Home Sales Continue to Show Increases in Austin Area

July 2012 Multiple Listing Service Data:

Units for Sale: (compared to July 2011)
New listings are up 9.67%.
Pendings are up 18.66%.
Solds increased by 24.35%

As for Average Prices:
The "New Listings" average list price is up 2.65% to $304,219.  In July 2011 the average list price was $296,359.

Sold average sales prices increased 7.58% to $276,822.  For July 2011 it was $257,322.

Did you know...that we had 10,720 active listings during the same week in 2011?  Today we have 8,941 active listings!  That is a 16.60% decrease from 2011.

Will Homes Near Balcones National Wildlife Refuges Raise in Home Value?

A new peer-reviewed national study, released by the U.S. Fish and Wildlife Service, shows that in urban areas across three regions of the country owning a home near a national wildlife refuge increases home value and helps support the surrounding community’s tax base.

According to the study, conducted by economic researchers at North Carolina State University, homes located within half a mile of a refuge and within eight miles of an urban center were found to have higher home values of roughly:

• Seven to nine percent in the Southeast;
• Four to five percent in the Northeast; and
• Three to six percent in the California/Nevada region

While this data doesn't specifically include the Midwest, Soutwest, Central Mountains & Northwest, because refuges in these areas tend to be located further from urban centers.  However, there are homes near the Balcones NWR that may benefit from this survey during the home selling process.

MLS Monthly Review - May 2012

Preliminary May 2012 Data:

Units for Sale: (compared to May 2011)
New listings are up 4.32%.
Pendings are up 18.85%.
Solds increased by 18.98%

As for Average Prices:

The "New Listings" average list price is up 1.14% to $330,674.  In May 2011 the average list price was $326,947.

Sold average sales prices increased 2.24% to $270,090.  For May 2011 it was $264,169.


Did you know...that we had 11,454 active listings during the same week in 2011?  Today there are 9,009 active listings!  That is a 21.35% decrease from 2011.


What does this mean?  Demand is slowing building.  For some areas of Austin, sellers are having the benefit multiple buyers submitted offers to buy their property.  This creates an auction effect, driving up the sales price of the home.  We are seeing this more and more in the Austin area.


Do you have a questions about listing your home for sale or how to purchase a property?  Please contact me.

Top Ways to Get Your Down Payment

The most common issue for a first time buyer usually seems to be…"How do I get the money needed for down payment on a home purchase":

1. Get A Gift – With FHA, the buyer can get a give from a relative for the down payment and closing costs. 
2. Down Payment Bridal Wedding Registry – Gives a couple an opportunity to received wedding “gifts” through a dedicated bank account to collect down payment funds for a new home
3. 401K Loan – You can borrow the money from yourself, in most cases this loan will not count against your qualifying debt to income rations and as a first time home buyer the most 401K programs will allow for this transaction,
4. Life Insurance – If you have whole life policy you can either borrow against it or cash it in.  
5. Secured Loan -  If you have an asset that is free and clear such as a vehicle you may be able to get a secured loan against the value of the asset.
6. DPA – Several government entities offer down payment assistance programs for first tie home buyers
7. Sale of Personal Property - With verification of value and bill of sale, the funds form the sale of personal property can be used for the down payment.
8. Human Resources – Some employers offer down payment assistance as a benefit to the employees.  These awards are eligible for down payment through FHA financing.
9. Tax Refund – A buyer can use this years tax refund to become a homeowner.  A copy of this years tax return and a copy of the refund check or bank statement showing the amount of the refund on the deposit is all that is required.
10. Second Job – Even though we may not be able to use this income to qualify the borrow if the borrower has not had the job for 2 years, the cash earned from the second nob can be used for the down payment.
11. Savings/Budgeting – Cutting back on extras along with anyone of the abve mentioned ideas will get you into a home faster.

There are some many reason why now is the best time to purchase your first home.  Please contact me to find out more.

