Aggressive moves to attract new companies by both the city of Austin and the state of Texas have also provided additional employment opportunities.  The Austin area has attracted several new employers in recent years including the Hanger Orthopedic Group; Austin is currently in negotiations with Facebook to open an office, as well.  Austin’s historically strong education, healthcare, and green technology sectors have ensured that unemployment rates in the metropolitan area remain lower than the state and national average.

Recent figures indicate that Austin’s employment picture continues to improve.  Job growth in Austin over the past two years approached one percent, the best in the nation; while this growth rate may seem small, it’s worth noting that over the same period the United States as a whole lost jobs and saw unemployment rates skyrocket.  In fact, Austin’s employment picture is expected to improve even more over the next three years, with jobs in the area increasing by approximately eight percent overall.

One major factor in the stability of the Austin economy is the housing market.  While other regions experienced serious declines in property values and increases in foreclosures and unsold homes, homes in Texas retained almost all of their initial value and demand for these homes remained high throughout most of the industry crisis.  Most analysts credit reasonable real estate pricing and lack of overbuilding for Austin’s relative stability and economic performance; because Texas real estate prices were never overinflated due to real estate speculation, the collapse of the housing bubble had little effect on the area.

These recent figures and predictions spell good news for the Austin real estate and business community.  Increased growth and employment is expected to bolster the commercial and residential real estate market and boost new construction, creating still more jobs and growth in the area.  This synergy will maintain Austin’s position as one of the best cities in the nation in which to live and work.

Current national figures estimate that fifteen percent of all mortgages are at least thirty days delinquent; this includes homes currently in foreclosure as well as seriously delinquent loans.  The worst figures are seen in the subprime mortgage field, where twenty-five percent of loans were thirty days or more delinquent.  The state of Texas has fared somewhat better as a whole than the nation, but fifteen percent of the Texas subprime mortgage market loans are seriously delinquent by sixty or more days, and many of these are currently facing or undergoing foreclosure proceedings.  Only two percent of all mortgage loans in Texas are currently in foreclosure, which represents a markedly better performance than the national rate of approximately five percent.  Texas is one of only seven states currently showing foreclosure rates of two percent of less.

Austin foreclosure rates have remained lower than both the national and state averages, with one percent of loans in foreclosure in December 2009.  These low figures will likely shield Austin from the brunt of the foreclosure crisis expected when banks finally begin unloading already foreclosed homes on the housing market.  Certain hard-hit regions are expected to see plummeting home prices due to the depreciation caused by this expected glut of homes on the market; as many as six million foreclosed homes may be sold by banks over the next three years, according to economic analysts at Barclays Capital.

The strong housing market and stable home values in Austin make it one of the most desirable places to live in the U.S.  Austin’s vibrant computing, healthcare and green tech sectors provide outstanding employment opportunities and have cushioned the Austin metropolitan area against the worst effects of the recession.  With mortgage delinquencies on the decline and the national economy showing signs of recovery, there’s never been a better time to consider moving in or moving up in the Austin community.

OCLC (an organization with a mission similar to RPR, but for libraries) has alienated itself from it's supposed beneficiaries. Could something like this happen with RPR?

In order to understand the potential problems with providing original real estate records to a communally-owned database, as RPR is suggesting, it’s useful to look at an analogous situation that exists in a similar community: the library world.

On July 6, 1967, the Online Computer Library Center (OCLC) was founded as a cooperative effort among libraries to allow standardization and sharing of bibliographic records among libraries who signed up for this service. The records were to remain the property of the library that created them, but would be free to use for any member library, with only a small cost-recovery fee charged for various services. OCLC continued to grow, until today it serves 72,000 libraries all around the world, who participate by creating bibliographic records and sharing them. OCLC is also available for library users to search, allowing them to locate hard-to-find items through its online search options. So, libraries created bibliographic records for books and journals and CDs and DVDs, and users could find information on them through OCLC. And everything was fine, for a while.

Then, in 2008 OCLC announced its proposed “Policy for Use and Transfer of WorldCat Records,” which required that all records before and since that appear in OCLC would bear a line granting copyright (license) over the record to OCLC and prohibiting the record’s use in any other service that was similar to OCLC. Essentially, OCLC simply took over the license for those records. OCLC did not make those records, so how could they do this?

The answer lies in the way that copyright law is structured. The records stored in OCLC were comprised of facts. Facts cannot be copyrighted. I can’t copyright the fact that a house is located at a certain address or that it is on the market for a specific amount; I can’t copyright that grass is green and the sky is blue. I can, however, copyright the way that I describe the house, the look and feel of my real estate descriptions, and the formatting I use in creating a listing for the house. It’s the last issue, that of formatting and metadata, that created the situation with OCLC.

OCLC didn’t claim ownership over the information in its database; it couldn’t. Copyright doesn’t allow for ownership of facts. Instead, OCLC claimed ownership over the format and metadata (descriptions of the books) – the look and feel of the interface – as its justification for claiming the right to license the records. Because the information had to be entered in a format that OCLC set up when the initial database was first put into place, OCLC owned the format. The records in that format were thus the property of OCLC because the format was OCLC’s. Restrictions were outlined that restricted the rights of libraries to use the records, even for records they had created themselves and that logic would dictate those libraries “owned.” Despite public outcry, the provision was implemented in 2009.

But OCLC was a consortium of libraries working together, right? So how could they do something that was so clearly at odds with what the majority of the membership wanted?

The answer, sadly, is that OCLC’s leadership seems more interested in protecting its own financial interests than in being responsive to its membership. Once OCLC became the standard that most libraries used, it began to derive its own profit-driven agenda; since it essentially had a monopoly on the records that had already been created, it no longer needed to serve the libraries that had created it and built its success.

If any of this sounds familiar, it should. Similar situations are arising throughout the intellectual property world. If RPR successfully implements its proposed database, it can make a claim that the records contained belong to it, no matter who originally created the record, because RPR would own the format and metadata. This would allow for a widespread land grab that could end up costing members and others simply to get their own listings back.

Don’t think this could ever happen? It already has. Just ask a librarian.

Recent developments have also led to the appointment of a new Downtown Density Task Force, a result of stalemate on the part of the previous task force which could not come to an agreement at a meeting last month.  Many builders have noted that a proposed “pay-to-play” system that would require payments to a community development fund may also constitute a deterrent to new construction in the area during a time of economic uncertainty; most economic experts believe such requirements are unwise given the current housing market downturn.

Some experts have noted that the proposal as it currently stands is in direct conflict with Texas state law, which prohibits requiring builders to include affordable housing in their planned developments.  Supporters of the proposal, however, note that the rules do not force builders to include such housing, but simply withhold the required legal variances from builders who do not make such accommodations a part of their development plan.

The timing of the proposal is unfortunate, given the recent prediction in the 2010 Texas Construction Outlook that Austin construction projects are expected to increase by approximately 30% in the coming year.  Federal stimulus funds and projects are credited with a portion of this growth, and new housing starts are expected to make up much of the rest of the increase.  Many builders feel that adding new layers of expense and paperwork will put a damper on these expected gains and stifle much of the economic benefit Austin could derive from this infusion of cash and projects to the local building industry.  While the public works and utilities projects are not expected to be affected by the proposed rule changes, some new housing developments may be delayed or even canceled if these rules are put into effect at this crucial time.  Given the fragile nature of the housing market recovery, most builders believe that these rules should not be implemented or should be delayed until the housing industry is more robust and the recovery is well underway.

South by Southwest tix are highly coverted from coast to coast and from Film geek to music geek to computer geek!

The 24th annual South by Southwest Conferences and Festivals at the Austin Convention Center will showcase the finest in film, music, and interactive media from March 12th through the 21st. In keeping with Austin’s tradition of originality, the conferences and festivals focus on independent artists and films and offer a valuable first venue for aspiring musical artists and young filmmakers. Sponsors for this year’s festivities include the Independent Film Channel, Monster Energy, Chevy, Pepsi/Mountain Dew, and the Austin Chronicle.

The South by Southwest Conferences offer participants an outstanding opportunity to network with those in their chosen fields and to learn valuable skills through discussion panels and celebrity interviews in a casual, relaxed atmosphere. The keynote speaker for the Music Conference will be the great Smokey Robinson, one of the most influential musicians of all time. The Interactive Conference focuses on the best in website design, video games and internet start-ups, making it a must-see for would-be Web millionaires. Ben Huh, the innovator behind sites like I Can Haz Cheezburger and LOLcats, will be on hand to discuss techniques and methods for achieving internet success as the featured speaker for the “How to Rawk SXSW” panel.

The film festival usually gets most of the attention for its diverse selection of films, ranging from headliner events like “Get Low” with Robert Duvall and Bill Murray and “Cyrus” with John C. Reilly and Marisa Tomei to documentaries like “Rejoice and Shout,” a moving exploration of gospel music. International films from Belgium, Israel, Ireland, Denmark, and many other countries will also be showcased at the South by Southwest Film Festival. One highlight is sure to be the presentation of “Hubble 3D,” a breathtaking look at the spectacular galaxies as viewed through the Hubble Telescope and narrated by Leonardo DiCaprio. “The Lost World,” a silent science-fiction film from 1925, and Tod Browning’s “The Unknown” will also be shown during the festival. Short film categories will include animated shorts, documentaries, experimental short films and high school shorts created by Texas teenagers for presentation at this elite venue. Music videos will also be presented, showcasing a full range of musical stylings and artistic visions.

Attendees will participate in a wide range of panels, discussion groups, and meet-and-greet opportunities with some of the biggest names in film, music, and interactive technologies. When the day’s work is done, guests of the conferences can drink and dance the night away at numerous parties with many of the same celebrities they worked with during the day; the South by Southwest Conferences and Festivals offer the best of Austin nightlife to guests at this exclusive event. For more information or to sign up for one or all of the conferences, visit http://sxsw.com/.

University Park is centrally located within easy walking or cycling distance of many of the prime attractions of the Austin area, including the State Capitol, the downtown financial and business district, and of course the University of Texas. Onair Development has announced plans for a 120,000 square foot medical office building in University Park in close proximity to St. David’s Medical Center. The building offers significant advantages for physicians who lease office space, including an exclusive tenant equity partnership plan that provides the potential for ownership over time.

Texas Monthly has already taken up residence in University Park; an Aveda Institute salon training facility has also signed a contract and is expected to open for business sometime in mid-2010. Premiere Cinemas will offer six or seven screens in a planned 450,000 square foot mixed-use building, which will incorporate 340 apartments and additional retail outlets as well. Developer Andy Sarwal is encouraging builders in University Park to commit to green standards and LEED certification, making this development even more attractive to tenants in the Austin area.

Austin’s downtown area has fared better in the recent economic downturn than many other cities; this is due in part to the vibrant medical, solar, and green technology sectors in the Austin area. Additionally, Austin’s business-friendly policies have attracted major employers to relocate their headquarters to the area; one recent acquisition for the Austin economy is Hanger, a major manufacturer and supplier of medical prosthetics and durable medical goods.

All over Haiti, buildings and other infrastructure have been destroyed and people are struggling to survive.

The recent earthquake in Haiti has caused untold suffering and massive devastation to residents of this small island nation.  The humanitarian aid efforts are already underway, and rebuilding plans are expected to begin soon.  Many Austin residents have been moved by the plight of the people of Haiti, and contributions are pouring in from all over the world to assist those affected by this tragedy.  A number of local Austin organizations and companies are also working to help Haiti recover from this disaster and to provide clean water and food to the victims of the earthquake.

Austin-based Whole Foods Market, Inc. has announced the creation of a fund to help provide relief to disaster victims in Haiti.  Donations will be accepted at all 289 stores throughout the United States, and will be distributed to a number of direct aid organizations, including Doctors Without Borders, Action Against Hunger, AmeriCares, Food for the Poor, Partners in Health, and the American Red Cross.  Whole Food Markets is also collecting donations of food, clothing, and money to support staff members who have been affected by the disaster in Haiti, and working with national organizations to facilitate the delivery of food and water to the areas hardest hit by the earthquake.

The American Red Cross of Central Texas is also active in the Haiti relief efforts, and is currently requesting donations of bottled water, food, and other supplies.  It is also looking for temporary shelter and medical services for those injured or homeless due to the earthquake.  Additionally, the American Red Cross has joined forces with the U.S. State Department to allow individuals to donate through their cell phone bill; simply text the word “Haiti” to 90999, and a $10 donation will be automatically added to the monthly charges for the cellular phone.

Several Austin firefighters and emergency workers are headed to Haiti to take an active part in the rescue and recovery operations on the ground; they will bring needed supplies and expertise to the relief efforts in heavily populated areas of Haiti, including Port-au-Prince.  Austin companies providing matching funds for relief donations include Austin Ventures, Silicon Laboratories, and the MFI Foundation.  Austin residents can qualify for these matching funds by making their donations through http://www.givetoaustin.org/helphaiti, Austin residents can qualify for these matching funds.

Austin leads the nation in economic growth due to the diversity of local and statewide businesses, the University of Texas, and overall good business climate.

A recent Brookings Institution report shows that Austin’s economy continued to grow in 2009 while other cities experienced slumps and downturns in their economies. The report finds that Austin grew more from 2008 through 2009 than any other major metropolitan area in the United States. While that growth was a mere two percent increase, it far outstripped the country’s overall metropolitan performance, which decreased by an average of 2.4 percent nationwide.

Austin’s economic growth was spurred mostly by consumer spending and professional and technical services, according to the report. While manufacturing and durable goods decreased, technology-based industries continued to thrive in the area. Austin’s economy has grown approximately 35 percent in the last decade, and the last census showed a 48 percent increase in population in this highly desirable metropolitan region. Austin’s location in Texas has helped it to maintain a healthy economy, but the Brookings Institution report indicates that Austin easily outperformed other major cities in Texas including San Antonio and Dallas.

One major area of growth that has kept Austin’s economy strong is the health care field. Major health care insurers, service providers, and manufacturing concerns have flocked to Austin in recent years, drawn in part by the highly-trained workforce and the business-friendly attitude of Austin’s city leadership. The increasing population of Austin requires large-scale health care service providers, and in recent years more than $1 billion in health care construction and investment has taken place in the Austin area. This provides jobs for area residents; in fact, in 2009 health care employment increased 5.5% overall in the Austin metropolitan area in contrast to a two percent increase nationwide.

Austin’s diverse employment base is also cited as a reason for its economic success. In addition to health care employers, the state government, educational institutions, and many other corporate interests provide jobs for residents. The resilient housing market in Austin is due in part to the stability of these employers, along with consistent population growth creating constant demand for properties in the Austin area. Austin consistently ranks in the top tier of American cities for quality of life and economic opportunity, which attracts many businesses and individuals to the area.

The Brookings Institution report ranked three Texas cities in the top five cities in terms of economic growth. The top five in order are: Austin; Washington, D.C.; McAllen, Texas; Virginia Beach, Virginia, and San Antonio, Texas.

