New ban on short-term leases in Rollingwood.

Rollingwood, another town west of Austin, has a new ban on short-term leases.

Owners are angry about the city's vote to take away their right to rent their homes out for fewer than 30 days - citing constitutional rights to do what they wish with their property and also the need for extra income during the recession.

However, the city of Rollingwood, which is doggedly determined to remain its' own entity despite it's being nestled right next to Austin's Zilker park, sees the ban as a way to limit residents to home owners and more permanent residents as opposed to turning the village into a temporary resort town for those more interested in what Austin has to offer.

Could Lakeway be next? Visit my website for more information about home sales in Austin and the Lake Travis area.

Texas Foreclosures less than 50% of nat'l avg.

According to Realty Trac forclosures were 11.9% of realty sales in Texas in the second quarter. Nation-wide foreclosures accounted for 24% of realty sales.

Visit the original article here or my website for more info about home sales in Texas.

How can your home make you happier?

Does your home seem dark or uninviting? Do you feel unwelcome in your own living room? Making improvements that make you happier will probably make prospective buyers happier in your home as well!

Click here for a story about how you can make improvements or here for more information about buying or selling in Lakeway.

2nd Quarter Existing-Home Sales Rise in Most States, Helped by Affordable Metro Prices

Washington, August 12, 2009

Existing-home sales in the second quarter showed healthy gains from the first quarter in the vast majority of states, and price declines have increased affordability in most metro areas, according to the latest survey by the National Association of Realtors®.

Total state existing-home sales, including single-family and condo, rose 3.8 percent to a seasonally adjusted annual rate¹ of 4.76 million units in the second quarter from 4.58 million units in the first quarter, but remain 2.9 percent below the 4.90 million-unit pace in the second quarter of 2008.

Thirty-nine states experienced sales increases from the first quarter, and nine states were higher than a year ago; the District of Columbia showed both quarterly and annual rises.

Lawrence Yun, NAR chief economist, said the sales gain appears to be sustainable. “With low interest rates, lower home prices and a first-time buyer tax credit, we’ve been seeing healthy increases in home sales, which are a hopeful sign for the economy,” he said. “There have been sustained sales gains in Arizona, Nevada and Florida, as well as diverse areas such as Maryland, the District of Columbia and Nebraska. More recently, we’ve seen strong double-digit gains in Idaho, Utah, New Mexico, Washington, Hawaii, New York, New Jersey, Maine, Vermont, Wisconsin, Indiana, South Dakota and Montana.”

...

Read the entire article here or visit my website for more information about home sales in the Austin, Texas area.

Federal Reserve says housing market is improving

While residential real estate remains weak overall, many local markets are showing signs of improvement, according to the Federal Reserve’s Commentary on Current Economic Conditions, also known as the Beige Book.

Sales volume is up, especially in the Fed’s Minneapolis and San Francisco districts, and with the exception of the St. Louis district, sales declines are letting up.

The Fed credited the federal government’s $8,000 first-time homebuyer tax credit for the improvement to the low-end of the residential housing market, especially in its New York, Kansas City and Dallas districts.

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Read the rest of the article here or visit my website for information about buying or selling your home.

Healthiest Housing Markets in the Country

With most economists and builders expecting a national market decline this year, this may not seem like the best time to be selecting the "healthiest" markets in the country. Virtually every market was down last year. But a close look at the numbers reveals that some markets have way outperformed others during the last four years and are likely to continue to do so this year.

When the housing market stages its official recovery, the markets listed on the following pages are likely to lead the parade. It may take a year or more for the weakest markets--where burgeoning foreclosure sales are still pounding new home values, making building and selling new homes an exercise in futility-- to finally stage a turnaround. We’ll present that list next week.

The healthiest markets have many things in common. Most of them are great places to live, either close to the ocean, mountains, or major universities. Most of them didn’t have a huge run-up in prices during the boom and aren’t experiencing rampant deflation during the bust.

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Texas claims the top Five with Austin edged out only by Houston. Read the full article here or learn more about Real Estate in Austin, Texas on my website.

Fed moves to curb housing abuses

The U.S. central bank recommends new rules to limit compensation for mortgage brokers and clarify risks for borrowers.

July 23, 2009: 11:36 AM ET

WASHINGTON (Reuters) -- The Federal Reserve Board Thursday recommended new disclosure rules for homeowners and compensation guidelines for mortgage brokers to correct some abuses of the recent runaway housing market.

Prospective borrowers would receive a one-page notice of key questions about their loan and see a graph comparing their interest rate to that of a low-risk borrower, the Fed said.

Mortgage brokers would not receive greater compensation if they put a borrower into a high-cost loan, under the rules.

