RED LINE OF THE METRO RAIL TO START OPERATING MONDAY, MARCH 22
AUSTIN (Austin American-Statesman, Mar. 19, 2010) – The first week of service will be free to the public. Capital Metro is encouraging Central Texans to take the train for a spin. The Redline train will run from Leander to Downtown Austin in about one hour, each way. For $2-3 passengers can get a one way ticket at a station. The machines do accept credit and debit cards. There will be a multitude of options for transit passes starting at $6 for a 1-day pass. A 31-day pass will cost $70, and a 5-day pass will cost $20. Reduced fair passes will be available for military personnel and students under 18. Read more.
ST. JUDE EXPANDING
AUSTIN (Austin American-Statesman, Feb. 16, 2010) – Minnesota-based St. Jude Medical Inc. has signed an 85,000-sf lease in Palisades West at Bee Cave Rd. and Loop 360 in preparation for its headquarters expansion. The seven-year lease will provide an extra 15,000 sf compared with its current home in the Las Cimas office complex, where St. Jude’s U.S. sales division is headquartered, along with facilities and classrooms where employees and physicians are trained to use the technologies developed by the company. St. Jude plans to move late this year to Palisades West, where it will occupy the first three floors of the five-story building, allowing the company to expand its training capabilities.
WATER PARK PLANNED FOR CEDAR PARK
CEDAR PARK (Austin Business Journal, Jan. 29, 2010) – Schlitterbahn Waterparks plans to build a $360 million resort development and convention center in this city north of Austin. The city will provide $6 million for the 95-acre project’s infrastructure costs. The Lower Colorado River Authority has not yet determined how the water park may affect local conservation efforts. The Cedar Park location is a partnership between Rick Redmond, Schlitterbahn Waterparks and Cedar Park city hall.
MORE STRUGGLING HOMEOWNERS ELECT BANKRUPTCY
FORT WORTH (Fort Worth Star-Telegram, Jan. 29, 2010) – A growing number of Texas homeowners are filing for bankruptcy to avoid losing their homes, according to a recent study by Foreclosure Listing Service. Unfortunately, bankruptcy may not offer the protection they're hoping for. The Addison-based firm analyzed post-bankruptcy cases of homeowners in 60 Texas counties and found that $2.28 billion worth of real estate was affected by a bankruptcy filing last year. That's an increase of 26 percent over 2008’s volume of $1.92 billion.
In 2009, 12,170 properties were affected — about 1,000 more than the previous year. In those cases, the homeowner did not comply with a mortgage payment schedule set up by a court trustee, said George Roddy Sr., president of Foreclosure Listing Service. As a result, the property loses bankruptcy protection. "Generally, when these properties lose the protection of the bankruptcy court, they enter the foreclosure pipeline," Roddy said.
WHAT DO HOMEBUYERS WANT IN 2010? BUILDERS HOPE THEY KNOW
LAS VEGAS (Real Estate Center, Jan 22, 2010) – Smaller homes, lower prices. That's the outlook for new home builders this year. In fact, 95 percent of those polled by the National Association of Home Builders (NAHB) say they will do one or the other, maybe both. Rose Quint, assistant vice president for NAHB's Survey Research Economics and Housing Policy Group, told the media at the 2010 NAHB International Builders' Show that builders were given a list of 40 features and asked which ones they were likely to include in new homes this year. Here's what's hot and what's not.
Items most likely to be found in new homes for 2010:
Walk-in closet in master bedroom
Separate laundry room
Insulated front door
Great room
Low-E windows
Linen closet
Programmable thermostat
Energy-efficient appliances and lighting
Separate shower and tub in master bedroom
Nine-foot ceilings on first floor
The least likely items homebuyers will find in new homes this year include:
Outdoor kitchen
Outdoor fireplace
Sun room
Butler's pantry
Media room
Desk in kitchen
Two-story foyer
Eight-foot ceiling on first floor
Multiple shower heads in master bath
Smaller kitchen area than in recent years
"Builders will focus heavily on energy-saving features," said Quint. "Things we thought were consumer necessities — such as granite countertops in the kitchen or home offices — are not on the list." Also on the chopping block this year are energy-guzzlers like the high-ceiling entryways. Builders hope nine-foot ceilings will give the buyer a feeling of more square footage, which has been reduced.