You can view the interactive map on the Brookings Institution website. Below is a snap-shot of the overall economic growth situation.

Brooking Insitution Map of Economic Growth

Offices and other commercial space in Austin are bucking the national trend of falling rents and difficult financing.

A recent Grubb & Ellis Company forecast lists Austin, Texas as the number one city in the nation for commercial real estate investment. Long considered one of the top ten markets in the U.S. for retail, industrial, multi-housing, and office real estate ventures, Austin tops the list for office real estate, beating out cities like Washington, D.C., Los Angeles, Houston, San Diego and Denver. Austin ranked seventh in the nation for retail investment opportunities; Los Angeles held onto the top spot in that category. Austin’s overall strong showing in the commercial market is the result of a number of synergistic factors that have allowed the area to weather recent downturns while remaining relatively unscathed.

Grubb & Ellis credited a strong local economy including government and educational sectors for much of Austin’s strong showing. Federal, state and local government agencies provide over 150,000 jobs in the Austin area, offering a stable employment base that has shielded Austin against the unemployment woes that have plagued other areas in recent years. During 2009, a year when many other major metropolitan areas saw severe job losses and worsening recession, Austin escaped the brunt of the economic downturn with an overall job loss rate of 0.7 percent.

Green technologies are bridging much of the employment gap. Solarbridge and Heliovolt have recently opened offices in the area, and Gemini Solar has begun construction on what will be the largest solar power plant in the country. The plant will be part of AustinEnergy’s overall plan to provide clean electrical energy to the region; located in eastern Travis County, it is expected to generate 30 megawatts of electrical power upon completion in 2010. These new expansions and construction projects will provide additional employment for Austin area residents, and are expected to stimulate growth in the local economy.

Austin’s real estate industry got another boost in a report by Oxford Commercial Inc., which showed that commercial office space leasing stabilized in the fourth quarter of 2009 after three straight quarters of steep declines. Prices for office space have increased in some areas, notably in the downtown area where demand is typically highest. The improvement in leasing figures is believed by most analysts to mark the beginning of an economic rebound in the Austin area. While Austin has experienced fewer difficulties than other areas, it has still felt some of the effects of the nationwide economic woes; this news along with the high ranking by Grubb & Ellis is expected to cement Austin’s position as one of the most desirable commercial markets in the nation.

Leander Commercial Listing by RE/MAX 1

After a year of sluggish sales, Austin saw a large jump in November '09.

A last-minute scramble to take advantage of tax credits and low interest rates is credited with a 58% increase in Austin home sales in November 2009 over the same period last year. The increase in sales is the largest in over a decade, and offers hope for recovery in the beleaguered residential real estate market. While overall home prices in Austin continue to fall, the decrease has begun to level off and seems to be reaching a state of equilibrium, allowing anxious sellers a well-deserved sigh of relief.

Analysts point to the recently extended First-Time Homebuyer Credit and interest rates that have dipped below five percent as the primary causes for this significant increase in sales. Additionally, while median home prices in Austin have not fallen as sharply as some experts had predicted, appreciable reductions in the asking prices of many homes have led to a surge in bargain-hunting by home buyers who might otherwise be priced out of the market. The median price of a single-family residence in Austin has decreased only two percent over the past year, demonstrating the resiliency and stability of the housing market in the metropolitan area.

Most real estate experts are cautiously optimistic about Austin’s residential real estate market going into 2010. Sales are expected to continue to grow more slowly, with no repeat of November’s record-setting figures. The expansion of the federal tax credit for first-time home buyers and continued low interest rates will likely continue to attract buyers to the market, especially in entry-level communities. However, as the economy begins to rebound, interest rates are expected to return to over five percent, and home sales will slow as a result.

As consumer confidence improves, economic conditions in Austin and throughout Texas are expected to continue to rebound, providing employment opportunities and spurring additional sales of new and existing homes. Home prices are expected to increase as well in correlation with the anticipated growth in demand. With ultra-low interest rates, federal incentives, and the current undervaluing of homes on the market, most real estate advisors believe that now is the time to invest in residential real estate, before interest rates and values return to higher levels later in 2010.

Hamilton Pool Preserve just outside of Austin.

Current economic conditions may have put a damper on vacation plans for the foreseeable future; that trip to Paris or Hawaii may have to wait for another year. Here in Austin, however, we have a number of outstanding vacation opportunities with little or no travel involved. These luxurious retreats can provide all the amenities of a world-class hotel, allowing you to get away from it all while staying close to home. Here are some ideas to help you start planning your next vacation to the sunny climes and picturesque attractions of Austin, Texas.

East Austin’s Lady Bird Lake is the setting for the spacious Architect’s House and the smaller Architect’s Guest House rental properties; these luxurious properties offer lodgings for four at affordable rates, with the use of kayaks included in the nightly rental charge. A deluxe high-definition projection television is available in the Architect’s House for stay-at-home types, and pets are considered on a case-by-case basis.

To truly experience all that Austin has to offer, book a night at the Hotel Irons, which features Austin music, books, and art and serves up some of the best Austin originals including honey and barbecue sauce in its well-stocked pantry. Dogs and kids are welcome in this chic two-story house, and the heated swimming pool makes this a family favorite all year round.

The ultimate fairytale vacation is available at Bouldin Castle with its dungeon, moat, and stone ramparts surrounding a tower. The castle is a new addition to the Austin scene; originally built in 1940 as a Roman Catholic church, it was reimagined in 2007 as a classic European castle. Of course, the moat is really a lap pool, and the vast medieval hall area was once a place of worship, but guests at this elaborate establishment enjoy the illusion created by the medieval décor and atmosphere in this 4,200 square foot Austin castle.

By vacationing in one of the deluxe accommodations available in Austin, residents can enjoy the benefits of well-deserved rest and relaxation while exploring the many attractions that are available in this diverse cosmopolitan city. Take a tour of Austin’s many art galleries, go for thrills and chills on the Austin Ghost Tour, chill out at one of the many live music venues in the “Live Music Capital of the World”, spelunk through the Inner Space Cavern, or book a ride on the antique Austin Steam Train; whatever you choose, you’ll save money and enjoy the best of Austin culture right here at home.

The tax changes mainly affect net operating loss carrybacks; these tax mechanisms allow companies to offset profits in one year with losses in another, reducing their overall tax liability and allowing them to receive refunds for taxes paid in past years. These carrybacks usually are only allowed for two years, but the length of time has been sharply increased, allowing many firms to offset current losses against profits going back as far as 2003. This will provide more cash in hand for many financially-strapped builders and offer real help at a time when many home builders need it most.

Builders may get money back from taxes paid!

The survey follows on the heels of a recent prediction from Fitch Ratings that new construction and existing home sales will improve more than previously expected in 2010, due in part to the expansion of the tax credit and efforts by the government to stem the tide of foreclosures in recent years. Incentives and tax credits appear to be having a beneficial effect on the market, but many analysts worry that sales will slump as soon as the incentives are removed or phased out.

Austin builders are expected to benefit from the change in the tax code and the extension of the First-Time Homebuyer’s Credit. Austin’s real estate market has survived the recent housing crisis remarkably well; this is credited to Austin’s thriving economy and overall desirability as a center for culture and a great place to raise a family. While new building projects have slowed in recent years, the demand for new construction is still strong. Ironically, some Austin builders will benefit less from the tax code changes due to the fact they have fewer losses to offset against previous gains, and thus will not qualify for the full level of tax relief.

Taxes may be going up for real estate investments

Real estate investment providers could be adversely affected by a bill that recently passed the U.S. House of Representatives that would tax real estate assets at the higher “ordinary income” rate rather than the existing capital gains rate. The bill, referred to as the Tax Extenders Act of 2009, would exempt owners of real estate held for investment purposes, including rental properties; however, advisors, managers, finance experts, and other consultants and support staff would be taxed at the higher rate.

The bill specifies that gains derived from real estate investment would no longer be classified as capital gains; interest earned would be taxed at the higher rate, and investors who use their own capital will be exempt from the legislation. Investors who use other entities in order to finance their real estate investments, however, will be affected by the legislation, which is seen as a crushing blow not only to speculative investors but also to publicly traded partnerships and real estate portfolio providers.

Existing real estate corporations that directly fund and build their own projects will not be affected by the legislation. Service providers, fund advisors and real estate management companies are expected to be hardest hit, since they depend heavily on a narrow margin of profit to continue operations.

The bill specifies that earnings derived from an “investment services partnership interest” will be taxed at the higher rate. An investment services partnership interest is defined by the legislation as the interest held by an individual or corporate entity that:

• Advises the partnership regarding buying and selling of real assets
• Manages, acquires and disposes of real assets
• Arranges financing for purchasing real assets
• Engages in other activities in support of management, acquisition and disposition of real assets

If you oppose this bill you can send a letter to your congressman and/or senator.

Real assets include securities, commodities, certain options and derivatives, and real estate promotes held for investment purposes. Property managers and real estate investment companies will want to watch the progress of this bill closely as it moves from the House of Representatives to the U.S. Senate for consideration.

Seymour Fogel Mural

The Starr Building located at 107 West 6th Street, Austin Texas, has been sold. CB Richard Ellis represented the owner in the sale of the roughly 77,000 sq ft office and parking garage. The building has been around Austin some 55 years and houses a famous (to art and architecture folks mostly) mural by Seymour Fogel.

The mural itself is very pretty. I hope that the folks who purchased it try and make the finances work without plopping another high rise in a downtown that already has enough “towerage”.

Kemp Properties purchased the property and has previously restored other buildings like the Brown building. I think that’s a beautiful building so we ca assume that the Starr Building is in good hands.

Take a look at some of the photos from the listing agents at CB Richard Ellis. It looks like it would be a perfect set for Mad Men!

Starr Building Interior

Starr Building Exterior

Celebrate the season, not the ceremony
Make sure your holiday decorations are not overly faith-specific; religious themes can make some buyers uncomfortable. Opt for general holiday ornaments like a tree or lights, rather than a full-scale Nativity scene. Avoid excessive clutter or overly elaborate decorations; a clean, simple holiday display can let your home shine without overwhelming potential buyers.

Everyone loves a bargain during the holidays
While severely underpricing your home is probably not the best idea, pricing it just below the listings for comparable homes in your area will attract more attention and ensure your home is one of the first stops for buyers. It may sound simple, but if you price your home to sell, it’s much more likely to sell. In today’s market, opting for a realistic asking price can prove more effective than starting high and expecting to negotiate with buyers later. A lower initial price will attract more views and can help your home sell fast.

Say it with pictures (and video)
Clear, attractive pictures of your home will help attract buyers who otherwise might not be willing to journey out in the cold. An online video tour is even better, letting potential home buyers take a virtual walk through your home and attracting additional attention for your property. If at all possible, post pictures of your home’s exterior in different seasons; this will give buyers a better feel for your home’s unique appeal.

Offer a warm welcome
When it’s cold outside, a crackling fire in the fireplace can add a warm glow to your home and showcase an important selling point. For homes without fireplaces, keeping the temperature at a comfortable level and offering fresh-baked goodies like cookies or brownies can create a holiday atmosphere and add to your home’s appeal.

Fix it up and save
If there are any nagging home projects you have been putting off, the holidays are an excellent time to take care of them. Little improvements can make a big difference in your home’s appeal; prices are usually lower off-season, so investing a little now could reap large rewards at the time of sale.

Click here to view the embedded video.

Watch the whole thing. You’ll be glad that you did.

30-yr Fixed – Lower
This Week:  4.78% (lowest since April 30, 2009)
Last Week:  4.83%
1yr Ago:  5.97%

15-yr Fixed – Slightly Lower
This Week:  4.29% (record low)
Last Week:  4.32%
1yr Ago:  5.74%

Jumbo Fixed (Average 30-yr Fixed)
Last Week:  5.75%Previous Week:  5.75%

Highlight of This Week’s Major Economic Reports

Despite the nation’s economic challenges, there’s a lot to be thankful for this year.  For one, the housing market has started to see stabilization – thanks in combination to historic low interest rates and increasing affordability.  Then, there’s the first-time buyer tax credit, which was set to expire on December 1^st and has since been extended to April 30^th.  The original expiration helped to prop up home sales in October, which saw the fastest sales pace since October 2007, with existing home sales jumping over 10% and new home sales spiking 6.2% from September’s figures.

What to Look for Next Week

The latest unemployment picture will be framed with the release of November’s employment report.  Even though unemployment claims have slowly dropped in recent weeks, it’s expected we’ll see a rise in the 10% unemployment rate through the end of the year.

Short-Term Rate Outlook
Relatively Unchanged

Stay Informed:  What’s in the News

“America’s Fastest Recovering Cities” – Austin #3 from Forbes.com

http://www.forbes.com/2009/11/19/cities-recovery-unemployment-lifestyle-real-estate-top-ten_print.html

“Texas’s Existing Home Sales Climb, Prices Inch Up” from Texas A&M Real Estate Center

A total of 19,347 existing single-family homes were sold in Texas last month, a 15 percent increase from October 2008, according to MLS data compiled by the Real Estate Center at Texas A&M University.

The median price rose 1 percent to $143,300 during the same period, and the state finished the month with a 6.9-month inventory of existing homes.

Here is how select Texas cities fared in October (data current as of Nov. 24, 2009):

“US Job Losses to Bottom out Next Quarter: NABE” from CNBC.com

Economists expect the joblessness that has weighed down the nation’s economic recovery will start to slowly abate in 2010, but they predict consumers will continue to keep a tight rein on spending, according to a new survey.

“Fed Remains Cautious on Strength of Recovery” from The New York Times

The Federal Reserve’s new economic forecast and minutes from a session earlier this month reveal that policymakers continue to fret over whether the economy is strong enough to hold up without government stimulus efforts, such as the temporary fiscal programs for the housing sector. Concern about the recovery comes as Fed officials begin debates on when to start raising interest rates, which have been held at virtually zero since last December, and on ending their program to purchase $1.25 trillion in mortgage-related securities. The real estate industry fears an increase in mortgage rates, but the Fed also wants to focus on reducing its holdings and bringing its balance sheet back to normal.

Marie Funston | Sr. Mortgage Advisor | (512) 750-7270
9442 N Capital of Texas Hwy., Suite 1-600
Austin, TX 78759
Fax:  (512) 343-1224
Marie@austinmortgageadvisor.com

Operation Turkey
This annual event provides a hot Thanksgiving meal to homeless individuals throughout Austin. Volunteers are needed to help sort, prepare and package food and deliver it to various sites that will be serving up these meals to the homeless on Thanksgiving Day. Sign up at volunteers@operationturkey.com or learn more at www.operationturkey.com.

Meals on Wheels
This well-known program delivers food to the elderly or housebound. This Thanksgiving, Meals on Wheels is in need of a few extra volunteers to package and deliver meals. Interested individuals can sign up or learn more at www.mealsonwheelsandmore.org/volunteer/current-needs.

