Austin Texas Real Estate Blog

If this report can be believed, things may be looking up for the real estate market in the Dallas-Forth Worth area as house prices continue to creep higher, according to the Office of Federal Housing Enterprise Oversight. The OFHEO reports that Dallas house prices rose 3.76 percent in the first quarter of 2008 when compared to this time last year. Prices rose slightly less than one percent from fourth quarter, 2007. Fort Worth house prices showed a smaller improvement – up 2.59 percent from first quarter 2007 and down very slightly from the last quarter of 2007.

In the rest of the nation, prices continue to decline, down 3.1 percent from 2007.

This doesn’t completely jibe with statistics from the National Association of Realtors, which says the median price of homes in the Dallas-Fort Worth area actually fell over 2 percent in the first quarter this year compared with 2007. And the North Texas Real Estate Information Systems report pre-owned home prices are down 1 percent this first quarter as compared with 2007.

One factor in depressed real estate prices is the substantial inventory of unsold houses in major cities. Inventories are down slightly in the Dallas-Fort Worth region and this should take the pressure off sellers, allowing them to ask a higher price.

All this good news should be taken with a grain of salt, however. The apparently cheery outlook is damped by the fact that this report doesn’t take many factors into account. The OFHEO doesn’t include high-end homes – those priced above $417,000 – and is seasonally adjusted based on information they receive from Freddie Mac and Fannie Mae mortgage investors.

So, who to believe? Pop psychology suggests you believe the good news and it may become a self-fulfilling prophecy.

The old saying “April showers bring May flowers” is very true when it comes to the real estate market. Buyers seems to go underground at the first hint of cold weather and emerge, like so many Punxsutawney Petes as the ground and air thaws and the weather is more friendly toward house hunting activities.

According to this article in the Realty Times, the housing market in the nation as a whole is beginning to shake off the winter doldrums, as well as the residue of a burst real estate bubble, and starting to show a positive trend once again.

Austin is right up there with the fastest-selling inventories – houses average 67 days on the market.

Prices are beginning to rise slowly, indicating a healthy seller’s market, but also a good buyer’s market as inventory is still somewhat high and buyers have their choice of properties at still reasonable prices.

In its continued penchant to buck against national trends, average sales prices of homes in the Austin area rose almost 2 percent in April, with prices up about 12.5 percent over 2007. Average price of a home in Austin stands at just under $267,000.

Another event that is having a huge effect on the real estate market trend is the drastic rise in gasoline prices. This has had the social effect of potential home buyers considering what a commute would mean to their pocketbooks as they look at the choices between rural and urban home locations. Many energy-conscious consumers are beginning to cast an eye toward home-owning possibilities in the downtown area. A number of luxury apartment and condominium projects are underway in downtown Austin, and prospective homeowners are eagerly awaiting completion of these projects as they look toward a more urban and energy-efficient lifestyle.

Many home owners want to “go green”, but fear the cost and bother of doing so. It’s surprisingly inexpensive and fairly easy, though, to make small changes that can lower your family’s carbon footprint. I’m only going to mention three, but this article has ten simple ways to become more environmentally friendly.

On average, an American household annually emits about 26,000 pounds of carbon dioxide into the atmosphere. The energy used costs about $1,400 every year. A first step to reducing these financial and environmental costs is the old “turn off that light” maxim. My mother’s cry of “turn if off if you’re not using it.” would echo throughout our modest ranch house, so much so that I find myself stepping into empty conference rooms to flick the switch on lights left burning after the meeting was long over.

Another small step is to check the standby energy use of your electronic appliances. Computers, when shut off, still draw electricity through their power cords. Today’s television sets don’t shut off completely when you hit the power switch. One way to make sure the appliances are completely off and not drawing power is to plug them into a power strip which, when the item is not in use, is shut off at the strip, thus ensuring no electricity ‘leakage’.

One last piece of advice: replace your incandescent light bulbs with compact fluorescent bulbs. The technology in this area has advanced by leaps and bounds in the past few years and these bulbs, while still a bit pricey, are easier to screw into the socket and use a quarter of the electricity of a traditional bulb. They also last ten times longer on average.

Simple steps, big benefits. Going green has never been easier

With apologies to Frank Zappa, it’s Austin and not Centerville that’s a great place to raise a family. House prices remain low, but jobs continue to grow, creating a quality spot to relocate and settle for the duration.

