Texas Realty Blog

Luxury Condos Hot Trend

Realtor Magazine Online recently published an article about the "condo craze" in 2005 and 2006. Luxury condos and condo conversions are a hot trend in the industry. So what's the driving force behind the trend?

Simply stated...penthouses are hot. From the soon-to-be or already retired Baby Boomers to Gen. X Tech Moguls or Corporate VIPs, the luxury condominum market is on an upward trend due to their relatively easy upkeep and lower costs compared to similar single family homes.

According to the article, these luxury condo buyers are "..Specialized buyer looking for a high-quality lifestyle, stunning views, top-notch locations, and world-class amenities — and are willing to pay for it. Luxury condo living is in demand across the country [and] have strong growth in all the major markets..."

Read the full article here.

Austin Statesman Newspaper Summarizes Austin Neighborhoods

The Austin Statesman has a neighborhood guide that describes Greater Austin neighborhoods. The summary is a useful tool for current or future residents. As a local real estate agent, one of the most frequently asked questions about the area is "How are the neighborhoods?" or "What's a good area to live in?"

The neighborhood profile guide describes demographics, popular subdivisions,  local parks, and other area amenities. It's a useful tool for anyone interested in the area. So...if you're looking to buy or sell a home in Greater Austin, check out the neighborhood profiles online.

Round Rock Market Update Feb. 2006

ROUND ROCK SET FOR COMEBACK. Round Rock real estate is still doing well despite the winter being the slowest time of the year to sell a home. There are still many great deals on the market in this area, but some resale subdivisions are heating up as new home builds become more expensive.

At this time, there are still many affordable resale homes on the market in Round Rock although foreclosures have become less prevalent in the marketplace. There are also a large number of new home communities in the area. Teravista, a golf course community located behind the planned IKEA and outlet mall development, is still very popular.

Retirees and relocation clients like Round Rock due to their award-winning schools, growing interest from local and national buyers, and a affordable home prices. I would advise consumers not to wait to buy since the construction on the new outlet mall should be completed by this time next year.

200 Unit Complex Slated for San Marcos

First Baptist Church in San Marcos is being redeveloped by Sanctuary Lofts developers. The complex was formerly a 79 year-old church and is located in downtown San Marcos.  This unique development caught the attention of local news crews. News 8 Austin covered the news story and said 100 of the units have already been leased.

Most of the current and future tenants will be students at the Texas State University, which is within walking distance of downtown San Marcos.

Freddie Mac Extends Moratorium for Disaster Areas

MCLEAN, Va. (PRNewswire) – Freddie Mac has extended its foreclosure suspension until May 31 in 21 counties and parishes in Alabama, Louisiana, Mississippi and Texas that suffered the most severe damage from hurricanes Katrina and Rita. However, Freddie Mac is lifting the moratorium on foreclosures in areas that experienced the least damage.

The announcement was made in a Feb. 10 Guide Bulletin sent to Freddie Mac's sellers and servicers.

"We are replacing our one-size-fits-all approach with a zone approach," explained Janet Eakes, senior vice president of Freddie Mac's operations division.

Freddie Mac encourages servicers to extend mortgage relief to borrowers with Freddie Mac loans on a case-by-case basis regardless of zone. Freddie Mac authorizes servicers to provide a wide range of mortgage relief to storm victims, including forbearance for up to one year from the date of the disaster. Freddie Mac mortgage relief options are described in the "Owning and Keeping a Home" section on Freddiemac.com.

 

Austin Board of REALTORS® Discusses Market Forecast

According to an article written by the the Austin Board of REALTORS® (ABOR) in January 2006, the Austin and Texas real estate markets should stabalize and continue to grow in 2006.

"Overall, Austin-area real estate boomed during 2005, and the year-end statistics prove it. Single-family home sales totaled a record 24,539, an 18 percent increase over 2004. These sales generated $5,274,531,664, the highest singlefamily home revenue ever and a record-setting 25 percent increase over last year".

