Texas Realty Blog

Red River Lofts Coming to Downtown Austin

Central Austin will see another multifamily condo project soon. I haven't been able to find much information on the Red River Lofts, but my sources show that  Greystar Management applied for the permit in Q3 of 2006. The address cited was at 901 Red River Street. The current project has over 48,000 square feet allocated.  There will be a parking garage and clubhouse.

MORE DOWNTOWN AUSTIN PERMITS

• 1305 E. 6th Street. The 1.5M project is almost 19k square feet. Notes showed that the use was changed from warehouse to multifamily.
• 217 South Lamar. Permits were continuing for the second floors of this condo project by CLB Partners.
• 2200 Pearl Street. Residential apartments being completed by CWC Capital Partners, LLC.
• 900 South Lamar Blvd. Condo conversion project by Ed Davidson & Harold Mil. About 19k square feet.
• 300 Crockett Street. Condo conversion project by Westbank Partners.
• 1914 Garden Street. Two new single family homes with covered porches and wooden decks. Not sure if these have been sold or will be sold once they are completed, but an LLC is building them.

We'll have updates as we learn more about the projects and sales price ranges.

Austin Among Luxury Real Estate Markets to Watch in 2007

From Realtor Magazine Online- Unique Homes Magazine in its January issue lists what it expects to be the top 25 luxury markets in 2007. Collectively, the communities that made it on the list represent where the market is heading, according to the magazine.

Top 10 Luxury Home Markets in 2007:

1. Annapolis, Md.: Great boating and affordable prices compared to Washington, D.C., or Baltimore, both of which are a reasonable commute from Annapolis, too.
2. Asheville, N.C.: Eclectic ambiance draws the upscale to an outdoorsy, low-key lifestyle.
3. Aspen, Colo.: Four-season appeal, which is kept exclusive by restrictive zoning that restrains supply.
4. Atlanta, Ga.: A big-city appeal with lots of lifestyle amenities and new upscale communities.
5. Austin, Texas: Posting record gains for most of 2006, a mix of newcomers are drawn to its great music and scenery and the cosmopolitan University of Texas.
6. Bellevue/Medina, Wash.: This city has lots of upscale neighborhoods that aren’t as pricey as other northwest areas.
7. Beverly Hills, Calif.: Its reputation as a Mecca for luxury remains untarnished.
8. Idaho: The state is a luxury newcomer with growing resort markets, such as Coeur d’Alene, McCall, and Sandpoint.
9. Jupiter, Fla.: Tiger Woods started a trend here when he purchased a 10-acre estate for $38 million.
10. Manhattan: Wall Streeters flush with 2006 bonuses are snapping up desirable co-ops and town houses.

Austin has emerged as a leader in many "best places to live" surveys, but we've never been at the top for luxury homes. The team has been noticing a huge increase in the number of buyers from California and Florida that move to golf and retirement communities in Greater Austin that appeal to the upper-end clients. The difference is that they will only pay a fraction of the cost when buying a luxury estate in our market. Lake front, golf, acreage, and hill country homes are available for less than $2M. In California, a $1M home may only be 1300 square feet.

Source: Unique Homes, Camilla McLaughlin (December 2006/January 2007)

2006 Real Estate's Third-Highest Sales Year on Record

2006 was a stellar year for real estate. I recently blogged about last year being Austin and Texas' best years ever, but the U.S is doing well on the  national level too.

According to an article in this week's REALTOR Magazine-

David Lereah, NAR’s chief economist, says home sales remain historically high. “Despite all of the doom-and-gloom stories and dire predictions over the last year, 2006 was the third strongest year on record for existing-home sales,” he says. “It looks like we’re moving beyond the low for the housing cycle last fall, and buyers are responding to historically low interest rates and competitive pricing by home sellers. In addition, a tightening inventory of homes on the market is supporting prices.”

Total existing-home sales — including single-family, townhomes, condominiums, and co-ops — eased 0.8 percent to a seasonally adjusted annual rate of 6.22 million units in December compared with 6.27 million in November. Sales were 7.9 percent lower than a 6.75 million-unit pace in December 2005. There were 6,480,000 existing-home sales in 2006, down 8.4 percent from a record of about 7,075,000 in 2005. The second highest total was 6,779,000 in 2004.

Here’s what happened regionally in December by Region:

• Existing-home sales in the Midwest rose 4.3 percent in December to a level of 1.47 million, but were 5.8 percent lower than December 2005. The median price in the Midwest was $167,000, which is 2.9 percent below a year ago.
• Existing-home sales in the South increased 0.8 percent to an annual sales rate of 2.49 million in December, but were 7.1 percent below a year ago. The median price in the South was $182,000, unchanged from December 2005.
• Existing-home sales in the Northeast declined 2.8 percent to a level of 1.04 million in December, and were 5.5 percent below December 2005. The median existing-home price in the Northeast was $283,000, up 3.7 percent from a year earlier.
• Existing-home sales in the West fell 9.1 percent to an annual pace of 1.20 million in December and were 15.5 percent lower than a year ago. The median price in the West was $349,000, up 1.5 percent from December 2005.

