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.