Preliminary MLS Data - April 2012

Preliminary April 2012 Data: 
Units for Sale: (compared to April 2011)

• New listings are up 1.86%.
• Pendings are up 27.40%.
• Solds increased by 5.76%

 As for Average Prices:

• The "New Listings" average list price is up 4.74% to $336,915.  In April 2011 the average list price was $321,670. 
• Sold average sales prices increased less than 1% to $270,952.  For April 2011 it was $270,571.  

Did you know...that we had 11,315 active listings during the same week in 2011?  Today there is 8,756 active listings!  That is a 22.62% decrease from 2011.

RealtyTrac - Renter Alerts

While doing research on foreclosures in the area on RealtyTrac, I came across a useful tool for renters.  It allows you to put in an address to see if it is in foreclosure.  Which can be helpful for renters to know if their landlord is really making those mortgage payments.

I can't say if its 100% accurate but it is a tool for renters sidestep a possible eviction through no default of their own.

Bella Vista - Cedar Park

This is a new project that I am working on for my blog, I will be visiting the neighborhoods of Cedar Park on a regular basis.  The video will be a drive through of the neighborhood along with MLS (Multiple Listing Statistics.  Enjoy.

Preliminary MLS Data - March 2012

Units for Sale: (compared to March 2011)
New listings are down 7.90%.
Pendings are up 19.39%.
Solds increased by 16.46%

As for Average Prices:
The "New Listings" average list price is up 3.66% to $342,713.  In March 2011 the average list price was $330,627.

Sold average sales prices increased 6.14% to $258,863.  For March 2011 it was $243,878.

What does this mean?  We are seeing a steady number of buyers coming to the market, but listings are not coming on the market at the same pace as last year.  The homes that are ready to sell and price right are selling quick.

Real Estate: Week Review - Austin MLS

Units for Sale:
For March 4, 2012 - March 10, 2012 (compared to the same week in 2011)

New listings are down this week 1.35%.
Pendings are up this week 18.79%
Solds are up 39.53%

Average Prices  
For March 4, 2012 - March 10, 2012 (compared to the same week in 2011) 

Sold average sales prices increased 15.41% to $270,637.  In 2011 it was $234,508 for the same week.

FREE Foreclosure Prevention Phone-A-Thon

The Texas Department of Housing & Community Affairs is hosting a Free Foreclosure Prevention Phone-A-Thon on Tuesday, March 13, 2012

Target Audience: Delinquent and at-risk Borrowers

What: Homeowners have an opportunity to ask questions and obtain information about steps to start or continue the process to avoid foreclosure

When: 8:00 am - 8:00 pm CST, Tuesday, March 13, 2012

How: Call toll free: 1-866-989-6931

Host: Fannie Mae's "Know Your Options"

Team: http://www.knowyouroptions.com/

While this event will be broadcast live only in Dallas on NBC 5, calls will be accepted from anywhere in Texas.

Please help spread the word to those in your community who may be facing foreclosure!

What are Easement Restrictions? How to Ensure Clear Title on a Property

When buying a home you’re bound to encounter some things that you don’t know anything about. They are things that outside of the home buying process you won’t ever run into. And since the average homebuyer only goes through this process a few times in his or her lifetime, it’s understandable that these things would be unfamiliar. A couple of items that seem to be perplexing are title insurance and the property survey, specifically how easements are represented.

When purchasing a home with a mortgage you need to get title insurance and a survey. This is required for all financed home purchases. An attorney or title company typically orders property surveys. Though the buyer has to pay for this service they usually don’t need to be directly involved in the process.

What is Title Insurance?

Title insurance is just another line item expense when purchasing your house, paid for one time at closing. Essentially, it is protection for you and your mortgage company that the person selling you the house has full and clear title to the property and was able to legally pass it to you. The title insurance company investigates the ownership of the property and then insures their work. If the seller didn’t rightfully own the home, and someone else does, the mortgage company and the homebuyer are financially protected. Fortunately, issues of title defects are relatively rare, meaning that title insurance isn’t too expensive and really not something to worry about.

