Austin commercial real estate foreclosures in 2009 increased to more than double their 2008 levels, reflecting the effects of the recent nationwide real estate market difficulties. Austin suffered the highest rate of commercial foreclosures in the state of Texas, but other large metropolitan areas were significantly affected as well. This increase is attributed [...]
Austin commercial real estate foreclosures in 2009 increased to more than double their 2008 levels, reflecting the effects of the recent nationwide real estate market difficulties. Austin suffered the highest rate of commercial foreclosures in the state of Texas, but other large metropolitan areas were significantly affected as well. This increase is attributed in part to large-scale layoffs in the manufacturing sector, which have created problems for a number of local industrial concerns. The commercial foreclosure trend is expected to continue throughout the first half of 2010, due to continuing economic woes; experts warn against overly optimistic expectations for the manufacturing and commercial sectors. Approximately $500 billion in commercial loans are expected to come due for refinancing in 2010, with as much as $800 billion more in 2010; this will likely spur additional periods of high foreclosure rates as businesses struggle to find financing in the current lending climate.
Industrial real estate properties were hardest hit, with a 400 percent increase in foreclosures over 2008. Retail shopping centers and vacant land also experienced a less dramatic rise in foreclosure rates. Some economic analysts see this as an opportunity for businesses to acquire additional space at bargain prices; with real estate prices in some areas at near-record lows, many companies that are currently renting space may be able to purchase property instead. This may actually spur an increase in commercial real estate sales during 2010 as businesses take advantage of the opportunity to expand their holdings at discount prices.
Commercial foreclosures represented about seven percent of foreclosures in the Austin area. One bright spot in the economic outlook for these properties is the increase in companies looking to expand into the Austin business market. Austin is an attractive location for commercial relocation due to its highly-trained labor force and resilient economic base. Most analysts in the area expect that corporate relocations and expansions will continue to increase in Austin, spurred in part by the lower cost of commercial real estate in the overall market.
A recent deluge of short sales is creating difficulties for home sellers and buyers alike according to most real estate analysts. Lenders are overwhelmed by the number of short sales requests and are taking far longer to process offers from willing buyers. This delay often causes buyers to withdraw their offers and contracts [...]
Some analysts are worried about the increase in short sales.
A recent deluge of short sales is creating difficulties for home sellers and buyers alike according to most real estate analysts. Lenders are overwhelmed by the number of short sales requests and are taking far longer to process offers from willing buyers. This delay often causes buyers to withdraw their offers and contracts to fall through, necessitating the relisting of the home and further delays for anxious sellers. Banks and mortgage providers simply don’t have the staff in place to handle the increased volume of short sales, and further delays result when lenders must request necessary paperwork from investors and secondary lienholders.
Short sales occur when lenders agree to discount the remainder of a mortgage balance rather than foreclose on the property; the lending institution then puts the home on the market, and the bank collects the proceeds of the sale as payment in full for the outstanding debt. Because of recent market conditions, many homeowners have found themselves in serious financial difficulty; their home’s value has dipped, sometimes to less than the remaining mortgage debt. Typically the bank is willing to take the current appraised value of the home as full payment, even when this does not cover the entire amount of the mortgage. In some cases, however, lenders have been known to cancel contracts and raise the price of the property, sometimes to an unrealistic level. This is due in part to changes in the appraisal process, which have also led to serious underappraisals of properties in cities like Austin. The use of foreclosures as comparables is only one of the many deficiencies in the current system; in short sales especially, it can be difficult for lenders to obtain an accurate appraisal of the property’s true worth.
While Austin has seen fewer short sales than many other metropolitan areas, the continuing rise in short sales volume has some real estate experts worried. Short sales are expected to increase still more in response to the November 30, 2009 announcement of a federal program that provides financial incentives to sellers and lenders who avoid foreclosure through short sales. These transactions place an additional burden on all parties. Sellers must provide proof of economic hardship before their request for a short sale will be approved. Lenders must assume responsibility for paperwork relating to the sale of the home; buyers and real estate agents must be prepared for lengthy delays in processing and accepting offers and closing on the short sale property. The entire process takes much longer than traditional home sales, and can be further delayed if banks and buyers cannot agree on a mutually acceptable price. While Austin’s real estate market remains comparatively stable, analysts are watching the situation closely to ensure that short sales do not drive down home prices in our area.