Arc of the Capital Area
A non-profit organization providing assistance to developmentally challenged and disabled individuals, Arc of the Capital Area offers a variety of services to special-needs individuals and their families. On Thanksgiving, they are in need of several volunteers to pick up meals from H-E-B, package them appropriately, and deliver them to Arc clients. For more information, contact Genessee Klemm, Arc’s volunteer coordinator, at (512) 476-7044 or by email at gklemm@arcofthecapitalarea.org.

Salvation Army
The Salvation Army’s Red Kettle Campaign provides Christmas baskets and toys to needy families throughout the Austin area, as well as supporting a number of other charitable activities by the organization. Bellringers are needed for two-hour shifts throughout the holiday season. Those wishing to volunteer as a bellringer should contact the Salvation Army at (512) 437-4566.

Feast of Giving
St. Louis Parish Social Ministries will host a Thanksgiving Dinner for needy individuals and families at the St. Louis King of France Catholic Church at 7601 Burnet Road. Volunteers are needed to help cut turkeys and prepare the meals as well as greeting and serving the guests as they arrive. Clean-up crews are also needed after the event’s conclusion. Since this is a family event, volunteers as young as five are welcome to help with this annual event; 420 people were served at last year’s dinner, and turnout this year is expected to be even higher. Food donations are also accepted beforehand and, for perishable items, on Thanksgiving Day. Those wishing to donate or volunteer should contact Bea Dela Rosa at (512) 454-0384 ext. 199.

You can read about it here.

http://www.inman.com/news/2009/11/12/mls-buy-in-key-nar-database?page=0%2C4
and here
http://www.inman.com/news/2009/11/14/rpr-execs-under-fire-nar

Below is a snippet from the 1000watt blog posted on Inman. If you’d rather a more concise description skip down past the quote.

The NAR has taken over certain technology assets of Cyberhomes from LPS (formerly known as FNRES) in order to bring its RPR (Realtors Property Resource) project, as well as its consumer-facing play, HouseLogic, to market. To do this, they have created Realtors Property Resource LLC — a wholly owned subsidiary of the NAR.

Certain LPS executives, including Cyberhomes GM Marty Frame, will be making the transition over to NAR/RPR (see Inman News article). Frame will serve as the president of the new entity. Dale Ross, who was co-founder of MRIS, the nation’s largest MLS, will be CEO. LPS will also provide call center support and other services as part of the deal.

The RPR database will contain parcel information on nearly 150 million properties through a data license from LPS, which (along with First American) is one of the two major sources of public property data.

This is interesting news, but let’s back up a minute for those of you who have more well-rounded lives than I (my fellow online RE junkies can skip down to my take on what this deal means).

The RPR is the national property database initiative that the NAR has been quietly working on for some time. It has gone by a number of names over the past couple years, including “Gateway,” “The Real Estate Channel,” and the “Library/Archive.” It will aggregate tons of property data, including public records, in one place. This will be a Realtor-only database. The idea is to keep agents and brokers competitive amidst widespread data diffusion and other challenges.

HouseLogic.com is a NAR-owned public destination site that will be unveiled next week at the NAR EXPO. The site is part of the NAR’s long-term strategy to engage consumers on behalf of its members.

RIN is the “Realtors Information Network,” a for-profit arm of the NAR from which the RPR sprung. It was conceived for the purpose of creating an ill-fated online real estate service nearly 15 years ago. It was proprietary, something like a Prodigy or early AOL-type service. It blew up, costing the NAR millions. It was from that failure that the present-day Realtor.com was born, in 1996.

Thanks to Brian Boero and Inman for the above snippet.

If you don’t subscribe to Inman here’s the gist…

Sometimes it feels like this is my relationship with NAR...

REALTORs Property Resource in a Nutshell

Basically, NAR would love to create another cash cow like Realtor.com by taking our MLS data and building a system around it, then selling it to the likes of ANYONE WHO WILL PAY FOR IT including government agencies. Can you say appraisal districts? Hope everyone is ready for their taxes to go up once we expose our complete MLS data (even in aggregate).

A Better Idea

And you folks are Realtors like me…. Why doesn’t our MLS ever agree to give any of us all the data for free so I can sell it to other people? IDX feeds for members are $200 per year now (or thereabouts).

I’ve got an idea. Why don’t all the MLS systems around the country give me the data. Then, you know, I’ll build a website with your images, your listing data, and publicly available records and then I’ll sell the services to you and other entities for a profit? Of course your dues may go up a bit since you’ll have to hire someone at ABOR to handle all this data exchange, help NAR with any issues they have, etc, etc.

Sounds like a good deal, right? Who’s on board?

I’m not a data entry robot working to make NAR and their partners money while paying Realtor.com $50 a listing to “showcase” my data on their website, not to mention a website that is worthless without said data.

Who Wants Higher Property Taxes?

In Texas, we are a non-disclosure state and they want to sell the info to government agencies. Um.. I’m pretty sure that all the appraisal districts will love that. Personally, I think this is the dumbest thing NAR members could do to themselves. If NAR wants said data for their system our MLS should charge them accordingly. I think $100 per listing sounds about right. Then we could automatically get a featured listing in Realtor.com and have $50 profit that could go to reduce or eliminate our MLS fees.

Sounds more fair to me. NAR can go and partner and sell the data, but they need to BUY IT FIRST.

Aside from all this… Why do I, as an agent in central Texas need, or care about accurate valuation or data about property in Montana? I’m not licensed there. I don’t sell there. And NAR Code of Ethics Article 11 says I can’t because I’m not competent in the workings of real estate in Montana.

Why should my dollars go to fund a NAR company that makes profits for LPS Real Estate (an RPR partner) and allows the data that is our lifeblood to go out to whomever?

I’ve only been thinking about this for a few days so I could be wrong. I would love to hear what other folks at our board or at any board across the nation think. If you are for or against the RPR and have an interest in real estate other than being a salesperson please disclose it so we can get a read on where each stakeholder stands.

Joe Cline – REMAX Capital City

Home refinance may be for you

It was observed that properties that ranged in between the low and mid priced ranges kept the real estate as well as the mortgage market active. The mortgage market which is still volatile is yet to recover fully and statistics suggest that about 6.7 million households in the US having mortgages have fallen behind on payments (as per MBA or Mortgage Bankers Association). Every homeowner is striving hard to become current with their payments again so that they don’t lose their home in foreclosure.

One of the best ways to save your home from being foreclosed is to opt for home refinance and that is what majority of the homeowners are doing if it is an appropriate choice for them. What do you mean by an appropriate choice? There are many factors that decide whether or not the time is ripe to opt for home refinance.

When should you refinance your mortgage?

Some of the factors that help you to decide whether you should refinance your mortgage are as follows –

Opt for home refinance when rates are low

Low rates can drive you to opt for home refinance. This is what majority of the homeowners do. This can make your mortgage payments affordable.

Weigh the short term and long term benefits

Find out how refinancing your home will affect your long term as well as short term financial goals.

Do you want lower monthly payments and reduced interest rates?

Home refinancing will allow you to enjoy lower payments and reduced interest rates.

Do you want to switch from adjustable-rate mortgage to fixed-rate mortgage?

Often it is seen that homeowners refinance if they are currently making payments as per adjustable-rate mortgage but want to switch to fixed-rate mortgage that makes their payments predictable. This is advantageous as you can plan out your finances well in advance.

Are you looking forward for some extra cash?

If you have enough equity in your property, you can opt for home refinance to get access to some extra cash that can be used for meeting your other financial obligations.

Build up equity in your property

Home refinance is also a good option if you want to shorten the length of the loan term. Homeowners usually do so in order to pay off mortgage faster so that they can build equity in the property faster.

If you are planning to refinance your mortgage, do so only if it is beneficial for you. It is important that you don’t opt for home refinance only if one of the factors mentioned above match your requirements. This is because whether you refinance your mortgage or take out mortgage for the first time, you are putting your home at stake.

Guest Blogger: Peter Gomes

National Capital where the homebuyer tax credit was extended and expanded

The extension represents a compromise between those looking to decrease the government’s already over-sized deficit and consumer advocates who touted the benefits of the existing credit, which has been credited with prompting anywhere between 200,000 and 400,000 additional sales nationwide. While economic analysts may disagree on the total number of sales, it is widely accepted that the existing credit has been beneficial to the housing industry in general and to first-time buyers, home builders, and mortgage lenders in particular. By providing an additional incentive for buyers, the credit helped maintain home values and prevent further damage to an already weakened housing market; the expanded and extended credit is expected to help even more.

This will represent a real boon to Austin homeowners who may have felt “stuck” in their old home and unable to move up to a more desirable property. By providing a $6,500 credit to existing homeowners, the credit doubles its value; homeowners can count on this incentive (or the $8,000 first-time homebuyer credit) to help move their current home, while they can also rely on the $6,500 to help them make the move to their new home in financial comfort. This measure is win-win for the Austin market and for the country as a whole.

Prospective home buyers should be aware of the April 30th deadline, however. It is unlikely that Congress will extend the credit past this date, although home buyers who have signed contracts as of April 30th will receive the credit provided they close within 60 days. With home prices at affordable levels and the economy on the upswing, there has never been a better time to buy in Austin; these valuable credits provide one more incentive to buy now.

solar panel qualifying for a solar incentive

Will Austin be giving away free solar arrays? No, of course not, but a new program which allows home owners to obtain low interest loans to install solar arrays has begun. The program will allow people to cut their electric bills while paying the loan on their property taxes. This is aimed at making the transition to green living easier on the Austin home owner.

The expected amount added to one’s property tax bill would be about equal to the amount saved on energy from the grid; meaning no impact to the typical home budget.  Since Austin exempts most renewable home improvements, including solar, from a home’s property tax valuation, the homeowner also adds value to the property, without increasing the taxable value of the home.  A green step forward is fiscally available for any Austin home owner interested in the upgrade.

With a large enough roof system, you could effectively remove yourself from the electrical grid. Or you could sell your extra power back to the utility. You’ll still want a back-up system, just in case of another hurricane like Katrina. Would this affect the electricity supplier in the area? It might. Too many people cutting back at once could strain the local utility. In the long run such a strain would be minor compared to the benefits that will come from the shift.

The largest obstacles to success might be keeping up with the rebates. $4 million was allocated for the fiscal year starting Oct 1, 2009. At this time more than $3 million has already been allocated.

When a person thinks about wind-generated electricity, he sees those huge windmills, the long blades whirling in the breeze. And the state that leads the way in wind-generated power is Texas. The increase of 436 megawatts in the 3rd quarter brings her total wind-power capacity to nearly 8800 Megawatts, or approximately 28% of the total U.S. wind-generated power. California, by Comparison, generates less than 3000 megawatts by wind.

The Texas wind generation plants produce enough to power 2.5 million homes. Compare that to the total U.S. of 9 million. Texas is a true leader in this field.

The production of wind turbines is down because of the recession, but Texas still pushes ahead. And it has nearly three times the turbine-power megawatts of Iowa. Taking the steps to move forward with clean energy it will not be long before the country turns to Texas once again to see what to do correctly.

The American Wind Energy Association credits the stimulus bill for helping complete energy projects and for starting new ones.

Water treatment plant (activated sludge tank)

The Austin city council has a battle brewing over water, or, more accurately, over a water treatment plant. A city the size of Austin needs water treatment plants. They have 3, and the push is on for a fourth. However, the city council is divided. Some members don’t want it, and plan to push for a conservation measure which would consider infrastructure management and drought, demand, and regional supply. Although all of these issues should be considered, the benefit of the additional plant is also being considered.

Current projections indicate the proposed fourth water treatment plant would cause water bills to rise 15%. The conservation measure mentioned above is likely to be introduced to the council on November 5, 2009. Each measure will later come before council for a vote. The current anticipated vote seems to be 4-3 in favor of the plant. If this proposal carries, those against the plan could opt to bring forward another resolution to direct the city’s manager to find ways to lessen the impact on lower-income families.

As the efforts continue, both conservation and water treatment are on the table for discussion. Only time will show us if a solid, beneficial compromise will be reaches by both sides. Back up measures are being created in case a compromise is not reached.

The big factor is time-lag between billings and construction spending, which is between 9 and 12 months. A score below 50 indicates a decline in demand, and the current U.S. score is 43.1 for September, 2009. But it reflects a slight increase from the 41.7 from August.

However, new construction inquiries are up, showing a nice 59.1 percent increase. This could be showing that the government’s stimulus program is working. Or, it could be showing the stiff competition in the business is resulting in multiple submissions. The outlook depends upon the reality of this number’s creation. The optimistic eye will be hopeful, pointing at the stimulus program. It’s believed that some big stimulus projects will be beginning soon, helping to counter the big decline in private commercial construction.

It helps to look at one other factor: The rating for inquiries is the highest it has been in 2 years. That is encouraging. However, the only way to be certain is to watch October’s numbers, which should help us determine whether or not this is just a temporary upswing, or just a hillock which we have glided over. Until November, we can’t be certain of the figures final application. We must proceed with caution; not with unbridled enthusiasm. Yet, being too cautious could spell more difficulties. It’s hard to know where to set your accelerator when your speedometer isn’t working.

Why? I don’t know.

I loved my dKey. It was simple, small, had a great battery life, and worked. Yes, it did have to be placed in a charger to synch with the server and allow you to access lock boxes, but since everyone had a cradle and became accustomed to using the cradle to charge/synch, routine set in very quickly. Come home from a day of work, plop your keys down, cradle your dKey, take off shoes, relax. No big deal.

My first reaction to seeing the new and wonderful ActiveKey, was why the hell is it so big? Then I picked t up. Uh oh. It’s flimsy.  Basically, we now have a Jitterbug ActiveKey. You know the Jitterbug. The phone for the elderly who can’t figure out new fangled feature rich cell phones.

Check out the side by side..

Ok. Maybe I’m being too harsh. So I thought I’d give it a try.

The battery lasts about a day and a half if not plugged in, so doing away with the cradle is pretty much moot now since you have to plug the thing in every day anyway.

I went to show a house this morning and when I tried to turn on the key…. nothing. It had been plugged in all night. So I plugged it into the car charger and tried to turn it on. I was greeted with a descending tone, but no lights. Grr.. So I called the supra folks and I need to find a paperclip or needle (both of which I regularly carry on me) to reset the key. Dug through my glove box and found a piece of wire that would do. Reset and tried to turn it on. It came on, but with a low battery warning. Apparently, it didn’t charge, hold a charge, or the charger is broken.

Basically, I’d rather have my dkey back.

I did find it funny that GE advertises that the key is design by agents.  I’m not sure that’s a great selling feature, but whatever.

Hey GE… what can you do to make this Activekey thing better? I’ve got a few suggestions.

