Austin’s Low Unemployment Rate Continues to Outshine TX, US

For an up-to-date Unemployment chart with the latest data, click here.

The latest data on unemployment rates is out and available in interactive charts at http://AustinHome.Pro/data or http://AustinHome.Pro/statistics.  Austin shines yet again with a strikingly low unemployment rate, and national media has taken notice.  The great news is that unemployment rates have continued to drop across the board, a great sign that the economy is recovering as experts predicted.

  • 8.7% – National Unemployment Rate for April 2009
  • 6.4% - Texas Unemployment Rate for April 2009
  • 5.8% – Austin Unemployment Rate for April 2009

unemployment may 2009

The Statesman reported recently that

job_growth_unemployment_rate_austinThe national job market remains challenging, but Central Texas continues to create new jobs, according to figures released Friday by the Texas Workforce Commission.

The region added jobs at a 0.4 percent rate during April, and its unemployment rate fell to 5.8 percent from 6.2 percent in March. A year ago, the rate was 3.5 percent.

The percent growth rate translates into 3,480 new jobs between April 2008 and April 2009.

For the third month in a row, Austin was the only large Texas city to add jobs. Dallas lost jobs at a 2 percent annual rate last month, and its 6.7 percent unemployment rate was the highest among large Texas cities.

The news is in deed good, even if many have good reason to remain cautious for now.  It’s a good time to be proud to be a Texan, as our strong state economy has sheltered us from what appears to have been the worst of this economic storm.  And you should be even more proud that Austin continues to rank #1 against even the biggest US cities.

states_unemployment_rates_april_2009

May figures are trickling in so keep an eye out for them at AustinHome.Pro!

Bigger IS Better: Why Texas Bucks National Economic Trends

1122816-travel_picture-texasIf you visit this site regularly, then you’ve already heard me preach that the economy in Texas (and in its largest 4 cities) continues to buck national trends.  I have so many frazzled buyers asking me “Why are all the crazy sellers in Austin trying to sell their home without slashing the price in half?”  My answer often falls on deaf ears… Because unlike the hard-hit areas like Florida and Nevada, Texas has always had steady growth and appreciation, never doubling or trippling overnight.  We have no out of control boom to recover from, there is no crash because our economy is healthier than other states’ and even the nation.

Bigger is Better
We buck the national trends because we are self-sufficient.  Here in Texas, we have more resources, natural and economic, than most countries!  This is why our real estate market, like other markets, is holding strong despite the national recession and the crumbling prices the news shoves into our heads each day.

  • If Texas was a country, it would be the 10th largest country in the world
  • If Texas was a country, it would have the 12th strongest economy based on GDP
  • If Texas was a country, it would be the 5th largest oil & gas producer
  • 82.5% of the Texas population is in Metros… DFW, Houston, San Antonio, & Austin
  • Texas has more Fortune 500 companies than any other state
  • Austin was #1, San Antonio was #2, in Forbe’s recent national “Best Bank for Your Buck Cities” report while Houston made #4 and Dallas made #7!
  • Builder Online Ranked Houston #1, Austin #2, Fort Worth #3, San Antonio #4, and Dallas #5 for “Healthiest Housing Markets in the Nation”!
  • Many of the best universities in the nation are right here in Texas


I highly recommend watching this video, supported by many including Governor Rick Perry, to help demonstrate why Texas is so strong:



Latest Statistics (hover for detailed figures)


The New Stimulous 2009 Federal Housing Tax Credit

Rumors aren’t facts and you need facts.  The National Assocation of Home Buiders wants to help you understand the new legislation.

obama housing stimulus plan

Here are the basics of the up to $8,000 tax credit for first-time home buyers:

