Jeff Stokes

"Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing." (Fortune Magazine 3/28)

Excerpt from Fortune Magazine:

"If all the clamoring you're hearing about housing has you totally confused, join the crowd. One day you'll read that owning a home has never been more affordable. The next day you'll see news that housing starts have plunged to nearly their lowest level in half a century, as headlines announced in March. After four years of falling prices and surging foreclosures, it's hard to know what to think. Even Robert Shiller and Karl Case can't agree. The two economists, who together created the widely followed S&P/Case-Shiller Home Price indices, are right now offering sharply contrasting views of housing's future. Shiller recently warned that the chances were high for a further double-digit drop in U.S. home prices. But in an interview with Fortune, Case took a far brighter view: "The lack of new home building is a huge help that a lot of people are ignoring," says Case. "People think I'm crazy to be optimistic, but housing is looking like the little engine that could."

To see where real estate is truly headed, it's critical to keep your eye firmly on the fundamentals that, over time, always determine the course of prices and construction. During the last decade's historic run-up in prices, Fortune repeatedly warned that things were moving too fast. In a cover story titled "Is the Housing Boom Over?," this writer's analysis found that the basic forces that govern the market -- the cost of owning vs. renting and the level of new construction -- were in bubble territory. Eventually reality set in, and prices plummeted. Our current view focuses on those same fundamentals -- only now they're pointing in the opposite direction.

So let's state it simply and forcibly: Housing is back."

New Wave of First Time Buyers....get ready!

As we've noted consistently in the past few years, it's vital to understand that recovery from this market won't happen overnight. What's more, the upswing won't be built on questionable lending practices, overextended buyers or insane debt-to-income ratios. Instead, it will be based on a combination of pent-up demand and demographics. And the youngest group of adults, Generation Y, will provide much of the spark.

Born between 1980 and 1995, the members of Generation Y -- also known as the millennials or echo boomers -- are like a pig in a python. Aged 14 to 29 now, they comprise a block of 74 million potential buyers, nearly as many as the 80 million baby boomers born from 1946 to 1964. When you think about the influence the boomers have had on virtually every aspect of society over the past 40 years, including the housing industry, it's fascinating to anticipate the impact of another wave that's just as massive.

The oldest millennials, now in their late 20s, are nearing the average age of first-time homebuyers -- the National Association of Home Builders puts it at 33 -- and many of them are already taking advantage of attractive buying conditions. They're moving through the household formation years of 25-44 and will soon replace Generation X (the 48 million people born between 1965 and 1979) as the primary first-timer group between 29 and 33. They will do so in much greater number.

Please visit the Jeff A. Stokes website for information on buying and selling a home: www.JeffAStokes.com call today at (972) 393-9602

Does owning a home still make economic sense? Absolutely YES. A little perspective is in order....

Anyone who believed that home prices would never fall has learned a valuable lesson. Since the national peak in 2006 home prices have fallen roughly 30% per the Case-Shiller price index. The good news for us Dallasites is we have seen only an average of 4.2% during the same time period. The Federal Reserve shows the value of residential Real Estate owned by households has fell to $16.5 trillion in the first quarter of 2010, down from $22.9 trillion in 2006. Depressing? Yes, but the end of the American Dream? Not even close....back to the perspective...

If the American Dream is to own a home that appreciates 20% to 30% a year and making a house into a vehicle of paying bills then yes that dream is over. In fact, it has turned from a dream to a nightmare; just ask the million of homeowners out there that have gone through foreclosure.

Now if the American Dream is to have a fairly safe long-term investment coupled with the joy and satisfaction of owning a home then that dream is alive and well! With this perspective, owning a home still makes a lot of sense and now is a great time to buy. Why now? Good question.

Mortgages are cheap and it is more of a buyers market depending on where you are looking to purchase and at what price point. Today you can get 30 year loan for around 4.3% compared to 6.6% four years ago. These are the lowest rates ever. Do the math- four years ago if you purchased $300k house with 20% down it equated to roughly $1532 a month mortgage payment. Today that $300k house would sell for $287,400 with 20% down would carry a mortgage payment of $1138 or nearly a $400 savings per month.

Ask yourself this question- do you think interest rates are more likely to go up or down over the next year? I have asked around and most people say UP. If inflation picks up, we won't see these mortgage rates again in our lifetime. And if we get deflation and rates fall, you can refi!

Your home is not the stock market and shouldn't be viewed as a way to get rich. Your home however is most likely to be your single largest investment and is a great way to diversify your portfolio for long term growth. Today you can buy a better home than you could four years ago, you have more homes to choose from and you will be paying yourself each month towards equity, which is a forced savings plan.

The American Dream is alive and well if you have the right perspective.

Please visit the S&W Home Team website for information on buying and selling a home: www.SWHomeTeam.com or call today at (972) 393-9602

Dallas and Texas as a whole are recognized for doing things bigger, and to us Texans better. Dallas' slogan says it all, "Live Large. Think Big." This slogan embodies the essence and vitality of a city built on big dreams and an attitude that all things are possible.

I know it has been difficult for so many of us during these economic times, but my focus is to appreciate what I do have and to allow these times to mold me to put more emphasis on the areas of life that are truly important. Are you seeing your glass half full or half empty? As North Texans, we do have a lot to be thankful for.

