Archive for February, 2009

Austin Moves Up to 2nd Place in National Housing Study

Published February 23, 2009 Market Stats , National News Leave a Comment

Austin was ranked the 2nd healthiest housing market in the U.S. by Builder Magazine last week.  The study analyzed data from the 75 largest housing markets in the U.S.  Rankings were determined by analyzing job growth, housing price trends, build permit numbers and population growth trends.  Texas’ strong population and job growth coupled with affordability allowed it to dominate the standings and claim the top 5 spots:

1. Houston, TX

2. Austin, TX

3. Ft. Worth, TX

4. San Antonio, TX

5. Dallas, TX

Other cities in the top 15 included Raleigh, Seattle, Nashville and Denver.  Read the full article here: the-healthiest-housing-markets-for-2009-builder-magazine

$75 Billion Plannned to Fight Foreclosures

Published February 18, 2009 National News Leave a Comment
Tags: ,

The Obama Administration announced preliminary details of a $75 Billion plan to fight foreclosures and help stabilize the housing market in the countries hardest hit regions.  The plan will work closely with banks and the mortgage industry to reduce monthly payments for “responsible homeowners” who have been hit by the recession.  The plan outlines three key aspects:

1. Encourage continued low interest rates in the open market by increasing the mortgage portfolios held by increasing Freddie Mac and Fannie Mae’s mortgage portfolios from $850 Billion to $900 Billion and by having the Treasury invest an additional $200 Billion in their stock and to further promote confidence in the organizations.  Additionally, the Treasury will continue to purchase mortgage backed securities from Freddie and Fannie.

2. Provide low cost re-financing to 4 to 5 million homeowners who are current on mortgage payments but are financially distressed.  There are many areas where homeowners who purchased a home within the last 5 years have remained current on mortgage payments, but their home values have decreased as the economy has worsened and they now lack sufficient equity to qualify for re-financing even though they may have placed a sufficient down payment on the home when they purchased it.  The Government intends to work with banks to help people who’s home values have declined to qualify for lower interest rates to reduce their monthly payments.

3. Create a $75 Billion fund to assist 3 to 4 million homeowners who are at risk of foreclosure.  The government intends to create a standardized set of national guidelines for homeowner assistance that can work in conjunction with the mortgage industry to reduce interest rates, provide loan modifications or reductions and by providing partial mortgage insurance for lenders who agree to not foreclose on a home.  Without getting into nitty gritty details, the idea is for the government to provide incentives for the banking/mortgage industry to negotiate loan modifications with responsible homeowners to avoid foreclosure.  The thought is that if foreclosures can be decreased to a manageable level, then home prices will begin to stabilize and stave off additional foreclosures so that the housing industry could begin to recover.  The initial plan seems to outline that the amount of assistance a homeowner receives will be made based on the debt to income ratio.  The bank would be responsible for getting the payment to less than 38% of gross monthly income.  Then the government would match the assistance given by the bank to further reduce payments.  Additionally, the government plans to reward homeowners in the program who make 12 months of on time payments by paying $1000 toward the principle of the homeowner’s loan.

Read more at the NY Times here:

Countrywide mortgage holders near foreclosure to receive restitution

Published February 16, 2009 Uncategorized Leave a Comment

From the Dallas Morning News: As part of the largest predatory-lending lawsuit in history, Countrywide will use $8.4 billion to modify mortgage terms for 400,000 borrowers in Texas and ten other states who received unaffordable loans from the lender. The settlement has reserved $7.5 million for Texas to distribute restitution payments worth $2,300 to help borrowers who already lost their homes or are near foreclosure — 120 days or more delinquent on payments. About 3,260 Texans are eligible for restitution, according to a spokesman with the Texas Attorney General’s office. Under the settlement, borrowers could get the $2,300 payment if their first loan payment was due between Jan. 1, 2004, and Dec. 31, 2007, and they made six or fewer payments before losing their home. For borrowers who can’t afford to refinance their mortgage and have to leave their home through a foreclosure sale, the settlement provides relocation assistance of $2,000 per borrower.

$787 Billion Stimulus Plan Passed | Underwriting Guidelines Loosened

Published February 16, 2009 National News Leave a Comment
Tags:

Congress passed a leaned down version of the stimulus plan over the weekend which was reduced from its original size.  The bill is expected to be signed by President Obama tomorrow.  While I don’t agree with certain portions of the package, its effects on the housing market should be positive.  Here is what it means for real estate:

 - First time homebuyers will get an $8,000 tax credit.  To qualify, you may not have owned a home within the last 3 years and you must close on the purchase no later than Dec. 1, 2009.  Previously there was a $7500 tax incentive, but the $7500 had to be paid back over time.  The stimulus bill will make the $8,000 a true credit that is not paid back by the individual.

