Real Estate Information

According to the Texas Real Estate Center in a report dated November, 27 2007 the Texas economy is cooling but still generating more jobs than the U.S. average. Texas non-farm employment rose 2 percent from October 2006 to October 2007 compared with the 1.2 annual growth rate of non-farm employment for the United States.

The state’s seasonally adjusted unemployment rate fell from 4.8 percent in October 2006 to 4.1 percent in October 2007.

The state’s mining industry ranked first in job creation, followed by professional and business services, leisure and hospitality, and financial activities.

All Texas metro areas reported positive employment growth rates from October 2006 to October 2007. McAllen-Edinburg-Mission ranked first in job creation, followed by Austin–Round Rock, Lubbock, Dallas-Plano-Irving and Midland.

Midland had the lowest unemployment rate, followed by Amarillo, Lubbock, Odessa, College Station–Bryan, Abilene and Austin–Round Rock.

For a copy of the full report click here:  http://recenter.tamu.edu/econ/EconReview1007.pdf

Hey it's just another Ditto Week. The theme is close to past weeks.

The number of active listings in Austin are hovering around 25% up over last year and this week is no diifferent.  We show a 26.38% this week over the same week in 2006.  Last week it was 25.51%.

On the same note:  New listings seem to be resting above last years numbers while the pending and solds are remaining below every week.  This week is continuing along that same beat.

New listings are up while pending and sold homes are down compared to sales for the same week in 2006.

Please review the numbers and browse our site for additional information on the current market.

Real estate is local.  That's not news.  What is news is how buyers sometimes don’t get that message.

Oftentimes we counsel our buyers and get the feedback that they are just going to wait and buy "at the bottom" so they're just going to sit on the sidelines.

Buyers state that they are waiting for prices to go down more and they don't want to buy a house today that they perceive will be worth less six months from now.

There is no data in the Austin Real Estate market that supports this logic and this is contrary to the ever reality in our current market.  And YES, we do let our buyers know.  That is our job as market professionals to educate our buyers, sellers and investors.

Where do consumers get such information?  They get it from so many different sources that it's hard to keep up.  They get it from the newspaper (The Statesman did a story a few weeks ago on slowing home sales), television news, the radio, certainly reading about a national mortgage/home/foreclosure crisis in stories and from the Internet.

The fact is that bad housing news is everywhere.

But it's simply NOT here in Austin. 

Here is your Monday Morning Weekly Real Estate Update for Austin. It shows new listings are up a little from last year and the sold units is a little less too. The interesting statistic here is that the number of expired listings has risen. This is due to seller's not being realistic in pricing their homes or they are bad condition. The majority of the expired listings are in the $350,000 to $500,000 price range. The homes priced under $250,000
are selling consistently.

Today the Fed announced its second consecutive decrease in rates, cutting another 0.25% from the Fed Funds Rate. This change could directly impact millions of American borrowers.

Are you one of them?

Adjustable Rate Mortgages
If you currently have an ARM that is scheduled to reset in the next 14 months, then today's news is good for you. Now is the time to investigate your options. Even if you have a pre-payment penalty or you're behind in your payments, don't delay. There may still be options available to get you out of your ARM and into a mortgage you can afford, including FHA or the new FHASecure program introduced by the President.

Important: The FOMC does not meet in November, so ask yourself this: Can you really afford to roll the dice until its next meeting in mid-December?

Buying at the Bottom of the Market
We know many buyers are waitng for prices to fall here in Austin, Texas. But we aren't seeing a market that is declining on pricing. If you're looking to invest in real estate in the next six to twelve months, and recent rate cuts have inspired you to start taking action, now is the time to prepare yourself for intense credit scrutiny. There are a lot of great real estate deals to be had today. But if your credit doesn't stand up in today's tight-fisted credit environment, then you could easily miss out on an exceptional opportunity.

What's the point of taking advantage of discounted home prices if you can't qualify for the right mortgage or interest rate that makes it all worthwhile? Get pre-approved now and know exactly what you can afford. And with the right REALTOR® on your side, you can have incredible negotiating power in a buyers' market!

Refinancing – Know Your Options
While rate cuts often spark ideas of refinancing, this may not be the best choice for everyone. In some cases – especially in a market where home values are declining – refinancing may be impossible or disadvantageous. Contact us for a free mortgage review. Based on your individual goals and financial needs, we can explore every available option for you and your family.

Texas Department of Housing and Community Affairs (TDHCA) has released $160 million in homebuyer funds through its popular First Time Homebuyer Program which offers home loans with interest rates beginning as low as 5.75 percent for qualifying first time homebuyers.

Loans through this program are available in two forms: unassisted loans, with no additional funds for down payment and closing costs; and assisted loans, which come with a 5 percent grant for down payment and closing cost assistance. The grant is offered to qualifying households earning no more than 60 percent of the area median family income (AMFI).  The AMFI as of May 2007 for Austin-Round 1-2 person household is $71,700.

Interest rates range from 5.75 percent for statewide unassisted loans to 6.50 percent for assisted loans statewide. The program is designed to serve households earning no more than 115 percent of the area median family income, depending on the number of individuals in the family. Click here to see if you qualify

TDHCA also is providing a special highlight with this release of funds as it is waiving certain program requirements for Texas veterans. Through the end of the year, qualified veterans who are not first time homebuyers will be eligible to participate in the loan program.