"Consumers need the proper tools to determine whether a particular mortgage loans is appropriate for their circumstances," Fed Chairman Ben Bernanke said during an open meeting of the board.

View the original article here or visit my website for more news about the Texas real estate market.

Which cities will and won’t recover fastest -- Austin at the top, AGAIN!

WASHINGTON - The three most important things in real estate: location, location, location.

It's true for recovery from a real estate bubble too. Overall, many economists expect the national economy to return to growth later in 2009, perhaps as soon as this summer. But that won't be the case everywhere. While some cities are poised for a quick rebound, others face a slog to recovery that could take years.

Poised for swift recovery are many Texas cities, such as Austin, San Antonio, Dallas and McAllen. These areas did not see the massive real estate bubble that formed in states like California, Nevada and Florida. The economy is diverse, with heavy growth coming from education and health care in recent years.

Many of the cities with the longest road to recovery are California cities, where home prices rocketed out of control, and entire economies were supported largely by a real estate bubble. Fresno, Modesto, Salinas, Bakersfield, Stockton and Los Angeles all saw home prices soar to unsustainable levels and then begin their inevitable plunge. The collapse of the housing markets pushed unemployment rates in these cities above 10 percent.

Even as a flood of foreclosures makes home prices look affordable again, a sign that some of the worst real estate markets may be finding their bottom, it will still take years for unemployment rates as high as 16.8 percent in Modesto or 15.5 percent in Fresno to return to healthy levels.

To find the 10 cities that look best poised for recovery (and the 10 cities likely looking at the longest climb back), we examined estimates from data provider Moody's Economy.com of the projected gross domestic product of metropolitan areas across the U.S., as well as unemployment figures from the Bureau of Labor Statistics and home prices, incomes and affordability data from the National Association of Home Builders. Because, in general, healthy cities were not victims of as severe a housing collapse, home prices were not used in ranking the cities poised for recovery.

The analysis also shows the importance of a city's economic make-up. Manufacturing has been battered by the recession, leaving cities like Detroit and Flint, Mich., or Youngstown, Ohio, with bad unemployment and a changing economy that's unlikely to replace the lost jobs. Moody's projects the economy in Flint, for example, will decrease by 16 percent from the start of recession to the end of 2010. (One commonly cited rule of thumb for depression is a decline of 10 percent.) Flint might never return to its original size.

New York City, too, once the capital of finance, is now saddled with Wall Street-induced unemployment and homes that are completely unaffordable for most of the region's residents. The NAHB's Housing Opportunity Index reports that only 14 percent of homes in the New York-White Plains-Wayne area are affordable on the area's median income — by far the least affordable region measured by NAHB.

Cities with robust technology sectors are poised for stronger recoveries than manufacturing or finance centers. Cities with high-tech capabilities like Seattle, Huntsville, Ala., or Boulder, Colo., could see quick recovery in coming months.

© 2009 Forbes.com
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Austin home sales hit highest level in a year

By Claudia Grisales
AMERICAN-STATESMAN STAFF
Tuesday, July 21, 2009

Austin-area sales of existing homes hit the highest level in a year last month, according to figures Monday from the Austin Board of Realtors.

Last month, 2,135 single-family homes were sold in the area, down 4 percent from a year earlier. That was the smallest decline since a 2 percent drop in July 2007, when the market began to soften amid an emerging national mortgage crisis.

This year, sales were down 19 percent in May and 18 percent in April from a year earlier.

Pending sales — those in the pipeline to close in July — were up 4 percent, to 2,084.

"We've seen the year-over-year gap in sales volume close steadily throughout 2009, and that momentum continues this month," said Jay Gohil, chairman of the Board of Realtors.

Jim Gaines, research economist for the Real Estate Center at Texas A&M, said there's not yet a clear signal that the Austin market has hit bottom.

"That's the $64 million question," he said.

He said Texas is seeing more signs that the recession has landed with full force, such as a weakening job market — including in Central Texas — and falling sales tax revenue.

But there is growing evidence nationwide that the housing market is starting to stabilize. Combined, sales of new and existing homes hit an annual rate of 5.1 million in May, the highest level this year.

In Central Texas, the market is benefiting from low mortgage rates and a healthy supply of homes for sale. Another strong incentive: an $8,000 federal tax credit for first-time buyers who close on a home before Dec. 1.

But the market faces a long climb back. Home sales last month were down 23 percent from June 2007.

Mark Sprague, Austin partner for Residential Strategies Inc., which tracks the housing market, said the Austin market appears to be improving.

As fewer developers build homes and the number of available lots continues to shrink, it will mean more demand for existing homes, he said.

"Resales are a little better," Sprague said. "I'm cautiously optimistic."

