Austin Texas Real Estate Blog

Design Workshop Inc. has taken up permanent residence in a 2,500 square foot space at 801 Congress Avenue a couple of months ago. Seven employees from Denver moved into the space in May 2008, hoping to grow their numbers to over 20 in the next three to five years.

Design Workshop is, according to their home page, ‘an award winning, international landscape architecture, land planning, urban design, and tourism planning firm.’ Combining concerns of environment, economics, art, and community, Design Workshop offers urban planning and affordable housing strategies, feasibility and environmental impact studies, project facilitation between the public, the corporate sector, and the community, as well as a host of other diverse land planning and design services.

Rebecca Leonard, a graduate of Ball State University College of Architecture and Planning, will lead the office. Her focus will be on developing projects for the firm, not only in the state of Texas, but will serve clients nation wide and in the Caribbean as well.

Texas projects by Design Workshop have thus far included master planning and design for the second phase of the Domain project in North Austin, initial planning for Hardy Yards in Houston and Bellaire Sustainable Development in Hurst.

The Domain development is a mixed-used community in Northwest Austin, combining commercial and residential uses in one area. The second phase of the Domain project will cover 27 acres south of the original Domain and plans include a three storey Dillard’s, an 80,000 square foot Dick’s, and an eight screen cinema complex, as well as a 340 room Westin hotel. Construction begins this summer, 2008, with plans for opening in November of 2009.

The Canadian-based company, Qualico Development, has bought up 1,600 acres in Del Valle, south east of the Austin city limits, for a planned community development in this area near the Austin-Bergstrom International Airport.

It’s not yet known how many units Qualico plans on building, but there is a golf course planned, as well as commercial space. The general manager of Qualico Communities, Glynn Hendry, estimates that the company spent about $19 million on the land. The types of houses will cover a wide range – from those priced for the first time home buyer to those qualified for the higher end prices.

For 60 years, Qualico had concentrated its interests in the western region of Canada – being based in Winnipeg - but they now see an opportunity to expand into the United States. Austin was chosen as a growing city with a great deal of potential for housing and commerce. Austin has weathered the national real estate meltdown fairly well and this Canadian company is convinced it’s got all the makings of a boom market.

The property itself is situated in a prime location. Its proximity to Austin makes it an excellent bedroom community for professionals who work downtown. As gas prices increase, commuters are eying neighborhoods closer to work. The development in Del Valle will raise the real estate value of the area, where homes typically range from $100,000 to $200,000.

Qualico Development isn’t the only Canadian company eyeing the real estate market in the US, either. Carma Developers LP, based in Calgary, announced in 2007 a plan to invest $500 million in a 2,500 acre area near the airport as well. The development is expected to create a community of 30,000 residents and 1 million square feet of commercial space.

What do the United States Investors need as a more clear indicator to continue their business expansion? With Austin as a focal market for impressive growth and expansion, foriegn investors will continue to grow and expand into the United States.

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.

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.

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.

Austin Brings Home the Environmental Gold

December 17th, 2007 6:25 PM

I love living in a place where people, both in the private sector and the government, strive to do what’s right. It’s refreshing to see Austin continue to set the bar across the nation for protecting our environment.

In other related news, the Texas Commission on Environmental Quality (TCEQ) has proposed guidelines to implement legislation passed this year requiring electronics producers to provide recycling programs for consumers in Texas. Environmental advocates, local government leaders and electronics recyclers have argued that the proposed rules do not do enough to ensure the programs will be convenient for residents and provide responsible recycling.

Yesterday the three TCEQ Commissioners voted to invite broad comments so that they can consider alternatives that would strengthen the proposed guidelines, which are weak.

Visit www.TexasEnvironment.org for the latest details on the campaign to make electronics producers recycle.

Austin in top 10 list of greenest cities

…excerpt from the Austin Business Journal

Austin ranked ninth in a national survey of the top 10 green cities in the country.

According to data compiled by the EarthLab Foundation, a Kirkland, Wash.-based nonprofit, Chicago tops the list followed by New York, Boston, Los Angeles and Philadelphia. Remaining top 10 green cities are Minneapolis, San Francisco, Seattle, Austin and Portland.

The data used for the survey is based on a sampling of more than 1 million U.S. residents who used EarthLab’s Carbon & Lifestyle Calculator, which scores users’ personal impact on the environment, factoring in energy consumption, transportation, work, recycling and other lifestyle habits.

