There is a brand new ruling whereby the 91 day wait period to flip a property also applies to USDA loans now. Up until now it only applied to FHA loans. If you are writing a contract for a buyer who is getting FHA or USDA financing be sure the seller has owned the property for at least 91 days. This time frame begins from the date of recording – not closing or funding.
Texas Economic Indicators — It’s a new publication
February 5, 2010There is a new monthly publication from the Federal Reserve Bank of Dallas, providing a general report on key economic indicators for the state of Texas. Some economic indicators point to a “stabilizing Texas economy, yet employment remains weak. Texas house prices held steady in the third quarter, and the number of housing permits rose in December.”
The report states that “Real Texas exports have increased two quarters in a row. Texas factory activity expanded in January, with the production index climbing further into positive territory.”
Texas has a Gubernatorial election on the horizon and I am curious to how this will affect our business climate.
A License To Sell Your Home?
February 3, 2010There is information circulating about the Cap and Trade Bill and the implications that home owners will be required to have a license to sell their homes, as well as retrofitting requirements, energy efficient requirements, labeling, increased taxation to pay for the “residential features” of the Cap and Trade Bill and much more. After spending a reasonable amount of time researching, I ended up at the National Association of Realtors website and read what NAR’s Government Affairs Division has to report on the matter. Read for yourself and share your thoughts.
Ready, Set, Bid – Downtown Condo Auction Set
February 1, 2010Note the article from the Business Journal – I went to preview the units this past Sunday. They are very nice and simple. Four of the units have really nice views. I have packages if there is any interest. I will be attending the mock auction for the units scheduled February 21.
All interested parties must register if planning to attend the auction. When registering you must give the top units of interest, as they will auction the most popular units first – it’s a real estate physiology thing.
Monday, February 1, 2010, 12:37pm CST
Austin luxury condos head to auction
Austin Business Journal
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A chunk of units in the plagued Sabine on Fifth Austin residential complex will hit the auction block this month in an attempted recovery from foreclosure threat and lawsuit.
Beverly Hills-based auctioneer Kennedy Wilson will sell-off 27 of the available 44 units Feb. 28, taking bids as low as $85,000 and $195,000. The apartments were previously listed near $204,900 and $550,000. Condo buyers would receive a one-year Tower Health Club and Spa membership and up to $1,500 in closing costs paid by the seller.
The auction will begin at 1 p.m. at the Hilton Austin Downtown and potential buyers must register by Feb. 25. The company has set up a Web site specifically for auction information here.
CWS Capital Partners converted the 10-story former office building in 2007. Floor plans range from one-bedroom, 682-square-foot units to two-bedrooms with 1,419 square feet. The company was forced to make significant improvements after complaints from several residents resulted in a lawsuit, which was later dismissed. The company narrowly escaped foreclosure on the Sabine after lenders Compass Bank and GE Capital agreed to extend a defaulted construction loan
Mortgages back below 5% but not for long
January 26, 2010This release from the Real Estate Center at Texas A &; M confirms an article I read last week on the expectation of rising interest rates in the long term.
As of last Friday, January 22, 2010 the 30 year fixed-rate mortgage averaged 4.99% with an average of .07 point for the week ending Jan. 21 — down from 5.06% last week and 5.12% one year ago.
Rate Expectations
Release No. 5-0110
(COLLEGE STATION, Tex.) — Mortgage interest rates are low right now, but don’t expect that to last. When the government quits buying mortgage-backed securities, rates will head up and away.
Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University, explained why mortgage rates were so low at the end of 2009.
“First, the global consensus among bondholders appeared to be that inflation will remain low in the United States for an extended period. This caused the ten-year U.S. Treasury rate to fall to between 3.2 and 3.6 percent for much of the second half of 2009.”
With extraordinary levels of federal deficit spending, Dotzour said it is unlikely that the low-inflation scenario will be popular when the economy starts to rebound. Consumers should expect mortgage rates to rise when signs of improvement appear.
A second factor contributing to the low mortgage rates is the Federal Reserve Bank’s unprecedented purchase of nearly all the mortgage-backed securities issued by Fannie Mae and Freddie Mac in 2009, he said. Totaling more than $1 trillion for the year, this program has been extended through the end of March 2010.
“The Fed has never done this before in its history, “said Dotzour. “They are doing this to stimulate the economy by keeping mortgage rates as low as possible. When the Fed stops buying these securities from Fannie and Freddie, mortgage rates are likely to increase, possibly quite abruptly.”
How far will rates go up when the Fed terminates its buying program? Dotzour said that question is difficult to answer precisely, because this has never been done before. But many experts think that rates could move up one-half to 1 percent.
“The combination of extraordinarily low mortgage rates and current price levels are making homes extremely affordable to American families. In fact, national and Texas housing affordability indices indicate that homes are more affordable than ever. But this will not last. When the economy recovers and the Fed stops purchasing mortgages, rates will rise.”
