Ok, so the mortgage market is rough. Summer 2007 was a pretty odd time in American history. Over 120 banks went out of business and the FDIC shut down Netbank for their failed lending practices. My father had many accounts at Netbank, so he's living the nightmare right now. (More on that later).
I interviewed Gray Buffington, a Texas Mortgage Broker that I trust. He's been in the business since 1986 and has followed the market through boom and bust cycles. I asked Gray to tell me the truth on the mortgage market and whether Texas will make it out alive in 2008.
INTERVIEW WITH GRAY BUFFINGTON
Give me some background on how you got started in real estate.
It’s been a venture of 20 years so allow me to make this as succinct as possible! While I was an undergraduate in college I had an opportunity to do an internship with a local bank in Austin. I fell in love with Austin and, upon graduating in 1986, immediately began working for a local Mortgage Company. I formed Buffington Mortgage in 2002 and we’ve quickly risen to become one of Austin’s top lenders, in part due to our focus on pushing the envelope in customer service.
I think Alana (Chandler) is one of the coolest women I’ve ever met. How did you meet her and what’s her role?
Alana had done all commercial art and ad copy for a small Austin company and a few years later they were in stores around the world. Alana’s role as the Marketing Director for Buffington Mortgage is to insure that our message of outstanding service and value is communicated to all of our clients and referral partners.
Here’s the big question. Tell me more about the Texas Mortgage Market. Are things out of control?
Absolutely not. I believe strongly that the Texas Market--and especially Austin--is poised for significant appreciation over the next few years. As I study the statistics on the Texas economy, I see Texas has previously lagged in appreciation relative to California and Florida and even lagged behind the National appreciation rate until the 4th quarter of 2006, when the Texas appreciation rate out-paced all three.
Tell me more about that. I heard Texas foreclosures were really high!
Since we have been experiencing slow steady appreciation we have been largely unaffected by the national downturn in real estate. As a result of the slow steady appreciation, we have not seen the foreclosure problems experienced by other areas of the country. Studies indicate Austin (for instance) has one of the lowest foreclosure rates in recent years. In fact, Austin has doubled in population every 20 years since its incorporation in the 1800’s. It is the ONLY city in the United States to do so.
Peer into your crystal ball. Where’s Texas real estate heading in 2008?
I believe 2008 will be another great year for Texas Real Estate. In fact, a recent publication listed the top 10 U.S. real estate markets in 2008 and 3 Texas Cities were in the top 10: Austin, Dallas and Houston. Austin, in particular, continues to see strong sales in the single family resale market, especially close in town. We have an influx of both investors and those who wish to call Austin their permanent home. It’s a wonderful time for all of us who love this city and this industry to be fortunate enough to watch others discover what we’ve known all along.
Talk to Gray Buffington or Alana Chandler by visiting their site at BuffingtonMortgage.com or call them at (512) 672-4729 x 303.
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