Texas Real Estate

Gift cards have become a great gift giving idea over the past several years and the National Retailers Federation estimates that a total of $97 billion in gift cards – $26.3 billion during the holidays alone – were purchased in the US last year. However, this year, if you are planning to give a gift card, it is important to be aware of some retail stores closing or going out of business.

Stores that are planning to close after Christmas are still selling the cards through the holidays even though the cards will be worthless January 1. There is no law preventing them from doing this. On the contrary, it is referred to as ‘Bankruptcy Planning’.

Below is a partial list of stores that you need to be cautious about.

Circuit City (filed Chapter 11)
Ann Taylor 117 stores nationwide closing
Lane Bryant, Fashion Bug, and Catherine’s to close 150 stores nationwide
Eddie Bauer to close 27 stores and more to close after January
Cache will close all stores
Talbots closing down specialty stores
J. Jill closing all stores (owned by Talbots)
Pacific Sunwear closing all stores (also owned by Talbots)
GAP closing 85 stores
Footlocker closing 140 stores and more to close after January
Wickes Furniture closing all stores
Levitz closing remaining stores
Bombay closing remaining stores
Zales closing down 82 stores and 105 more after January
Whitehall closing all stores
Piercing Pagoda closing all stores
Disney closing 98 stores and will close more after January.
Home Depot closing 15 stores 1 in NJ ( New Brunswick )
Macys  Closing 9 stores after January
Linens and Things closing all stores
Movie Galley Closing all stores
Pep Boys Closing 33 stores
Sprint/Nextel closing 133 stores
JC Penney closing a number of stores after January
Ethan Allen closing 12 stores.
Wilson Leather closing all stores
Sharper Image closing all stores
K B Toys closing 356 stores
Loews closing some stores
Dillard’s closing some stores

Beginning on January 1, 2011, all newly constructed homes will be required to have fire sprinklers. The International Residential Code, which is the minimum standard for building in Texas, has mandated the fire sprinklers as a measure that they believe saves lives. It gives the occupants more time to evacuate the structure and may prevent the room from getting to the point of flashover, a temperature that causes all flammable items to catch on fire.

However, this new change will be costly to install and maintain. The National Fire Protection Association reported average costs of $1.61 per square foot to install. Additionally, some insurance carriers will give discounts on premiums for properties that contain the sprinklers. Of course, it remains to be seen what will happen if the system malfunctions or is accidentally set off. Looks like the fire sprinkler providers will soon have a booming business.

Source: Texas Realtor Magazine, Nov. 2008

Each year in October, Mark Dotzur of the Texas A&M Real Estate Center gives an Economic Outlook presentation. Below are some important highlights from this year’s speech. Hopefully this will help clarify how the local state of affairs is significantly better off than some sources would have you believe.

Dr. Dotzour began by addressing the local news media and a recent headline in Austin that projected a decline in real estate values.  Dotzour said that the “evidence” is merely speculation on the part of two analysts and that the headline should have read “Two guys speculate that home prices could possibly drop sometime in the future.”  He cited Austin MLS statistics that show that prices have historically remained on a slow and steady increase for people willing to hold onto property at least 3-5 years, and concluded that anyone who tells a buyer with the desire and means to purchase property to wait is doing them a great disservice.

Regarding inventory of homes for sales in Austin, Dotzour noted that Austin is holding at 6-6.5 months, which he said is the point where we consider a market “balanced” between the interests of buyer and seller.  According to Dotzour, there is no time in the last 18 years when home values did not rise overall in Austin.

He said there will continue to be a lot of homes sold in Texas, where we still have positive job growth, and a population that is expected to grow 13-million by the year 2030.

Dotzour said we should react positively to national and local news that building permits are down.  This means that we’re adjusting the inventory to meet demand, which will help prices stabilize.

On the national economic front, Dotzour said there are several “shoes” that have to drop on the banking community before we hit bottom, including the full picture of the effects of the sub-prime lending debacle, defaults on credit cards and auto loans, and the real extent of credit default swaps.  This last issue is just now starting to emerge into the light, and could dwarf the problems created by sub-prime loans.

Dotzour was not in favor of many of the economic stimulus proposals in Washington, and suggested that more useful elements would be a tax credit for home purchases, and a 0% capital gains tax for investors who will hold property for 5 years.

He projected some favorable economic shifts in April or May, as corporate profits begin to recover, oil prices stabilize, foreclosures pass their peak and the political uncertainty is resolved.

H.R. 3221, part of the Housing and Economic Recovery Act of 2008, allows first time homebuyers to take a $7500 tax credit from the purchase of a home. One cannot have owned a home in the previous three years and must be a US citizen who files taxes. The home must also be purchased prior to July 1, 2009. Married couples must not make over $150,000 as their modified adjusted gross income to qualify.

Any home qualifies and must be the principle residence.For example, if one owed $10,000 in taxes, they could subtract the $7500 and then owe the remainder of $2,500. If they owe less than $7500, the government will issue them a check. The credit may be taken on either the 2008 or the 2009 tax return.

