Week Ending 2/17/2012
** based on Freddie Mac weekly average survey **
 
30-yr Fixed – Unchanged
Last Week: 3.87%
Previous Week: 3.87%
1yr Ago: 5.00%

15-yr Fixed – Unchanged
Last Week: 3.16%
Previous Week: 3.16%
1yr Ago: 4.27%
 
5-yr ARM – Slightly Lower
Last Week:  2.82%
Previous Week:  2.83%
1yr Ago:  3.87%

Jumbo (Average 30-yr Fixed) – 4.25%


Short-Term Rate Outlook
* Bankrate.com Survey for February 16-22 *
 
8% expect rates to fall in the next week
38% predict an increase in mortgage rates
54% forecast that mortgage rates will remain relatively unchanged

***courtesy of Marie Funston, Capstar Lending

Just Reduced to $1.1M - Taxes are just over $6,000/year.  (That's about $11,000 less than they would be without the exemption - this is a huge bonus!). With Taxes this low, you can afford more home than you thought you could!  Contact us for a private showing today!

Here in Austin, we are experiencing an in-flux of people moving to the area.  Some studies indicate we will get between 30,000-35,000 per year.  A recent economic housing forecast I attended predicted 50,000-55,000/year over the next 10 years.  That's a LOT of people!

Why are they moving here to Austin?  We actually have job growth here in Austin and in Texas.  Prospects for job seekers are likely better here than in the areas they are moving from.  Plus, it's an awesome place to live.  We have great music, so many recreational opportunities, gorgeous scenery, rolling hills and lakes galore, we have excellent universities and education opportunities.  Oh, and don't forget the barbeque!

Recent tight money has made it more difficult for developers to build apartment complexes, so we are running behind on the amount of inventory we are likely to need going forward.   One estimate expects, however, that 10,000 new apartment units will get started in Austin this year, which will help bridge the gap in the future.

Eldon Rude, with the real estate forcasting firm, Metro Study, said "As people in apartments begin to see pricing increasing in the for sale housing market, that is going to result in them being more confident that buying a home is again a good investment.  And, maybe a sense of urgency to buy - that prices are going to go up significantly, so we better act now." 

The fastest rising rental rates in our area are in Round Rock with an annual growth rate of almost 9%. 

Okay, so what does that mean to you if you are currently a renter in the Austin, Texas area?    It may be time to look at buying.  With interest rates for a 30 year fixed mortgage hovering around 4%, it may truly be cheaper (or at least the same) as renting.  However, when you buy a home, you can deduct certain items on your federal income tax, which makes it even more advantageous.  It may be better to buy than rent in Austin, Texas. Contact us for more information.  Never owned a home before?   Ask for our First Time Home Buyers Guide.  It's FREE and informational.  

Thinking of Investing in Rental Property in the Austin area?   It may be a good time to invest in our area.   With rising rental rates and an increasing influx of new people to our area, they have to find a place to live.  Reduced inventories in apartments will push more people into multifamily housing and single family homes.  Contact us for your options on Investing in Rental Property in Austin.  We will be happy to work with you to determine your best return on investment by reviewing home prices and monthly costs versus rental rates.

Austin, Texas and the Central Texas Hill Country are amazing places to Live, Work, Play and Invest!   And, there may never be a better time than now!