To read more on this subject, see Dotzour’s article in the January 2010 issue of Tierra Grande magazine.
Economic Forecast Predicts rebound for Central Texas
January 26, 2010This is a great article the economic future of Texas and Austin. It looks as though the worst Austin/Central Texas will experience are “growing pains”.
Community Impact Newspaper: By Eric Pulsifer Friday, 22 January 2010
Things are looking up for Central Texas’ economy over the next two years, according to economist Angelos Angelou.
Angelou—former Austin Chamber of Commerce Vice President of Economic Development and CEO of AngelouEconomics, an Austin-based economic development and site selection consultancy—is considered to be largely responsible for establishing Austin as another Silicon Valley. At his annual Economic Forecast Jan. 21, Angelou said he is very optimistic about the outlook for 2010 and expects the region to see 26,000 jobs added over the next few years.
“Austin remains in an enviable position compared to the rest of the country,” Angelou said. “The metro area is on a solid road to recovery.”
Texas is now the 11th largest economy in the world, but the state lost 200,000 jobs last year while the population grew by 478,000, the largest gain of any state in the country. Angelou said the City of Austin registered the largest decline of retail sales in Texas but that the region still managed to fare better than other metros around the U.S., losing only 2,600 jobs, or 0.3 percent.
Angelou attributes the relative stability to the fact that Central Texas did not experience a housing bubble.
Austin outperformed the U.S. market for 2009 but the average home value declined slightly to around $237,000. Angelou projects that 2010 and 2011 will see a higher demand in housing and said that Austin’s affordability has increased over the past decade and that Austin-area homes remain much more affordable than those in other metro areas.
Projections from Angelou’s forecast included:
The area will see mild job growth this year with a return to pre-recession numbers in 2011.
The metro area’s population will reach 1.835 million by 2011.
Retail will increase by $500 million and retail and wholesale employment will recover over the next two years.
By 2015, Austin will make up less than half of the retail market in the metro area.
Angelou said the city and county must support the chamber in attracting high-paying jobs by providing incentive package to lure major employers. For those looking to start a new business, Angelou said cheap office space and an abundance of talent make 2010 the ideal time.
“Now more than ever is the best time to start a business,” he said.
Looking to the future’s economy, Angelou predicts that clean technology and renewable energy will be huge over the next 10 years, and though Austin has a good reputation for clean energy, he said we fall behind competition in Oregon and New Mexico in wind and solar manufacturing.
“If we don’t get on that train, I don’t know what is going to drive our economy going into the future,” he said.
Health care and biotechnology will also continue to thrive, Angelou said. The health industry already employs about 50,000 people in the region, but healthcare reform could result in more people using medical services than before, growing the industry further.
“If the healthcare bill passes, we will see unprecedented growth in the health industry,” Angelou said. “This could becoming the biggest stimulus of our economy.
Other economic bright spots, Angelou said, will include:
Creative media—the video game industry has already surpassed both the music and movie industry and more than half of adults play games
Data centers—these create jobs with a starting salaires around $80,000 and will grow in value as more storage space is need for 3D television and internet technology
Software development
Show Us the Money: Texas’ Share of the Stimulus Fund
January 25, 2010This was released today from Texas Real Estate Center at Texas A & M. While Texas certainly has not felt the economic pain as most of the country — we’re a bit economically stressed for sure.
Release No. 7-0110
(COLLEGE STATION, Tex.) — Stimulus package this, stimulus package that. Exactly how much money are we talking here? And what does it have to be spent on? An Real Estate Center expert explains more about Texas’ piece of the stimulus pie.
“The American Recovery and Reinvestment Act (ARRA) of 2009 has been one of the most analyzed and debated pieces of legislation in recent history,” said Dr. Ali Anari, research economist.
“Texas’ share of stimulus funds under ARRA will be based on the state’s population and gross domestic product, and on how well Texas government officials use the funds allocated,” Anari said. “ARRA provisions include some that are expected to spur a housing market recovery and others that benefit small businesses.”
Texas is one of 16 states selected by the Government Accountability Office to be subjected to bimonthly analysis of funding use under the Recovery Act. These states produce two-thirds of the U.S. gross domestic product and are estimated to receive the same proportion of recovery funds.
A Real Estate Center’s analysis of Texas’ share of ARRA 2009 suggests that the projected initial impact of ARRA funds on the state’s economy will be in the range of $35.3 to $38.2 billion, the lower range consisting of $16.6 billion in federal spending through state government and state agencies, $3.7 billion in federal spending not through state government and $15 billion in tax cuts and tax credits. As of Jan.10, 2010, Texas had received about $6.08 billion of the funds to be spent through state agencies and public institutions.
The $3.7 billion federal spending not through the state government comprises $1.7 billion for Food Stamp benefits, $510 million in Pell Grants, $900 million in payments to beneficiaries of Social Security and $510 million in other programs.