• higher capacity battery
• reduce the size, technology gets smaller, not larger
• back light the keypad for 30 seconds when a key is pressed, if it’s dark I can’t see the back light key to turn the back light on
• remove the on/off key, GE meatball button, and the backlight key to reduce the size of the unit
• how about a toggle switch for on/off if you need one, seems like any key pressed could turn the unit on and a timeout could turn it off
• keys that press, click, or something to let you know that you clicked them
• reset that doesn’t need a needle or paperclip to work, think hold keys 1,4,7 or something like that
• how about a color? if a real estate professional designed this it would be more pleasing to the eye :)

The median price increased, too, on a single family home in the Austin area. It is small, but noticeable. A 2% increase can only mean good for the sellers, and since the prices are on the way up, it means that someone has a little more to spend. Total quarterly sales from last year are still down, but hard times for the housing sales may finally be over.

We must remember, however: we are approaching the end date of the $8000 tax credit for first-time home buyers. In order to qualify for that credit, a home buyer must close on the property by November 30, 2009. It can be a slow process, anywhere from 14 days to 2 months. We could see a spurt in the growth of sales until November 30th, and then a drop. Currently congress is reviewing several bills that would extend the tax credit, but to date, none have passed. Keeping an eye on congress will help gauge the next phase in housing development.  There are still a lot of possibilities. If the recession is finally coming to an end, it will be good news for everyone.

Hold on to your hats, Austin. The wild ride may not be over.

downtown development with tree lined streets

The city council would need to approve a zoning change for this quarter-block development, because the proposed height of the building (12 stories, up to 163 feet tall) is higher than the maximum currently permitted in the area (120 feet).

To say that this development would have “a little of everything” would be accurate. It is projected to have 5 floors of office space, or about 61,000 square feet. It would have 30 higher-end apartments for those with business at the Capitol. That could be lobbyists, or legislators. It would have small shops such as gift shops, and a white-tablecloth restaurant. It is also slated to have 5 levels for parking, of which 2 would be under-ground levels. Currently, only one lease would be displaced by the new development.

Pedestrians would be treated to spacious, tree-lined sidewalks.

The proposed zoning change is expected to be heard on December 12, 2009. If approved, construction is expected to begin in the second quarter of 2010.

The first step to pre-qualification is gauging your annual salary. This basic information provided to a mortgage company informs them how much you could reasonably put into a loan, and how it will relate to your other living expenses.

The next part of the pre-qualification process assesses how long it will take to pay off the loan. With this in mind there are several additional areas to factor in. Specific formulas take into account cost-of-living increases, normal living expenses, your salary and often a slight overage. This facilitates creating the best timeline for repayment.

By the end of the process, the outline for the ideal loan will be laid out, including payments and structure. This enables you to move forward with your purchase confident from the beginning.

The rules and guidelines for obtaining FHA loans have allowed the organization to maintain solid footing through a fiscal and real estate crisis. This means that FHA loans have been secured and have avoided the pitfalls of many banks and mortgage institutions.

With this solid footing in mind and all of the recent federal spending, Commissioner Dave Stevens has announced some new, appropriate steps to protect the tax payers backing FHA loans. The modifications are shifting the responsibility for the mortgages from the taxpayers who have shouldered it thus far to the lenders using mortgage brokers for the FHA home loan process. This enables a shield of protection for the taxpayers. Additionally, the FHA has modified requirements for appraisers, calling attention to geographic competence and appraiser independence from mortgage brokers and loan companies. This protects the home buyer and seller with a more accurate appraisal. Lastly, the approval process has been revamped with spot approvals removed and some loosening of the commercial space limits on subject properties.

Click here to view the embedded video.

With these changes, the Federal Housing Administration stands alone in the mortgage industry, and on solid ground. They are moving steady through the dangerous waters of real estate and economic decline. As always, give us a call if you have questions when seeking a FHA home loan or need information about your real estate related question.

Two step Mortgage – this is a hybrid home loan that starts as a fixed rate for an agreed upon number of years. When those years have passed the interest rate will become adjustable. Some examples of this kind of mortgage are the 5 and 7 One ARM (adjustable rate mortgage)

Balloon Mortgage – this is a steady monthly mortgage that will amortize over time and will provide a lump sum payment due at the end of the term. This price will cover interest, principle, and in rare cases taxes. Amortization can and does occur over a long period of time, even beyond the loan term.

Budget Loan – the loan payments for this are designed to cover taxes, insurance, interest and principle on the home mortgage loan. This is a convenient method of assuring your homes needs are covered. It is also possible to do the same with an escrow account.

Your Austin real estate agent will be well versed in the industry terms. With that in mind they will be able to help you to understand what applies directly to your situation and what should. Ask questions or refer back to this site for more informative data.

As 2008 came to a close, the numbers appeared to be more solid than previously anticipated. After reviewing the numbers across two profound years there were significant changes in sales and leases. The numbers give a lot to reflect on. Between 2006 and 2008 commercial sales dipped 13% however commercial leases increase a huge 33% over the same period of time.

This means that although real estate sales have dropped the commercial market as a whole has not been stagnate. It continued to move forward as businesses needed a place to call home. They turned to leasing and commercial real estate agents versed in lease and leasing agreements. This means that being versatile enables success both in business and real estate locations.

As all markets come in cycles, real estate has ups and downs. One major boon for real estate investing is that real estate always comes up, even after a significant price fall off like some markets have seen in recent years. This market is rooted in the basic needs of people, all people, thus there will be a need for it even when things are hard. With this in mind, people will always sell, buy or rent some form of property.  The constant demand enables the real estate investor to make smart choices in all markets.

If you are considering some form of investment, real estate is the first that should come to mind. Due to the nature of the business, and the stability of the industry as a whole, real estate endeavors are firmly planted on solid foundations for the future. Regardless of their situation, someone is always looking for a place to live. If you are looking for something that will weather any economic storm, the right place to start is with your real estate agent.

Real estate investment begins by a simple and obvious division, commercial and residential. With each side there are specific guidelines to justify their function, and value in real estate. Once you are aware of the kind of investment you want to make, you can learn what each sub-category is for the respective options.

If you are considering residential real estate, then the next obvious division comes with single family vs multifamily units. A single family home is independent of all others, and as the name indicates, only one family can reside in it. A multifamily unit indicates that more than one family will reside in portions of the building. Often these are apartments, condos or duplexes.  They do not have yards and the leasing or sales agreements vary only slightly.

In commercial real estate the next category varies a bit more. These properties can range from office buildings in specifically designed clusters or parks to manufacturing sites that require adaptation from lessor to lessor. The difference between these and a residential option is the regulations and taxes associated with each end. With regard to commercial real estate, zoning rules also apply.

Under unique situations there is the option to own both residential property and commercial property. In this case, the mixed use development has unique zoning laws that apply. This will require a clear understanding of the laws and tax regulations associated there with. Talk to your real estate agent or broker for details on the area and where to find the regulations associated with this unique form of real estate investment.

As real estate is often the most stable investment you can make, long term considerations and consulting with the right team is crucial. Finding the right real estate agent such as Joe Cline, will enable your real estate investment venture to be built on a solid foundation.

The local Preserve District Council has put forward some ideas and proposals to save at least part of Downtown Austin. The tools of the proposal made by the ROMA Design Group and HR & A advisers have created a significant and active debate among property owners and local groups like the Heritage Society of Austin and the Downtown Austin New Alliance. Also chiming in actively is the Central Texas Chapter of the Congress for the New Urbanism, the Downtown Austin Neighborhood Association and the city of Austin’s design and planning commissions. ROMA’s recommendations were then presented in public on July 23. Until now, this issue is in hot debate, as many of the supporters of the concept do not support the specific idea’s laid out here: www.cityofaustin.org/downtown It will be debated and discussed in council again on the 24th. Members will provide policy direction and a vote may occur to direct a draft of the density bonus and applicable ordinances with specific warehouse district rules.

There will be much debate on how to balance historic preservation while still allowing for development to progress as needed. Before the council votes on the measure, and before they determine exactly what tools will be used, the community will need to voice their opinion. The public meeting will be held Sept 24th

Below is a list of factors to consider as part of your investigation:

* Determine the local market

* Investigate how much the seller paid
If the seller purchased the house recently in the depressed market, your purchase price should hover near it.

* Learn what the seller’s balance is for their mortgage
This will allow your offer to consider if this is a short sale. Short sales often have a minimum to the offer they will accept. You will need to be aware of this.

*  Examine Comparable home’s sold
This includes homes that are near or in the same neighborhood with similar layout, square footage, and age.

*  Analyze List-Price to Sale-Price Ratio locally
This will inform you of the range the seller may be willing to operate within. Trends are often very clear and your real estate agent can provide you with a report reflecting this information.

*  Check Square Foot Cost Average
This article shows you how:  How to Calculate Residential Square Footage

*  Get a home history report and a Days on Market Report (DOM)

An important part of this process is to keep in mind this is a business transaction until your offer for purchase has been accepted. This fact in mind, have a counter offer and several other options in mind when you make the offer to begin with. This will make certain you will find the right house at the right price for you. Depend on your Real Estate Expert for this process and you won’t go wrong.

• How long have you been an agent?
• Can you and will you provide references?
• What is your strategy for marketing my home?
• How are you different from other local real estate agents?
• Do you object to my review of all documents prior to signing?
• Are you able to assist me in locating other professionals associated with the process?
• What percentage do you charge?
• What are your guarantees?
• Is there anything else you feel you need to inform me of?

Do not hesitate to take notes while you are interviewing the agent or agents you have in mind. This will help you keep track of who provided what information and details. Also, make a note of who made you feel most comfortable while talking to them. It is crucial that you know you will be able to contact your agent about any question you might have, anytime that is comfortable for you, not just during office hours. You should also know that your real estate agent will be actively working on your behalf. This interview process will enlighten both you and your options as to expectations from and to you about your agent.

When focusing on the purchase of an investment property, there is no shame in nit-picking for clarity in every section of your contract. Typically this is a very large investment. Contracts tend to have terminology that we do not use on a daily basis. A slight misnomer in a contract can make a huge impact on whether or not you will be making a good investment or an expensive blunder. Make sure to contact your real estate agent or attorney to answer any questions and provide any options that may be available to you, before making any commitments.

Taking a logical pragmatic approach to making your investment is vital to making your investment a good one. There are common downfalls to resisting this pragmatic approach. The most common downfall is fixating on the “perfect property”. Once you put yourself in that position, you lose perspective on the fundamental issues that must be addressed. In addition, you may overlook or simply ignore problems or imperfections in the property or contract. It is essential for negotiations to stay focused.

Making an investment in the right property and making sure you understand the contract, can be tricky, but following a few worthy tips and consulting with a trusted real estate agency or attorney are highly recommended.

The 8 thousand dollar tax credit is being given some credit for easing the decline and initiating the incline in single family home purchases. This tax credit will expire on November 31st, 2009, this crucial deadline combined with lower interest rates have become the saviors of the housing market.

In May of 2009 the OFHEO or Office of Federal Housing Enterprise and Oversight announced the first of a steady increase in home prices, over previous months. It edged up that first month with .09% and has continued every month since. In one area of significant concern with the mortgage crisis, the pacific coast has registered one month with an increase of 2.7% showing significant improvement.

As the market continues to stabilize, buyers come out of the woodwork, and housing prices are starting to inch back up to more anticipated levels. This proves real estate and the economy as a whole has entered a state of recovery.

The first thing to keep in mind when approaching the investment, regardless if it is a private home or otherwise, is to investigate the terms and options applicable to you. The second is to move through the investment process logically. Lastly double check what information you find against what you know and consult with your real estate agent, or representative. The agent will be able to tell you if there are better options applicable to your needs.
One common problem that homeowner encounter in the investment process is receiving the wrong information.

This can often be attributed to misunderstandings or not asking questions when something appears to be difficult to understand. It is important to make sure you are getting all of the information applicable to your situation. You do not need to sign papers that lock you into a loan with a payment schedule you do not understand, or that turns out to be the wrong form of financing for your needs. Understanding the terms and possibilities associated with your loan is important from the start. Ask questions, and consult often with your representative or lawyer.

The second common pitfall that people encounter is ‘falling in love’ with a property or area before they are aware of all of their options. This creates a sense of urgency instead of a mood of understanding and evaluation. This urgency will often cloud judgment and create an obstacle. Approach each aspect of the investment process with an open mind and rely on your real estate agent to provide you with every suitable option, before you settle on which investment you will make.

Approach this investment with ears, eyes and mind wide open and the possibilities will come. As questions with every aspect related to the investment, and you will obtain the best information. Ask the questions that sound insane to you, because those are easily misunderstood. This can be and often is a lifelong investment, so approaching it correctly the first time will provide the foundation of the future.

Rental properties purchased through the foreclosure auction process are often one wrought with choices. Typically, a foreclosure purchased rental does not require the current lease be honored, like when it is sold prior to foreclosure. Generally speaking, the new owner has the opportunity to evict the current tenants. This also allows for the new owner to establish a new lease with the current tenants.

Should you chose to accept even one rental payment while still under the previous agreement; you are, in effect, honoring the lease they are in. This means that you, as the new owner, would be bound by those terms until the lease expires and a new one is drawn up. Eviction after such an accepted payment would be difficult if they do not violate the rules of that lease.

By taking some time to understand the rules of the process, you are protecting yourself and the tenant. Should you desire to purchase a property like this, it is prudent to discuss all of your options with a real estate attorney and a real estate agent prior to purchase.

A new law means there are some caveats! Here is a summary from the Legal Aid Society of Cleveland

Upon a Foreclosure Sale of Residential Rental Property,
the Lease or Tenancy Continues with the New Owner

1. Issue. Upon a foreclosure sale of residential rental property, what is the effect of the sale on the tenant’s lease or month-to-month tenancy?

2. New federal law. Protecting Tenants at Foreclosure Act of 2009. S. 896, Pub. L. No. 111-22, §§ 701-704.

3. Effective date. May 21, 2009 (or, more precisely, May 20, 2009, at the time that the
President signed the bill).

4. Application of effective date. The federal law applies to any existing bona fide lease
or tenancy for residing in a property when the property is sold at a foreclosure sale, if
the sale occurs on or after the law’s effective date.

5. Bona fide lease or tenancy. The federal law applies only to bona fide leases and
tenancies, which means:
• The tenant is not the child, spouse, or parent of the mortgagor (former landlord);
• The lease or tenancy was the result of an arms-length transaction; and
• The rent is not substantially less than the fair market rent (or the rent is reduced
or subsidized due to a Federal, State, or local subsidy).

6. Tenants with a bona fide lease. Upon a foreclosure sale, the lease continues with
the new owner as the landlord and, absent cause for termination, it continues until
either (i) the end of the lease term or (ii) the new owner elects to use the property as
a primary residence and provides the tenant with a 90-day notice of termination.

7. Tenants with a bona fide month-to-month tenancy. Upon a foreclosure sale, the
tenancy continues with the new owner as the landlord and, absent cause for
termination, it continues until either (i) the new owner provides the tenant with a
90-day notice of termination or (ii) the tenant provides the owner with a state law
30-day notice of termination.