  • Only “first time home buyers” are eligible, but if you or your spouse haven’t owned a home (“principal residence”) in at least three years, you now re-qualify as a “first time buyer”.
  • If you co-purchase with another individual, such as a parent, only your eligibility matters.
  • You can purchase a new or resale home, but you must purchase the home as your principal residence (where you live).
  • You do not have to repay this tax credit, it is not a loan like the previous legislation!
  • You must purchase a home on/after January 1, 2009 and before December 1, 2009.  Purchase your new home this year January – November.  Don’t wait until 2010 or even December 2009!  2008 home purchases are not eligible, but may be eligible for 2008 credits/deductions.  You can use your 2009 purchase on your 2008 taxes.
  • Your tax credit is 10% of the cost of the home, up to $8,000.  If you purchase a $200,000 home, your tax credit is $8,000.  If you purchase a $60,000 home, your tax credit is $6,000.
  • To qualify for the full credit, a single person must make no more that $75,000 and a married couple must make no more than $150,000.  Partial credits are available if you earn beyond this limit.  If you earn beyond this limit, I can help you determine your potential credit.
  • Claim your credit on IRS form 5405 & Line 60 of your 1040 when you file your 2009 taxes early in 2010 or when you file your 2008 taxes this year (this can be used on your 2008 taxes!).
  • If you owe less in taxes than your credit amount, the IRS will send you a refund check.

When the market gets to you…

picture-10It happens to the best of us, we all get bummed out from time to time.  I literally grew up in this business.  I spent my first 7 years in the first Corias home ever built, my family survived the 80s and the tech bust and everything inbetween.  And we’re set up to survive this time around as well.

But to be honest, this week, it has all really gotten to me.  I’m just in a funk over both the attitudes toward our current times as well as the ripples we are feeling here in Austin.  I was thinking about how now is different from the good ole’ days of the middle of this decade and other strong markets.  What’s different?  I noticed how every time I found a home for someone, I could give them 10 reasons why it would be hard to resell.  And I mean every time.  It got me thinking, all of these homes would sell in under 100 days a few years ago, even the one with no back yard, even the one with 5 bedrooms and only 2 bathrooms.  In up markets, pretty much everything sells.  Now we are watching buyers as they sit and age on the fence.  In the meantime, the homes are aging, rates are going up, and opportunities are being passed by.

I don’t think that an aged buyer is the best buyer.  I don’t mean how old you are, I mean how old your search for your next home is.  Waiting and waiting serves no one, yet there are justifications for being cautious.  Will that home resell?  My new answer is yes!  Maybe not quickly in the current climate, but in a strong market, anything is possible.  Someone will love the same things about that home that you love.  Maybe you will sell in another slow market and it may take 6-9 months to sell your home instead of 60-90 days.  But it will sell.  And would you be this picky in an up market?  Of course not.  If you wait months to put in an offer in a sellers market in Austin, you’re very likely out of luck.

But buyers are faced with troubles as well, not just sellers.  Sure, the amazingly low interest rates mean a great deal and quite possibly more house and there are still plenty of loans out there.  Those with troubled credit can even find seller-financing.  But buyers often also have to make a great deal of decisions.  “Do we sell our house first?  Should we refinance instead?  Should we remodel?”  These are all legitimate questions.  And the answers may be easier than you think.

Don’t torture yourself! These decisions are emotional ones.  When I have an emotional decision, I like to bring in a third, non-emotional party who can objectively explain facts and information to me.  This is my job in these times.  Not to be bummed out, not to cry over slow sales, not to cry over the state of the economy… to use my knowledge and experience in this industry to help you decide if it is the right time for you to move, refinance, or remodel.

You may think I just want your listing or you as a buyer client.  But there are other ways I get paid, and if you need help with any of these questions over refinancing, remodeling, etc., ask me!  I’d be more than happy to help you with your decisions, weiging options, and letting you just generally pick my brain so you can benefit from the knowledge and experience I have gained from nearly 3 decades in construction, remodeling, sales, and financing it all.

I’m still allowed to get bummed out from time to time, but when we do, remember there is always someone out there with an objective view that can help.

