Austin Noted as Hot Spot for Younger Population

According to a report by the Wall Street Journal, Austin has been ranked fifth among cities where the younger population, particularly college graduates, is likely to gather in post-recession times. Austin was noted for having tech and art savvy individuals and also for its cultural appeal with attractions like Austin City Limits and South by Southwest. Washington, D.C. and Seattle tied for the top spot on the list. Dallas ranked ninth.

In addition to being a magnet for the younger crowed, Forbes has named Austin as one of the top recession-proof cities for retirees. Factors used to determine the rankings include home prices, average housing expenses and the overall cost of living. Noted for pleasant weather and a positive economic outlook, Austin ranked sixth overall on the list.

Texas Cities Outperform!

Texas cities are outperforming others! This information is from the Real Estate Center at Texas A&M. I believe it tells what we already know, but I think the stats are interesting…and do have direct relation to our real estate market.
Texas metros, led by number one Austin–Round Rock, claimed four of the top five spots and nine of the top 16 in the 2009 Milken Institute/Greenstreet Real Estate Partners Best-Performing Cities Index. Also making the list were Killeen–Temple–Fort Hood (2), McAllen-Edinburg-Mission (4), Houston–Sugar Land–Baytown (5), San Antonio (11), Fort Worth–Arlington (12), Dallas-Plano-Irving (13), El Paso (14) and Corpus Christi (16).

Austin–Round Rock was the first metro to ever be ranked number one twice on the index, the last time being in 2000.

But it doesn’t stop there. Nine other Texas metros made the top 25 out of the 124 smallest metros that were studied. Those were Midland (1), Longview (2), Tyler (4), Odessa (5), College Station–Bryan (14), Texarkana (17), Waco (18), Laredo (20) and Abilene (21).

Leaders in this year’s index, which ranks U.S. metros based on their ability to create and sustain jobs, are all metros that succeeded in avoiding the worst of economic declines driven by falling housing markets and job losses in manufacturing and global trade. Regional economic factors also strongly influenced the rankings this year, with the oil and gas sector, technology, and alternative energy providing stability among metros in Texas, North Carolina, Washington and Louisiana.

Another factor helping Texas metros move up in the rankings is the state’s favorable business climate and its ability to attract jobs and corporations away from higher-cost states. One thing a lot of people may not realize is how business friendly Texas is compared to other states. This is why we enjoy the inbound migration of so many businesses fleeing places like California, where regulation and high taxes are increasingly burdensome to business owners and employers. So, while things are a bit sluggish overall in Texas and Austin, we are doing comparatively well compared to other regions. Yee-haw!

The Austin Market - Week In Review

The number of active listings are down 10.95% from last year. The number of new listings are up this week by 3.03% (compared to 11/9/08 - 11/15/08).

Pendings are down this week by less than 1%.

Sold residential units are up 69.80% compared to the same week last year.

The Week in Review
Units for Sale:
Nov. 8 - Nov. 14, 2009
(compared to the same week in 2008)
New listings up this week 3.03%
Pendings are down this week 0.96%
Solds are up 69.80%

As for Average Prices:
Nov. 8 - Nov. 14, 2009
Sold average sales prices decreased 1.04% to $257,399. In 2008 it was $260,099 for the same week.

Long-Term Rates Fall to Lowest Level in Five Weeks

Freddie Mac today released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage(FRM)averaged 4.91 percent with an average 0.7 point for the week ending November 12, 2009, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 6.14 percent.

The 15-year FRM this week averaged 4.36 percent with an average 0.6 point, down from last week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 5.81 percent.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.29 percent this week, with an average 0.6 point, down from last week when it averaged 4.35 percent. A year ago, the 5-year ARM averaged 5.98 percent.

The one-year Treasury-indexed ARM averaged 4.46 percent this week with an average 0.6 point, down from last week when it averaged 4.47 percent. At this time last year, the 1-year ARM averaged 5.33 percent.

"Mortgage rates eased further over the week, helping to promote an affordable home-purchase market and stimulate refinance," said Frank Nothaft, Freddie Mac vice president and chief economist. "This comes at a time when house price declines are moderating and consumer demand for prime mortgages at commercial banks has picked up."

"The National Association of Realtors® reported that national median sales price of existing homes fell 11.2 percent in the third quarter relative to the same period last year. Moreover, almost 20 percent of the top metropolitan areas experienced positive annual growth, compared to only about 12 percent in the first quarter of this year."

Austin Stats and Some GOOD NEWS!

Good news: Fewer Underwater Mortgages
Fewer people are underwater on their mortgages -- further evidence that the real estate free-fall may be slowing.

Just 21% of all single-family homeowners owe more on their mortgage balances than their homes are worth, according to a third quarter residential real estate report from Zillow.com. That is down from 23% at the end of the second quarter. Why is this great news? Read HERE for further information!

Austin Market Stats: (courtesy of Alamo Title)
The number of active listings are down 11.91% from last year. The number of new listings are down this week by 4.02% (compared to 11/2/08 - 11/8/08).

Pendings are up this week 3.96%.

Sold residential units are up 26.82% compared to the same week last year.

Units for Sale:
Nov. 1 - Nov. 7, 2009
(compared to the same week in 2008)
New listings down this week 4.02%
Pendings are up 3.96%
Solds are up 26.82%

As for Average Prices:
Nov. 1 - Nov. 7, 2009
Sold average sales prices decreased 17.31% to $253,568. In 2008 it was $306,643 for the same week.

It's Official - Tax Credit Is Extended

It’s official. President Obama has signed a bill that extends the tax credit for first-time home buyers into the first half of 2010. In addition, the extension also opens up opportunities for others who are not buying a home for the first time.

Tax Credit For Home Buyers
First-time home buyers (people who have not owned a home with the past three years) may be eligible for the tax credit. The credit for first-timers is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing joint return may qualify for the full tax credit amount.

What Are The New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010

Tax Credit Versus Tax Deduction
It's important to remember that the tax credit is just that...a credit. The benefits of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time buyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, they would owe nothing.

Better still, the tax credit is refundable, which means the buyer can receive a check for the credit if they have little income tax liability. For example, if a first-time buyer is eligible for the $8,000 but is liable for $4,000 in income tax, a check for the remaining $4,000 would still be received.

Higher Income Caps
The amount of income someone can earn and qualify for the full amount of credit has been increased. Single tax filers who earn up to $125,00 are eligible for the total credit amount. Those who earn more than this gap can receive partial credit. However, if the taxpayer earns $145,000 or more, they are ineligible for any tax credit. Joint filers can earn up to $225,000 combined for the total tax credit. If the joint filer is up to $245,000 in combine salary they can receive partial credit. Any more earnings than $245,000 and they are not eligible for any tax credit.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

Lake Travis Schools - Denies Property Tax Increase

Voters on Tuesday rejected a 2-cent property tax increase in the Lake Travis school district, with 59 percent voting agtainst the measure and 41 voting for it.

When the school board approved its $79.5 million budget in August, board members also adopted the tax rate: $1.06 per $100 of assessed property value for maintenance and operations and 27.59 cents per $100 of value for debt payments.

But because that exceeded the state-imposed cap of $1.04 for maintenance and operations, a rollback vote wsas automatically triggered, making the higher amount subject to voters' approval.

The rejection means the maintenance and operations rate rolls back to $1.04.