Sprague reiterated that the Austin market has not slumped as deeply as the national market. The median home price in Austin last month was $199,900, unchanged from a year ago. Nationwide in May, the latest data available, prices were down 15 percent from a year earlier.

Mortgage broker Ashley Hall said June was a busy month for her firm, with a large percentage of homebuyers looking to move to Austin from destinations such as California and Arizona.

"We have seen a great deal of activity," said Hall, president of Barton Hills Mortgage.

Hall said her firm saw purchases increase about 15 percent in June. Of those, 60 percent were buyers moving from other cities or states, and 40 percent were previous customers moving to bigger or better homes. The average purchase price was in the $450,000-to-$500,000 range, with a few sales over $1 million.

Tom Polk, a broker associate with Stanberry & Associates, said June's figures finally reflect what he's been seeing in his own business.

Polk said he's also received interest from prospective homeowners looking to move to Austin as well as investors.

"It's about time," he said. "There is a distinct change in activity and attitude out on the street."

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Read the original post here or learn more about Austin, Hill Country, and Lakeway home sales on my website.

How To Fight Your Property Taxes! I did it and so can you...

My husband and I own a lovely home in the city of Lakeway, Texas. Every April I pay an enormous amount of money in property taxes. This year I decided to fight my taxes because I had noticed some discrepancies in my charges and finally decided that this was the year to do it. This is my experience.

I arrived 15 minutes early and entered the Appraisal District building on the opposite side of Austin from where I live. I walked up the stairs to check in by the sign that says “check in here”. I asked the receptionist if my hearing will be on time and I she giggled as she listened to a question that I am sure she hears a hundred times a day, which implies the answer, “No.” As I am sitting in one of the plastic chairs in a hall I feel like I am waiting to go into the principal’s office-and wonder why I did not prepare more.

There are 9 rooms where the appraisal review board panels convene. Some rooms are as big as a doctor’s exam room and others are twice the size. I watch a cute couple, probably 90 years old, go into a room. I wonder again if I could have prepared more. I hear laughing from the room and think, “OK, maybe laughter will help me.”

There is a break room on the floor where you can pay for a soda or water or even a snack. Note to self: bring enough provisions for 2 hours next time, do not skip lunch to be early. More laughter, “OK, maybe I CAN do this.”

A police office walks down the hall – opens a door and asks if the panel members are OK, then I think maybe the panel has a button that they can push if they feel they are in trouble. I take out my soothing lavender stick and rub it on my wrists…calming down.

A man is walking down the hall asking people how they prepared and the man next to me said he didn’t. His house is on the market for less than the assessed value so he thinks it’s a slam dunk. I think, and I hope, too, as I am in the same situation.

Another man walks up the stairs, sees more than 20 people in the hall and says “Oh Man”-I think “I’ve been here 40 minutes already.”

The happy couple comes out; they are playing the name game as they leave. I wonder-should you dress up or down in this situation. I see men in suits and men in shorts. Women are definitely the minority. Will the panel now talk about the couple’s property or do they make that determination while all together in the room? They leave the door open, and I doubt they will talk about it, so on to the next tax payer. I hope it’s me…nope, but this woman looks well organized. Another panel calls a name from down the hall “Ok,” I think, “Maybe we are in the groove, the lunch break paid off.” Oh shoot, now I get a hot flash; go buy another pop from the lunch room.

Soon my mind is floating with thoughts such as “Should I tell them I a realtor? Would that make a difference? Would he help or hurt?” Zap! Back to reality, my name is called. As I enter I am instructed to sit in front a computer monitor. The panel is to my left and the appraiser is to my right. They introduce themselves and I am sworn in. I begin my testimony with a presentation of my listing agreement, CMA, my MLS sheet and sold data. I had made 4 copies and handed it out to all. My tax assessed value was $50,000 more than what I have it on the market for. Also it has not yet sold at that price and I discuss the reasons why it probably will not sell for this price because of upgrades that need to be made to compete in the market. The panel and appraiser flipped though the paper and looked at photos I provided. They asked if I am finished presenting and let me know I will have a chance to comment after the appraiser comments. I mentioned that I am a Realtor and it seems it did not matter.

The appraiser brought up a default grid of properties that have sold that closely match my property. The grid looks much like the appraiser’s grid of comparable properties when you buy a house. The base price is shown and then adjustments are made for differences in the properties. He states that my data is not accurate because the sold data needs to be for the time period of 1/1/08 to 2/2/09 as this is the time that my home was assessed in. “It have been nice to have known that in advance,” I think… “I don’t think that was in the packet of information I received.” Then up pops homes that I have not researched so I am fumbling around now. I ask where the grid takes into account the extras, like pool, golf course, etc. I see that line and move across the grid to see what types of adjustments were made. The data does show about a $40,000 price decrease, close to what I have it on the market for, so I am feeling a bit better.