8. Tenants with a Housing Choice Voucher (aka Section 8) lease. Upon a
a foreclosure sale, the voucher lease (which may be a written month-to-month
tenancy after the first year) is treated the same as other leases (see item 6, above) and
other month-to-month tenancies (see item 7, above). In addition, upon a foreclosure
sale, the housing assistance payments (“HAP”) contract continues, with the new
owner subject to the terms of the HAP contract. The new owner may not terminate
the voucher lease on the “other good cause” business ground that it will assist in the
sale of the property.

A hectic eviction procedure can be avoided with careful research in addition to effective planning. Though regulations and procedures differ from state to state, these procedures can be of assistance in learning the eviction process and how to avoid a lengthy eviction process.

First – establishing ownership

At the conclusion of the auction, make sure you are given every one of the essential documents from the auctioneer to prove you have made the purchase and are the new owner. At that time speak with the auctioneer and a real estate attorney concerning further steps that have to be taken before taking custody of the property. In several states the auctioned sale is confirmed by the court within a specified period of time, potentially up to 3 months. Verify as soon as the auction is completed.

For some locations and states there is a redemption period. This is designed to allow the original owners to purchase the property from you for the price paid at auction, plus applicable fees. In some states this period is as brief as one month or as long as one year. Review your state here: Applicable State Laws to identify if and how your state fits into this. This is often a reason given by the previous owners for not vacating the property..

Understanding the eviction process

Every state, and at times every county has a different eviction law and process. It is vital that before you enter the auction, you contact a local real estate attorney or the county sheriff. They are best equipped to prepare you for the eviction process in the location you are reviewing for purchase. By doing this you will be protecting everyone involved with the sale and purchase of the home, every step of the way.

The court process often takes months, so knowing your rights and the rights of the previous owner are vital. Contacting the court system for the eviction process should occur at the soonest possible moment, to assure everything is handled correctly and fairly. As the case comes to an end, the judge will give you are writ of possession and order the local sheriff to evict the occupant. AT this time the sheriff will serve the notice and remove the occupant 24 hours later.

Obviously this is general, so verify locally to make sure you are aware exactly what the process is.

First list your goals for the refinance. This includes even the most simple or obvious reasons. It is a crucial step to choosing the right refinancing product for you and your needs. Some of the common reasons people will refinance include:

• Reducing monthly payments
• Debt Consolidation
• Lower interest rates
• Achieving equity sooner

These popular reasons are not necessarily the only reasons a person would want to refinance. The above short list is a good way to get started thinking about what you need and what your goals are for the refinance of your most fiscally valued asset, your home.

The next step is to contact and consult someone who is an expert in refinancing mortgages. They are versed in products and options available. They undergo several levels of training and receive updates steadily regarding market numbers, financing options and new banking strategies. Together with the homeowner it is their job to identify the best fitting product, obscure or popular, for you.  Meet with the expert regardless of the level of research you have done personally. Markets can change in the blink of an eye. It is the job of the refinancing expert to achieve the best possible results for you.

The next step in this process is to keep your mind open to the possibility that refinancing is not the best choice for you. As you initially begin to research you will learn many options available, however until you have sat down with your refinancing expert, and evaluated all of your options, you will not know if refinancing is the correct choice for your situation.

Business Office Centers can be used by start-ups and small businesses, or organizations. Historically speaking, when a larger corporation has used them, it has been as a remote office for sales teams or investment holding. Now they are the alternative to their real estate holdings. This means that this design of office building is becoming more in need. For Austinites this equals the most efficient use of green resources for large corporations. There is no need for new building construction or major upgrades. There is also the opportunity for the Virtual Office bundle, which often includes a bill for the office and covers all the major services required to present the major corporation image.

The Office Centers are both cost effective and green, making them an ideal commercial location for many businesses. It enables a company to know they are creating the basis for a successful growth while helping the environment, and bettering Austin along the way.

Volume 31, Number 12

June 19, 2009

Dear Client:

One of the least-discussed aspects of getting a home loan is becoming an impediment to an efficient closing of a home sale in the Austin area between a willing seller and a willing buyer.

This scenario is being replicated daily in the Austin area: A home seller and a home buyer go through the normal negotiations and agree on a price. The home buyer is pre-approved for a loan to cover the purchase. The home is inspected and the seller and buyer once again agree to make the deal. The lender requires a 3^rd-party appraisal. All well and good, so far. But the appraisal process is turning out to be a big hitch in the closing process.

Appraisals in and of themselves are a good thing. But the process is causing real problems for Austin buyers and sellers. It ratcheted up to a new level 5/1/09, when a new national Home Valuation Code was adopted. The Code bars loan officers, mortgage brokers or real estate agents from any role in selecting appraisers for mortgages that will be owned or guaranteed by Fannie Mae and Freddie Mac

As a result, many lenders are outsourcing the selection to appraisal-management companies (that take a big slice of the appraisal fee). Some companies put appraisers under pressure to do it faster and do it cheaper. Experienced appraisers are turning down requests to pay them only 50% to 70% of their fees and may also include a requirement the appraisal be completed in as little as 48 hours.

This process has resulted in such anomalies as appraisers being hired from outside Travis County to conduct appraisals in neighborhoods they don’t know very well. The end result: less accuracy and certainty about a property’s true value.

And no one can discuss the appraisal with the appraiser under this new Code.

Anecdotally, you can find examples where some of these appraisals are challenged regularly. (No hard numbers are available) Home values differ from neighborhood to neighborhood, street-by-street. And in many cases no current comparable sales exist. This is where an appraiser who knows the area can more accurately appraise the home’s true value – more so than an appraiser from out-of-area who is charged with doing a “quick” turnaround.

This causes a number of problems, including the possibility a buyer must seek another appraisal. It is slowing sales and as the sales pace picks up, the problems may increase.

Ok. check my post previously where one of my clients got rogered… HVCC rant I hate to say it, but, “I told you so.”

joe

Between May and June the sales of single family homes increased 11 percent alone. This jump indicates a third consecutive increase, and surpasses the anticipated increase of 2.3 percent by many economists. This particular jump holds additional significance. Home sales have not made a significant increase of this nature since Dec. 2000, 8.5 years ago.

Additional positive news for the housing industry can be found in re-sales that posted an increase of 3.6 percent for the month of June. This puts the housing market in a more stable up swing than previous projection. This can be found in a report from the National Association of Realtors.

In the Austin area more than 2100 single family homes sold in June. This is actually down 4 percent from June of the previous year. According to a report from the Austin Board of Realtors, the year over year sales volume gap is decreasing every month, making Austin a steadier housing market then the majority of the country. The median price has remained the same, just under 200 thousand dollars, when comparing the same month in both years.

Overall, Austin sales volume is also increasing. The housing sales market report of this area indicates that sales have increased 61 percent since the onset of 2009.

Once again this proves the housing market in Central Texas is one of the most prolific.

New construction options have been limited by lack of funding and many businesses are foregoing the commercial ownership prospects. This creates other options. For many businesses who are not ready to buy have options to rent, and finding a prime location that is available in their budget. This enables expansion options, even in an otherwise difficult market.

For companies who are ready to buy, with minimal or no loan, this is the time to do it. There will be no better time to find a deal on a commercial property, and there is no better city than Austin. Contact Joe Cline today to get started finding the best location for your business and budget.

The real estate appraisal is done by using several different methods of comparison. Taking accurate measurements of the property to be assessed and comparing it to the other local prosperities with similar dimensions and amenities. A proper appraisal will also assign two values to the same property. The first is improved value, typically when someone maintains and improves upon the property and vacant value, when it is left vacant and available for use. This appraisal is most applicable for use with pricing a home or property for sale, however if an investor is evaluating the property it would be of little use to him.

The investor gauges the property based on developments and activities around the location. This allows the investor to note where the housing and commercial market is at present and enables them to forecast where it will be in 2 or 5 years when they are prepared to get a return on the investment.

The best method of determining what you will need will be to ascertain what kind of approach you have to the property. If you are buying it to live as your primary residence your appraiser’s results will be crucial to the buying and selling process. If you plan to use this property to rent or flip and sell, or just sell out right, you are an investor and should approach the research of the home appropriately. Your real estate agent can point you in the right direction for your needs.

The rules for the Mortgage Disclosure Improvement Act were finalized Friday, May 8^th, and it is applicable to all mortgage lenders (federally chartered or state licensed).  For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy of disclosures will apply.  One of the new requirements is that the borrower must be provided with an accurate APR disclosure at least three business days prior to closing.

Remember the new rule with “3/7/3”

3 days after application – An initial Truth-In-Lending (TIL) statement must be provided no later than 3 business days after receipt of the loan application.  Our current process generates an auto-compliance package that complies with this requirement, so no changes are needed.

7 business days after initial application – Waiting period – the borrower is not permitted to close until at least seven business days have passed since the TIL was placed in the mail or provided to the borrower.

3 business days prior to closing – Waiting period – the borrower must receive an accurate APR on their TIL at least 3 business days prior to closing. If it was provided before that period of time, because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8th of a percent.

If the final loan terms cause the TIL / APR to be understated by more than 1/8th of a percent, a revised TIL with an accurate APR must be provided to the borrower so that they receive it at least three business days prior to closing. It must be in their hands at that time, and they may close on the 3rd business day after that day.

What this means to you? All Realtors and buyers need to be advised of these new timing requirements, which will limit rush closings and could even delay closings.

2. There is a huge selection available.

3. Historically low Mortgage rates are beginning to climb. This effects your monthly budget.

4. Federal Tax Credit, developed and launched by the American Recovery and Reinvestment Act of 2009, allows for qualified buyers to receive up to 8000 dollars credit.

This study was conducted by the Brookings Institute in Washington, DC, as part of their MetroMonitor program. This institute conducts a variety of studies to narrow down where cities are faring through the recession. They review employment vs unemployment rates, wages and housing costs.

Austin, as usual, fared well through the process. Austin’s average wage increased during the same period of time, as much as 1.4 percent. Housing costs are also increasing in the Austin Metro Area. There was a minor decrease in job opportunities over the reviewed time, .05%.

This is only one of several studies to produce a clear picture of how well the Austin metropolitan area is increasing, improving and developing even through a recession that has brought most of the country down.

Here are Austin’s rankings and some more Austin accolades:

Regarding best or lowest cost of living, Austin ranks 3 out of 50. For housing opportunities, as in open homes for rent or sale, Austin’s metropolitan area ranks 24 of 50. The unemployment rate they are 1 of the 50 cities, meaning of all the cities surveyed, Austin has the lowest unemployment rate and the most jobs or job growth. Regarding the average salary in Austin, it ranks 20th of the 50 cities. These stats combine to create the best reason for people to love to live in Austin.

As often as Forbes does their surveys, Austin continues to surprise them by topping the lists. From green recognition to best bang for your buck, this is the place to live. Moving to Austin is easier than ever, with the right Realtor. When are ready to move, contact the team here to find your place to live in this wonderful city we call Austin.

The big job increases for 2009 have been in the areas of Hospitality, Retail, and Restaurants. These services are provided direct to the public and even through a recession they are seeing modest growth opportunities. Direct impact on Austin’s job market, goods producing industries and technology based industries are down across the region. The jobs in the direct to consumer industries mentioned above, compensate significantly for those jobs lost.

Within the Texas borders Austin’s 5.8% unemployment rate ranks at the top of the list. Dallas-Fort Worth stands with 6.6% and Huston at 6.3% unemployment rates for April. The only Texas City with a better unemployment rate was San Antonio at 5.4%. Many of the smaller metro areas reported more than 8% unemployment.

In 1954 the Starr building served as American National Bank, who included Austin’s first escalators and the first drive up banking center in the area. On the interior lobby wall is a mural that made Fortune magazine’s shortly list of distinguished national architectural paintings, this mural was designed by modern artist Seymour Fogel. These are just some of the historical attributes associated with the incredible building.

The goal of the Kemp renovation will be to preserve the historical value while bringing it into a green and energy efficient design. They will be leaving the renovation and planning to the capable and renowned company of McGarrah Jesse firm. Their plans and architectural expertise has been seen in several preservation and renovation projects around the city and the world. To their credit the list includes the Lady Bird Johnson Wildflower Center along with the LBJ School Renovation.

The example this acquisition makes for all of Austin is that commercial real estate is still a viable investment for any company. Finding the right commercial establishment, rich and full of history is an investment that can enhance any business, even in troubled times. This process will be made fair with the use of your commercial real estate agent.

Even as the market is moving forward, home buyers can expect prices to continue to fall in different areas around the country. One benefit of shopping for a home in the Austin market is that it has not been a part of the huge pricing swings. Prices in this market are not expected to swing in one direction or the other.

According to the Austin Board of Realtors there were 1,919 pending sales anticipated to close in May, bring the April total up 3%, the highest number since July 2008.

Home prices will increase once foreclosures stabilize again. Currently on the national level, there is still a plethora more homes in the sales inventory base, than home buyers. This is changing, as seen in the evidence from April, and forecasters only expect this trend to continue until the end of the year.

With the growing expectations and the increase in pending home sales, the market is ripe for new home buyers. For 2009 there is available an 8,000 dollar new home buyer tax incentive. This is an increase from the previous 5,000 and in addition to any incentives being offered at the state level. This means that the buyer’s market is reaching its pinnacle in 2009.

I’ll run it in sort of a time-line style.

1) Austin passes Mandatory Energy Audit Ordinance
Austin Ordinance

2) Texas Legislature inserts a statement into SB 546 making it illegal for a municipality to impose a criminal penalty (fine in the case of Austin’s Energy Rule) on the seller of a piece of real property (real estate) for failure to perform an energy audit.
Bill Info

3) SB 546 passes both houses by 5/18/09
SB 546 Bill progress

4) The Texas Governor is next up on the SB 546 path to resolution
Governor’s Action

5) The 81st Legislative session ends June 1, 2009 and the Governor has until June 21, 2009 to veto or approve the bill
Important Dates

So as I read it…

Outcome 1: Governor approves SB 546 and the bill becomes law. I assume that this would then become law immediately, but not sure.

Outcome 2: Governor vetoes SB 546. In this case, the bill goes back to the legislature and needs 2/3rds to override the veto.

Outcome 3: Governor does nothing. Then on June 22nd, 2009 the bill becomes law. Of course that is if the bill could not become law immediately for some reason (read some of those crazy rules the government makes to keep itself feeling important and noted above) then it would become law 91 days after the session ended on September 1, 2009.

Man, I’m confused. Can anyone add some lucidity to this whole deal for me?
Joe

Buyers are still skeptical about buying in a down market. This is evident from the low home sales so far through 2009. One major hurdle that interested buyers are facing is the credit crunch that has limited many options for loans. These days, it is harder than ever to secure financing for a large investment. While this may mean that those who are purchasing may have less trouble with continuing payments, it has taken a lot of people out of the running for new homes. People who may have been approved just a few years ago are no longer eligible.