In the News: Austin continues to be attractive to foreign real estate investors

international real estateThe Austin Business Journal published a piece on Austin’s value in the international real estate market.  Austin IS holding strong, and international investors are capitalizing on what local investors are shying away from:  opportunity.  With steady growth and real estate appreciation rates, Austin is stable.  With the real estate world crashing in on itself all around us, Austin is stable.

The report from the Association of Foreign Investors in Real Estate ranks members’ top cities for U.S. and global investment in 2009. Austin ties for 11th place in the new survey, up from 16th place in 2008.

The only element to Austin’s real estate market that is not stable is the emotional factor.  There is no escaping the news and the horror stories of what is happening around the country and Austinites wonder “are we next”?  While we worry, foreign investors are setting themselves up to make money from our panic.

With 37 percent of member’s votes in the survey, the United States ranked first among nations in terms of opportunities for capital appreciation, followed by Brazil, China, the United Kingdom and India in that order.

The world knows that we are strong, and that Austin is one of the strongest cities in the country.  Why don’t we?

In the News: 5 Biggest Real Estate Myths


The 5 Biggest Real Estate Myths:

  1. Sellers are desperate
  2. Don’t buy before prices have bottomed
  3. You can’t buy a home unless you have 20% down
  4. Now’s the absoulte worst time to sell
  5. Before you refinance, shop around

There are great deals to be had out there right now, but it doesn’t mean that every seller is desperate just because their house is on the market now.  Financing is still out there for consumers, it’s corporations who are feeling the crunch.  Unless you are a very high risk, sub-prime lendee, you should have no problem getting a loan.  Selling now doesn’t mean you’ll have to take a huge hit, especially in Austin.  And waiting for prices to bottom is like waiting for a stock to be at it’s absolute lowest.  You can never know for sure when that will be, but if you look at Austin’s numbers, that time has already passed you by.  All numbers are on the up including average sales price, sales volume, median sales price… except for months of inventory, which is now approaching the 4-5 month range (same we saw in 2005).

Although homes are taking longer to sell, sales are up, and the average sales price in Austin is also up (see statistics).

So if you are STILL waiting and STILL on the fence, stop waiting and fulfill your goals before this opportunity slips away.

Thank you to Ines Hegedus-Garcia at Agent Genius for bringing this video to my attention.

In the News: Mercedes Homes files Chapter 11

And they’re not the first. Mercedes Homes is the newest member of the Bankrupt Builder Club.  The Austin Buisiness Journal broke the news Monday, but what does this mean to those in a Mercedes home?  Well, Meredes is not going away, they are (for now) reorganizing. Mercedes Homes is continuing to operate!

We hear “historically low rates”, “finance now”, “now is the time to buy”, “if you have good credit, you can still get a mortgage”, but the builders are not being treated nearly as kindly as their customers.  Although now, as long as you are ‘financially responsible’, you CAN get financing at a great rate, saving you money or giving you an opportunity to purchase in that next braket.

new home construction austinHomebuilders, on the other hand, have their hands tied.  Now is a great time to start new construction because although demand is lower than average, new starts are WAY below average.  So in 6 months, when home is complete, the summer buying season is here, and we (hopefully) see the end to this economic slowdown as predicted, a builder could be in great shape.  The trouble is, practically no one is loaning on construction or in the commercial sector in general.  This means that the builders can’t get the new loan to start a new project and their business cycle is halted immediately.

It will be survival of the fittest. Volume builders with strong holdings in parts of the country hardest hit by the housing crunch, like Phoenix, Los Angeles, and Palm Beach, were hit financially long before we felt the diluted shock wave in Austin.  They have spent as much as three years struggling, and for some, that was just too long.

Low volume builders, those who build less than 50 homes a year, typically build in only one sub-market, say west Austin or west Pheonix.  In Austin, low volume and custom builders felt the hit a year ago.  Those with strong companies have survived, but not all have been so lucky.