What is a Property Survey?

A property survey is a carefully measured drawing that shows the land that is for sale and all structures on the property. It shows how large all the structures are and how far they are from each other and the borders of the property. Most importantly, it shows setbacks and easement lines.

Wait, what? It seems like the property lines and structures should be most important, but they are not. The setbacks and easement restrictions are actually the most critical elements of the survey because those are usually where the biggest problems are found.

What is a Setback?

A setback is the required distance between the house you wish to buy and other property features. For example, a city or county ordinance (or even a homeowners association) may require that homes be set back 20 feet from the road. So even though you own your front yard, you cannot extend your house any closer than 20 feet from the road.

Other setbacks indicate how closely you can build to your property boundaries or to your neighbors’ homes. If you live in an area with natural features like streams or lakes, certain special setbacks may also dictate how close you can build to these structures.

What is an Easement?

Easements refer to property with common usage rights. For example, you may own the land that a sidewalk is on, but anyone can walk on this part of your property.

Why Setbacks and Easement Restrictions Matter

What happens if the survey reveals that part of the house (the actual structure) up for sale sits within a setback or an easement? It’s a problem! In some instances it means that part of the house will need to be torn down before it can lawfully be sold. Otherwise title cannot be passed to a new owner because someone is attempting to sell property that was not built legally.

Surprisingly, this situation is not so uncommon. It may not affect the main domicile on a property, but garden sheds or pool equipment are occasionally located in an area where they don’t have a legal right to be. In these cases your lawyer has some work to do. Hopefully, you’ll discover that the structures are grandfathered because they were erected before certain setbacks were enacted. But definitely investigate these matters fully, as doing future improvements on the property may necessitate that they be corrected in the process.

Spend Some Time With Your Property Survey

For some, the survey process is one of those “check the box” items during home buying. Most get it done and move on. But it’s important to look over everything carefully and ask questions. Surveyors are happy to discuss the survey with you, and errors on surveys can occur. Spending 15 minutes looking this over will save you the headache of having it redone down the road when you want to build or make a change on your property.

Have We Found the Bottom to the Housing Market?

Home sales across the board, comparing 3Q2010 and 3Q2011, have increase, activity increased 1.7%, latest patterns offers signs of a finding a bottom to the housing bust.

Next year, the market will continue to work through the shadow inventory of foreclosures. Banks will not flood the market with foreclosures, that would further weakening the housing market, but we will continue to see a steady stream. In Texas is below 30% foreclosure and we fair better than other states in foreclosure because we did not see the appreciation in home values other states achieved in their market.

What does this mean in the Austin market? For buyers there are still deals to be found. However in the Austin market, we have 100% saturation in apartment rentals, and rents all over Austin are increasing we will see more and more qualified buyers move off the fence. Sellers are still holding tight. We are experiencing a low number of listings but ever increasing sales. The best homes that are price competitively are going fast.

Austin No. 3 for Most Jobs Gained Since Recession

According to the Austin Business Journal, Austin is among 13 of the nation’s 100 biggest labor markets to have regained all of the jobs that were lost during the recession.

The Capital City is ranked the third most prosperous metro during that five-year span adding 37,900 private-sector jobs, according to the Business Journals’ On Numbers, which used preliminary data from the U.S. Bureau of Labor Statistics  data to compare 2011 private-sector employment levels against officials figures for 2006, the last full year before the recession’s onset.

For the Austin market, year-to-date from 2010 to 2011, is stronger. Closed home sales are up 5.2 percent, Pending sales are up 8.6 percent, and inventory of homes available is down 12.6 percent, which means fewer homes and more buyers.

With employment numbers like this and a lack of listings currently on the market, buyer are have to engage in multiple offer situations.