Austin has earned a reputation as one of the most environmentally conscious cities in the nation, but this reputation has not come without cost. Austin’s current single-stream recycling program, which was instituted in October 2008, has cost the city over $2 million since it began. Single-stream recycling allows consumers to commingle all recyclable [...]
Austin uses single stream recycling.
Austin has earned a reputation as one of the most environmentally conscious cities in the nation, but this reputation has not come without cost. Austin’s current single-stream recycling program, which was instituted in October 2008, has cost the city over $2 million since it began. Single-stream recycling allows consumers to commingle all recyclable materials, including paper, glass, aluminum, and plastic, in one container. It is considered more convenient than recycling methods that require that individuals separate out the different types of recyclables into different bins.
The City of Austin has a contract with Greenstar to separate and accept the recyclable materials. The cost of the contract, however, has far exceeded initial estimates due to a sharp increase in recycling on the part of Austin’s residents. The ease of single-stream recycling is credited in part for this increase; another factor is the heightened awareness of environmental issues on the part of Austin residents. Regardless of the causes, Austin city residents have more than doubled their recycling volume since the implementation of single-stream recycling, and the figures continue to rise each month, creating an unexpected expense for the city and requiring a reevaluation of the recycling contract with Greenstar. The contract is currently under review by the city council to determine if it will be extended beyond its scheduled expiration in 2010 or if the cost of recycling materials can be reduced to a more affordable level by negotiating with the company for a longer-term contract.
Greenstar, based in San Antonio, has offered a number of alternatives that could bring prices down significantly. Austin city officials, however, have suggested a plan that would allow Austin to construct its own single-stream recycling facility and avoid the expense of outsourcing this activity to an outside vendor. Most independent analysts believe that the greatest savings over the long run would be achieved by this plan, which would require only a short-term extension of the Greenstar contract and allow the city of Austin to realize approximately $400,000 in savings over the duration of the extended contract term.
A decision on extending the contract is expected soon; city council members are considering three options, including one that will reduce Greenstar’s processing fees by approximately $20 per ton in return for an extension through 2013. If a new single-stream recycling facility is the chosen option, the resulting construction project is expected to provide employment for a number of commercial builders and environmental consultants who will be hired for the project. By constructing a single-stream recycling plant, Austin can continue to demonstrate its commitment to environmental responsibility and green-friendly living while saving taxpayer money into the bargain.
Austin’s inventory of unsold homes decreased by about 20% over the last year, according to real estate analysts ZipRealty Inc. This is in contrast to several other housing markets, which are still seeing increases due to foreclosure and voluntary surrender of homes by financially insolvent owners. Austin joins cities like San Diego, Los [...]
Inventory down, foreclosures down
Austin’s inventory of unsold homes decreased by about 20% over the last year, according to real estate analysts ZipRealty Inc. This is in contrast to several other housing markets, which are still seeing increases due to foreclosure and voluntary surrender of homes by financially insolvent owners. Austin joins cities like San Diego, Los Angeles, Las Vegas and Phoenix in reduction of outstanding home inventories over the last year. This shift may indicate the end of the buyer’s market that has been prevalent throughout the United States; while some urban areas will be slower to recover from the housing market downturn, the reduced inventory of homes will help drive up home values and increase the likelihood that homes already on the market will sell more quickly.
This news comes on the heels of RealtyTrac’s announcement that foreclosure filings are continuing to decrease. November 2009 marked the fourth straight month of lessened foreclosure activity throughout the United States; recent federal initiatives including the Home Affordable Modification Program and other Fannie Mae programs are credited with a large portion of the decrease in foreclosures and defaults. Much improvement is still needed, since it’s estimated that one out of every 417 homes is currently in some phase of default or foreclosure, presenting an overwhelming burden on the housing market during a crucial stage of its recovery. Nevada, Florida, and California have the dubious honor of holding down the top three spots in foreclosure proceedings compared with number of homes.