Buyers will be looking for ways to save money. For example, water-saving toilets use an average of 39,000 fewer gallons of water annually for a family of four. That's enough for a lifetime of drinking water for three people, said Shane Judd, senior marketing manager of water conservation for Kohler.
NAHB conducted a consumer survey to compare the wants of older buyers with others.They found that those age 55 and older have a slightly different "want" list in a new home:
Washer-dryer in the unit
Storage space
Windows that open easily
Garage door opener
Easy-to-use thermostat
Master bedroom on first floor
Private patio
Porch
Attached garage
Bigger bathrooms
TEXAS RANKS 29TH IN 2009 HOME FORECLOSURES
HOUSTON (Houston Chronicle, January 15, 2010) – Texas ranked 29th in state foreclosure rates for 2009, with 1.06 percent of the state’s total housing units receiving at least one foreclosure filing, according to a report by RealtyTrac. That calculation includes default notices, scheduled foreclosure auctions and bank repossessions. Overall, 100,045 housing units received foreclosure filings in Texas last year, up 4 percent from 2008 and up 18 percent from 2007. In comparison, Nevada posted the highest foreclosure rate in 2009, with over 10 percent of its housing units receiving foreclosure filings. Colorado was tenth in the nation, with 2.37 percent of its units receiving foreclosure filings.
FOUR MINES ENDANGER U.S. ECONOMIC CONVOY
LAGUNA BEACH, Calif. (Real Estate Center, January, 2010) – If the U.S. economy is like a vehicle driving a dirt road in Afghanistan, there are four known mines that must be negotiated, the Chief Economist for the Real Estate Center at Texas A&M University Mark Dotzour said yesterday. Speaking to a group of the nation’s largest real estate investors, Dotzour compared the economy to an armored vehicle, well made, equipped and manned by talented operators. But the drivers know there are four land mines ahead that are certain to explode. “The question is how the vehicle will perform as each mine explodes,” Dotzour told attendees at the 11th Annual Winter Forum on Real Estate Opportunity and Private Fund Investing. .
“Land mine number one is the budget crisis faced by states, cities and school districts, the result of falling tax revenues,” he said. “The second land mine is the pervasive contraction of credit occurring in the United States as business loans, mortgage loans and consumer credit continue to fall. “Land mine number three is the question of what will happen to mortgage rates when the Federal Reserve stops buying all of the new U.S. mortgages at the end of March.” Dotzour said the final land mine is Congress changing the rules for taxes, capital gains taxes, cap and trade, possible windfall profits taxes and new regulation of financial institutions. “These land mines have been identified by business owners and investors over many months,” said Dotzour. “The dangers must be confronted before job growth resumes in a meaningful way.”
TEXAS (San Antonio Business Journal, October, 2009) – Four of the five best labor markets in the country are in Texas, according to a new study compiled by Portfolio.com.
Austin leads the way, followed by San Antonio. Houston ranks fourth and Dallas–Fort Worth fifth. Landing at third is Baton Rouge. All 100 metropolitan areas in the study, including those in Texas, have seen employment decline since last year. However, while 5 percent of the nation’s private-sector jobs have disappeared since June 2008, the collective decline for the 'Texas Four' has been 2.6 percent.
The Texas markets still have 589,500 more jobs than they did five years ago.
Portfolio.com used a nine-part formula to analyze employment trends in the nation’s 100 largest labor markets. The formula used midyear U.S. Bureau of Labor Statistics data for 2004–09, including unemployment rates and trends, and raw and percentage changes in private-sector employment.
STUDENTS RECEIVE GREEN EDUCATION
AUSTIN (anthonyBarnum Public Relations, October, 2009) – The Building Owners and Managers Association (BOMA), Austin affiliate, and Austin Association of Facility and Maintenance Engineers (AAFAME) are collaborating with American YouthWorks (AYW) to train "at-promise" youths for green building management and engineering careers.
The BOMA Austin and AAFAME partnership will provide AYW participants with leading-edge coursework designed to introduce and develop skills in building engineering and management. It will familiarize participants with building automation; energy efficiency strategies; and basic electrical, plumbing and HVAC maintenance skills, as taught by industry professionals.
"A key objective is to provide our 'at-promise' youth with real avenues for their careers," said Melinda Wheatley, CEO of AYW. Participants will receive a certificate of completion from BOMA International. AYW is launching the program at its Green Jobs Training Center in South Austin at 1901 E. Ben White, which was recently renovated to reach LEED Gold standards.