Austin is home to eight independent school districts, which include the Austin Independent School District in Travis County and the Round Rock Independent School District in Williamson County. There is no lack of educational opportunities in the area as Austin is home to a branch of the University of Texas which offers studies in Business, Communication, Education, Engineering, Fine Arts, Nursing, Natural Sciences, Architecture and Social Work among many others.

The climate in Central Texas is conducive to many outdoor activities and Austin offers much in the way of events and activities for the whole family. There are plenty of art galleries, some that offer child-friendly activities and many with low or free fees. There is a long list of out- and indoor markets – flea markets, farmers markets, garage sales, and such on the weekends.

The Austin Zoo posts a very low entry fee. With 60 different species and over 200 animals, the zoo is a great place to spend the afternoon. The Topsey Exotic Ranch offers a drive-through safari for wildlife viewing from the comfort of your car for a low entry fee. And, if you love wild flowers, the Lady Bird Johnson Wildflower Research Center is open Tuesdays through Sundays. The Research Center reflects the late first lady’s love of wildflowers and her campaign to create beauty along the highways of the nation.

Austin’s low crime rate, clean environment, and low cost of living is a definite draw when families start looking around for a prime relocation area.

The Leadership in Energy and Environmental Design (LEED) Green Building Rating System, is the standard by which Austin’s building projects are measured these days. Developers seeking LEED certification must meet stringent requirements for reduced waste, conservation in energy and water use, healthy environment for occupants and employees, and demonstrate their commitment to environmental conservation and responsibility.

Austin lays claim to starting the green building trend. The city government has been at the forefront of providing incentives for home and office builders to apply sustainable building practices as they plan and develop residential and professional properties.

Austin recently hosted the Austin Green Living & Home Products Expo, April 18 through 20, at the Austin Convention Center to showcase new products and designs and offer workshops for consumers to learn simple ways they can change their lifestyles and products they use to help contribute to a more environmentally friendly future. Small changes such as using compact fluorescent bulbs and reusable shopping bags can make a big impact when a lot of people get involved.

The Expo featured builders, landscaping architects, producers of renewable and alternative energy sources, and natural, organic, and fair trade products. Mayor Will Wynn spoke about his Climate Protection Plan, introduced in 2007 to raise awareness and set some goals for sustainability for the city. His aim was to set an example for the rest of the state by encouraging area home and business developers to study ways of lowering energy costs and use and he�s leading by example. In an article in the Austin Chronicle, he stated “my home electricity bill is $28 again this month. I’m also driving a fifth what I used to”. His hope is that the city will set an example for the rest of the country and, indeed, the world.

The residents of Bexar County are fed up with burgeoning development in their region – rampant growth that they fear will destroy the beauty and health of their land and water. Finding little help in the usual channels of their government representatives, the people began to turn to each other, forming alliances and making plans.

Comprised of ranchers, farmers, town leaders, conversation organizations and some political allies, residents are banding together to fight eminent domain type land seizures and uncontrolled development. They’re becoming increasingly aware of the delicate nature of their local resources and ecosystems and are working to protect the county’s treasures.

The Greater Edwards Aquifer Alliance (GEAA) was formed to protect the Edwards Aquifer, a watershed that provides hydration to San Antonio and the surrounding region. Worries that construction would begin to cause contamination in the vital health of this water resource, the residents formed the alliance to address these concerns. At first, plans by the San Antonio Water System (SAWS) to expand their jurisdiction and install water supply outward from the city seemed a good idea – SAWS argued this would prevent a proliferation of septic tank communities. The GEAA members quickly decided expansion of SAWS’ authority would only serve to speed urban sprawl.

Another group, the Hill Country Planning Association, came together to urge government representatives to consider a moratorium on all development until investigations can be done into environmental impact and compliance with local, state, and federal laws. The group is still finding their concerns falling on deaf ears as legislators push for the growth that they see as a benefit to the region. The residents fight on, though, wanting only to ensure a sane and controllable plan to preserve the environmental integrity of rural life.

Back in April of 2007, Inman News reported a 42% increase in suspected mortgage fraud rates nationwide over 2006. Well, the trend seems to be escalating, as the FBI warns in a report out recently. The Bureau warns that the pace seems to be quickening, given figures for the first half of fiscal year 2008. The figures include losses from the sub-prime mortgage fiasco.

Mortgage fraud includes inflating income or assets, forged documents, misrepresenting intention to occupy the property and exaggerated appraisals. The FBI report warns of increases in fraud, probably due in part to the depressed real estate market, opening the door for perpetrators of fraud. The FBI also warned of an increase in identity theft mainly targeting people with good credit ratings.

