Texas Realty Blog

National Association of REALTORS Provides Home Price Reports Online

The National Association of REALTORS provides downloadable 10-page homem price analysis reports for over 135 markets in the United States. Each report covers Price Activity, Affordability, Local Fundamentals, Risk Factors, Annual Data, and a "Quick Glance" at appreciation levels. Each area is compared to the Top 20 Metros and the National Average.

The reports are excellent for investors or other buyers. Each includes charts and graphs to help determine the health of the local real estate market.

Read the reports online.

Historic Home at 1148 Northwestern For Sale

Several years ago, the Austin American Statesman wrote an article on several historic slave-owned homes in Austin. I have the pleasure of offering one of them for sale. 1148 Northwestern has a rich history. Sallie Johnson is the Great-Great Aunt of my client, Mark Felder. He and his wonderful wife, Myra are ready to move to a new era of their lives. They were very hesistant to sell their precious home, but are a young couple in need of a larger home to live in. They applied for a historic designation with one of Austin's historic societies and will receive it in April 2006.

Per the Austin American Statesman, "Sallie Johnson belonged to Frank Wattles, a farmer and stockman near Austin. Johnson worked in the house and was required to spin 'a cut a day' or was whipped. She outlived three husbands and her only child, George Brooks, who died in the 1906 San Francisco earthquake. At the time of the interview, she was living in Austin at 1148 Northwestern Avenue, where she had lived for 60 years".

Mark recalled that his grandmother ran a beauty shop and other businesses out of the home during her many years living there. Sallie would be delighted at some of the new revitalization efforts in East Austin, expecially in the 78702 zipcode, which is where the home is located. This zip code has become a prime location due to it's proximity to downtown Austin and unique homes. Although they are saddened to sell the property, Mark and Myra are excited that the new buyer will have the chance to own a peice of Austin's history. Sallie's original deed from the 1800s will convey with the sale.

A historic society has been in talks to designate the entire street of Northwestern a historic district since most, if not all, of the homes were previously owned by slaves. See the full Statesman article.

Austin Housing Market Still HOT

It doesn't take very long for any new investor to realize that Austin's real estate market is still very hot. Investors from California, Nevada, Florida and other states are cashing out of their previous purchases and coming to Texas. A recent article in the Austin American Statesman said, "The number of existing single-family homes sold in February jumped 15 percent from the previous year as strong job growth continues to bring more buyers to the area." In my real estate experience, Central Austin and lake areas are still extremely hot due to their proximity to businesses and shopping.

Investors aren't the only group purchasing Central Texas properties. Retiring Baby Boomers are looking for second homes or permanent residences in our warm and friendly climate. Newcomers from Maryland, Virginia and other Northern States are setting their sites areas like Austin and Dallas.

While increased home prices can be good news for seller and landlords, buyers need to act fast if they want to avoid being too late in the real estate rush.

Buying Real Estate Online Can Be Risky

Many real estate investors are seeking profits by purchasing real estate online. Online auction houses such as eBay, Bid4Assets.com and Realestatesupermarket.com, are becoming havens for scams and rippoffs. According to an article by the Austin American Statesman, "Buffalo, N.Y., has been particularly hard-hit by online flipping, as the city's persistent population decline and high foreclosure rates have created a glut of about 20,000 vacant houses".

With interest rates still being relatively low, the real estate market continues to be the investment of choice for many newcomers who are weary of other wealth-building strategies. Although real estate has historically been an excellent investment vehicle, speculation has become more rampant and will most likely continue. The downside of these get-rich-quick and too-good-to-be-true schemes is that foreclosures continue to rise, causing higher interest rates for second liens, which are considered more "risky" ventures. This is increasingly a problem for investors who use leverage as a tool.

American Investors Seek Profits Overseas

As U.S pension funds declined, American real estate investors are seeking profits overseas in areas such as Moscow and Sarajevo. According to a recent article by the Austin American Statesman, "Most real estate investment capital still flows into more established and less risky markets in the United States and other Western countries. But U.S. pension funds, which are on the hook for substantial payouts when baby boomers start retiring in a few years, are snapping up properties in Eastern Europe offering 7 percent annual returns, yields that are hard to find these days in Paris and London."          

The article goes on to say, "In previously shunned Moscow, they are buying real estate generating annual returns of 10 percent, hoping to eventually produce 30 percent annualized profits by selling the properties for higher prices."