But, there is a catch. The credit is really a loan and must be paid back to the government. Therefore, it may be paid back over a period or 15 years, interest free. If the homeowner sells the home before that time, the entire remaining amount is due from the profit of the sale.

Article condensed from The Showcase USA, Aug. 18,2008.

We hear so much about the market but what do the Multiple Listing Statistics really tell us?

For homes priced $174,999 and below in the Austin and San Antonio areas it is a seller’s market.  This means that there are more buyers than available homes in this price range.  If there is less than 6 months of inventory, it is considered seller’s market.  For homes priced $175,000 and above it is a Buyer’s market.  This indicates that there is over six months supply indicating that there are more sellers than buyers in the price range. The new homes have a 4.68 month supply which was 7.26 months last August. This indicates that new home builders are clearing out their inventory which is an advantage for new home buyers. Many builders are still offering discounts and other buyer incentives.

The home inventory is up slightly since the same period as last year. The total number of homes sold this year is 17% lower than the same period as last year.  Homes are also staying on the market longer than the previous year.

It is projected that in the San Antonio area, 19,000 homes will be sold through the MLS system this year which will be -14% from last year.

The market here in the Austin and San Antonio area is still viable and much better than places such as Las Vegas, Florida, Arizona,& California whose markets are off over 30%.

For more market statistics or for questions on a particular neighborhood, call
Diana Fidone-Griggs in San Antonio at 210-363-8658
Angela Sparks in Austin at 512-762-0923

My observations were confirmed! Apartments are being overbuilt in Austin, as indicated in an August report by Mark Doutzer, Texas A&M Economist.

Last year, I noticed an unprecedented amount of new apartment buildings going up. I didn’t have any hard numbers to go by, but it just seemed like the construction was getting out of control.

The economics reports stated that we would have 3.5% job growth in the coming year and that tenants would lease a net gain of 4,600 units between August 2007 and August 2008. However, only 1,233 were filled as many tenants doubled up to save money.

2009 job growth is now fore-casted at 1.1% and with construction loans drying up, perhaps it’s best that some of the overbuilding has been curbed.

New home building has also slowed and is not expected to pick up until the fall of 2009. So, maybe I’ll get to enjoy some of the remaining trees just a little longer.

There are thousands of homes on the market right now.  What do you need to do to make your home desirable and obtain top dollar?   Below are some tips to make this possible.

1.De-clutter.  Take a look around your house.  Are there items you no longer need or use or piles of books, magazines, or other materials?  The home should appear spacious so potential buyers can imagine the home with their belongings.  Give away the unused items or have a garage sale.

2.Repair Sheetrock.   Do you cracks or holes in the walls?  Repair those professionally to give the home a well-maintained look.

3.Repaint/Touch up.  Do the walls have fingerprints, marks, and other flaws?  It’s time to touch up or repaint entirely.  This gives your home a new home look that buyers like.

4.Fix Anything Broken.  You have lived in the home and know which items are in need of repair.  Get them in good working order so that the buyers will know they are getting a home that has all appliances in good working order.

5.Shampoo or Replace Carpet.  Carpets, draperies, and furniture are the main sources of unpleasant household odors.  If the carpets are less than 5 years old, a good steam cleaning may improve things.  If they are older or stained, it may be time to replace them.  A home with fresh or new carpets is appealing to buyers.

6.Replace Burned out Light Bulbs.  This will assure the buyer that you pay attention to detail as well as making your home lighter and brighter.  Light and bright are quality features.

7.Replace caulking around tubs, showers, and sinks.  If the caulking has mold, is stained, or has missing pieces, replace it.  It is a very cheap way to make the bathrooms begin to look new again.  J

8.Thoroughly Deep Clean Entire House.  Your home must be immaculate and smell pleasant. Give the home a deep cleaning.  No buyer wants to move in to a dirty home.  Pay someone reputable to clean.  It will be worth the investment.

9.Clean UP the Yard.  People love driving up to a well-manicured lawn with flowers growing in the yard.  It tells them that even better things await them inside.

10.Keep up With Pest Control.  Make sure there are no ants, cockroaches, or any other pests to distract buyers from the beauty of your home.

11.Call US to Be Your Realtor.  We can give you additional tips, evaluate the market value of your home, and lead you through the entire process to a successful sale.

Many Austin home buyers may not realize that buyers are entitled to representation when purchasing a new construction home. Keep in mind that the friendly person in the model home represents the builder, not you the buyer.

Builders actively market to agents and they regularly attend local real estate office meetings to provide agents with information on their communities. The builder pays the buyer agent commission out of their marketing budget.

There is also a special publication that Realtors have as a resource that lists the Austin builders, their communities and available homes which can save you the buyer, the time of visiting website after website to see if a community is right for you. Your Realtor can quickly direct you to the communities that fit your needs.

In Austin, it is sometimes required that the REALTOR® accompany the buyers(s) on their first visit. So, if you think you may like to build or buy a new construction home, ask your REALTOR® to accompany you on your search. After all, your agent is there to offer professional advice, negotiate on your behalf and to facilitate resolving any issues that may arise through the process.