U.S. green-tech hot spots go coast to coast

Investments in green-tech start-ups are going through the roof. Which regions in the U.S. are in the lead?

excerpt from News.com

Texas

Texas netted 149 million in clean-tech venture dollars in the first nine months of this year, with more than half of that going to Austin-based HelioVolt, a company that is building solar electric cells using CIGS (copper-indium-germanium-selenide), an alternative material to silicon.

The Austin area is the hotbed of activity for Texas clean-tech start-ups, where there is a University of Texas-linked Clean Tech Incubator to foster development of new companies.

Austin benefits from the advocacy of Mayor Will Winn who is pushing for mass transit, a green-building program in conjunction with municipally owned Austin Energy, and plug-in hybrid stations. “You tell people (they) get to drive around on West Texas wind, not Middle East oil, and it resonates with a broader spectrum of people,” Winn says.

Texas has the fastest-growing wind industry in the U.S., according to the American Wind Energy Association. And its strong ties to the gas and oil industries make it a natural place to test material technologies to improve refineries and exploration.

Austin’s Econmic Outlook for 2008 - Healthy

December 13th, 2007 7:44 PM

With all the news about doom and gloom in the mortgage industry and a large portion of the country seeing slow sales, declining prices, and layoffs, it’s good to know that here in Austin we have a bright future ahead. A lot of people who are not familiar with the Texas economy and, in particular, not familiar with the cyclical growth of Austin/Central Texas, still seem to think that we’ll have a downturn in 2008. I disagree. The rational growth and limited investor speculation, along with a strong prosepct for job growth certainly make me feel better about this market than 2001-2004. Not that the early 2000’s were that bad, but they certainly weren’t great real estate wise.

The snipet below is from one of my favorite Austin Information sources, The Neal Spelce Letter (www.AustinLetter.com).

As 2007 draws to a close, the Austin-Round Rock metro area is in an enviable position, and when you examine the counties adjacent to the metro – especially those that make up the highly desirable and attractive Hill Country to the west – it looks even healthier economically.

A vibrant economy starts with jobs. When people are working, almost everything else falls into place. Sure, outside economic forces – such as tightened credit policies – have an impact. But, even then, tight credit may prove to be somewhat of a good thing if it keeps workers from getting deeper into debt.

The key point is that this part of Texas is a job mecca. For all practical purposes, anyone who wants a job has a job or can get a job. The five-county Austin-Round Rock metro area in October registered a miniscule 3.3% unemployment. And Travis County (Austin) with the largest population concentration had 3.2% unemployment.

The other four counties are also doing very well. Williamson County (Round Rock, Georgetown, Taylor) recorded 3.4% unemployment, Hays County (San Marcos) also came in at 3.4%, Bastrop County (Bastrop) tallied 3.5% and Caldwell County (Lockhart, Luling) notched 3.7% unemployment. All very, very solid.

And the job picture is even better in the adjacent Hill Country counties. While those counties are not officially included in the five-county Austin area, the population growth is surging west and many of their residents come into the Austin metro for shopping, health needs, entertainment and, yes, jobs. The Hill Country is very much a part of our trade area.

Consider Burnet County (Marble Falls) that abuts Travis County to the west. Its unemployment is an amazing 3.2%. Blanco County (Johnson City, Blanco) touches both Hays and Travis Counties and carries a 3.4% unemployment. And Gillespie County (Fredericksburg, Stonewall), adjacent to Blanco County’s western border, leads all the Hill Country and Central Texas with a 2.9% unemployment.

There is no other major metro in Texas with a better job picture than Austin-Round Rock and its neighbors. This isn’t to demean the others because the other biggies are all doing better than the very good 3.9% Texas state average. But it does reinforce how well Austin is doing.

Austin Market Update

November 27th, 2007 11:22 AM
Recently released from the Austin Board the update below is telling data about the Austin residential market slump that has gripped us for the last 3 months. The credit crunch, holidays, uncertain interest rates, and questionable consumer confidence have all played a role in slowing sales. While the 15% decrease may seem like a big hit, it’s important to remember that 2005 and 2006 were stellar years for real estate in Austin. We saw fast sales, steady increases in values, and a generally national trend bucking economy here in Austin. An interesting thing to note in the press release below is that while sales have slowed, median price has continued to rise. As an Austin homeowner, you can’t complain about that.