- Existing homeowners are eligible for a tax credit on 30% of the cost of improvements tho increase a home’s energy efficiency, up to a maximum tax edit of $1500.  In other words, you may spend up to $4500 in energy efficiency improvements and receive a $1500 tax credit at year end.  Improvements may include items such as more efficient furnaces, air conditioners, windows, hot water heaters or kitchen appliances.

- The bill has over $50 billion allocated for foreclosure mitigation to help keep homeowners who have been laid off or fallen under financial difficulty in their homes.

Seperately, Fannie and Freddie loosened their underwriting guidelines last week.  For the last several months the guidelines have limited property owners to four (4) properties.  The new guidelines allow for ten (10) in hopes to help stimulate investor activity to absorb some of the standing inventory in hard hit areas such as Florida and southern California.  Additionally, loan limits in high cost housing markets will be raised to $727,000 although this aspect is unlikely to affect Texas due to its affordability relative to the rest of the country.

Let us know your thoughts on the package.

Texas tops US exports list

Published February 13, 2009 Market Stats , National News Leave a Comment

The Lone Star State is the nation’s top exporter for the seventh year in a row, according to a new U.S. Department of Commerce report.

Gov. Rick Perry commented on the top ranking Thursday, attributing the state’s success on the exporting front to predictable business regulations and low taxes.

Perry’s office released the data that helped Texas secure the top spot — namely the state’s 14 percent increase in exports in 2008 over 2007.

Last year, Texas exports totaled $192.14 billion, approximately $23.92 billion more than in 2007.

The top five recipients of Texas exports include Mexico, Canada, China, the Netherlands and Brazil.

Travis Country foreclosures up 50% from last February

Published February 13, 2009 Uncategorized Leave a Comment

Travis County saw an all time high in both monthly and quarterly foreclosure postings while Williamson County saw a new quarterly high in its postings for the first quarter of 2009, according to research from Addison-based Foreclosure Listing Service Inc.

In the first quarter, Travis County foreclosure postings topped 1,400 for the first time, said George Roddy, president of FLS. The total was 1,470, a 12 percent hike over the 1,321 notices filed in the last quarter of 2008 and a 43 percent jump over the number of foreclosure postings for the same quarter last year.

Foreclosure postings have surpassed 1,000 per quarter for the last five consecutive quarters, Roddy said.

For the month of February, Travis County foreclosures also broke a new record, reaching 551. That’s a 56 percent increase compared with the same months last year.

Because the filing deadline for the March 3 auction has passed, FLS already has compiled monthly and quarterly numbers.

“The spike that we saw in February was due to the first of the year house cleaning efforts of lenders and their trustees,” Roddy said. “Like many businesses, the first of any new year is a good time to clean the slate as much as possible. Lenders are no different.”

Roddy said the silver lining to the high foreclosure rate is that for investors this is one of the best times to buy real estate.

Williamson County saw 911 foreclosure postings in the first quarter of 2009, a 33 percent increase compared with the same quarter last year, when 684 notices were recorded.

For the month, the county has 327 postings, a 50 percent increase compared with the same month last year. On a month-to-month basis, though, foreclosure postings for the March 3 auction were down 3 percent from the notices filed for the February auction.

In other nearby counties:

 

  • Bastrop County postings for the quarter totaled 206, up 56 percent from the same time a year earlier.
  • Hays County postings totaled 316, up 33 percent

 

Pending home sales increase nationally over 6%

Published February 11, 2009 Uncategorized Leave a Comment

WASHINGTON — An index that tracks signed contracts to purchase existing homes rebounded in December, as buyers snapped up properties at deep discounts, especially in the South and Midwest.   Read more.

Catch the Worm

Subscribe to The Early Bird by Email

Follow Us on Twitter

RSS Current & Recent Listings

  • 1402 Gorham
    Recent construction in the Enclave at Gracywoods. Shopping and restaurants nearby at the Domain. Biking and hiking trails at Walnut Creek Park within walking distance.Date: Nov 21, 2011Number of Photos in Album: 29View Album
  • Pedernales Lofts 2401 E. 6th # 4066
    Corner unit 1 bedroom loft overlooking downtown Austin. High ceilings, walls of windows, covered parking, communal garden and walking distance to commuter rail stop.Location: 2401 E. 6th St. # 4066 Austin, TX 78702Date: Jul 26, 2011Number of Photos in Album: 26View Album
  • 5306 Halwill
    Charming mid century modern home in Windsor Park. 3 beds, 2 baths, spacious kitchen and sunroom. Spacious backyard with detached garage and woodshop. Only 2 blocks to the shops at Mueller, restaurants and Bartholomew Park.Date: Jul 21, 2011Number of Photos in Album: 28View Album

RSS Real Estate Headlines from the NY Times

 

February 2009
M T W T F S S
« Jan   Mar »
 1
2345678
9101112131415
16171819202122
232425262728  

a

Follow

Get every new post delivered to your Inbox.