• Williamson County broke ground in January on a new 30,000 sqft Emergency Services Operations facility at a cost of just over $12M.
• Riviera Bistro, a gourmet gluten-free restaurant, is replacing Apatite Café inside Bodhi Yoga and will be operated by Rachel and Shoel Ross, opening in January 2012.
• At the last City Council meeting the final phase of 68 homes in Serene Hills was given the go ahead.  Despite concerns over driveway placement and overall traffic volume, the Council had little choice but to approve the final phase as most approvals had already been given to the whole development.  Serene Hills wraps around the western edge of Bee Cave and joins with 71 West of Falconhead West.
• South Austin’s new Alamo Draft House plans its grand opening on March 22^nd.
• The Wolf Ranch Town Center in Georgetown located at the southwest corner of Interstate Highway 35 and State Highway 29, plans to add a National American University campus by Feb. 18^th and a Gold's Gym Express on March 5^th.
• Formula One has released details on date and race times for the U.S. Formula One Grand Prix in Austin at the Circuit of the Americas track.  Practices will be held Nov. 16^th at 10am and 2pm.  A Nov. 17^th practice will be held at 10am followed by a 1pm qualifying run.  The main event Grand Prix race will be held Nov. 18^th at 1pm.
• Cedar Hills, an affiliate of Austin-based Realtex Development Corporation, has applied for housing tax credits with the Texas Department of Housing and Community Affairs to build an affordable housing complex near the intersection of North Lamar Boulevard and Yager Lane.  But area leaders said they are hesitant to support the project.
• The Trails at 620 development, located across from Concordia University Texas, is under construction.  Whataburger will open Jan. 31.  Schlotzsky’s and Mattress Firm are expected to open early spring.  Angel Donuts & Treats, a locally owned bakery, has also signed a lease with The Trails at 620.  The Galaxy Theatre is expected to open November 1^st.
• Lupe Tortilla, a Houston-based Mexican restaurant, plans to open a new location in early 2012 in Westlake at 701 S. Capital of Texas Hwy., Ste. K.
• The City of Lakeway held a public meeting Jan. 24^th proposing a 15-year capital improvement plan to residents.  A capital improvement plan is a multiyear plan for major capital expenditures, which can range from transportation improvement projects, new buildings or park improvements.
• Like many housing development projects throughout the nation that came to an abrupt halt following 2008, the Lake Travis area had its own struggles with developments going into foreclosure, such as Ladera, Sweetwater, Rocky Creek, and Spanish Oaks.  Those developments have been purchased by new developers and are now under construction, indicating the local housing market may be on its way toward recovery.
• Whole Foods expansion continues around town.  The Hill Country Galleria, 12601 Hill Country Blvd in Bee Cave is slated to open late spring/early summer.  The Whole Foods being constructed at the Shops at Arbor Trails will likely open this summer, according to company officials, in the old Haverty’s Furniture space at 301 W. William Cannon Drive, Bldg. B1.
• Plan for Lakeway Regional Medical Center campus have been unveiled.  A developer of the property surrounding the Lakeway Regional Medical Center shared their vision Jan. 17^th for what they say could become one of the nation's premiere medical campuses.  The plan for the 93-acre development includes:  two restaurants, additional medical office buildings that depend on demand, 120-room hotel, 250-unit apartment complex, independent living facility, skilled nursing facility,78,000-sqft retail area, a dependency/recovery center, and an approximately 4-mile trail system that will go throughout the campus.
• The City of Austin will soon implement a complex overhaul of its waste plan that includes a large recycling initiative, a new composting method, and waste reduction efforts that will reduce costs for those who produce less waste.  Under Austin Resource Recovery’s master plan, the city hopes to have 95 percent of all its waste diverted away from landfills and back into everyday use by 2040.  Austin Resource Recovery was formerly named the Solid Waste Services Department.
• The Austin Food & Wine Festival will be held in April.  Another inaugural festival will be held in downtown Austin over the same weekend—The Moontower Comedy and Oddity Festival.  The initial list of Moontower's confirmed comedians that was released Jan 25^th includes “Saturday Night Live” actor Seth Meyers, Steven Wright, Aziz Ansari, Matt Bearden, and more.  The festival will serve as a four-day event at multiple venues throughout downtown Austin that will host more than 60 comedians.
• The Egg & I Restaurant, headquartered in Lone Tree, Colorado, will open its first location in Austin on Jan. 30^th.  The eatery is located in the Northcross Shopping Center at 2525 W. Anderson Lane.  It will host a private, pre-opening training day Jan. 29^th and will donate 100 percent of that day's proceeds to the Austin Humane Society.
• More than 20 new laws passed during the state's 82^nd legislative session went into effect Jan. 1^st, including Senate Bill 201, a law that offers property tax exemptions for surviving spouses of disabled military veterans.
• After six months of community involvement and discussions, City of Austin staff is now reviewing a work group’s findings that allow short-term rental properties to remain in Austin, provided they follow soon-to-be-approved regulations