When companies look for a place to build business while providing a good home for their employees, they look no further than the 12-county region that includes Arlington, Dallas, Fort Worth and all the cities in between. More than six million people call North Texas home and for many good reasons: There are 24 FORTUNE 500 companies headquartered here, the cost of living ranks below the national average, and DFW International Airport is the third busiest airport in the world. North Texas is more than cowboys and oil wells these days. Our diverse economy provides a healthy workforce for those in healthcare, technology and logistics. As the fourth largest metropolitan region in the U.S. and growing, North Texas is quickly becoming the region of choice.

With Super Bowl XLV coming to North Texas next February we will not only be on the world's stage, but our local economy could have a $611 million impact according to a report commissioned by local organizers. The Super Bowl brings an opportunity to boost civic pride and hopefully fuel some economic optimism to North Texas. Whether the impact is ultimately $611 million or less we all need to look and find the positives after enduring one of the greatest recessions our country has ever experienced.

Repeat after me, "I am happy and satisfied". Now believe it! Even if the Cowboys don't play in or win the Super Bowl....we can at least enjoy the commercials and know that our economy is going to improve.

Please visit the S&W Home Team website for information on buying and selling a home: www.SWHomeTeam.com or call today at (972) 393-9602

They say everything is bigger in Texas, but did you realize how big the DFW area is becoming from a population standpoint?

The Metroplex in 2010 has now reached a population of 6.8 million and is growing at 165,000 net gain annually. We are the fastest growing region in the United States. According to Michael Cox, economist at SMU, it is now projected that we will have a population of 10.73 million by 2028. We will then be the 3^rd largest region in the United States, moving up from our current 4^th ranking and surpassing Chicago.

2007 Six Largest Metro Regions

•· New York - 19.0 million

•· Los Angeles - 12.87 million

•· Chicago - 9.57 million

•· DFW - 6.30 million

•· Philadelphia - 5.84 million

•· Houston - 5.73 million

Top 10 Reasons the Metroplex Gains Residents

#1 - Diversified Economy

#2 - Diversified Population - we are a multi-cultural magnet in recent years

#3 - Service based economy geared to globalization

#4 - Global Economy - 48% of business with DFW Fortune 500 companies is with global buyers

#5 - No personal or corporate income tax

#6 - Low cost of labor

#7 - Quality of life

#8 - DFW International Airport

#9 - Growing workforce

#10 - Center of the country

------ Dallas Morning News - March 14, 2010

We are all very fortunate to live in one of the largest metropolitan areas in the country and still have one of the most affordable areas in the country to live and raise our families. The DFW area might not be the most aesthetic pleasing area in the country when it comes to ocean and mountain views, but our quality of life potential ranks among the best.

Jeff A. Stokes

Please visit the S&W Home Team website for more related information on buying and selling a home: www.swhometeam.com or call today at (972) 393-9602

Fall is upon on us so if you are anything like me you are excited about the cooler weather and getting outside to enjoy those cooler days and evenings with family and friends. I want to dedicate this edition of our newsletter to what has been on my heart the most lately- family and friends. When I think of Real Estate I truly think of dreams, goals and most of all family and friends. Here at S&W Home Team we are very fortunate that we spend the majority of our time working with friends and family. We find it an honor to help that young married couple fulfill their dream of buying their first home together. It is our privilege when we assist a family selling their home so they can buy another home that is going to better fit their needs. Sometimes this means the family is growing and is expecting a new baby so they need a larger home, while at other times it is a family that the kids are going off to college and it is time for them to downsize. No matter the case, what Real Estate means to us is the opportunity for us to help friends and family meet their goals and fulfill their dream of home ownership. We believe that "Home is where the Heart is" so we do everything within our power to make the buying and selling process as stress free and smooth as possible so our clients walk away feeling served and taken care of.

As we draw closer to the holiday season we have many opportunities to give thanks to those people in our lives who have touched us. I know personally that I find it very encouraging and energizing when I slow down to give thanks and to encourage the people in my life. Slowing down might simply be putting aside our own work and worries for a few minutes and calling that person that you have not spoken to in a long time, writing them a letter or going for a walk with someone that you care about. As a nation we have experienced a tough couple of years so I know it can be hard at times to feel thankful, but it is so important for our personal growth to have reflection of the positive things in our life when it is not always easy to do. We all have unexpected life changes that can lead us to question ourselves and the choices we have made. At these times, we can choose to take a deep look into our own lives and become stronger and healthier or choose to become weaker; either way it is our choice. I read a recent quote that says it perfectly, "There are many ways of going forward, but only one way of standing still." I believe that moving forward means to take complete ownership of our life without blaming others or situations and then becoming aware of our own fears that are holding us back from becoming what we desire most. Much of this strength to change has to come internally, but surrounding ourselves with friends and family who can encourage us can not be underestimated.

We are quickly approaching 2010 and with that our team would like to thank you for making our 2009 a successful year. It is because of your referrals and trust in us that allows us to serve and assist so many of your family and friends. We cherish and value this responsibility and will continue to treat you and your loved ones with the same care that we always have.

Please visit the S&W Home Team website for more related information on buying and selling a home: www.swhometeam.com or call today at (972) 393-9602