The reduction in unsold homes in Austin is expected to drive home prices higher and result in increased competition for available homes. The buyer’s market in Austin may be coming to an end, making this the best possible time to investigating home buying options before the prices return to their pre-slump values. Bargains are still available, but it’s necessary to act quickly before the home of your dreams is off the market for good.
Developer Magazine has announced its 2009 Sustainable Community of the Year. Mueller is located in the vibrant city center of Austin, Texas, and reflects Austin’s commitment to green technology and environmental responsibility. The development makes use of the land formerly devoted to the Robert Mueller Municipal Airport, reimagining it as a mixed-use [...]
Developer Magazine has announced its 2009 Sustainable Community of the Year. Mueller is located in the vibrant city center of Austin, Texas, and reflects Austin’s commitment to green technology and environmental responsibility. The development makes use of the land formerly devoted to the Robert Mueller Municipal Airport, reimagining it as a mixed-use urban environment incorporating commercial and residential elements in one unique package. Built by Catellus Development Corporation and designed by ROMA Design Group, the project is expected to provide approximately 10,000 construction jobs to Austin residents.
As a participant in the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) for Neighborhood Development program, the development requires that all residential construction in Mueller qualify for Austin Energy’s three-star energy-efficiency rating. In addition, commercial buildings within the development must meet LEED certification standards; this ensures that they will provide healthy and energy-efficient environments. The Dell Children’s Medical Center of Central Texas is the first hospital ever to achieve LEED platinum certification and set the standard for new construction in Mueller. It is joined by the platinum-certified Ronald McDonald House and the silver-rated Dell Pediatric Research Institute; Mueller’s strict environmental standards ensure the highest level of green-friendly building possible.
Mueller already boasts over 200 three-star rated homes; the community is eventually slated to provide 4,600 residential units, of which one-fourth will be devoted to low and middle-income housing. Entry-level homes are designed to provide a point of access to the housing market for younger buyers, while a senior living community is expected to provide affordable housing for older residents. Ultimately it is planned that 10,000 residents will be served by the Mueller development. Green space and parks comprise twenty percent of the development and occupy 140 acres, providing families with safe places to relax and play together.
Mueller is the result of a partnership between Austin and Catellus Development and is centrally located to allow easy access to major employers within the metropolitan area. Situated just two miles from the University of Texas campus and three miles from downtown businesses, Mueller earns high marks for its pedestrian-friendly design and well-planned transportation routes. The development will eventually include over four million square feet of retail and employment opportunities, allowing many residents to live and work in the same area and eliminating lengthy commutes. Austin Energy’s on-site power plant is environmentally advanced and provides green energy for the development.
Mueller offers unique advantages to residents and businesses; as a result, it has gained local support and is considered one of the most innovative and green-friendly projects of its kind anywhere in the United States. Recreational, retail, employment, and residential areas coexist harmoniously and provide a cohesive and sustainable community in the heart of Austin.
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If you’re a fan of being close to shopping, main arteries, and still love living in the away from the hustle [...]
If you’re a fan of being close to shopping, main arteries, and still love living in the away from the hustle and bustle of the city, 3210 Mocha Trail could be the perfect house for you. Willow Run at Wells Branch is a starter home community with a wide variety of homes from 150k to 225k where homes range from small basically outfitted single stories to larger two story homes complete with extravagant landscaping and hardwood floors. 3210 Mocha Trail is one of those drop-dead gorgeous homes. With hardwood floors throughout the first floor, lush, mature landscaping, a large deck, hot tub, and a dog run. Just seconds from I35, mopac, 1325 toll road, 183, and 45 toll road, this house will let you enjoy a quick ride home while everyone else battles traffic. Take a look and I think you’ll agree this home could just be the best thing out there under $200k.
You can view a panoramic virtual tour with more images at Realtour
For a private showing or more information contact REMAX Capital City at 512-795-4532.
House is the mirror of this floor plan.