As an accredited EcoBroker, I also have a list of green Austin home builders, including custom builders, that incorporate energy efficiency and sustainable building practices for your cost savings and comfort. You can also ask me about the green building features of the ‘national’ builders in the Austin area.

Call Angela Sparks at 512-762-0923 to learn more or build today!

The Mueller development is located in the heart of Austin, just east of IH35 between Airport Blvd and 51st Street. This 711 acre site was abandoned when Austin’s airport relocated in 1999. Upon completion, Mueller will house over 10,000 residents in Garden Homes (Yard Houses), Row Houses, Mixed-use Shop Houses, Multi-unit Mueller Houses and Apartments.

Mueller’s Green Building Standards

Sustainable development is one of the six guiding tenets of Mueller. All projects at Mueller follow either the U.S. Green Building Council’s LEED-NC (New Construction) green building standard or Austin Energy’s Green Building Program (Commercial, Multi-Family Residential, or Single-Family Residential).

Mueller Parks and Community Spaces

The Mueller community offers 4 large parks, plus neighborhood and pocket parks, a 6.5 acre lake, a golf course, play fields, plazas and pedestrian/bicycle paths. There will also be an elementary school on site along with a joint-use recreation center. Other amenities include restaurants, cafes and a Town Center.

Mueller Benefits

-Quick commute to downtown
-Miles of hike and bike trails
-Convenient urban living
-Environmental sustainability
-Dell Children’s Hospital
-Major employers and retailers nearby

——————————————

The Mueller Project Builders

David Weekley
David Weekley Homes presents Yard Houses within the urban villages of Mueller.
Five floor plans available, 1437-2221 square feet.
Priced $280s-$340s.

Meritage Homes
Meritage Homes brings together innovative design with environmental sensibility for living environments that are both elegant and easy to maintain.
Three plans still available, 1924, 2014, & 2217 square feet.
Priced $295-$345,990.

Muskin Company
Their honors include three Community Revitalization Awards from the Austin Board of Realtors as well as a Custom Builder of the Year Award.
Five Garden Court homes available (July 08), 1876-1943 square feet.
Priced $339,500-$369,500.
Three custom build lots available facing Lake Park ($875,00+).

Saldaña Homes LLC
Saldaña Homes LLC is a local, family home building business, located in the heart of East Austin. Founders, Manuel and Marie are second generation homebuilders and have more than 37 years of experience in building finely crafted homes in Austin, Texas.
Garden Court Homes, 1830-1890 square feet, 5 homes left (July 08).
Priced $345,500-$369,500.
3 Star Green Homes.

Standard Pacific
Standard Pacific proudly offers 8 plans within the Yard House sections, 2600-3100 square feet.
Prices starting from the $370s.
Ten inventory homes currently available (July 08) priced $435-$500s.
3 Star Green Homes.

Streetman Homes
Streetman Homes’ ‘Artisan Collection’ features all the novelties that define the vision of the diverse Mueller neighborhood.
Yard Homes from $525-$700s.
Town Homes from $250-$350s - available at the end of 2008.
Three custom build lots available facing Lake Park.
————————————————–
To schedule an appointment to visit the Mueller community, please contact Angela at 512-762-0923.

Akoya on South Lamar

Akoya is a unique Austin condo development. This progressive 4-star Green Development project on South Lamar District is the first one of it’s kind in South Austin. Akoya’s distinctive style was created by Michael Hsu Design. Each unit features a modern design and is built to architecturally respect the surrounding environment and site. Akoya also features inventive common areas like the Courtyard, Pool and Shared Cooking Area.

Some popular nearby locations include Uchi, Maria’s Taco Express, Mr. Natural, Yoga Yoga, the Alamo Drafthouse and the Horseshoe Lounge.

One Bedroom Floorplans start in the 140’s
Two Bedroom Floorplans start in the 220’s

Interior Features
- Washer/Dryer provided
- Bamboo wood flooring in living, dining and kitchen areas
- Carpeting in bedrooms. Remaining Units include Bamboo Wood Flooring in Bedroom!
- Up to 12 foot ceilings*
- Courtyard views*
- Pre-wired for Phone, Cable, Internet, Security and In-home Audio. Ask How to include Audio, Visual and Security Upgrades in your Mortgage.
- Walk-in closets*
- Clerestory / Transom windows on second floor units

Exterior Features
- Private or semi-private terraces*
- Exterior storage attached to unit*
- Large central, landscaped courtyard. Approximately 3/4 Acres…One of the Largest Resort-Style Courtyards in South Austin!
- Pool
- Outdoor cooking area in courtyard
- Shaded outdoor area in courtyard
- Assigned parking
- Limited access gate

Green Features
- 4-star Green Development. First 4-Star Austin Energy Designed Green Development to be Complete in South Austin!
- Condo Conversion
- Low e glass, double pane windows
- Energy efficient HVAC systems

To schedule an appointment to preview available Akoya Condos, please call Angela at 512-762-0923.