The article quote's NAR’s Chief Economist David Lereah, "With the 2005 real estate market closing at such a strong pace in the Austin area, it’s hard to imagine a slowdown. But if forecasters are correct, we should see the Texas market become more balanced. According to the Real Estate Center at Texas A&M University, Texas’ housing market continues to offer highly affordable homes without excessive price inflation. Price increases, sales and construction levels in 2006 will probably be equal to or slightly less than the 2005 rate, with mortgage market conditions and general economic growth determining the market for the remainder of the decade".

How Big is the Texas Foreclosure Problem?

The Texas A&M Real Estate Center wrote a good article in it's January 2006 Issue.

According to the article, "In Texas, local Realtors reported record sales volumes and record high prices although the rates of increase, especially in prices, have been more modest compared with other areas. Recent reports focus on when (not if) the bubble will burst, what factors will precipitate this event and what data may signal it. Leading indicators include national and Texas foreclosure rates, and foreclosure rates in certain Texas metropolitan areas, especially Dallas and Austin."

The article states that Foreclosures.com reports that Texas foreclosures are on the decline, which is good news for our market. I've also noticed less bank foreclosures on the market. Since we're moving towards a seller's market in many metro areas of Texas, most homeowners understand that they can sell their property at a fair price instead of going into foreclosure. For homeowners who have little or no equity, short sales are becoming a common solution.

At this point, we do not seem to have as large of an issue with foreclosures at it may seem.

Tierra Grande Examines "Limited" Broker Services

For the past year Texas REALTORS® have been involved in the controversial "limited services" battle. James Ford and Ron Rutherford tackled the issue in the latest Tierra Grande Report in an article entitled "In Search of a Better Deals" (Jan. 2006, Volume 13, No. 1).

The writers said, "This evolution of services and fee structures in the real estate industry can largely be attributed to advances in technology that allow consumers to search for properties online. The agent's role has become more a transaction facilitator rather than gatekeeper of property listings data. Computers and advances in communications have also made the transaction process more efficient".

According to the research, "...empirical results from the models show that limited service listings sold for 1.7 percent less than typical exclusive-right-to-sell listings and took 17.1 percent longer to sell. Given that the typical discount offered by limited service brokers is approximately 2 percent, there does not appear to be any net gain to sellers using limited service representation". View the complete article here.

New Moratorium on Residential Building

From the Austin Statesman Feb 10, 2006

“The Austin City Council has passed a temporary moratorium on residential building that would limit the size of infill construction.

Set to expire June 6, the moratorium will be in effect while the council considers residential design guidelines for new construction in older neighborhoods. Some residents have complained that large new homes detract from the quality of their neighborhoods, while others say the moratorium treads on property owners’ rights.

Specifically, the moratorium affects subdivisions that were platted before March 7, 1974. It limits new building of a single-family houses in those areas to 40 percent of the lot’s size, 2,500 square feet or 20 percent more square feet than an existing structure.

Some homeowners and neighborhood groups say builders have intruded in their subdivisions by building large “McMansions” that detract from an area’s character. They also say the new homes have caused problems in older neighborhoods where storm drain systems already operate at or beyond capacity.

But other residents and homebuilders’ groups have said the moratorium will negatively affect house and land values. They say the moratorium counters recent city efforts to create more dense urban living and revitalize run-down areas.”

---------
MY COMMENTS:

This is a very controversial issue in Austin. With the real estate marketing getting so hot, it's difficult to balance public with private interests. Many investors are crying foul over this new ruling. The city should take time to think about the impact of extremely rapid appreciation in East Austin and other areas. We should learn from the sharp rises and declines in real estate markets such as Phoenix, Las Vegas, and areas of California.

Although we do want a strong market, we do not want to increase the number of foreclosures and displacement of long-time residents. The Texas Real Estate Center wrote an exellent article on these so-called McMansions. See the article here.

I will be carefully watching as this issue unfolds. It will be interesting to see how the city decides to balance everyone's needs.