December MLS Statistics - Austin Area Homes Sales Outpace Prior Year for 7 Straight Months

According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, single-family home sales in December 2011 outpaced the same month of the prior year for the seventh straight month, and year-end figures show momentum in Austin real estate heading into 2012.

In December 2011, a total of 1,581 single-family homes were sold in Austin, which is 11 percent more than December 2010. During the same time period, the median price for Austin homes was $187,940, which is one percent less than the same month of the prior year.

In December 2011, the inventory of Austin-area homes decreased to 4.1 months, which is 1.4 months less than December 2010 and the lowest figure reported since the organization began tracking the statistic in January 2009.

2011 Year-End Totals

19,220 – Single-family homes sold, seven percent more than 2010.

$193,000 – Median price for single-family homes, unchanged from 2010.

84 – Average number of days that single-family homes spent on the market, seven days more than 2010.

30,668 – New single-family home listings on the market, 12 percent less than 2010.

8,609 – Active single-family home listings on the market, 15 percent less than 2010.

21,002 – Pending sales for single-family homes, seven percent more than 2010.

$4,931,910,843 – Total dollar volume of single-family properties sold, nine percent more than 2010.

What are the Costs Involved in Selling My Home?

It's often said that it takes money to make money, and that's certainly true when you're selling your home. If you're thinking about selling your home, you may be asking yourself, What are the costs involved in selling my home, and how can I lower them? The first step to lowering the costs involved in selling your home is being aware of what they are, so be prepared for the following costs when shopping for settlement services.

How Can I Lower Real Estate Agent Costs When Selling My Home?
The first thing to decide when selling your home is whether or not you will sell your own home or use a professional real estate broker to act as your proxy, show your home to buyers, and assist you in closing the deal. If you decide to use a real estate broker, he or she will be paid a sales commission based on a percentage of the selling price of your home. The real estate agent's sales commission is one of the largest costs when selling your home, and, in a down economy, the real estate agent's sales commission is usually paid by the seller. Therefore, one of the most important things you can do to lower the costs involved in selling your home is to negotiate with the real estate agent for a lower sales commission.

Typically, the average commission for a real estate agent is six percent of the final home sale value. This amount can vary, however, from a low of approximately four percent to as high as eight percent. When you do the calculations, you realize this can amount to a significant amount of money deducted from the gross sale amount. For instance, using the above range of 4 to 8 percent, the sales commission on a $300,000 home could be anywhere between $12,000 and $24,000. Most real estate agents like to negotiate their sales percentage by agreement before starting any selling work. The agent's payment for selling your home happens when the home sale is paid for, so be prepared for that cost at that time.

How Can I Lower the Transfer Costs Involved in Selling My Home?
The actual transaction of selling your home will require the services of several licensed experts. Escrow services, title insurance, appraisals and attorney's fees all generate costs when selling your home. When these costs are added together, these technical expenses can cost between $5,000 and $10,000 a sale, and most of them are required in order to close a sale under many states' real estate laws. One of the best ways you can lower the costs of selling your home is to be proactive by making calls, getting referrals, and negotiating fees.

In a seller's market, the buyer would pay these costs, but when economic times are hard, you should be prepared to take on some if not all of these costs involved in selling your home in order to convince a buyer to commit and close the deal.

How Can I Lower My Transfer Taxes?
Whenever large sums of value are exchanged, the government and financial services sectors find ways to attach costs. Some of the costs involved in selling your home may be taxes on the sale in the form of transfer taxes or sales taxes imposed by federal, state, or local jurisdictions. If a transfer tax applies, the recipient of the funds, the seller, frequently ends up paying the cost. Collection can happen at the time of the sale, when title documents are transferred, or it could happen after the fact with a tax bill sent to the seller. The amount due will be a percentage that is based on the total sale cost of the house. You can lower the costs involved in selling your home by taking steps to avoid capital gains tax after selling your home.

