Texas Realty Blog

Newspaper Offers Austin City Guides for Your iPod

I was surfing the Austin Chronicle websites because I read an interesting article today in their newspaper regarding roadway proposals for Highway 290. I will definitely write about that issue soon, but I actually decided to write today's blog about something much more cool than roadways.

Of course, Apple Computer and the iPod are today's icon of cool. Many companies are starting to offer videocasts and e-guides that you can download to your iPod. For those of you who are not away, the Austin Chronicle is a free weekly publication covering Greater Austin movies, music, entertainment, and news. They have an annual restaurant poll and publish entertainment guides to the city. I learned that the Chronicle features three guides to the city of Austin. These guides feature the most popular downtown districts in Austin; South Congress, the Warehouse District, and the 6th and Red River area.

To use the city guides for Austin, provided by the Austin Chronicle, you have to first install them with CitizenPod software. My particular iPod was having issues with these installers, so I did a manual install per their support page. I was then able to go to the "extras" folder on my iPod to load the notes. The interface is still primitive since it's just text, but the guides can be useful to visitors and locals alike. Even better news, the guides will also work on your PDA.

Blacks, Hispanics Paying Higher Mortgage Rates

Mortgage rates for black and Hispanic homebuyers tend to be higher than rates charged to white borrowers who have similar credit ratings and income levels, The Center for Responsible Lending in Durham, N.C. reports. 

The non-profit center found blacks were 29% more likely to pay a higher interest rate on a fixed-rate home loan.  Latinos were also more likely to pay a high rate, the center said after studying a 2004 database of approximately 177,000 loans made by “sub prime” lenders who charge interest rates higher than bank rates. 

The Federal Reserve Board is taking a closer look at some 200 such lenders for possible discriminatory practices.   The Charlotte (N.C.) Observer also reported that black home loan borrowers, even those with annual incomes higher than $100,000, were four times likelier to pay higher rates than white borrowers with incomes below $40,000. 

A&M Reports Fewer Texas Real Estate Agents

Texas trails Florida, California and New York in the number of real estate agents per 1,000 residents, despite the recent boom in residential real estate transactions. This was reported by the Texas Real Estate Center at Texas A&M University.   

The article states that Texas has 4.3 agents per 1,000, about half the number in the 1984-88 time period, after peaking at nearly 154,600 agents in 1986 and then dropping to fewer than 81,200 in 1997.  Today, Texas has 100,000 active real estate licensees, while California has four times that number, Florida has twice as many, and New York has 50% more.

In recent years, high levels of residential real estate investment in California, Florida and New York fueled the rise in the number of real estate agents in those states, but investors from other states have now discovered the Texas marketplace and that may be stimulating the growth in Texas licensees, the Center said.

Most brokers feel that there are still too many investors and agents in the market, but it looks like we have more room to grow. In reading some recently real estate reports from the National Association of Realtors®, the Texas market has growth in the residential, commercial, and international markets. While some may see it as competition, I see it as a bright spot in our economy.

El Paso Entertainment District Fading

A plan to develop an entertainment district with commercial and residential development in Downtown El Paso is under review by the city and the San Francisco (CA) design firm which put it together.

The El Paso Times reports that activities along Texas Avenue, the main thoroughfare in the district, are waning with the departure of two art galleries and a nightclub.   The controversial plan is on hold, despite the construction nearby of a $74 million federal courthouse and the plans of an El Paso real estate agent to redevelop some existing buildings.

El Paso has seen significant appreciation the past few years due to out of town investors. The jury will still be out on how this will affect the city.

Leander’s Building Boom

The Northwest Austin suburb of Leander is experiencing a commercial and retail building boom, reports the Austin Business Journal. 

Some half-dozen projects, many built on spec, are underway in Leander, with most being located in the southern quadrant, close to Cedar Park.   The most recent example, a 340,000 square foot office/retail development, is planned for the area just west of the Crystal Falls neighborhood development off US 183.

Most of the projects will be located south of a proposed 145,000 square foot H.E. Butt Grocery Co. store and a transit-oriented development.  Interest in new developments is being fueled by inquiries from prospective tenants, both inside and outside of Leander.  Many developers are mixing a retail component into their developments to attract a variety of users, the Journal reported.

Read about the Leander Boom.

Austin Adopts the "McMansion" Restrictions

It's done! Austin has officially adopting the McMansion Regulations. From the AUSTIN (statesman.com)

After hearing public comments for four hours, the Austin City Council passed rules limiting homes to either 2,300 square feet or a square footage equal to no more than 40 percent of the lot size. Attics, small attached garages and first-floor porches are not included in the square-foot calculations.

Homes must sit at least 25 feet from the street with five-foot setbacks on the sides and ten feet in the back. Also, they cannot be taller than 32 feet, which is shorter than the current 35-foot height limit. The rules, scheduled to go into effect October 1, apply to new and remodeled single-family homes and duplexes in older, central-city areas.

