Texas Realty Blog

Mueller Austin Task Force to Review Neighborhood Guidelines

The Mueller Austin home owners for the first phase will be moving in this winter. Both new and potential residents have expressed concerns with their home owner association guidelines. It's not that the guidelines aren't fair. They're just "boring" and seen as "standard" rules that can be found in any subdivision in Greater Austin.

Mueller Austin is a new community with it's own unique feel. Residents want a little more freedom on the fence types and customization of their lawns. The neighborhood already has great features:

• It's green. Green built homes will have at least a 3-star rating by Austin's Green Building Program. Even the new Seton Children's Hospital and other commercial buildings on the site are green built.
• It's mixed-use. Residents will have access to a variety of product types, including national and local retail shops as well as live-work lofts in the town center.
• It's pedestrian and bike friendly. There are miles of hike-and-bike trails and the community is planned to accommodate walking or riding bikes to shopping areas and amenities.

The hope is that the final recommendations reflect the unique culture of East Central Austin instead of relegating the new owners to restrictions that aren't representative of their wants or needs.The task force will meet 4-5 times during the fourth quarter this year to finalize the guidelines before the covenants are sent for implementation.

Stay tuned...

Read more about Mueller Austin in previous articles.

Track Texas Markets Online for FREE

I was browsing through market updates at the Texas A&M Real Estate Research Center and saw their links to news from the Texas Real Estate Business. The magazine requires registration to view articles, but those of you interested in residential or commercial real estate can access market updates for FREE.

Texas is expected to continue growing at a feverish pace during next few decades, especially along the Dallas to San Antonio corridor on Interstate Highway 35. This corridor is the main transportation artery in our state for Texas' largest cities including Dallas-Fort Worth, Houston, Austin and San Antonio.

Large commercial developers and investors, including foreign investors, have continued to purchase huge tracts of land along the corridor and in these cities to provide housing and jobs for the population boom.

Buyers, sellers and investors should be aware of factors that influence the housing market, such as where jobs are leaving or going, environmental issues, transportation, development on the horizon, etc.

Here are some top FREE resources for Texas real estate market updates that can keep you ahead of a housing boom OR bust:

Austin Home Sales Decline in June

So far, a few hot markets in Texas have slowed this past June. Agents are seeing their listings stay on the market a little longer than the previous year. Things were getting pretty hectic here in Austin, with buyers often paying $10-20k above the listing price for homes after competing with 10-20 other potential purchasers.

Austin home buyers can now breathe at least a little since home sales have slowed. Sellers are less likely to sell quickly if they overprice, which is a good thing. (Click the Chart for Full View).

According to the Austin Board of REALTORS, June sales were slower than the previous year. This would normally be alarming in most markets, but since Austin and other areas in Texas have been on fire, it's nice to see the market calming. Severely overheated markets have a greater propensity to have a louder pop when they bust.

JUNE MARKET STATS-AUSTIN

• Like Houston, overall home sales declined. 2800 homes were sold, which was only a 6% decrease from last year.
• $191k is the median home price, 7% up from last year.
• There were 9,159 active single-family listings on the market, up 8% from the 2006.
• Average days on market is only 53 days, which is great. Sellers in some markets are seeing 6 months of inventory if they're lucky.

Link: Austin Market Stats- June

Read about Houston's Market Stats for June 2007
 

Unseasonal Rains Impact Development, Economy

This has not been the typical Texas Summer. You may have heard the colloquialism, "Texas heat", which is unlike the dry heat in Arizona and New Mexico.

DEFINITION OF TEXAS HEAT (by Dee):

A phenomena in Texas that occurs when gamma radiation from the sun lunges from limestone buildings and concrete pavements, reaching 100-degrees in temperature before fusing with high humidity to stick to your body without letting go.

...so it's not necessarily gamma radiation, but it sure feels like it since 'gamma' sounds threatening.

August and July temperatures are frequently in the 100s, but we've had historically low-highs the past few months, with some days only reaching the 80s. The unseasonable rains and flooding may severely impact the Texas economy.

There's been countless construction delays for new schools, residential communities and commercial ventures. Summer-driven businesses such as tour companies, hotels, bed-and-breakfast inns, water or outdoor sport-related services, etc. are having their worst season in decades.

Of course, it will take more than rain to take down the Texas economy, but we're waiting to see how badly the rainy season has impacted particular cities.

Link: Rain brings more flooding in Texas.

Read more about the July floods, worst in 50 years.

 

Downtown Austin's "Bling": The 5 Fifty Five Condos

Last week, we reported on the Four Seasons Residences, highly popular lofts in Downtown Austin that nearly sold out within the first weeks of availability. The 5 Fifty Five luxury condos are also major players in the downtown residential market.

I received an alert that are in the final phases of taking reservations. Of course, the 5 Fifty Five will sport "breathtaking" views, concierge and so fort. I'll let you read more about them on their website.

I am attracted to the 5 Fifty Five is because they sit atop Fin and Porter, one of my favorite restaurants in Austin. Fin and Porter is part of the Hilton Restaurant Group and provides a great dining experience when you're in Austin or even if you live here. 

The 5 Fifty Five is a promising development due to it's proximity to Town Lake, The Capitol and 6th Street.

Read more about: The 5 Fifty Five high rise condominiums in downtown Austin, Texas.

Search All Greater Austin Condos.