How Can I Lower My Property Taxes?
There is little you can do to lower the cost of property taxes, but usually property taxes are the responsibility of the new buyer. Sometimes sellers will assume this cost, however, to sweeten the deal for a buyer. If the sale happens in the middle of a property tax cycle, both the seller and the buyer can be charged. Most jurisdictions collect property taxes in two payments. The first payment may happen while the seller owns the house and the second may occur right after the buyer takes over. To make sure these taxes are paid, sellers or a financing bank can require the buyer to put these monies forward to ensure taxes are paid in the first year of ownership.

Other Potential Costs Involved in Selling a Home
Loan Origination Fees. These are sometimes called a "point" or "points." Loan origination fees cover the lender's administrative costs in processing the loan. The fee, which is usually expressed as a percentage of the loan, will vary among lenders. Typically, the buyer pays the loan origination fees, unless otherwise negotiated.

Appraisal Fee. This charge pays for an appraisal report made by an appraiser.

Conclusion

Many of the costs involved in selling your home can be negotiated and can either be the responsibility of the buyer or the seller. Educate yourself independently on the costs of selling your home so you know objectively what a definite seller's cost is and what is negotiable.
In addition to the information provided here, the U.S. Department of Housing and Urban Development offers articles and sample calculations to help you estimate the costs involved in selling your home.

2012 Forecast - Austin Area Continues to Stabilize

Data released by Clear Capital Monday shows year-over-year, national home prices were down 2.1 percent in 2011. The company says movement in home prices began to stabilize somewhat during the latter half of the year and REO sales as a percentage of total home sales began to decline, which helped to moderate depreciation for the year overall.

Clear Capital expects 2012 to play out much like the last half of 2011, with only a very subtle price change at the national level. A minimal decline in the beginning of the year is expected to turn into a meager gain by year’s end, the company explained.

For the Austin market, year-to-date from 2010 to 2011, is stronger. Closed home sales are up 5.2 percent, Pending sales are up 8.6 percent, and inventory of homes available is down 12.6 percent, which means fewer homes and more buyers.

These numbers are possible indicators that the real estate market here in Austin is improving. With the low inventory of homes currently on the market, compare it to the number of new jobs being created, apartment rentals at capacity, then the market should continue to see improvements for next year.

What Does Short Sale Mean?

Buying Short Sales: What You Need to Know

As the real estate market remains volatile, one of the best options for many new homebuyers is purchasing a short sale home. But, what does "short sale" mean? A short sale is when lenders have the opportunity to sell a property before the bank forecloses on the home rather than after. While buying short sales creates the opportunity for real estate investors to pay well-below-average housing prices for properties within ideal locations, there are still drawbacks.

If you're interested in buying short sales, here are a few things you need to be aware of:

Why Banks Short Sale Pre-Foreclosure Homes

The last thing a bank wants to do is own a property secured by the bank's loans. When a property owner is in default and owes more than what the home is currently worth, the bank will work with the seller to offer the property for less than they owe on the mortgage loan.

How much money will banks take off? When buying short sales, how much should I expect prices to fluctuate? On average, banks estimate that holding on to the property after foreclosure will cost up to 18 percent of the home value to complete the inspection, appraisals, repair and maintenance. Instead, it is a much easier and financially sound decision for banks to sell the home "as is" to avoid any third-party inspection process.

What to Consider Before Buying a Short Sale

Buying short sales might seem like a good deal for the buyer, but that's not always the case. Here are three major conflicts buyers and sellers face when a short sale, pre-foreclosed home is on the market:

Time: Don't let the name fool you. Buying short sales takes a very long time. There's a whole gambit of scenarios of why a short sale might be delayed, but many of the hurdles buyers have to overcome have to deal with secondary financing on the homeowner's original mortgage, bank processing delays and private mortgage insurance policy breakdowns. Buying short sales is a very complex process, which can leave the short sell buyer in housing limbo for up to six months.

Condition: Short sale homes often need additional maintenance and repairs. When the current property owner is unable to pay the mortgage on the home, more often than not the condition of the property diminishes over time. Additionally, short sale homebuyers should take into account that the property will have had more than one previous owner, which adds to the wear and tear.