Residents in these areas have complained about big houses that block sunlight, destroy trees and change the character of their neighborhoods. At the city council meeting, which lasted until 3:30 this morning, 226 people signed up to speak in favor of the restrictions, and 146 wanted to speak in protest.

The city plans to hire a professional firm that will translate the rules into pictures and graphics.

Dallas Overpass to Get a $71M Park

I read an interesting news story from  the Dallas Star Telegram. This would improve the streetscape and is a forward-thinking addition to the city. I hope Austin, Houston, and other large cities take a look at this.

A proposed $71.6 million deck park to be built above Woodall Rodgers Freeway would link downtown Dallas and the arts district with the Uptown area, eliminating what supporters call a "concrete moat."

Woodall Rodgers Park would be created over the section of freeway that runs below ground level. It would span 5.2 acres from Pearl to St. Paul streets. An aluminum and glass-panel deck would support the park and help curb freeway noise. Four feet of earth would be placed on the deck, then covered with landscaping.

The park would include a lawn for concerts, a dog park and a children's area. Visitors would have free wireless Internet access. A pedestrian path would link the Uptown area to downtown Dallas.

Officials detailed the park plans and outlined the fundraising efforts during a news conference Wednesday at the Dallas Museum of Art. Construction is scheduled to begin in 2007, with completion expected in 2010.

Read the full story online.

New Business Districts Named in Austin

The Austin Independent Business Alliance recently announced a new business district (IBIZ district) in Austin. The 11th and 12th Street Business District is called "The East End". The AIBA site is being updated with lists of companies in this area. The boundaries are East 11th Street from IH-35 to Navasota.

IBIZ districts are streets with a unique population of independent businesses. Austin is a city where small businesses thrive because locals like to support any locally-owned franchise or small operation. Many newcomers have heard the phrase "Keep Austin Weird", which really means, "support our small businesses". Whole Foods, Amy's Icecream, Ms. B's, Gene's Poboys, and other local businesses have always had a great deal of support from the community because they are unique and often focused on providing great customer service.

Per the AIBA website, the East End District will be hosting a Fourth Friday event on June 23rd. For those of you unware, Fourth Friday (and Third Thursday) is where businesses district shop owners open their doors for locals who can walk to the various shops in a festival-type atmosphere. It's a lot of fun and brings attention to the participating companies.

Please support our community by attending one of these events when you can. They are usually announced on the AIBA website or Austin Chronicle.

$18M Road Work Starts on Overpass in Austin/Pflugerville

Here is the bad news: Austin commuters who travel near Yager Lane will be in for a headache for the next eight months. The good news is that Shops at TechRidge will be getting a new overpass at Yager Lane and IH35. The thriving new shopping area, in North Austin near the city of Pflugerville, was in need of better traffic routing due to it's success. I passed by the bridge yesterday to verify whether the construction was going through.

The Austin Business Journal previously reported that construction was to start in February on a four-lane overpass. Recent reports show that the construction will be six lanes. "Traffic moving west on Yager to the frontage road on I-35 will be rerouted to Canyon Ridge Drive, which will connect to Tech Ridge."

Although traffic will be heavy in this area through the end of the year, most residents are excited to avoid congestion in the area thereafter.

San Antonio and Texas Real Estate Growth Expected to Continue

As most of you may already know, Texas is booming as a result of over-inflated markets in other states. I came across an article from Kenneth Harney of the Detroit Free Press. He discussed the various real estate markets across the country and believe "Middle-America" will benefit from the "hyper-inflationary housing boom".

His assumption was based on research from Christopher L. Cagan, director of research and analytics for First American Real Estate Solutions, who examined historical housing price movements and concluded that metropolitan real estate markets can be placed into three distinct categories:

1. Linear markets, where booms and busts virtually never occur. San Antonio was classified in this category.
2. Cyclic markets, such as the east and west coasts of the U.S. Examples include California, Washington, and New york. These markets are at the heart of the real estate booms.
3. Hybrid markets. These are areas that have linear, slow-growth characteristics for periods, followed by periods of moderate cyclic-style appreciation. Detroit and Chicago were in this category.

According to Cagan, linear markets -- especially in Texas, Colorado and the energy-belt areas of the Southwest -- appear to be poised for above-average price increases and home building. "Texas is the real beneficiary" of the energy crunch squeezing the rest of the country, said Cagan. Not only is job growth strong, but housing prices are relatively moderate."

"Look at the median home prices in Dallas and Houston. Property there looks cheap" from the perspective of California or Washington, D.C., or New York, said Cagan, whose research firm is headquartered in Santa Ana, Calif., one of the flashiest markets."

I agree with Cagan's research because Central Texas is seeing spillover from the afformentioned states. Investors have been cashing out of hot markets for the past 3 years and buying less expensive investments in our area. Recently, the markets have been so hot that some areas in Greater Austin have imposed building restrictions due to overbuilding. Local real estate experts believe this boom will continue for the next 3-5 years, so although the market is hotter than ever, we expect the rise to continue.

Read the article online. The Washington Post also posted a similar story based on Cagan's reasearch.