Austin Texas Real Estate Blog

The Austin City Council has named Brewster McCracken to the new Mayor Pro Tem position at a special meeting on Wednesday, June 25, 2008. Mr. McCracken replaces Betty Dunkerley who had served as Mayor Pro Tem from June 20, 2005 to June 15, 2008. Mr. McCracken was nominated by council member Sheryl Cole and seconded by Mayor Will Wynn. The nomination was passed unanimously.

The mayor pro tem serves as a stand in for the mayor, running council meetings, standing in as head of the city at ceremonies, and performing other duties in the mayor’s absence. Mr. McCracken has been a city council member since June of 2003. His mission, as a council member and as mayor pro tem, according to his web site, states “As your Council Member, I have a responsibility to be forward thinking in my initiatives and to be fair in my deliberations and decisions. Above all, I know that I have a responsibility to do my best to ensure that every Austinite has a better future and that we leave this place better than we found it.”

He takes evident pride in the city of Austin and is a big fan of Austin’s vision for alternative energy and green building initiatives. His focus is on supporting Austin’s leadership in emerging technology, including clean energy, digital media, and wireless technology, as well as maintaining Austin’s leadership world wide in semiconductor manufacturing and raise Austin’s status in the nation as one of the top five regions in the biotechnology field.

For more than a year West 17^th Street at Lavaca Street has been closed. There’s been construction, which residents have accepted and adapted to. After all, there is nearly always construction in some part of Austin. You can’t avoid it; you can only accept it, even when it does inconvenience several thousand state employees.

Besides, this construction, when it started, was expected to lead to luxury condos and an office building, to be called La Vista on Lavaca. The permit was taken out for it in April 2007. At that time, Jason Redfern, manager of the Right of Way Management Division in Austin’s Watershed Protection and Development Review Department, said, the developers planned to keep the street closed for six months. When six months came and went, they renewed the permit for another six.

April 2008 should have seen another renewal or the completion of the project. It saw neither, and in fact, didn’t even see construction. No one has been there for months and the permits are expired. The city is now probing into the whys and whats of the situation, hoping for a clear answer in this mysterious halt.

The developers claim that their permits are up to date, and that the city is mistaken. But their claims do nothing for the fact that the street is still closed for no apparent reason.

If nothing is going to be done, citizens want it open; so does the city. There should not be, they say, inconvenience for no reason. There should only be inconvenience with the promise of future convenience. And that has disappeared from West 17^th and Lavaca.

The saturation of rental units on the Austin market is good news for tenants who can expect cuts in rent and possibly pick up some amenities as landlords vie for their attention. Yet, the demand remains high for upscale urban apartments as people look for residential units closer to their place of employ.

According to the apartment research firm, M/PF YieldStar, occupancy for June 2008 stood at 93.4 percent, down 1.5 percent from March and nearly 2 percent from the same time in 2007. This should raise some concerns with landlords, as the same firm predicts a flattening of occupancy for the rest of 2008, and foresees a drop of possibly 3 percent in 2009.

Construction of nearly 13,000 units is planned for the Austin area through 2009. Greg Willett, vice president of research for M/PF, says the real need is for about half that amount, based on demand which he feels has become sluggish.

This pessimistic opinion is not shared by developers in the Austin market, however. Spencer Stuart, managing director of Legacy Partners Residential Development Inc., says rental activity is strong in both downtown and close by suburban areas. Rising gas prices and the desire to be close to the action is fueling the demand for higher priced units closer in to the city.

Still, the rise in rental rates does appear to be slowing down and tenants will indeed find bargain lease rates. Rents rose less than 4 percent from 2007 to 2008, with average monthly rent standing at $839. Yet, this means the market becomes more competitive, and that means good deals for prospective tenants.

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 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

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 offers not 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.