Lender Restrictions: Banks can renegotiate a short sale at the last second. If a new law passes, the market begins to change or the bank finds out more information about the property, they reserve the right to change the terms of the contract at any point in the process. Banks will also refuse to pay for extra services like seller closing costs or inspections. If you want something specific inspected on the property, you're probably going to pay for it yourself.

Short sale homes are the real estate market's diamond in the rough. It's true that buying short sales can be a very tricky process, but for the flexible and patient homebuyer, the short sale home can be the dream house they've been searching for.

How to Avoid Rental Scams

You find yourself in the market to find a new place to rent, and you are searching through Craigslist to find your next place.  Craigslist is a great place to search but be forewarned, there are many unscrupulous people out there ready to take your money.

There are a number of fake rental scams on Craigslist and other classifieds.  People are out to steal your money so here are some tips from the Better Business Bureau on how to avoid these scams.

The email addresses they use usually are from yahoo, ymail, rocketmail, fastermail, live, hotmail and gmail, and they also post ads under anonymous craigslist addresses. They frequently change their aliases.  Some things to watch for:

• The deal sounds too good to be true. Scammers will often list a rental for a very low price to lure in victims. Find out how comparable listings are priced, and if the rental comes in suspiciously low, walk away.
• They use photos stolen from other property advertisements or from home furnishing catalogs or hotel websites.
• They use fake names, often stolen from Facebook profiles or networking sites. Often they assume the identities of previous victims.
• What they all have in common is that sooner or later you get a request to transfer funds via Western Union, Moneygram or some other wire service.
• Never under any circumstances, wire money at the request of any prospective “landlord” via Western Union, Money Gram or any other wire service.  Even if they tell you to wire the funds to a friend or relative’s name “to be safe,” it’s a trap!
• Never send a scan of your passport or other ID.  These thieves will use your identity to scam others. Ask to see the landlord's ID - record all the information you can from it.
• Use a browser to search for the person's name who you're dealing with. Be sure to add quotes around their name. You could add the words "fraud" or "scam" at the end of your search terms.
• Use reverse directory look up if the person has given you their telephone number. It's important to double check that they are who they say they are.
• Visit the local county courthouse to look up property ownership for the property in question. Who really owns it? Is it the person you're dealing with? Or someone else?
• Scan any provided photographs carefully. Do they match up with what you've seen in person? Do they look like they all came from the same place?
• They don't ask for an application or permission to check your credit? That's a red flag!
• Considering the current state of our economy and the rise in foreclosures, ask the landlord if they're current on their mortgage payments, and then get their answer in writing.
• Consider using another method for obtaining a rental, i.e. real estate agent, going through a rental agency, etc.
• Always check bbb.org to see if the “company” has any complaints.

New Wal-Mart Coming to Cedar Park

Retail giant Wal-Mart expects to build another store in Cedar Park on the northwest corner of RM 1431 and Ronald Reagan Blvd.

The 150,000-square-foot store will employ about 300 associates, said Kellie Duhr, director of public affairs and government relations for Wal-Mart.

Wal-Mart has not announced construction dates or a timeline for opening the store, she said. Cedar Park Director of Economic Development Phil Brewer said he is excited Wal-Mart chose Cedar Park as the site for another store.

“It obviously is an economic impact from a tax standpoint, from ad valorem and sales taxes generated,” he said. “Typically your big box stores like this are going to produce something like $80-$100 million in total taxable sales.

HUD Home Sales Incentives

HUD is offering several new sales incentives on HUD homes that will make these homes more affordable for homebuyers.  The incentives vary from state to state, but may include the following:

• $100 down payments on HUD Homes financed with FHA-insured financing
• Sales allowances that can be used to pay closing costs, make repairs, or pay down the mortgage amount
• Broker bonuses for owner-occupant sales. 

 What a great way to get in to your next home!