Houston Market Stats Released, June Sales Declined

If you weren't aware, the Houston Board of REALTORS has a great website where they release their MLS housing statistics each month via a press release. Total sales declined partially due to the softened sub-prime lending market.

The good news is that Houston is still one of the best cities in Texas to buy a home or investment property.

The average and media home sales prices in Houston are still on the rise.The Houston housing and job markets are still very robust and stable. Click the chart for Houston stats.

Houston Real Estate Milestones for June 2007 (Per HAR)

• Highest ever average single-family home sales  price
• Highest ever number of single-family homes  listed for sale
• Second highest number of homes ever sold in June
• Highest median sales price in Houston history
• Highest median townhouse/condo sales price for the month of June and fourth highest ever
• Highest average townhouse/condo sales price for  the month of June and fifth highest ever

See June 2007 housing statistics as well as archives on for Houston on HAR's website: Houston Real Estate Market Information.

Did you know that Houston has one of the highest foreclosure rates in Texas and the U.S? Find out why!

Four Seasons Luxury Residences Nearly Sold in Six Weeks!

I received an email alert today from the marketing team for the Four Seasons Private Residences. 80% of the project has already been reserved after only six week of sales. 

The quick sale time is a great indication that luxury downtown condos are still desirable to buyers.

LATEST NEWS- FOUR SEASONS RESIDENCES

• Floors 6-13 are still available and have just been released.
• Size ranges from 806 to 1815  square feet with prices starting in the $400s.
• Amenities include a roof-top pool and terrace, concierge service and a great location on Town Lake.

The units are expected to sell out within the next month or so. Read more about the amenities: Four Seasons Private Residences - Austin

Contact your real estate agent or our team for floorplans or a walkthrough.

Search all condos and homes in Greater Austin!

Simmons Vedder Begans Construction on 'Mosaic" Apartments at Mueller Austin

I received a press release yesterday regarding the Mosaic Apartments, which will begin construction at the Mueller Austin redevelopment in East Central Austin. Simmons Vedder will handle the high-end multifamily project, which is slated for completion late Fall 2008. (Pictured is the rendering I received).

The Mosaic seems like a nice apartment project, but it's not very exciting news. I searched Google News for the story and only found a few reports. Although interest is high in the Mueller Austin project, most people can't buy there because of the long waiting list.  There are already a few hundred home buyers in line for the second phase of the project, which will begin soon.

I guess this is one of the few instances where you may decide to rent instead of buy, but at least it's not by your preferred choice. 

Read more about Mueller Austin as well as my role in the project.

Link: Apartments debut at Mueller - Austin Business Journal

U.S. Census: Which Texas Cities Among Fastest Growing in Nation?

According to the Houston Business Journal, Texas' five major cities — Houston, San Antonio, Dallas, Austin and Fort Worth — were among the top ten in the nation for population growth from 2005 to 2006, according to a U.S. Census Bureau report released earlier this week.

Many of America's fastest-growing cities appear to be suburbs. Three Dallas-area cities, McKinney (No. 2), Grand Prairie (No. 6) and Denton (No. 9), were in the top ten in percentage population gained. Fort Worth was No. 11 on that list.

The Business Journal reported that six Texas cities cracked the top 25 for total population:

• Houston (No. 4)
• San Antonio (No. 7)
• Dallas (No. 9)
• Austin (No. 16)
• Fort Worth (No. 18)
• El Paso (No. 21)

We'd recently discussed the high foreclosure rate in Texas and I'm often asked when the "bubble" will burst. My response is that Texas still has even more growth slated for upcoming years. Population growth is expected because of the continued increases in job growth, our increasing immigrant population, baby boomer relocations and faster-than-average birth rates.

If Texas Real Estate is HOT, Why the High Foreclosures?

Here's a good question. If the Texas real estate market is so hot, why are our best cities (Austin, Dallas, Houston and San Antonio) experiencing the highest foreclosures in the nation?

Great question! In recent years, Texas home sales outpaced our counterparts along with nice appreciation in our largest cities. My hypothesis is that foreclosures are the downside of a frenzied real estate market.

FACTORS IN THE TEXAS FORECLOSURE RATE

1. Home seller refinances. In 2003-2004, mortgage rates were at historic lows. Many home owners refinanced to make improvements or purchase consumer goods. This is a set up for a foreclosure because the owner has removed their equity, perhaps overimproved the property and now have higher property taxes and mortgage payments.
2. Adjustable rate and zero down loans. Texas was a buyer's market at the same time rates were historically low.  Zero down loans or adjustable rate mortgages were the mortgage product of choice. Most of those adjustable loans were 3-5 year, so the rates have been increasing every 6 months. A refinance in Texas requires at least 80% loan to value ratio on homestead properties and 90% on investments. For buyers with no equity, but an increasing payment, a foreclosure is one of the few options.
3. Risky investor loans. Investors have been buying in Austin, Dallas, Houston and San Antonio in droves. Most were putting less than 10% down and had high interest rates, but little or no cashflow. In Austin and Dallas, it was common to buy negative cashflow and negative equity properties on speculation. Now, San Antonio and Houston are especially seeing a glut of low-end investment properties, so days on market has increased.

The bottom line is that no market is ever going to be completely predictable. Texas is unique in many aspects, but home buying decisions should always be based on the property's current value.

Link: San Antonio foreclosure and the Texas A&M research on the issue.

Check out the interesting post about Affordable, Luxury and Modern Home market in Texas.