Home values in Austin have not dropped as dramatically as in other cities, though they are down by about 4% from last year. The strong local economy, availability of employment, and pleasant atmosphere all help to boast the housing market. These traits continue to bring newcomers to the area, which will continue to help the housing market. The market here is not expected to start looking up until late this year, or possibly into 2010. Until then, Austin will likely remain as steady as possible in such a difficult time.

An amendment attached to a solar bill that’s steaming through the Legislature could torpedo a City of Austin energy efficiency program.

The Austin rule taking effect June 1 requires Austin homes receiving electricity from Austin Energy to have an energy audit before being sold. (Homes can be exempted for a number of reasons, such as if they’re less than 10 years old at time of sale or have received energy-efficiency improvements through Austin energy.) The goal of the plan is to make old building stock more efficient, by encouraging buyers and sellers to learn ways they can cut energy use by doing things like adding insulation.

Violating the ordinance is a Class C misdemeanor, and violators can be fined up to $500.

Read the rest at Latest on Austin’s Energy Audit Ordinance

My comment…

If you want to get an energy audit, no one is stopping you. Go and upgrade your home as you see fit. Be ready when the buyer decides to give you exactly what you’d get for a home without the audit or upgrades, but do it because it’s right and you can afford it. If you want to keep your house at 60 degrees, go ahead, but be ready for the bill.

Many people struggle to pay their mortgage and don’t make a ton of money when they sell so the audits can amount to a monthly payment to them. There is no way anyone should face criminal charges and fines for failure to comply with an unfair law anyway.

If you want to list with a real estate agent who charges $500, do it. If you want full service, pay for it. That’s the beauty of choice and freedom.

Why people think it’s ok to turn Austin from a group of laid back folks who want to coexist with others of differing viewpoints to psycho, militant, legislate everything ya do nut-balls, I’ll never know. But it isn’t cool. It isn’t Austin. At least not the Austin I love and enjoy calling home.

Joe

As an aside, I do feel sorry for all the people who rushed out to corner the mandatory energy audit market and are now potentially sitting on a goose egg. That’s kinda rough.

The government agency known for making home ownership possible, is still working toward that goal. They are looking for a way to allow first time home buyers access to their 8,000 dollar credit, at closing instead of next year. The Federal Housing Authority has a list of approved lenders. These aforementioned lenders will be able to loan the money as an advance to the first time home buyers. Currently there is not a timetable, but this process has already begun.

Several states have begun to develop similar plans to help first time home buyers now. This state level loan gives home buyers the ability to open up funds to spend on furnishings and other items for the new home. This money will then do exactly what it was intended to do, stimulate the economy. This will enable growth and recovery. It is only a brief matter of time before Austin will see the benefits.

I just had a transaction get pushed out a week, a family lose a weeks worth of on the market time for their existing home, and a family end up putting $5k extra down that they didn’t have to put down because of an appraiser who did a sloppy job. Of course, I pulled the data that showed an error in the comparable lot size the day we got the appraisal a week before the originally scheduled closing. I forwarded the evidence of the error to the lender, who forwarded it to the appraisal management company, who forwarded it to the appraiser, who did nothing about it. Why should he? He can’t be fired from the bank’s list of appraisers. We can’t talk to him or say hey man, are you retarded? Look at the lot? Turn your head 90 degrees and look at the lot next door, can’t you tell that it’s not twice the size of the lot you are appraising and that therefore your adjustment and the data on the appraisal should be fixed? I plan on filling a complaint with the Texas licensing board for this and every single apathetic appraiser that I run across now.

In what other free market do people get handed business with their license and then get removed from responsibility for the quality of work they do and professionalism with which they do it? Your license is your ticket to the game, not tenure and guarantee of business. Sorry, but real estate is a rough and tumble business. 95% of agents don’t make it 5 years. It should be the same way with appraisers as with all other new businesses. Find a way or find the door.

I’m open to hearing other viewpoints, but right now, this whole deal seems like a cop out.

One last thought. When other groups like NAR put aout a Code of Conduct or Code of Ethics as NAR calls it generally speaks to how the group’s members should act. When the appraisers lobby for and get passed a Home Value Code of Conduct it speaks to what everyone else must do. Strange huh?

A slightly miffed Austin Realtor.

Joe

Among the options is an unsecured loan intended to update a home’s energy efficiency. the Power Saver^TM Program. The goal of this program is to make it easy for a home owner to update air conditioning, duct work and other area’s of energy concerns. As these improvements are made a home becomes more affordable, and develops better value. The loans hold no sway against the home or the improvements made. The interest rate is kept low, especially in this market, which keeps the payments low.

If you desire more information you can find it:
Home Performance with ENERGY STAR®-Loan

Application for Energy Star Loan

The Pedernals Electric Coop has implemented several measure to help their members save on energy costs and improve home value. The first of these is the PEC Home Energy Center, an online tool to help members conserve electricity, save on monthly bills, and reduce carbon emissions. Using the tool can create a clear understanding what improvements need to be made. They also have a rebate program for HVAC improvements.

“…our HVAC Rebate Program. HVAC systems can account for more than 50 percent of a member’s energy consumption, so we provide rebates to those who install energy-efficient units. In 2007, PEC paid more than $548,000 in rebates to members who upgraded their HVAC systems…”

Don’t forget AustinEnergy’s Rebate program.

Austin companies and city have really taken the time to create the resources home owners need.

Building green homes, and green construction overall is changing how people purchase homes and make renovations. Energy efficiency is one of the primary ways consumers measure a green factor to home or construction. For many it is a vital aspect of planning a home’s affordability. By developing a solid energy efficient home, a new home owner will better be able to maintain payments and keep their home.

As people become more aware of energy and its effect on the environment and their wallet, green building continues to grow. Many homeowners have taken the time to review and evaluate their home based on energy efficiency, and many Austin area companies are offering resources to improve. If you take a moment you will find many resources and suggestions on this and other websites that focus on Austin. It is well worth it to reach for and achieve the ordinance goals for every home.

Some of the factors in the Austin home market improvement is the job growth in the area, coupled with low interest rates on 30 year fixed mortgages and the 8 thousand dollar new home buyer stimulus credit. Austin has seen several companies move into the area, bringing with them a plethora of jobs. This makes the employment opportunities rich, and the housing market viable. As the first quarter comes to a close there are additional job opportunities on the horizon, including several solar energy production companies. As no time line has been committed to yet, job seekers will be following the incoming companies closely.

The hard knocks lesson taught by the housing crash has facilitated the smarter home buyer. This enables people who have been planning and saving for their home to have the best money savings available. Interest rates are hovering around 5% for 30 year fixed rate mortgages, and the 2009 Economic stimulus package included an 8 thousand dollar first time home buyer tax incentive. This breeds more space, more income and more incentive to purchase a home. Austin is proving to be the market of choice.

The new Mayor of Austin will be taking on some very challenging issues. The most important issue according to the candidate’s own website is the budget issue in Austin. The website states that the city budget has grown by 50% in the last six years. If elected Mayor, Strayhorn plans to quickly form a task force made up of budgeting experts to curb spending. Strayhorn has also recommended decreasing amounts that public officials earn for assisting in government, stating “true leaders lead by example.” Other top priorities for the hopeful include local police, fire, and EMS improvements and building a better infrastructure to repair roads and transportation issues.

Early voting for Mayor begins on April 27th, with voting day scheduled for Saturday, May 9th. More information about Carole Keeton Strayhorn can be found at her website: www.caroleforaustin.com.

There are several issues that all Austinites are concerned with. First and foremost is the city budget. In such economic times, the city needs someone with a solid plan to reduce spending. Buttross states that he plans to eliminate wasteful spending if elected, “making the necessary cuts and ensuring that Austin lives within its revenue.” This would include the reduction of funding for lobbyists. Also on his to do list is the updating of the local transit system at a reasonable price. Roads, parks, and sidewalks to help give Austinites a safer and more enjoyable city is also a top priority for Buttross.

It is important to learn about each candidate to help you decide who will be best for Austin in such a difficult time. Early voting begins on April 27th. Election Day is Saturday, May 9th. Learn more about David Buttross at his website www.davidbuttross.com.

Leffingwell in an Austin native, graduate of the University of Texas, and a retired Navy pilot with over twenty years of service. Through his service, he has “learned what it means to be an honorable, hard working, accountable leader.” As a member of the City Council, Leffingwell has fought for better infrastructure and public transportation, environmental issues, and public safety.

Leffingwell has several innovative ideas to help Austin through a most difficult time. If elected, he plans to form a committee made of leaders that represent everyone in Austin as an advisory panel. He also plans to focus on the development of green collar job training strategy. Leffingwell is opposed to cutting back on health or safety issues, wanting to maintain the current levels of safety and social services and expanding mental health services when able. He is also recommended a more open government, including posting all of the city’s finances and issues online and allowing residents to comment.

Leffingwell is optimistic about Austin’s future and wants to be on the front lines to help maintain its great living standards. Learn more about Lee Leffingwell at his website www.austinleadership.com. Remember, early voting begins on April 27th, with Election Day on May 9th.

As a way of continuing this venture, Austin has recently signed into law an ordinance that requires homeowners to have their homes inspected for energy usage before they are able to put it on the market. This new law will go into effect this year. The ordinance is just another way that Austin is truly trying to go green.

Homeowners who are planning to place their homes on the market may need to do a few upgrades to be sure they are prepared for the energy audit. In Austin, energy is mostly used to heat and cool the home; therefore it is important to learn about any leaks in the duct work, cracks in doors and windows, and updating insulation within attics. While the energy audit is required before placing a home for sale, the upgrades are not currently required prior to purchase. Any potential buyer must be made aware of the energy audit results.

These upgrades may not be the most noticeable when looking at buying a home, but can save money in the long run. The bottom line is, the less energy you use to heat and cool your home, the more you will save on utility bills throughout your life there. Austin has recognized the importance of these small, but important, parts of a home. The new law enables buyers and sellers to be on the same page at the time of sale.

The energy audit will be looking into four areas of energy efficiency. There will be a duct pressure check on the air conditioning unit to check for leaks. Weather stripping around doors will be inspected. Shades and screens, especially on the east, west, and south sides of a home will be looked at, as will the type of insulation found in an attic. Energy Raters can be found online at Austin Energy’s Website, and will generally run about $300 for every 2,000 square feet. If you decide to go ahead with the upgrades, the home will need to be inspected again when complete.

There is another option considered in compliance with the new ordinance. Homeowners can participate in the Home Performance with Energy Star Certificate program. Homes that have already done so within the last ten years are exempt from the ordinance. In this case, a home performance contractor will inspect the home, sometimes for free with a bid for work. The same areas will be reviewed as with the energy audit, and then the information will be sent to Austin Energy for review. To receive a certificate of completion, three of the requirements must be met or the homeowner must have received a rebate of $500 or more from Austin Energy.
In either case, Austin Energy must approve the upgrades for energy efficiency. The information must be contained within the Seller’s Disclosure and is good for ten years.

The major issues faced by Austinites during this election include the city’s budget, transportation and infrastructure, and the environment. McCracken’s way to a better economy entails the embrace of emerging technologies within clean energy, biotech, film and digital media. McCracken hopes to commit to puting solar power onto 100,000 homes in the next ten years, again by investing in emerging technologies. He plans to create an endowment to ensure that Austinites have every opportunity to learn green collar jobs and healthcare professions, citing “we want everyone to be included…including the less fortunate.”

With so many issues facing the candidates, it is important to know where each one stands on the matters that are important to Austin. Remember, early voting begins April 27th, with Election Day on Saturday, May 9th. For more information about Brewster McCracken, visit his website www.brewstermccracken.com

First of all, you will want to look at the site. For new construction, green living starts from the ground up. Take a look at the location itself. An eco-friendly builder will want to find a spot that reduces the need for car travel. Austin is becoming a hot spot for mixed use properties, making it an excellent place to be eco friendly. Smaller sites are also more environmentally sound, as they will require not only fewer materials, but less energy when complete. Older areas are also more eco-friendly in that they may have originally been designed with a walking commute in mind. While most of Austin is not necessarily convenient to the local grocery store, the newer designs are definitely taking it into account.

Austin is a city at the forefront of green living. There are several incentives offered by the city that encourage homeowners to make better energy decisions. The Austin Green Building Program has a rating system that can assist in making more environmentally friendly choices not just in building, but in day to day living as well. A little research can bring you to the proper choices in green living.

The unincorporated areas in Jefferson County, Texas have had such troubles, and the legislature is trying to do something about it. Recently, a group including volunteer firemen and members of the Jefferson County Sheriff’s office attended a meeting at the Texas Capitol in an attempt to regulate address signs. The group did focus primarily on the more rural areas where it is more difficult to locate specific addresses. The purpose of the bill is to regulate and enforce, if necessary, a standard that will properly identify homes in hard to see areas. This will allow emergency personnel to find homes easier in parts of the county where it has been hard to do so.

The county is hoping for a timely decision in this matter so that regulations may go into effect and provide better safety for residents.

AP Business Writers

NEW YORK — In a deal that will create the nation’s biggest homebuilder, Pulte Homes Inc. is buying Centex Corp. for $1.3 billion in stock as both companies try to survive the worst real estate recession in a generation.

The transaction, which also includes $1.8 billion of debt, will combine Pulte’s strength in active-adult and retirement housing with Centex’s hefty market share of first-time homebuyers.

The acquisition also will give Pulte large tracts of land in Texas and the Carolinas, two of the most resilient real estate markets. But Wall Street analysts are concerned about the risk of taking on so much land in other areas where home prices are still plummeting.

The new company, which will keep the Pulte name and headquarters in Bloomfield Hills, Mich., will have cash reserves totaling $3.4 billion and pay off $1 billion in debt by the end of the year.

“We believe the combined companies will allow us to return to profitability quicker than a standalone. Secondly, the cash position allows us to pay down debt while at the same time provide ample liquidity for the future,” said Richard Dugas Jr., said Pulte’s president and chief executive, who retain those titles over the combined enterprise.

Centex’s chairman and chief executive, Timothy Eller, will become Pulte’s vice chairman and will also work as a consultant for two years following the acquisition’s completion.

read the rest at The Miami Herald.

The main reason that the real estate market burst its bubble is actually very simple. When the economy was healthy and house values were increasing, many lenders forgot how to properly handle a mortgage application. Credit scores, and even employment records, became a thing of the past. Creative lending practices came into play where there was little to no down payment necessary.

While the initial payments were certainly something that home buyers could afford, later down the road these monthly payments would jump significantly and the new homeowners were unable to pay them. Add to this already stressed market that home values began to decline. Now, not only could the mortgage not be paid, but the house was no longer even worth that amount. There was nowhere to go but down.

Throughout this trying ordeal, Texas, and several of its larger cities, has maintained an excellent real estate market. Texas as a whole made less risky loan choices, so it has basically avoided the real estate bubble burst. Supply and demand in Texas has remained stable throughout the last few years. While the state has seen an increase in foreclosures, it remains much lower than the national numbers. Texas is expected to stay on the edges of our worsening economy and fare better as a state than most others.

