Thursday, June 25, 2009
Monetizing the First Time Homebuyers Tax Credit
A new program that the Texas Department of Housing and Community Affairs (TDHCA) released on Monday, June 22nd. Many buyers may already know, the American Recovery and Reinvestment Act of 2009 provides a federal tax credit to first-time homebuyers that is equal to 10% of the purchase price of their home up to $8,000. In an effort to monetize the tax credit, TDHCA created the “90-day Down Payment Assistance Program.” If you have questions about this program, please contact me.
Bond Market & Interest Rates
Added supply has been one of the main culprits behind the recent sell-off in Bonds and corresponding climb in home loan rates. So where is that supply coming from? First, all those refinances you've heard about lately are actually turned into Mortgage Backed Securities after they're closed, which adds more Bonds to the market. Plus, government spending plans have to be paid, therefore, record levels of Treasury Securities are being auctioned off these days. Although the Fed has a program to purchase some of these Mortgage Bonds, the number of new Bonds simply outweighs what the Fed is able to buy - therefore driving Bond prices lower and home loan rates higher.
Thursday, June 18, 2009
This Month In Real Estate: June 2009
Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation. The aim of the consumer-oriented segments is to help combat the "doom and gloom" messages of the national print and television media with real information on real estate.
If you have any questions about the Austin real estate market, please contact me.
If you have any questions about the Austin real estate market, please contact me.
Saturday, June 6, 2009
Report: Austin will be 5th fastest growing U.S.metro in coming years
The population of the Austin metro area will grow to more than 2.7 million by the year 2025, according to an analysis of government data by bizjournals.
The projected growth rate of Austin and its suburbs ranks 5th among 250 U.S. metropolitan areas studied in the report.
Bizjournals forecasts that the Austin-Round Rock area will grow nearly 87 percent from its 2005 estimated population of nearly 1.5 million to a 2025 projected population of 2.7 million, an increase of nearly 1.3 million residents.
Austin will see the most growth of any Texas city, according to the bizjournals analysis. The McAllen-Edinburg area will be the second-fastest growing metro in Texas, ranking 22nd on the list with an estimated 56 percent growth in population.
Among the major Texas cities:
• Dallas/Fort Worth ranks 26th with a projected 50 percent population increase to 8.8 million people.
• Houston ranks 27th with a projected 48 percent population increase to 7.9 million people.
• San Antonio ranks 40th with a projected 41 percent population increase to 2.7 million people.
Source: Austin BizJournal, June 2 2009
The projected growth rate of Austin and its suburbs ranks 5th among 250 U.S. metropolitan areas studied in the report.
Bizjournals forecasts that the Austin-Round Rock area will grow nearly 87 percent from its 2005 estimated population of nearly 1.5 million to a 2025 projected population of 2.7 million, an increase of nearly 1.3 million residents.
Austin will see the most growth of any Texas city, according to the bizjournals analysis. The McAllen-Edinburg area will be the second-fastest growing metro in Texas, ranking 22nd on the list with an estimated 56 percent growth in population.
Among the major Texas cities:
• Dallas/Fort Worth ranks 26th with a projected 50 percent population increase to 8.8 million people.
• Houston ranks 27th with a projected 48 percent population increase to 7.9 million people.
• San Antonio ranks 40th with a projected 41 percent population increase to 2.7 million people.
Source: Austin BizJournal, June 2 2009
Wednesday, June 3, 2009
Pending Home Sales Rise in April
The number of U.S. homebuyers who agreed to purchase a previously occupied home in April posted the largest monthly jump in more than seven years, a sign that sales are finally coming to life after a long and painful slump.
The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3, far exceeding analysts' forecasts. It was the biggest monthly jump since October 2001, when pending sales rose 9.2 percent.
Are we at the bottom of the market? It may be too soon to tell. We will have to watch the next 45 to 90 days to see if these pending sales turn in to closed sales/transactions.
The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3, far exceeding analysts' forecasts. It was the biggest monthly jump since October 2001, when pending sales rose 9.2 percent.
Are we at the bottom of the market? It may be too soon to tell. We will have to watch the next 45 to 90 days to see if these pending sales turn in to closed sales/transactions.
Monday, June 1, 2009
The Austin Economy
When the Texas Legislature adjourns next week, this is certain: Texas will have a balanced budget with no tax increases and there will a big increase in its Rainy Day Fund “savings account.” Look around you. No other major state can make those claims.
Members of the Texas House and Senate will leave Austin this week after adjourning 06/01/09. They will not re-convene in Austin in regular session until January 2011. Many of them will watch other states raise taxes, cut their budgets and plea with Washington for help.
The release last Friday of the April 2009 workforce numbers show that Austin’s net job gain was 0.4% over April 2008, while Texas job totals are down 1.6% and nationally, the comparative numbers show a 3.8% loss. In pure numbers, the Austin metro gained 3,400 jobs.
An analysis by Beverly Kerr, VP/Research for the Austin Chamber, shows that Austin’s April-over-April net gain in jobs is due to a 3,900 gain in the government sector that compensated for 500 jobs lost in private industry.
Admittedly the increase in jobs in the Austin metro is small and the number of unemployed is higher than a year ago. But, hey, it’s the best job situation in the nation. Given this, an examination of how this has occurred is timely.
Which Austin private sector segments are losing the most jobs? Kerr said the highest rate of losses occurred in these three categories: natural resources and construction, manufacturing and wholesale trade.
Source: Volume 31, Number 9 of The Neal Spelce Austin Letter
Members of the Texas House and Senate will leave Austin this week after adjourning 06/01/09. They will not re-convene in Austin in regular session until January 2011. Many of them will watch other states raise taxes, cut their budgets and plea with Washington for help.
The release last Friday of the April 2009 workforce numbers show that Austin’s net job gain was 0.4% over April 2008, while Texas job totals are down 1.6% and nationally, the comparative numbers show a 3.8% loss. In pure numbers, the Austin metro gained 3,400 jobs.
An analysis by Beverly Kerr, VP/Research for the Austin Chamber, shows that Austin’s April-over-April net gain in jobs is due to a 3,900 gain in the government sector that compensated for 500 jobs lost in private industry.
Admittedly the increase in jobs in the Austin metro is small and the number of unemployed is higher than a year ago. But, hey, it’s the best job situation in the nation. Given this, an examination of how this has occurred is timely.
Which Austin private sector segments are losing the most jobs? Kerr said the highest rate of losses occurred in these three categories: natural resources and construction, manufacturing and wholesale trade.
Source: Volume 31, Number 9 of The Neal Spelce Austin Letter
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