It is the oldest and strongest builders who have survived.  But don’t panic if your builder files Chapter 11.  Panic only if they don’t recover from it.

What can you do?
If you live in a home build by a company that has filed bankruptcy, your primary concern should be on home warranty.  If your home is still under warranty, or you are buying a new home, ask about a 3rd party warranty from a company with a track record.  Even if the builder folds, the home warranty company will take care of you.

Get Your Car Out of the Yard

parking the car in the front yard is no longer allowed in most Austin neighborhoodsThe Austin City Council recently amended the Restricted Parking Area Map for Austin neighborhoods.  On May 5th, these neighborhoods were added to the Restricted Parking Area Map

…which prohibits the parking of motorized vehicles in the front yard and side yard of single-family residences, except in a driveway or paved parking space.

So if you live in these neighborhoods you can now be ticketed for parking outside of a parking area.

Neighborhood Associations and
Planning Areas Already Listed on the
Restricted Parking Area Map
As of May 25, 2008

  • Allandale NA
  • Balcones Civic Association
  • Balcones Village/Spicewood HA
  • Balcones Woods NA
  • Barton Hills NA
  • Brentwood NPA
  • Castlewood-Oak Valley NA
  • Cavalier Park NA
  • Cedar Valley NA
  • Central Austin Combined Neighborhoods
  • (CANPAC)
  • Champions Forest NA
  • Cherry Creek on Brodie Lane NA
  • Cherry Creek SW NA
  • Cherrywood NA
  • Colony Park NA
  • Coronado Hills NA
  • Courtyard HOA Inc.
  • Deer Park at Maple Run HOA
  • Dove Springs NA
  • East Congress NPA
  • East Riverside-Oltorf Combined NPA
  • Gracywoods NA
  • Hancock NPA
  • Harris Branch PUD
  • Heritage Hills NA
  • Heritage Hills/Woodbridge NA
  • Highland NPA
  • Hyde Park NA
  • Indian Oaks NA
  • Lamplight Village Area NA
  • Laurel Oaks NA
  • LBJ NA
  • Legend Oaks NA
  • Martin Luther King Jr. NA
  • McKinley Heights NA
  • Mesa Park NA
  • Mockingbird Hill NA
  • North Acres HA
  • North Austin Civic Ass
  • North Park Estates NA
  • North Shoal Creek NA
  • North University NA
  • Northwest Austin Civic Assoc
  • Northwood NA
  • Old Enfield HOA
  • Palmer/Avery Island NA
  • Pecan Springs/Springdale NA
  • River Oaks NA
  • Rosedale NA
  • South Boggy Creek NA
  • South Lamar NA
  • South River City Citizens Assoc
  • South River City NPA
  • Southwest Oaks-Shiloh NA
  • Spicewood at Bullcreek HA
  • Spicewood Estates HOA
  • St. Edwards NPA
  • St. John NA
  • Summit Oaks II NA
  • Summit Oaks NA
  • Sweetbriar NA
  • Tanglewood Forest NA
  • Texas Oaks South NA
  • Truman Heights NA
  • University Hills NA
  • Walnut Creek NA
  • Walnut Crossing NA
  • West Austin Neighborhood Group
  • West Congress NPA
  • West University NA
  • Westcreek NA
  • Westview Canyon HOA
  • Windsor Hills NA
  • Wooten NA

Fines:

  • 1st Offense: $40.00 fine that can be reduced to $20.00 if paid early
  • 2nd Offense within 24 months: $50.00
  • 3rd Offense within 24 months: $60.00

Links:

City Contacts:

Is Google Taking Over The World?

I’ve had an influx of emails from other local Realtors® lately asking why I use one service or another. First of all, I’m a very frugal person. Stay tuned for Monday’s post for more on that topic. I search high and low for the best resources to use on my site that will provide you, the visitor, with information that will aid you in your quest for understanding our market and finding not only the perfect property, but also the perfect deal.