There are several reasons why this part of Texas has been hit so hard when compared with the rest of the state. First off, its proximity to Mexico means that it is more affected by the decline in value of the peso. Also, there are many migrant workers who make residence here, but travel to harvest crops. They will then return home and remain unemployed while living off of what they have earned elsewhere. It is also believed that many residents do travel out of state for other employment, such as factory work, which has been hit hard by the economy. When they are laid off, residents return home to an equally sparse job market.

The most recent report has the state of Texas’ unemployment rate at 6.7%. The national rate as of now is 9%. At the moment, it is anyone’s guess as to when the recession will begin to turn. Most experts believe that 2009 will see more of the same as we did in January and February. While Texas may hang on better as a state, there will still be areas in need of help to recover.

This week, the Federal Housing Finance Agency released a report stating that Texas home prices increased by just over 2% in 2008. The Austin-Round Rock area actually increased home prices by 4.4%, according to the same report. January saw an increase in home sales for the area. While many economists believe that 2009 will be a bleak year, it is important to note that the Austin economy is in better condition when compared to the nation. The bottom of the real estate crisis is expected this year, with home values and prices beginning to increase in 2010, according to many experts.

Austin has maintained so well due to many factors. As previously mentioned, the housing bubble did not exist here. Homes in the last several years were in high demand, while supply was limited. Add to this the fact that Austin actually managed to create about 20,000 new jobs in the past year. The unemployment rate here is less than 4%. The Austin area is expected to emerge from this recession well above many other similarly sized cities throughout the nation.

Under the American Recovery and Reinvestment Act of 2009, approximately $10 billion in purchase funds are now available for the Rural Development Single Family Housing Guaranteed Loan Program (SFHGLP).

Beginning Friday, March 27, 2009, the Rural Development program will be re-activated!

Here’s a glimpse of what USDA can offer:

• 102% loan-to-value – this means $0 down + roll in closing costs
• Up to $417K purchase price
• No PMI
• Condos and manufactured homes allowed
• No reserves required
• Up to 6% seller contribution towards closing costs

Too good to be true?  Here’s the catch:

• Income limitations
• Geographic limitations
• Minimum 580 credit score required

Find out if your property or income qualifies.  Check out  http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do;jsessionid=3A9FDD1B237583EA9EE02934281E8C7A

OR … call me for more information!

Marie Funston
Senior Mortgage Advisor
Cell:  (512) 750-7270
Office:  (512) 691-6757
Fax:  (512) 343-1224

It is this side effect of the real estate crisis that has increased the number of new mortgage and refinances applications. According to the Mortgage Bankers Association, applications went up more than 11% nationally for the week ending March 6 from the previous week. That is up 5.7% from a year ago. Of these applications, about 68% are requests for refinancing. The low rates have given homeowners the ability to refinance at a rate of around 5% for a thirty year loan. Fifteen year fixed rates are closer to 4.5%, sparking the increase in applications.

As lenders begin to use more traditional methods of credit and loan practices, the real estate market is expected to level out. It is now considered a great time to buy for those able to do so. Many experts feel at this point that up is the only way the real estate market can go.

There are a number of factors to consider when setting the price for a property and appraisal is just one of those factors. While a home owner would want the appraised value to be low, thus keeping the taxes on the property low, the same home owner, if trying to sell the property, wants this appraisal to be high, thus allowing them to set the price a bit higher. It’s a contradiction that must be overcome when setting the price on a property.

According to this article in Community Impact Newspaper, “the market value of real estate is know to be the value that a ready, willing and able buyer is willing to pay for a property that has been adequately marketed for an appropriate length of time, in an arms-length transaction, with a ready, willing and able seller.”

Translated, that means someone who likes the property and has the resources to purchase it on the open market can and will do so from a seller who really wants to release ownership and has the means to do so.

First, a real estate agent prepares a comparative market analysis (CMA). This will include the selling prices of properties similar in size, condition, and features to the property in question. Average days on market (DOM) are then considered, along with the absorption rate of the neighborhood.

One burning question that should be considered very closely in real estate, as with any large transaction, is why are they selling it? Does the seller need to unload the property quickly or are they unconcerned with DOM? This could have a huge effect on the price and also open the door for negotiation.

The housing market is where we first began to see the beginnings of a recession. States like California and Florida were hit the hardest, with homes losing more value each passing month. Austin had not had a housing boom like in these other states, so throughout the ordeal, the area has been fairly stagnant in terms of home values. It was the more creative loans that first allowed the foreclosure binge to begin. As many homeowners saw dramatic increases in payments, the foreclosures began to pile up. Throughout it all, Austin has stayed well below the national average for comparable cities. Businesses and families alike still view the area as better off economically than other parts of the country.

It is important to note that one month of increase does not mean it will continue. Many experts feel that this may be the bottom of the barrel, and it is only up from here. While the recession is expected to continue, the credit crunch and the countless homes being sold for taxes owed has allowed for more prepared buyer’s to take advantage of the market. Austin is expected to maintain its overall economic health.

From Green Building Talk

Getting Into Hot Water: Solar Water Heating Pays For Itself Five Times Over
An analysis of the engineering and economics for a solar water-heating system shows it to have a payback period of just two years, according to researchers in India. They report, in the International Journal of Global Energy Issues, on the success of the 1000-liter system operating at a university hostel.

The current focus in the developed world is on advanced technological approaches to alternative energy sources, such as photovoltaic cells for solar power and harnessing wind and wave with elaborate systems to generate electricity. However, the cost of such systems may be prohibitive for some applications in the developing world. They also often ignore the fact that a mundane process such as heating water might best be carried out using direct heat from the sun rather than including a waste energy-conversion step.

…

Read the rest at GreenBuildingTalk.com

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From Associated Construction Publications

Construction Jobs Decrease by 104,000 in February

Construction employment fell by 104,000 in February with losses throughout the sector. This industry has shed 904,000 jobs since the recession began, with about half of the decline occurring in the past 4 months, according to testimony by Keith Hall, commissioner, Bureau of Labor Statistics, before the Joint Congressional Economic Committee today.

Although the stimulus package is expected to positively affect construction employment through “shovel-ready” projects, none of that has started yet.

The decline in construction employment mirrors declines in the rest of the labor market as the sharp and widespread contraction continued in February.

Nonfarm payroll employment fell by 651,000, following declines of 681,000 in December and 655,000 in January. Since the recession began in December 2007, job losses have totaled 4.4 million, well more than half of which occurred in the past 4 months. In February, the unemployment rate climbed from 7.6 to 8.1 percent, the highest rate in over 25 years.

…

Read the rest at Associated Construction Publications

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Interested in Green Building and Sustainable Living? I got this a few days ago. I’m going so if you want to go and meet up, I’d love to meet ya.

Designing for Food Resources
Food is among life’s most basic needs.  Our current food production model is centralized and sells to a global market.  Like any other massed-produced commodity, our food product is cheap, abundant, and easy. There are many problems with the current model, leaving our food resources far from secure or sustainable.  Food production, transportation, consumption, and disposal each have a huge impact on our carbon footprint.

On a local level, grassroots groups are working hard to reduce Austin’s carbon foodprint. This presentation explores ways in which our planning process, building infrastructure, and operations policies can incorporate goals for responsible food resources. Changes in our single-family homes, multifamily homes, and commercial buildings can lead to more sustainable, reliable, and environmentally-responsible food resources.

This seminar will feature three speakers:

• Pamela “Sweetpea” Hoover is the assistant grounds master at Natural Gardener and a certified teacher of the square foot gardening method.  Sweetpea will address attainable and appropriate food production in Austin on a single-family scale.
• Marla Camp is the owner/publisher of Edible Austin magazine and also sits on the board of the new Austin Food Policy Council. Marla will speak on local food production, consumption and education on a community scale.
• Justin Doak is the founder of BlueBin LLC, a sustainability guidance firm for the retail industry and a partner in Austin Refuel, a Texas-based company that has developed a closed loop waste-to-resource network. Formerly the Program Manager of LEED for Retail, Justin will address marketing and money-making strategies in food waste-management for Commercial retailers and developers.

A Question/Answer period will follow the presentations.

You can get the full details of the meeting at Austin’s Green Building site.

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PROJECTS READY, CREDIT NOT

AUSTIN (get the full story at Austin American-Statesman) – Large Austin projects set to begin construction are stalled because of the recession and frozen credit markets.

JMI Realty is ready to start work on the Hotel Van Zandt, a 327-room boutique hotel at the eastern edge of downtown on Red River and Davis, but cannot receive the financing to do so.

“We have lots of jobs ready to be created with this project, but until the banking environment improves, we will be on hold,” said JMI Senior Vice President Greg Clay.

In north Austin, Atlanta-based Novare Group and its local partner Andrews Urban are holding off on a 28-story tower that would house condominiums and the 145-room Twelve Hotel at Endeavor Real Estate Group’s Domain. The developers say the delay of the $100 million-plus project stems from the postponement of three major retail projects at the mixed-use Domain. These include new stores for Nordstrom, Saks Fifth Avenue and Whole Foods Market Inc.

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From the Niel Spelce Austin Letter ( I highly recommend subscribing for anyone trying to stay abreast of what’s going on in Austin)

The information was released midweek that seven states posted an unemployment percentage above 10%.Texas was not in the group of seven.In fact, it was among the best overall.

The totals, as well as some major shifts, provide an interesting comparison. Let’s start with a few of the best states.Wyoming was the only state, at 4.8% unemployment, that came in under the 5% mark.Texas was one of the best, at 6.8%, ahead of New York at 7.6%.

…

But some of the hardest-hit states appear to be reeling because of the suddenness of the impact. For instance, North Carolina (a state many consider competitive to Texas because of its technology industry centered in the Research Triangle) suffered the worst upswing in unemployment.At the beginning of 2008, its unemployment was a very reasonable 5.3% then, wham!, it hit 10.3% at the start of this year.A swing of five full percentage points!The number of workers looking for a job almost doubled.This is how you define “impact.”

…

So what about the other big states?How do they compare to Texas January 2009 total of 6.8%.In addition to those mentioned above, Florida recorded 8.8% unemployment, Illinois notched 8.5% unemployment, Massachusetts tallied 8.1%, Ohio nudged near the 10% mark with 9.7%, and Pennsylvania came in at 7.7%.It’s pretty clear that Texas still stands out among the states that matter for future leadership and growth.

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Homes in many of the nation’s hardest hit areas are being sold for taxes due. This has encouraged many foreign buyers, as far away as Australia, to purchase several homes in the U.S. as investment opportunities. Homes have been listed for as low as $1. Australian vacuum cleaner manufacturer Theo Szinger has already purchased several homes in the Detroit, Michigan area for less than $5,000. There are many houses available now for mere thousands of dollars that less than two years ago had been valued at more than $200,000. Many of these homes are in excellent condition; the current owners are just unable to keep up with payments.

As Americans continue to struggle to keep their homes, foreign parties are expected to continue to take advantage of the deals now offered throughout the nation. Homes are now available for less than the price of a used car. These homes have become a good source of income for buyers.

Mixed use properties can evolve as the demands change. This is evidenced by the recent announcement by Stratus Properties, Inc President and CEO, Beau Armstrong that Austin’s Block 21 project may add up to 35,000 square feet to accommodate a potential new leaser. While many builders have decided to put new construction on hold while awaiting a change in the economy, Armstrong states his project will continue as planned. The property is about 44% leased, and should continue to fill as construction is underway. Armstrong is open for more changes if necessary. Sales have slowed in response to the economy, but Armstrong is confident that more will become interested as the property is built.

Austin is expected to fare much better than other cities during the economic crisis. More businesses are expected to take advantage of the healthier economy here. As businesses move in, employees will also filter in. The potential of increases will help Austin reach its goal of downtown growth.

The report shows Travis County foreclosure rates up by 56% since March of last year. Hays County was up by 51%, and Bastrop County was up by 28%. The majority of foreclosures were for single family homes. Some commercial buildings were included in the auction listing for March 3rd, including Chinatown Center. Attorneys for the complex stated that the listing was made to gain leverage while in negotiations with its lenders and many stores within the complex were unaware of the listing at all. The increase in foreclosures stems from many factors, including poor lending practices, the increase in daily living expenses, and the stagnant wages of employees. In other words, the cost of living is increasing, but overall income is not.

Austin has seen harder times in the past. In the late 1980s, there were a reported 1200-1400 foreclosure listings monthly. Lenders have become stricter due to the defaults on subprime loans. A nationwide credit crunch has made it more difficult to finance a mortgage. Many experts feel that Central Texas has reached its peak in foreclosures, but are still adopting a wait and see attitude as the first quarter winds down.

In previous years, foreign investors preferred investments in office space. This year’s report showed there is more interest in multi-family homes. This is due to the economic downfall and reduced workforce. Austin ranked number 11 on the list, up from 16 in 2008. The report shows that, while investments may be down, the city is still in a much better position than most. Investors look for a solid foundation that will bring capital appreciation, and according to the Association of Foreign Investors in Real Estate, the United States is number one for that. Foreign investors expect the economy to start leveling sometime in the next year. The result will be more investment opportunities, and more investors willing to take the chance.

Austin has done well throughout the economic crisis. The city has specific plans to continue the growth of Austin through these hard times. New projects are underway with slow, but steady, lessee agreements. There are many improvements planned that will go forward on schedule due to the health of the local economy, and the investors will still be there.

Last week, Sheshunoff and Co. Investment Banking, a merger and acquisitions advising firm, released a report that showed how much better off Texas is when compared to the current national averages. The report stated that while Texas bank profitability was down in the fourth quarter of 2008, it is still well above the national profitability average. The average ratio of bad assets to total assets is less than half of the national median ratio. The report also states that Texas banks are better equipped at this time to absorb losses with regulatory capital almost 2% higher than that of the nation. Some believe that the $1.5 trillion plan to rescue the nation’s banks may actually be preventative to keeping the Texas economy strong. Austin banks have overall been conservative with lending practices, which has shielded the city from a lot of the nation’s woes.

The government has created the Troubled Asset Relief Program (TARP) to help banks reduce debt. As most of Texas’ banks are private, the additional requirements needed to be approved for this assistance may actually discourage the use of capital in the state. So far, Texas has seen little help from previous bailout plans, mostly because the state has maintained a healthier economy. While the state will be affected by the national economic crisis, the new bailout plan may not be needed here as much as in other states.

ProLogis has been a recognized leader in the industrial real estate market for years. After creating an $11.6 billion debt last year, the company released the CEO and began a downsizing and restructuring the company in an attempt to pull itself out. All told, ProLogis currently has more than 33 million square feet on sale in fourteen different states. The majority of property for sale is in Texas, with Atlanta close behind. The properties are expected to be sold at much less than it would have been just a couple of years ago. Market experts see the sale as a reminder of just how hard times have become in real estate throughout the nation. No one is immune to the economic woes, even large companies. The credit crunch has reduced many companies’ credit ratings, making it even harder to find a way out of debt. ProLogis is hopeful the sale, along with company restructuring, will help rebuild the company.

