mind in a given time certainly not the not the way I've ever ever approached it, Tom in Sharon, Pennsylvania. Tom a good evening. Good evening, Jim. It's your guest as I'm listening. Jim. I two two points. I wanna make I think what I'm seeing here, and I'm old school. Like, you are I mean, I'm still driving the ninety six s ten pickup truck and a ninety three. Avelino? So I'm probably even older school. And that respect, you know, use it up. We're making do do without. I think a lot of people are looking to fact that mortgage rates are very low right now, it would be maybe better if they can afford it to put the down payment on on that know that they're having a new roof under house new furnace and so forth rather than buying something. That's existing and half to replace possibly those things in the very near future. The other thing is as far as is it a big deal. Well, keep in mind. Jim what you're hearing is an economic figure that's related to how the government is run. We we know how the media is right now in terms of hyping things about Trump in in a negative way. So I I think those are two factors that are playwright and and getting the ratings for that matter for viewers. So I think I think those two factors might come into play player. Well, I'll I'll ask our guest about that. Is there anything in the way of the media hype that has made stories about? In this case existing home sales dropping does that strike you JP as something which is being conjured that is to say not that worthy of our consideration. Well, let's talk about what's going on in the economy. We've finally seen an amazing recovering amazing economy jobs are an all time low stocks are up so say jobs in an all time low. We're talking about the unemployment rate big an all time low, right? Thank you. For sure yes. Recent numbers here in January not to get ahead of of of our statistics that we're talking about fourth quarter of last year. But jobs, again continued unemployment rate continues to drop so people people have jobs, but the bigger the bigger factor here is wages haven't kept up with a home prices increases that we've had here in Texas in the nation's wealthiest real estate market in Dallas Fort Worth the the nation's number one new home market in the country. Home prices have increased double digits now year over year for the last five years wages, haven't increased Texas being a state known for its affordability is quickly and there's already now become a state where some buyers really struggle to afford a home into the guest combat this first common. He's exactly a point. When you're stretching your budget already because you came out for only at home the last thing you want to worry about as a young couple or is the first time homebuyers to replace a roof furnace or anything maintenance that you may have with an older home the beautiful thing about jobs. They come with a one year where we call one year bumper to bumper warranty. Anything wrong with your house? The builder will come back and fix it. And then you had the beautiful thing or the manufacturer warranty and all the major items for the next three years. What about something that I've always heard about and I've always acted somewhat in this direction. And that is that this house may be old or whatever it may be that you're buying may be older. But it was built back when. They build them, right. Which is to say that I had my choice between new and sloppy or old and built like the pyramids is that just mythology. Now, that's mythology. And we don't America has stopped building homes that were there were made the last I think in the early nineteen hundreds I lived in college college. I live in a house built in nineteen ten I had still being going right across the middle of the house. It was one of the most solid houses ever look at the cookie cutter. The real estate boom of the of the eighties. We were building homes ju- just as is sometimes cheaply as we're building homes. These things I'm at how quickly build up we build homes, and they're just began to my comment that their consumer good items are just not Maine class their homes that we financing for thirty years. And who knows if this round of Nico instruction will be around thirty years. Certainly we've had homes that they're building the aiding. And build homes a building in that thirty forty years in two parts of the country are still standing by here in Dallas most homes are being turned out toward down that were built passed up anything previously in the seventies. That's very rare to find a home that was built there. That's not be turned down. So again. It's rare to find one that's not being torn down. There were tearing down homes built in the seventies. You know, just. Seventies. That's that's relatively. Well, maybe not I don't know whether seventies that we're talking now about about forty some years. So I don't know is that considered new or not new time. I bought a home. It was five and it was a home built in nineteen seventy nine and I didn't. Yeah. Talking every martinsville different. You go to the northeast that you're not really gonna have construction going on. So your your choice of home News Limited to buying a home field in the seventies sixties or whatnot. But here again in the nation's largest real estate market and largest new home market here in Texas. Of course, because I mean pointed that buyers can find homes knowing that, you know, they're gonna leave his five seven eight years and then probably upgrade. All right now. Let me ask you about a couple of things that you've you've brought up here. One would be the regional nature of real estate. I have heard it said that that it's very difficult ever to talk about the real estate market being up or the real estate market being down. Because this part of the economy is eight stream -ly intensely regional would you? Concur. Absolutely real estate is very much very very regional. So you've got to look at the price index killings price index by MSA. Those are the big key indicators where our jobs, whereas they call me healthy or people in flexing people moving to wait from in that they take prices also the economic the political factor in those markets, absolutely drive, home, prices and home values look in Chicago. And you look at the upper mid west, it's a bloody mess up. There. The taxation the job sector now. Of course, the weather hasn't helped those those guys are suffering. They can't sell homes, and that's a huge MSHA cargoes one of the largest in the country metropolitan statistical areas is that what you're saying. There was one of the largest for the for the for the rest of us Chicago is the third largest metropolitan. In area in the country. Right. That's what we're saying. Right. Yeah. Correct. Very very deflated real estate market, and that is directly direct correlation to the politicians to the politics and into the to the regulations are in place with with the builders and the. Businesses corporate sectors, California. It's very very regional. All right. And I'll come back with the second point here in just a moment. We'll be back with our guest JP, peach eighty of the JP and associates realtors as we understand the intricacies of that housing market out there..