Next the appraiser brought up an equity grid. This is not based on sales, but shows your property’s taxes compared to the properties’ taxes near you. Then I noticed on the form that the line that shows the price for mine and my neighbors’ lots had a discrepancy. While our lot size was similar the price for my lot was much higher. The panel soon discovers that our home has been assessed based on a lake view scale which we do not have. I got $25,000 taken off the value there. Yippee!

I also note that the square footage has not been adjusted and last year we sent an appraisal report that showed that we had less sq footage than what the tax man had assessed. The home had been added onto and the square footage that the permits said was simply not accurate. It sounded from the conversation amongst the panel that normally any amount under 10% would not change in the tax records, but upon further review of the correspondence among the district and I it was stated it would be changed. So my square footage was adjusted and in total my assessed value was reduced $106,024! From my calculations I will be saving $200 a month! I am pretty happy at this point. I said my good byes and will be looking for my letter in the mail stating what transpired in our meeting.

In conclusion, here is my advice if you are ever in this situation: bring provisions and a book and plan to stay for at least 2 hours. Your goal is to provide evidence of market value so consider researching and bringing all of the items on the list that they suggest in the packet they will send ahead of time. The biggest thing to remember is to bring comparative research for the time period of 1/1/08 to 2/2/09 (if you are going in this year) and to check the data for your property to see if there are any quick fixes like incorrect square footage or land adjustments that are incorrect.


For more information about real estate in Texas visit my website.

Pending Home Sales Record Fourth Straight Monthly Gain

Washington, July 01, 2009

Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.

Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”

The Pending Home Sales Index in the Northeast rose 3.1 percent to 80.9 in May and is 6.8 percent above a year ago. In the Midwest the index slipped 1.3 percent to 89.2 but is 11.4 percent above May 2008. The index in the South declined 1.7 percent to 92.6 in May but is 7.9 percent higher than a year ago. In the West the index rose 2.2 percent to 96.9 and is 0.7 percent above May 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the appraisal issue is complicated. “We see that distressed homes often are selling for 20 percent less than normal homes in the same area, but some appraisals don’t distinguish between traditional homes and distressed property,” he said. “In many cases appraisers from outside the area are being used, but as everyone knows real estate is local and appraisals should be done by an expert with local expertise.”

McMillan said sellers shouldn’t hesitate to speak with an appraiser about their home. “Sellers should feel free to tell an appraiser about improvements and renovations to their home, and how it compares with other homes in the neighborhood,” he said.

“Also, if recent sales in the neighborhood were discounted, but not similar to your home in terms of quality or condition, that should be pointed out. It wouldn’t hurt to put all this in writing, especially if an appraiser is not familiar with your area. A Realtor® could offer guidance and information to help you with this process.”

NAR’s Housing Affordability Index² remains at historic highs. The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970. “Under these conditions the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” Yun said.

The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of what a median-income family can afford. The affordable price was significantly higher than the median existing single-family home price in May, which was $172,900.

The first-time buyer tax credit also is benefiting the market. “Strong activity by entry level buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.

Existing-home sales should trend up through the end of the year, with normal local market differences. “The big question is how much the appraisal issue will impact the ability of contracts to go to closing,” Yun said. “We are currently conducting a study to assess the degree to which new appraisal rules are impacting home sales.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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For more information about real estate trends, visit my website.

Central Texas home sales showing signs of a pickup

By Shonda Novak| Wednesday, July 1, 2009, 02:43 PM

Central Texas’ new-home builders started nearly 35 percent fewer homes in the second quarter than a year earlier and closed 36 percent fewer sales, new figures show.

However, there are signs the market may be picking up from earlier this year, because builders started 1,861 new homes in the second quarter, up nearly 53 percent from the first three months of 2009, according Residential Strategies Inc., which tracks the housing market.

“The second-quarter period historically marks a time of increased start activity, based on increased buyer traffic and sales during the spring selling season,” said Mark Sprague, the Austin partner with Residential Strategies. “Homebuilders had very few backlog orders to fulfill during the first quarter and no need to begin any speculative construction, but buyer traffic and sales have increased, marking the need for additional starts during the second quarter.”

For the 12 months ending in June, builders closed 8,978 sales, down 32 percent from the 12 months that ended in June 2008.

From The Austin American Statesman

For more information about Real Estate Trends in the Austin area visit my website.

Texas Market Review

Click here for a recent market review in Texas done by the Real Estate Center at Texas A&M University. For more information visit my website.
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