I find that many real estate agents spend more time worrying about their PageRank and keywords than they do about aiding buyers and sellers in real estate transactions. No matter what business you’re in, don’t let Image Credit: Future NowGoogle take over. After all, the Google code of conduct is simply “Don’t be Evil.” Google may not be evil. After all, the corporate mission statement is “to organize the world’s information and make it universally accessible and useful.” But not everyone plays by the rules, and certainly not everyone conducts business in an ethical way. And Google knows this, which is why the complex algorithms that Google employs are constantly updated and tweeked. The best site is not always the site with the best financial backing or the one that hired a firm for their Google placement.  In fact, most firms that claim to be able to improve your PageRank can’t and really have no intention of doing so.  Even those who are valid companies can only improve your rankings if you have a legitimate site, right?  It’s supposed to all be about content and often it is.  Corporations are learning how to trick Google in order to be placed higher in search results while Google in turn works to improve algorithms to compete these tricks.  It’s a constant battle, and the deeper into bed a company gets with Google, the less (I would guess) that Google would care even though that is a tad evil.  But they are, indeed, first and foremost, a mass-advertising company.  Spend a ton of money with Google and viola, better results for less work (albeit more money).  The image credit for the photo in this paragraph goes to Future Now.

So how does this relate to the emails I receive from other agents and the third-party services on my website?  Real estate is a maliciously competitive industry, especially in these times when agents need to actually work their asses off to make a buck.  Many agents spend countless hours optimizing their sites for Google and many spend thousands of dollars on services promising to do this for them.  The key to high placement in Google appears to be a great combination of keyword-dense articles and links pointing to the site, but Search Engine Optimization, or SEO, cannot be learned in one day and techniques are dynamically changing constantly.

Although this site officially launched as LiveAustinRealEstate.com early this past May, it is already climbing in popularity and Google, as well as my competition, as taken notice.  I have a large amount of agent traffic coming from various agent resource sites that I am active with.  Everyone likes to see what is on other agents’ websites to get ideas for how to improve on their own (naturally).

Here’s where Trulia comes in.  I use Trulia for both the resources on their website as well as for features on my own website.  First of all, Trulia provides me with listing RSS feeds which even our own national, state, and local board of Realtors® won’t do.  I’d love to feature listings from austinhomesearch.com or realtor.com, but the National Association of Realtors® (NAR) is stingy and won’t provide me with this tool.  Using Trulia’s RSS feed sends them traffic and creates links to their site from mine, thus boosting their apparent usefulness and popularity with Google and ranking them higher among your search results.  In addition to Trulia’s RSS feeds, I also use a free widget that displays a graph of home sales.  Although their statistics aren’t as accurate as those from NAR, the Austin Board of Realtors® (ABOR), or Texas A&M, these organizations do not provide me with a quick and easy way to get you, the consumer, the information.  I have a new system in the works, but have been unable to complete the project because my first priority in my business is my clients.  I have some incredible (but challenging) listings right now that need all the exposure that I can get them and I have buyers with some challenging goals and needs.

In addition to the services on my site, Trulia’s strategic methods to place high in a Google search make me want to promote my listings with them.  In fact, all of my listings are featured with Trulia among many other services.  They do a great job of helping me insure that my listings are found by buyers searching in Google and other search engines.

Like Trulia, RealBird has tools that help me run my business effectively and efficiently.  It saves me time by again, providing me with an RSS feed of my listings as well as great listing websites that I can create quickly and efficiently.  These tools allow me to spend my time with more activities, such as promoting my listings and their websites through various other services, my own website, and through my network.  To see what these site look like, visit my 2012 Cueva de Oro, Austin, Tx  78746 listing site.  Their templates are far superior to other sites and aside from that, they don’t charge me an arm and a leg for this service.  I receive so many solicitations for the “best” service out there for Realtors® you wouldn’t believe it.  They all just want a piece of my pocket, and like I said earlier, I’m frugal and spend each penny carefully.  I want the best return for my dollar because it’s the best return for my clients as well.