In March, ABC News reported on mortgage rescue scams, where con artists purport to help cash strapped home owners pay off their mortgages, only to abscond with the fee they charge, leaving the home owner more strapped than ever and facing foreclosure. The technology of today unfortunately adds to this because it allows easier access to personal information for identity thieves. When home owners submit information to get a home equity loan or line of credit, thieves steal the information and send the financial institution a fax, requesting them to transfer the funds elsewhere.

The FBI bases its gloomy predictions on an increase in fraud complaints, saying they “could be headed for 70,000″ suspicious activity reports. The higher rate of complaints enforces FBI director Robert Mueller’s warning that “as housing prices continue to fall, more financial misdeeds will no doubt come to light.”

The FBI is currently investigating over 1,300 cases of mortgage fraud and 19 investigations into subprime lending cases.

As with all good things and developments like the green movement, it seems like there’s someone out there ready to take advantage of the technology learning curve and people’s desires to do good. This company was stopped before they could do too much damage, but I personally hope that they get what they deserve for defrauding the environmentally conscious Texas public.

Joe

Excerpt from My Fox Austin.

05/14/2008 — Texas Attorney General Greg Abbott obtained a temporary restraining order and limited asset freeze Monday against Forum Trading, Inc.

The state’s legal enforcement action charges the Austin-based company, which is organized as a multi-level marketing scheme with independent distributors, with marketing energy devices it falsely claims will significantly reduce power consumption, extend the life of household appliances and save consumers money.

“With Texas families focused on energy prices and seeking cost savings, these defendants are promising lower electricity bills but failing to deliver,” Attorney General Abbott said. “Experts who reviewed the defendants’ products discovered no actual savings for well-intentioned purchasers. The Office of the Attorney General will continue to aggressively crack down on scam artists who attempt to illegally profit from Texas families.”

Court documents filed by the state indicate that Forum Trading, Inc. and several affiliated companies, including Xium Corporation and Xedia Technologies Inc., deceptively market and sell small devices that can store electric energy. The defendants falsely claim that the “Xpower Energy Saver,” which they sell for almost $200 per unit, will reduce consumers’ electricity consumption by up to 25 percent, while the “Mega Power Saver,” priced at nearly $300, will result in more than 10 percent savings.

However, engineers who tested the purported energy-saving products at the University of Texas at Austin concluded that the Xpower Energy Saver could produce no more than a 0.06 percent reduction in electric consumption in an average house. The Attorney General’s laboratory expert similarly concluded that the Mega Power Saver could provide, at best, no more than one percent total energy savings. According to the state’s expert, the devices have no effect on the life of household appliances, despite the defendants’ claims that the Xpower Energy Saver allows appliance motors to “run about 10% cooler.

The laboratory testing also revealed that the products are, in reality, ordinary capacitors, which are often used in electronic circuits to store energy or to differentiate between high-frequency and low-frequency signals. Capacitors are regularly used by electricians, and they can be purchased for less than $20.

You can read the whole story at MyFox Austin.

A unique planned community in Port O’Connor, Texas, offers not just a site for your home but one for your boat as well, with lots starting in the $100,000 range, and ready access to prime fishing waters. The Caracol coastal master-planned community is located along the Intra-coastal Waterway near Port O’Connor on the Gulf of Mexico. It’s convenient to Houston, Austin, and San Antonio, and yet far enough away to be a relaxing vacation destination. With the Gulf in the backyard, a homeowner in this gated community can park the car in the driveway and the fishing boat at the slip.

Port O’Connor is known world wide as a prime close- and deep-sea fishing location. Just off shore, the waters teem with red snapper, king fish, tarpon and jack fish. Farther out, tuna, dolphin, and blue martin are abundant. Port O’Connor hosts the annual Poco Bueno fishing tournament that attracts sport fishermen from all over the globe.

The planners building Caracol aim to provide a second home for serious fishermen in an upscale gated community. Construction has begun and, when completed, the development will boast 74 home sites in various sizes, ranging from 40 to more than 100 feet of waterfront. Future development plans include a mid-rise condominium with a marina attached. There will also be a community pool and pavilion, which is currently in progress.

Caracol is a joint venture of Trend Development, Inc., and Forestar Real Estate Group. Trend Development is a privately held real estate development company with several large-scale projects in progress throughout Texas. Forestar Real Estate Group operates in two areas: real estate and natural resources. The real estate segment holds interests in ten states. The natural resources part manages oil and gas resources and wood fiber sales from land located in Georgia.