Read the full story.

Texas Lawmakers Tackle School Finance

Governor Rick Perry has set April 17th as the date for a special legislative session to resolve state school finance issues. Per the Houston Chronicle, "The political question now facing lawmakers is whether to overhaul the state's business tax for a permanent school finance fix or just use a $4.3 billion surplus to cut school property taxes for next year and then leave the question of how to pay for it in the future to the Legislature that begins in 2007".

Read the full article.

Round Rock Market Update 3/2006

ROUND ROCK HOMES SALES UP. Round Rock continues to be a strong market. More investors and relocation clients are becoming interested in areas surrounding Austin. Mike Randle, Editor-Southern Business & Development Magazine said, "Round Rock is a market that is as diversified economically as any in the South."

Construction continues on IH35, IH45 and SH130, connecting Round Rock to many cities throughout Central Texas. Retail and office space interest has increased due to these changes. In residential, home owners are starting to see pockets of appreciation in certain areas as interest grows. Average time to sell is currently under 50 days. The median sales price is currently $170,350, up from $160,000 this time last year. Price per square foot has increased from $80 to $84. Homes are currently selling for 97% of list price.

For market news and information, visit http://www.TexasRealtyBlog.com

Greater Austin Market Update 3/2006

AUSTIN PRICES RISING. As predicted, homes sales are on the rise and market time has decreased.  The home prices in Greater Austin are on the rise, according to the local Austin Board of REALTORS®. In 2005, the median home price was $148,000 in January. This January, the median is $165,750. The average home price rose from 198,804 in January 2005 to $228,202 January 2006.

The board also provides reports that rank "hotness" by area. The hotness ranking of an area is "the number of pending sales as a percentage of the active listings". The top 10 MLS areas ranked as follows: Area 3, 2, 10, SW, 6, 7, 1N, 1A, N, NW. Days on market were all under 45, with most under 30.

As previously reported by local analysts, resale home values will continue appreciate in 2006 and 2007. From an agent point of view, home sellers are seeing more multiple offer situations, which is only a preview to what the summer selling market will be like.

See http://www.TexasRealtyBlog.com for updated news and each week.

Top Ways to Find Motivated Sellers

Investors usually ask where to find motivated sellers in hot market like Greater Austin. Here is a helpful list.

1. Place a newspaper ad (major daily) such as the Statesman.
2. Place an ad in PennySaver, ThriftyNickel, Greensheet, etc.
3. Bandit Signs
4. Drive neighborhoods looking for vacant houses/FSBOs
5. Call FSBOs
6. Search MLS for junker properties
7. Search MLS for expired listings
8. Contact landlord who are evicting a tenant
9. Contact landlords with properties for rent
10. Pre-foreclosures
11. REOs
12. Foreclosure auctions
13. HUD/VA houses
14. Tax Sales
15. Estates Sales
16. Properties with outstanding building code violations
17. Properties with outstanding health code violations
18. Condemned properties
19. Fire damaged properties
20. Out of area owners
21. Network with professionals, i.e. attorneys, CPAs, Realtors
22. Network with service people, i.e. letter carriers, pool service workers, lawn service workers, newspaper delivery person, carpet cleaning workers, plumbers, etc.
23. Bird Dogs
24. Wholesalers
25. Magnetic car signs
26. Distribute business cards..EVERYWHERE
27. Career attire (Polo shirts with embroidered “I BUY HOUSES” logo)
28. Flyers
29. Door hangers
30. Billboards
31. Radio spots
32. TV spots
33. Full page ad in the Yellow Pages

Global Trend: The International Real Estate Designation

I recently attended a Certified International Property Specialist (CIPS) course in San Antonio and realized that few people think of Texas when they think of the international real estate market. The purpose of attending the course is to get started on my CIPS Designation.

I reminded the other attendees that Texas will continue to compete with New York, California, and Florida for the largest per capita the number of foreign investors and relocations. Areas like Houston, Dallas, San Antonio, and Austin are prime locations for second homes and investment properties.

The global real estate market will continue to grow and is a great niche for real estate agents like myself. Immigrants and foreign-born individuals are predicted to be the fastest growing population of new home owners in the United States. From large companies who would like to take root in America to small families looking to reconnect with loved ones, the global real estate market will continue bringing the world closer together.