It’s hard to believe that January has already come and gone in 2012.  The groundhog saw his shadow so we are ‘destined’ for six more weeks of winter.  Although, winter has certainly been mild this year!

Read below for news and information about the Highland Lakes, Marble Falls, Horseshoe Bay, Lake LBJ & Burnet Areas - lots of interesting things going on. 

Interest rates hit new lows, under 4%, for mortgage loans, which is truly remarkable.  Buying a home or other property is certainly worth considering while buying power is at its highest level.  The real estate market has been brisk already this year in the Austin area.  With low inventory levels in many areas and price points, many well-staged and correctly-priced homes are selling within a week.  Highland Lakes area real estate, while not quite as brisk, is definitely picking up.  If you are thinking of selling, this may be a great time.  The "Spring" market is coming earlier this year!  For A Complimentary Market Analysis of your home in Austin or the Highland Lakes area, click on the area to fill out an information form.

Check out the front page of our website to see the new Paragon Property Group Daily.   It's a collection of news stories and is a great way to catch up on what's going on.   And, LIKE us on our Facebook Page for more up-to-the minute information. 

Stacey Nelson passed her Texas Real Estate Brokers Exam in January.  Congratulations!  Achieving this goal shows Stacey’s continued commitment to education and knowledge that all of us here at
Paragon Property Group believe so highly in.

Don't Forget Valentines Day on February 14th and the year we have an extra day with Leap Year...

We hope that your 2012 is starting out to be all that you want it to be!   Enjoy!

Highland Lakes - Marble Falls, Horsehoe Bay, Lake LBJ, Burnet Area News & Information

This is our latest market report for lot sales in Horseshoe Bay for 2011.  Sales activity remains slow and the inventory remains high.  You’ll see the far right column of this table is titled “Years of Supply”.  This is also known as the absorption rate and I've mentioned it in earlier posts, but it's always worth revisiting.

The absorption rate is simply the ability of the real estate market to sell off, or “absorb”, all of the lots that are for sale in a given time period.  For example, if one lot is sold each month over the last 12 months and there are 12 lots for sale then, it will take 12 months for the market to absorb all of the lots actively for sale at the current rate of sales.  Therefore, your absorption rate is one year.  If there are 24 lots for sale and one lot is sold each month over the last 12 months, then the absorption rate will be 24 months or 2 years.

You can see that there are certain price points in Horseshoe Bay with more “years” of inventory than others. In this type of market, buyers are looking for lots that stand out from the rest, compelling features, and rock-bottom pricing.

Of course, if you are interesting in buying a lot in Horseshoe Bay, there are some awesome deals!

If you’d like to see this same type of market data for your area, please call or email us!  Thinking of selling your Highland Lakes Area Lot or Home?   Contact us.

Search for Austin Homes   |  Search for Highland Lakes Homes

What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
 
30-yr Fixed – Lower
Last Week: 3.87%
Previous Week: 3.98%
1yr Ago: 4.81%

15-yr Fixed – Lower
Last Week: 3.14%
Previous Week: 3.24%
1yr Ago: 4.08%
 
5-yr ARM – Lower
Last Week:  2.80%
Previous Week:  2.85%
1yr Ago:  3.69%

Jumbo (Average 30-yr Fixed) – 4.125%

Short-Term Rate Outlook
* Bankrate.com Survey for February 2-8 *
 
19% expect rates to fall in the next week
25% predict an increase in mortgage rates
56% forecast that mortgage rates will remain relatively unchanged