The $15 billion tax cuts and tax credits are expected to consist of $8.5 billion for the Making Work Pay Tax Credit, $4.6 billion for the Alternative Minimum Tax and expansion of the Earned Income Tax Credit.
Texas’ share of ARRA funds for social spending is expected to be about $10 billion for programs in the areas of public education, Social Security, public housing, public health, crime fighting, job training and other social programs.
Expenditures for social programs are helpful for alleviating a number of social problems during a period of economic hardship. ARRA funds for infrastructure total about $5 billion to be spent on the transportation system, energy and water resources and defense infrastructure.
“All sectors of the Texas economy, including the state’s real estate industry, are expected to benefit from the additional jobs and incomes generated from stimulus spending,” said Anari. “Several Real Estate Center research studies have found that employment and per capita or per family income are the most important determinants of home sales, home prices and occupancy rates in residential rental and nonresidential real estate markets (office, retail, and industrial).”
ARRA 2009 contains several provisions aimed at spurring a housing market recovery. Texas is expected to receive between $330 and $440 million through the Texas Department of Housing and Community Affairs to be spent on a homelessness prevention and rapid re-housing program, along with weatherization and community services grants.
The HOME Investment Partnership Program (HOME) provides loans and grants to fund affordable housing to low-income families through rental housing assistance, homebuyer assistance and occupied housing assistance. Under ARRA 2009, Texas is expected to receive $150 million for this program to be spent by local governments and public housing agencies along with for-profit and not-for-profit entities.
ARRA 2009 includes several business incentive provisions designed to help small businesses (those with fewer than 500 employees) weather the down market.
“The Great Depression taught that a ‘do-nothing’ approach to an economic recession — letting businesses die and liquidate on the presumption that the recession results in survival of the fittest and most efficient firms — may lead to economic disaster,” said Anari.
Texans Check The Treasury Coffers — There Could Be Cash For You
December 9, 2009This information is from a great web site AmericanTowns. We all need to check with the Texas Comptroller of Public Accounts-Unclaimed Property Division to see if there is any cash hanging around in our names or businesses. Last year Texans recovered approximately $147 MILLION. It is super easy to search online. Go to ClaimItTexas. Happy Holidays.
Austin Employment Steady
November 20, 2009Austin unemployment rate is at 7.2% in October according to a recent article in the Austin Business Journal. The article goes on to state that the unemployment in the Austin area held steady in October at 7.2 percent, the same as in September but up from 4.6 in October 2008.
Texas’ unemployment rate is at 8.3 percent, slightly higher than the 8.2 percent recorded last month but nearly two full percentage points under the national average.
Overall, the Lone Star State added 41,700 jobs in October, making it a standout in a national economy where the unemployment rate is now at a seasonally adjusted rate of 10.2 percent.
“In October, the Texas job market regained some lost ground experienced over the past several months, although it is too soon to indicate a trend,” Texas Workforce Commission Chairman Tom Pauken said. “The Texas unemployment rate continued to edge upward as our state continues to feel the effects of the national economic downturn.”
Although there was some good news about job gains, “we remain concerned about the many Texans who still cannot find work,” said Ronny Congleton, TWC commissioner fepresenting labor.
Job gains in Texas were mostly in the professional and business services segment, as well as the education and health services segment, according to a Texas Workforce Commission report.
Texas saw 14,900 jobs added in just the education and health services segment during the month of October; 10,800 professional and business services jobs were added.
The leisure and hospitality sector added 2,600 jobs, while the trade, transportation and utilities segment recorded an increase of 2,500 positions.
The construction sector of the economy continued to lose jobs in October, bleeding 9,400 jobs last month.
NAR Launches New Web Site For Home Owners
November 10, 2009The National Association of Realtors is launching a new website with information for homeowners and more tools for Realtors.
The site, called HouseLogic, is intended to help homeowners protect, maintain and enhance the value of their homes, and to provide business-building tools for Realtors. The site will also allow homeowners to speak together with Realtors to federal legislators on public policy issues where homeowners and the real estate industry have a common interest.
HouseLogic will be promoted to consumers in earnest starting in February. Until then, the site is in beta and is being promoted primarily to Realtors, giving them a chance to explore the site and provide feedback.
Proud Sister
November 10, 2009I am so proud of my brother Thomas Edwards — second time he is among the Aggie 100.
The Aggie 100 identifies, recognizes and celebrates the 100 fastest growing Aggie-owned or Aggie-led businesses in the world. The Aggie 100 not only celebrates their success, it also provides a forum to pass lessons to the next generation of Aggie entrepreneurs.
One-of-a-kind at the college level, the Aggie 100 was created by Mays Business School’s Center for New Ventures and Entrepreneurship. The Center provides encouragement, education, networking and assistance to entrepreneurially-minded students, faculty and Texas businesses.