In addition to the RSS feeds and listing websites, RealBird offers several widgets and services.  One that I use is their map view of my listings.  I find this extremely useful for my website because it provides a quick overview of what I have to offer the consumer and they can quickly link to more information about these properties via my listing websites.

And there are others, like the Altos Research graph at the top of the sidebar, but Trulia and RealBird are the ones I am most frequently asked about.

Agents ask me why I link back to these services without using a “nofollow” tag.  I feel it is ethical to link back to a website providing me and my consumers with a service.  Sure, it may give them a higher Google ranking, but I feel they’ve earned it.  I’ve been working on some widgets myself, and you’d better believe that they will link back to my site for the work I put into coding them!  So many people feel that they should have something for nothing; a mentality that I believe is encouraged by the vast amount of free information to be gained on the internet.  I may be stubborn, but I’m sticking to my principles on this one.  If a site deserves it, I believe that it will have a consistent ranking earned through organic means.  Some site may be at the top now, but they won’t necessarily sustain that placement.  You have to earn your placement as well as the right to stay there.

And if I ever use anything of value from you or your website, you will get proper credit!

In my business I put my clients and prospective clients first.  That means marketing properties and delivering pertinent and useful information first.  I firmly believe that this mentality is what has me climbing the Google ladder and that it will keep me there as long as I work as hard as I do to keep my priorities in aliment with my future success.

My business is still referral-based and I plan on keeping it that way. When my business becomes Google-based, I’m letting Google run my business.  Google doesn’t know Austin Real Estate, just where to find information about it.  They don’t do the real work in my business I do.  It’s still about the services I provide, which includes but is not limited to optimizing listings for search engine placement.

Further Reading
Google, stop lying to us

Now have a great weekend!

Homeowners & Renters See The World Through Different Lenses

Renters have a different view of real estate economy than homeowners.


Source: PEW Research Center

It seems that renters are much more pessimistic about rising home prices. I’m not sure of the participants in this study were planning on buying a home in the near future, but this study does show something interesting about how you see the market when you own property versus when your at the mercy of a landlord.

More renters believe home prices are rising.

Are they pessimistic about their buying power? They may be feeling left out of the prosperity homeowners found during the boom years leading up to our current conditions.

Renters aren’t worried about the housing economy.

Renters expect prices to climb more than homeowners do. So why aren’t they buying? First-time home-buyers are seeing harder times with mortgage woes. It takes some patience and hard work to get a home loan, and perhaps renters aren’t willing to go through with it.

Americans are not optimistic about the economy.


Source: PEW Research Center

Yet this study is extremely interesting. We saw some of the greatest appreciations in Austin real estate in 2006. Many people sold out to collect their equity while late-comers created a building and flipping surge, especially in central Austin real estate. 2007 was much slower than 2006, especially in the last two quarters. Yet, the number of those who believe the economy is in poor shape has not increased as dramatically as I would expect. I think this shows how pessimistic people are about the economy anyway. We live in a fairly prosperous country and Austin has a steady growth rate which leads to steady real estate prices, yet I would expect similar numbers on a local study based on the fears and questions I receive.

Is this thing on?

I still wonder if anyone can actually hear me. Don’t be afraid to buy. We are currently in a RARE buyer’s market here in the Austin real estate market and at the same time, interest rates are at HISTORIC lows. I’m shopping for real estate in Austin now so don’t blame me if you don’t get in on this buyer’s market! Get your head out of that national news paper, turn off CNN, and get real. We’ve seen studies showing that people think the bottom is falling out of the American economy for years and it hasn’t. In fact, the primary reason for the housing slowdown and the buyer’s market here in Austin is the attitudes of people, not actual economic fact. Now that sellers are getting real, take a chance and think about investing in Austin’s real estate market. I’ll show you how!