ECONOMIC OUTLOOK FOR HOMES SALES IN TEXAS
DALLAS (Texas Association of REALTORS Convention, September, 2009) – Chief Economist Mark Dotzour from the Real Estate Center at Texas A&M gives his address at the convention in his typical humorous style. Click here to view the 24 minute video on the Economic Outlook for Home Sales in Texas.
TEXAS JOB LOSSES SLOW
AUSTIN (Austin American-Statesman, Dallas Morning News, June 23, 2009) – Texas saw its seventh consecutive month of job losses in May, but the decline was the smallest in a year, according to the Texas Workforce Commission.
Across the state, employers cut payrolls by 24,700 nonfarm jobs as the unemployment rate jumped to 7.1 percent from a revised 6.6 percent in April.
Job losses should slow in the coming months, but Keith Phillips with the Federal Reserve Bank of Dallas' San Antonio branch does not expect a full labor market recovery until the second half of 2010.
Meanwhile, the Austin area stood alone for the fourth month in a row as the only large Texas metro area to add jobs.
The Austin–Round Rock area gained jobs at a rate of 0.5 percent in May compared with one year earlier.
Austin last experienced negative job growth in January 2004.
TEXAS QUICK TO BOUNCE BACK FROM RECESSION, FORBES SAYS
WASHINGTON (Forbes, June 16, 2009) – Several Texas cities are poised for a quick recovery from the national recession, according to Forbes.
Austin–Round Rock ranked first on the magazine’s recent list of ten cities most likely to bounce back quickly.
Meanwhile, San Antonio ranked fifth, Dallas–Fort Worth–Arlington seventh and McAllen-Edinburg-Mission ninth.
To compile its list, Forbes looked at estimates from Moody's Economy.com of the projected gross domestic product of metropolitan areas across the United States, as well as unemployment figures from the Bureau of Labor Statistics and home prices, incomes and affordability data from the National Association of Home Builders.
Forbes also put together a list of ten worst cities for recession recovery. No Texas cities made that list.
HUD Announces Hope for Homeowners Program for Troubled Homeowners
National Association of Realtors, The Washington Report, October 6, 2008 -- On October 1, 2008, the US Department of Housing and Urban Development (HUD) unveiled the HOPE for Homeowners Program (H4H) for borrowers facing difficulty paying their mortgage. The program allows homeowners of single family, owner-occupied units to refinance into an affordable FHA-insured, 30 year, fixed-rate mortgage. The H4H Program is effective October 1, 2008, through September 30, 2011.
DOTZOUR'S TAKE ON PROPOSED BAILOUT
Real Estate Center, 9-26-08 – As negotiations continue over the proposed $700 billion bailout of the nation's financial system, Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University, offers his perspective:
“It's a sad day in America when the federal government (the American taxpayer) has to bail out homeowners who purchased homes they couldn't possibly afford. It's sad because of the vast majority of Americans who live within their means and pay their mortgages on time are now being asked to pay for other people's mistakes.
“It's a sad day in America when we have to spend billions to bail out financial institutions that made loans to those people, then sold those loans to pension funds and endowment associations that had no idea of the risk they were taking when they bought the ‘complex and sophisticated’ bonds. ‘Complex and sophisticated’ is just a euphemism for ‘I have no earthly idea what I'm buying.’
“Now for the pragmatism. If we don't bail out the banks, the American economy grinds to a halt. Many U.S. businesses are financed with short-term notes that mature in 90 to 180 days. This is called commercial paper. What happens when your 90-day note matures, and nobody will refinance it? Just ask Fannie and Freddie, who had $225 billion in short-term notes mature and nobody would refinance them. Hasta la vista. The commercial paper market is virtually frozen, and many businesses are in the same boat as Frannie was.
“The smartest people working in the global financial system say that this $700 billion is a good first step, that it might help to thaw the frozen credit markets but that the devil is in the details. Some say it might take another $500 billion later.
“The fact is that there is a market for these bad loans. It's about 22 cents on the dollar. The problem is that nobody wants to sell for that price as long as the taxpayers will pay a higher price. So the federal government will buy these assets for a higher price, and it’s possible that they can sell them later and make a profit. It's possible that the net cost to the taxpayer will be very little. The bottom line is that we are in uncharted waters, and this $700 billion plan is the best plan that seems to have some hope of temporarily solving the problem.
“The long-term problem is still on the table, and that is the simple fact that the U.S. government can't keep spending more money than it has. Even governments can go bankrupt. The long-term solution for the U.S. government and every American household is to live within their means.