November and December of last year were the slowest sales months in Austin. The median home price has been steadily declining throughout the real estate crisis. Austin homes have not lost all value because the area has never boomed like cities in Florida or California, where the market crisis has hit the worst. While homes have lost some value, most mortgages here are still representative of a home’s value. The most difficult hump to get over in Austin has been the number of properties for sale. The supply has outweighed the demand for several months. That number began to decline in November of last year. Local realtors believe this is a good sign for the local market. This year is expected to be the beginning of the end for the real estate market woes.

The average price in Austin for the month of January was around $320,000. This is up from $314,000 the same time last year. The average actual sold price was about $265,000 as recently as February 14th. New listings are down by 14%, while pending sales increased by about 8%. Homes sold decreased by a staggering 43.24% when compared to January 2008. As the supply decreases, the demand will continue to rise and the market should begin to stabilize.

For Immediate Release Contact: Corinne Russell (202) 414-6921
February 24, 2009 Stefanie Mullin (202) 414-6376

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and financial institutions.

RECORD HOME PRICE DECLINES IN FOURTH QUARTER;
ISOLATED POCKETS OF STRENGTH

WASHINGTON, DC – U.S. home prices posted record declines in the fourth quarter of
2008 according to the Federal Housing Finance Agency’s House Price Index (HPI). The
FHFA seasonally-adjusted purchase-only house price index, based on data from home
sales, was 3.4 percent lower on a seasonally-adjusted basis in the fourth quarter than in
the third quarter. This decline was greater than the 2.0 percent decline in the third quarter
and the largest in the purchase-only index’s 18-year history. Over the past year,
seasonally-adjusted prices fell 8.2 percent from the fourth quarter of 2007 to the fourth
quarter of 2008.

FHFA’s all-transactions House Price Index, which includes data from home sales and
appraisals for refinancings, showed significantly less weakness over the latest quarter than
the purchase-only index. The all-transactions HPI fell 0.2 percent in the latest quarter. It
was down 4.5 percent over the four-quarter period, the largest four-quarter drop in the
index, which extends back to 1975. These data reflect trends as of Dec. 31, 2008.
FHFA has also included its monthly house price index through December 2008.
Prices increased 0.1 percent from November to December on a seasonally-adjusted basis
after a downward adjustment for November and are down 10.9 percent since their April
2007 peak.

“Price declines continued in the fourth quarter although not as rapidly as some had
expected,” said FHFA Director James B. Lockhart. “We are hopeful the housing initiatives
announced last week by President Obama will begin to provide much-needed stability to
the housing markets.”

While the national purchase-only house price index fell 8.2 percent between the fourth
quarters of 2007 and 2008, prices of other goods and services rose 1.4 percent.
Accordingly, the inflation-adjusted price of homes fell approximately 9.6 percent over the
latest year.

Significant Findings:
Purchase-only Index:
1. Prices fell over the last four quarters in 44 states and Washington, D.C.
2. Four-quarter price declines exceeded five percent in 22 states and were in excess
of 10 percent in eight states.
3. All nine Census Divisions experienced price declines in the latest quarter. Prices
were weakest in the Pacific Census Division, which experienced a 7.1 percent
seasonally-adjusted price decline in the quarter and the West South Central
Division was strongest, with a seasonally-adjusted decline of 0.9 percent.
All-transactions HPI:
4. The MSAs with the greatest appreciation over the past year were: Decatur, AL
(6.6%), Monroe, LA (6.3%), Kingsport-Bristol-Bristol, TN-VA (6.3%), Austin-Round Rock, TX (4.4%).
5. Of the 20 ranked cities with the greatest price declines over the last four quarters,
all but one (Las Vegas-Paradise, NV) was in California or Florida.
6. The MSAs with the sharpest depreciation over the year: Merced, CA (-49.5%),
Stockton, CA (-40.2%), and Modesto, CA (-37.8%).
The complete list of state appreciation rates is on pages 15 and 16.
The complete list of city (MSA) appreciation rates is on pages 30–46.

Highlights/Technical Note
The quarter’s Highlights article updates an analysis that was provided in the last HPI
discussing alternative weighting systems that might be used in constructing the national
house price index. This release uses data through the fourth quarter to produce an
alternative, state-weighted national index and compares that index against the standard
Census Division weighted index. FHFA continues to study options for reweighting the
national index.

Background:
FHFA’s purchase-only and all-transactions house price indexes track average house price
changes in repeat sales or refinancings of the same single-family properties. The purchaseonly
index is based on more than five million repeat sales transactions, while the alltransactions
index includes more than 36 million repeat transactions. Both indexes are
based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over
the past 34 years.

FHFA analyzes the combined mortgage records of Fannie Mae and Freddie Mac, which
form the nation’s largest database of conventional, conforming mortgage transactions. The
conforming loan limit for mortgages purchased since the beginning of 2006 has been
$417,000. Loan limits for mortgages originated in the latter half of 2007 through
December 31, 2008 were increased to as much as $729,750 in high-cost areas in the
continental United States. The American Recovery and Reinvestment Act, passed on Feb.
16, 2009, extended those limits for 2009 originations in places where those limits were
higher than those originally calculated for 2009.

This HPI report contains four tables: 1) A ranking of the 50 States and Washington, D.C. by
House Price Appreciation; 2) Percentage Changes in House Price Appreciation by Census
Division; 3) A ranking of 292 MSAs and Metropolitan Divisions by House Price
Appreciation; and 4) A list of one-year and five-year House Price Appreciation rates for
MSAs not ranked. Note that the Office of Management and Budget (OMB) announced
three new MSAs in late 2008: Cape Girardeau-Jackson, MO-IL, Manhattan, KS, and
Mankato-North Mankato, MN. Metropolitan area index series are now available for these
cities.

So, I read this and it validated my gut feeling about the market that we are in in Austin. (You can read the full report here) Austin has been virtually immune to the housing market woes that are causing widespread panic, loss, and foreclosure. That is not to say that we haven’t felt some impact to the curent economic turmoil, but moreso that we have seen a market adjustment to the hay days of 2006-2007, but that Austin is still growing and appreciating within our 4-7% “norm”.

I have to admit that watching the local and national news has started to skew my own view of the local economy. It’s too bad that there’s not a more balanced way to get the daily news. I suppose we have to chalk it up to misery, crime, drama, etc sells. Getting back to the report, I pulled these snippets from the full report and wanted to share them.

There are qualifications that must be met for assistance, including income and home value. Renters are not excluded from this assistance. The owner must sign off on the upgrades and the renters must have occupied the home for at least three months to apply. The city has set aside the materials needed for such things as attic insulation, caulking for plumbing features, and minor air duct repair. Included in the program is the installation of the materials if necessary. Such improvements will not only save the family money each year, but also reduces emissions that can be harmful to the environment. This program is just another example of how Austin has chosen to take environmental issues head on and become an eco-friendly community.

There are specific requirements that must be met to be deemed eligible for this assistance. Information for this program and many other money saving tips and rebates can be found at www.austinenergy.com.

SFR/Condos – $288,750

2-units – $369,650

3-units – $446,800

4-units – $555,300

This essentially takes us back to last year’s loan limits!

Conventional conforming limits stay the same at $417,000.

FHA is expected to account for almost 40% of all loans originated this year.  If you have any questions on FHA contract, guidelines, etc., just give me a call!

Marie Funston

Senior Mortgage Advisor

Cell:  (512) 750-7270

Office:  (512) 691-6757

Fax:  (512) 343-1224

Over a lifetime of use, a refrigerator can produce up to 10 tons of carbon dioxide. This is a major contributor to greenhouse gases affecting our atmosphere. By recycling your old, but working, refrigerator or freezer, you are removing emissions equal to two cars out of the environment. Many homes may have an additional fridge or freezer in the garage for overflow. These units work up to 30% more while combating the hot Austin summers. By recycling your old fridge or freezer, you can save up to $250 per year in electricity and energy usage. It is also important to note that newer units are more energy efficient and can save even more than that.

As an added incentive, Austin is offering a cash rebate of up to $50 to recycle working refrigerators and freezers. More information about this program can be found online at www.austinenergy.com.

Green Synergy Projects is a development team based on Austin and places a strong emphasis on market research. The company takes on projects that are beneficial not just to themselves, but to area in which they are building as well. The company has expertise in a variety of developments, including multifamily, medical offices, and retail properties. The three principals in the company each have a solid background in business and financial planning. The company takes a hands on approach to the planning of each project. This includes the financials of each development with proven results.

As the name suggests, Green Synergy Projects focuses on environmentally friendly developments. From construction to completion, the company strives to meet the standards set not only by Austin’s Green Building Program, but the national Leadership in Energy and Environmental Design as well. Each design is created with thought to the environment and the reduction of greenhouse emissions and energy usage.

The first step lies in selecting a site. If you choose an area conducive only to waste, surrounded by energy-consuming buildings on all sides, you won’t be apt to go green yourself. You need a lot that will enable you, for as little extra money as possible, to install energy saving, fuel efficient and water conserving systems. You also want a location that is in a walkable area, to promote less car usage. It’s an indirect method but an effective one, so look to areas that have already gone green. In Austin, there’s no shortage.

Once you start building, your options stretch from the center of the Earth to the sky. To save land, you can put a portion of the building’s parking underground. For the lot that remains above ground, use an open-grid pavement system that is less than 50 percent impervious. On the structure itself, consider a solar-reflective roof or one that is vegetated, meaning it has plant life on at least half of its surface. The best option would be a combination of the two – 50 percent solar reflective, 50 percent vegetative. Both these steps – the roof and the parking – will help control heating concerns.

You also want to consider lighting. Exterior and interior lighting systems can either consume more energy than any other aspect on the building or effectively limit the toll you are taking on the environment. Ideally you should aim for reducing lighting density by 25 percent, but 15 percent is an excellent place to start. This can be accomplished in a variety of ways: You can install lighting controls throughout the building that adjust how much light is emitted in accordance to how much daylight is received. You can create different systems for different areas so that wings and floors that get more natural light than others don’t use the same amount of energy. Or you can simply start by using eco-bulbs. Avoid halogen; buy bulbs that won’t need to be replaced every few weeks. Shop smart to be smart.

Finally, think seriously about water conservation. Water is something we waste easily and often, but it doesn’t have to be. Just by installing a leak detecting system, you’ll be able to save a potentially enormous amount of water. Using efficient plumbing fixtures that are low-flow and above code will take you to the next level, and creating bathrooms with dual-flush toilets and waterless urinals will put you over the top.

It’s not difficult to be green in this day and age. When you begin your next commercial development keep these options in mind. You may not be able to employ every one, but you should have no problem instituting a few. And when you do you’ll join ranks with some of the country’s most reputable and profitable organizations. You’ll have created a building that will last on a planet that will too.

One such development will be opening midsummer with a fully pre-leased property. The Capstar at Compass Plaza will be adding 115,000 square feet of residential and commercial space to W Fifth Street. This includes offices, apartments, and retail space and is the first major downtown office building since 2001. Major tenants for this building include BBV Compass Bank and Capstar Investment Partners LP. The building will also be home to Girling Healthcare Texas LP and DMX, Inc. The site was developed by Capital City Partners. There are several more mixed use developments in various stages throughout downtown. Austin’s economy and unemployment rates continue to be below the national average, making it a safer place for investing. As the city strives to maintain its place, more opportunities will arise to take advantage of all of Austin’s resources.

The National Association of Realtors reported that pending home sales for December were at 87.7 for previously owned homes. That is a 6.3% rise from November, the lowest month on record as 82.5. Realtors are hopeful this increase is the beginning of the end of the national market crisis, but do remain aware that the overall economy must also get better to fully pull out of the crisis. It is important to note that these increases were from the South and the Midwest. Pending home sales in the West and Northeast continue to decline. Sales of newly built homes are also low. While several investors are cautiously reentering the market, no one is quite prepared to go all in yet. There is more funding in the Federal Bailout plan that will hopefully help to better the overall market and help to stimulate the economy.

** according to Freddie Mac **

30-yr Fixed – Higher

This Week:  5.25%

Last Week:  5.10%

1yr Ago:  5.67%

15-yr Fixed – Higher

This Week:  4.92%

Last Week:  4.80%

1yr Ago:  5.15%

5/1 ARM – Relatively Unchanged

This Week:  5.26%

Last Week:  5.27%

1yr Ago:  5.21%

Highlight of This Week’s Major Economic Reports

The hot topic of the week centered on the ongoing debate in the Senate regarding the stimulus package, which may have reached a compromise totaling $780 billion.  The final vote in the Senate is expected in the next few days, and it would then go back to the House of Representatives for approval.

One key aspect of the proposed bill is a revision to the home-buyer tax credit.  Currently a first-time buyer $7500 tax credit to be paid back over 15 years, the new proposal eliminates the repayment requirement, doubles the amount to $15,000, and would be available to all home-buyers.

On the labor front, the latest figures revealed that another 598,000 jobs were lost in January, sparking the biggest monthly job loss figure since 1974.  The unemployment rate now sits at 7.6% — the highest since 1992.

What to Look for Next Week

With the economic calendar lacking any notable headliners, both the stock markets and bond markets will be directed by the results of – and reaction to – the stimulus package.  It is expected that a final bill will be voted on by both houses of Congress before the end of the week.

Short-Term Rate Outlook

Stable to Slightly Higher

Austin has been at the forefront of the green movement since it began. Many local builders have taken the time to learn green building techniques and guidelines. Some even offer green remodeling now to older homes. A green home is one that uses less energy and water, but that doesn’t mean the homeowner is missing out on anything. Just take a look at the 4,080 square foot home that is currently on the market sitting near Dripping Springs. The home offers majestic Texas hillside views, and is completely eco-friendly. There is an open floor design inside, a pool, hot tub, and over four acres to play on. What is really extraordinary is what the house is made of.

The house was designed by Gayle Borst and Elliot Johnson. As executive director of Design/Build/Live, Borst consistently strives for green living. The first floor of this beautiful home is no different; it is made of a naturally sustainable material: straw. Bales are placed within a framework of red iron steel for strength. Since the home sits atop a hill, it can be quite windy, and red iron steel is used in the construction of high rises. The interior walls are made of adobe plaster, and the exterior is concrete stucco. A huge benefit of the straw-bale construction is the material’s ability to hold temperatures. When the house is cooled on a hot day, it stays cool. This lowers not only the energy usage of the home, but the heating and cooling costs as well. The home also includes a 21,500 gallon rainwater collection system that provides all the drinking, bathing, and cooking water. Windows and doors are placed in such a way to optimize both the natural air flow and sunlight the location has. This home proves that living green can be lavish and environmentally friendly.