Expect Steady Gains

NAR President Pat Vredevoogd Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, says the market has clearly settled with some minor monthly fluctuations. “We expect home sales to rise modestly over the course of this year,” Combs says. “Although local markets vary, price appreciation will be below normal in most of the country this year, but we’re looking for slow, steady gains in both home sales and prices through 2008.”

Two More Retail Tenants on Board at Mueller Redevelopment in East Austin

I received an email from a local neighborhood group about two more retail tenants at the Mueller Airport Redevelopment.

As progress continues on the Mueller regional retail center, Catellus and the Mueller team want you to know that The Chair King and Shoe Pavilion have officially joined Best Buy, Marshalls, and Bed Bath and Beyond as initial anchor tenants. If not already up, signs announcing these major retailers will be installed in the coming days.

These anchor tenants will contribute to the Mueller regional retail center's ability to be an economic engine for the entire community. This will help bring to fruition the amenities and social goals — from affordable homes to Green Building to open space and parkland — that Mueller neighbors have worked so hard and well to make part of the Mueller vision.

However, the Mueller team wants to remind neighbors that Mueller retail will include a mix of both local and national brands. As Catellus works to bring national retailers to Mueller, the team is also working with small, local and M/WBE businesses to match them with Mueller opportunities for success. We're also working directly with neighbors to help strengthen this retail outreach effort. Look formore information on retail openings, events and outreach efforts soon.

I'm sure there will be an official announcement soon. What is the Mueller Redevelopment you ask? Do a search on this site for past blog articles.

Best Places to Buy in Texas

Ok, I have now heard enough market forecasts to feel comfortable with this quick post on the top areas to invest or buy real estate in Texas.

Here is the order in which I would buy properties:

1. Austin. It's Austin. I love it here and we're the best city in Texas. Sure, I may be biased. We have lake areas, hill country, golfing, etc. but we're not snooty about it.
2. Houston. I like the Woodlands & Magnolia area as well as Katy, TX.
3. Temple/Killeen. The numbers actually WORK out there.
4. Edinburg. I wrote a blog about it, so you have to read it.
5. McAllen-Mission. Close to Edinburg.
6. San Antonio. I heard it's still good there. They also have good tacos.
7. Corpus Christi. Affordable beach-front property anyone?
8. El Paso. Affordable desert property anyone? No? Well the area is still growing.
   
9. Dallas. Austin's high-rise cousin (in terms of being an appreciation market, of course.)
10. Fort Worth. Growing and yet affordable.

Gotcha Guide™: Mortgage Fraud Makes a Comeback

NOTE: This information is part of a forthcoming book, the Gotcha Guide™ to Buying and Investing in Real Estate.  
by DeeinAustin™

Keller Williams agents in the Northwest Market Center had a great class on how to spot mortgage fraud. As broker Linda Bartlett mentioned, mortgage fraud is one of those things that won't go away. It comes and goes in waves. I missed the class, but wanted to point out how to spot the mortgage fraud.

You'd be surprised at some of the clever ways that you can become involved in a fraudulent transaction without your knowledge. Knowledgeable or not, if you're involved in fraud, you may still pay for the wrongdoing.

EXAMPLES OF MORTGAGE FRAUD 

1. Fraudulent appraisals. The lender may be in cahoots with the appraiser, so ask sellers or buyers to sit back and let them inflate the price of the home. Sometimes selling agents are asked to increase the list price in MLS or buyers are asked to "go with the flow" on how much they will offer on the home.
2. Silent seconds. The buyer borrows the down payment from the seller through an undisclosed second mortgage. If it's not disclosed to a lender, you're committing fraud and the loan can be called due and/or you can be prosecuted. Let's not lie, hide, or deceive lenders. They don't like that.
3. Nominee loans/Straw Buyers. The identity of the true borrower is hidden by using another person for loan docs and credit. This isn't the same as mom buying a house and having her child live in it. This is when someone else's name is on everything, but you are the true borrower.
4. Equity Skimming. An investor uses a straw buyer, false income documents, and fake credit reports to obtain a mortgage. The straw buyer signs the property over to the investor using a quit claim deed, never makes mortgage payments, then rents the property until it's foreclosed.

RED FLAGS

1. Significant sales price adjustments that are not supported by comps.
2. Required use of a particular appraiser.
3. Down payment assistance programs that charge excessive fees.
4. Large seller contributions, possibly in the form of improvement allowances.