“Who is going to want to invest in mortgage bonds in the future if the federal government can freeze the interest rates below what was promised? Who is going to want to invest in mortgage bonds if the government can cram down the principal on the bonds you bought? Until the federal government can restore some confidence in the global investment community that if you buy a mortgage bond you have a reasonable certainty of getting your principal and the promised interest, the problems will linger.
“The bailout is inevitable and has to happen. Expect more to come. These are just bandages on a gaping wound. Hopefully lessons will be learned, and we will begin to address the illness and not just put on more bandages.”
ROUND ROCK NAMED SEVENTH BEST PLACE
ROUND ROCK (CNNMoney.com; Sept. 2008) – Round Rock ranked seventh on CNNMoney’s list of America’s best small cities in which to live. The city's appeal is credited to affordable housing, its school district and computer company Dell’s decision to establish its headquarters there.
The median home price is $193,931, job growth has risen just over 45 percent between 2000 and 2007, and family purchasing power is at $101,381.
DEVELOPERS BAILING ON DOWNTOWN CONDO MARKET
Austin American Statesman, 8/27/2008, by: Veronica Castelo - [Summary] - A number of developers have stalled or cancelled downtown condo projects due to the banking crisis and fewer banks lending money for the projects. Demand still seems to be high for the downtown condos. About half of the 1000 units currently under construction are already sold. Read more.
AISD BOARD VOTES FOR MERIDIAN SITE FOR NEW SW AUSTIN ELEMENTARY SCHOOL
AUSTIN, Aug., 2008 - On a 7-1-1- vote, Trustees approved the selection of a 14-acre tract of donated land for the site of the new Southwest Austin Elementary School — the seventh campus to be constructed under the District’s 2004 Apple At Work Bond Program. Additional testing will be conducted to ensure the environmental viability of the property. The site is located on Meridian Park Blvd., near the intersection of FM 1826 and Highway 45. The 32-classroom school will relieve Clayton and Mills elementary schools, and is scheduled to open in August 2010.
Of the eight schools included in the 2004 Bond Program, five — Perez, Clayton, Overton, and Blazier elementaries, and Garcia Middle School — have opened. The Southwest Middle School, located at Slaughter Lane and FM 1826, is now under construction and will open in Fall 2009.
FIRST TIME HOME BUYERS SHIFT PRIORITIES
AUSTIN (Austin Business Journal, Aug. 25, 2008) - A growing number of first-time home buyers - 41 percent - say that when it comes to finding a new place to live, proximity is their top priority, according to an online survey of Coldwell Banker brokers nationwide. That was one of the survey's key findings, perhaps influenced by the rising price of commuting that is driving first-time homebuyer trends. And appetites are still large: 71 percent report first-time buyers are looking for larger homes than they were 10 years ago. Read more.
WIND POWER'S BIG BREAK
AUSTIN (Fort Worth Star-Telegram) – The state’s Public Utility Commission yesterday put Texas on course to spend $4.8 billion on power lines needed to carry electricity from wind farms in the Panhandle and High Plains to the state’s urban centers. Getting wind power from turbines to consumers has been problematic because of insufficient transmission lines running from the remote wind farms. The project would allow hundreds and possibly thousands of miles of power lines to be added. However, officials say it would be at least five years before the lines would be ready to handle electricity. The costs would be covered by customers served by ERCOT, the Texas power-grid operator. Customers would pay an estimated $4 monthly fee for several years. Texas leads the nation in wind-energy production, and the utility commission’s move, which still faces one more procedural hurdle, would put the state’s output ahead of the combined production of the other 14 states producing wind energy.
NEW LIFE FOR OLD WATER TREATMENT PLANT
AUSTIN (KXAN-TV, globest.com, June 20, 2008) – Trammell Crow Co., USAA Real Estate Co. and Constructive Ventures Inc. will turn the Green Water Treatment Plant in downtown Austin into a $700 million mixed-use development.
The partnership plans to fill the six-acre site with 2.6 million sf of condos, apartments, offices, retail space and public gathering space. The project will also include affordable housing and a 250-unit senior assisted-living facility.
Tentatively called Project Green, it will cover several city blocks, including Shoal Creek, Caesar Chavez, Nueces and 3rd streets, and West Ave.
The city will start the decommission process on the plant next year with hopes of construction beginning in 2010.