TIPS TO AVOID GETTING TAKEN (From HUD.gov)

• Shop around for a good inspector, lender, and real estate agent...even for NEW HOMES. Don't just automatically use the "preferred" professional.
• Do NOT let anyone persuade you to make a false statement on your loan application, such as overstating your income, the source of your down payment, failing to disclose the nature and amount of your debts, or even how long you have been employed. When you apply for a mortgage loan, every piece of information that you submit must be accurate and complete. Lying on a mortgage application is fraud and may result in criminal penalties.
• Do NOT let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.
• Never sign a blank document or a document containing blanks. If information is inserted by someone else after you have signed, you may still be bound to the terms of the contract. Insert "N/A" (i.e., not applicable) or cross through any blanks.
• Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.

For more information, there's a great resource on Predatory Lending and Avoiding Fraud on HUD's website. There are also brochures available for REALTORS® at Realtor.org. Our team can also mail a full copy of the brochure via email or snail mail.

- All Rights Reserved

Austin Real Estate Has Best Year EVER

Inman News reported today that Austin had it's best year ever in 2006, topping the feverish market we had in 2002. Market statistics are finally in and home prices are up  despite a down market in other states.

According to the Inman Story:

The Austin, Texas, housing market's strong growth pushed sales and prices to record highs in both December and 2006, according to the latest report from the Austin Board of Realtors.

December sales of single-family homes hit a new high for the month at 1,996, up 3 percent from the same month in 2005, bringing total sales for the year to a record 26,958, up 10 percent from 2005.

The December median price of single-family properties rose 4 percent from a year ago to $177,500, a new high. In addition, the 2006 year-end median price also set a record at $174,500, up 6 percent from 2005.

Single-family homes that sold in December spent an average of 63 days on the market, the lowest time span in four years, down from 68 days in November. With homes selling so quickly, the number of active listings last month declined by 4 percent to 7,830, marking the lowest number since 2001.

Certain parts of the Austin metropolitan proved to be especially popular with buyers in 2006, ABoR reported. Houses in Areas N and SW, which respectively border Hays and Williamson counties, sold particularly quickly, decreasing their average time on the market by 20 days and 21 days, respectively, from the previous year.

Hays County also posted notable gains, with Area HH's record 1,125 home sales besting the previous year by 236. Homes in area HH sat on the market for an average of 69 days in 2006, which is a decrease of eight days from 2005.

Urban Garden Living at Sterling Ridge

From Texas A&M Recon:

THE WOODLANDS (realtynewsreport.com) – Alexan Sterling Ridge, a 310-unit apartment community, will be built on 11 recently purchased acres in the Terramont area of The Woodlands’ Village of Sterling Ridge.

Apartments in the three-story complex will have an "urban garden" design and range from one to three bedrooms and 700 to 1,400 square feet.

Buyer BC Sterling Ridge LLC, an affiliate of Trammell Crow Residential, will begin construction in late spring, with the first units available in early 2008.

Austin MLS Map Changes Coming January 24th

If reading an MLS map wasn't confusing to you, get ready because they're about to change in Austin. The Austin Board of REALTORS® is rolling out the new MLS areas as of January 24, 2007. The board has been working on the changes since 2006 and they've all been finalized. New maps are available at the Austin Board of REALTORS® store and you can see changes online on most MLS feeds.

In speaking with representatives from the board, they do not currently have a FAQ or other resources for consumers. They suggested you work with a member of the board to familiarize yourself with the new map.

So what are the changes?

• Certain areas of town were split. For instance, MLS area 10 was huge, so it's not 10N (for north) and 10S (south). Changes also occurred for Cedar Park, Round Rock, Georgetown and Far South (Area SW is now SWW and SWE).
• 21 additional areas were modified.
• Three areas were created. DT (Downtown Austin), LW (Lake West), and UT (University Area)
• Two counties were added: Comal (CM) and Gonzales (GZ). We now have 14 counties covered by ACTRIS.

We also have a new tax system that real estate agents can use to create mailing labels or gather data.

If you have any questions on what these acronyms mean or how the changes will affect us, feel free to email us or post a question!

Dee Copeland Appointed to Austin Board of REALTORS® Committees

Austin, TX, January 18, 2007-- Dee Copeland, a Broker-Associate with Keller Williams Realty in Austin Texas, will be an official real estate "crime"-fighter for the Austin Board of REALTORS® in 2007. Dee was recently appointed to two Austin Board of REALTOR® committees that oversee REALTOR® code of ethics violations and cases involving professional standards. Dee's insight and experience will be useful in serving on the Grievance and Professional Standards Committees.

As you may know, real estate agents who join their local associations or board of REALTORS® must follow certain ethical guidelines and standards of practice. Should a consumer or industry professional feel that an agent violating these standards, they can file a grievance with the local board. Should a hearing take place, Dee will be one of the committee members who will hear the case and make recommendations to the board.

It is important to point out that the board does file criminal charges. Their scope to is mediate ethics violations. Dee is proud to serve her real estate community by ensuring the professional standards of local REALTORS®.

Read about the differences between a REALTOR®, real estate agent, and broker in this previous blog post.