***courtesy of Marie Funston, Capstar Lending

Sue Ellett, Broker-Associate
USAA MoversAdvantage® Preferred Agent
Coldwell Banker United REALTORS®
Paragon Property Group Team
www.PPGTx.com
866-693-7741

Austin/Lake Travis & the Highland Lakes

Residential~Investment~Ranch~Commercial~Waterfront

Search Highland Lakes Area Listings      Search Austin Area Listings

Buying your first home should be a fun and exciting experience.  By reading this guide, you'll have the inside scoop on what you need to do to make buying your new home an easier and more enjoyable process.  We talk about credit reports, getting pre-qualified with a lender, choosing a REALTOR, making an offer and closing on your new home.  

Interest rates are at their lowest levels so your buying power is at the highest - you can afford more with a lower mortgage rate.  So, don't wait, now may be the best time to buy a home in the Austin or Highland Lakes areas.  

Did you know that rental rates are rising in Central Texas?  It may be cheaper to own your own home than pay rent on an apartment. 

Every Agent on the Paragon Property Group Team is a certified Texas Affordable Housing Specialist.

Get your FREE First Time Homebuyer Guide Today!

(If you live in another area of Texas, let us know - we can refer you to a qualified Texas Affordable Home Specialist in your city or town)

Sue Ellett, Broker-Associate
USAA MoversAdvantage® Preferred Agent
Coldwell Banker United REALTORS®
Paragon Property Group Team
www.PPGTx.com
866-693-7741

Austin/Lake Travis & the Highland Lakes

Residential~Investment~Ranch~Commercial~Waterfront

Search Highland Lakes Area Listings      Search Austin Area Listings

The burn ban was put into place on January 17, in reaction to a lack of rainfall during December. However, with the moisture and rain since that time, conditions have improved.

Residents may contact the Lake Travis Fire Rescue at (512) 266-2533 ext. 2327 for questions about outdoor burning.

Awesome, Job Stacey!

Automatic Email Home Search Updates for Austin, TX  | Automatic Email Home Search Updates for Highaland Lakes/Lake LBJ Area

The current draft proposes a ban on single-use paper and plastic bags at all Austin retailers effective March 2014.

Starting in March 2013 through the March 2014 effective date of the ban, retailers will be permitted to continue to offer these bags but will be required to charge a per-bag fee of 10 cents or a per-transaction fee of $1, (retailer's choice).   In addition, all such retailers will be required to display signs advising customers of the benefits of reusing and recycling bags.

A public meeting will be held Monday by the city to gather additional input which will then be considered by the city commission on February 8, 2012.  

Under the ban, retailers could still offer reusable bags, defined as those that have handles and that are made of cloth or durable materials or that are thicker paper and plastic bags with some recycled content.

Under the current plan, retailers can keep half of the interim fee, with the balance going to the city to use for programs promoting reusable bag use.

Ban exemptions will include bags used for bulk foods, produce, frozen foods, meat and fish, flowers and potted plants and baked goods. Dry cleaning bags, newspaper delivery bags and packs of multiple bags intended for garbage and pet waste also would be exempt.

Bags for prescription drugs, beer, wine and spirits and restaurant foods will be exempt only if they are recyclable within the City of Austin's recycling program.

New bag ban rules will be broadcast/advertised to the public and retailers in March by the city if this current version of the ban is approved.

My opinion:  This is definitely the right thing to do.  It is common practice in Europe, for instance, and has been for many, many years.  Everything we can do as citizens of our city, our country and the world to reduce our footprint needs to be done.  This gives all citizens an opportunity to take part in this effort.

Austin is a great place to Live, Work, Play and Invest!   Contact us to receive you a relocation package for our area (either Austin or the Highland Lakes Areas), or if we can help you buy or sell property in Central Texas. 
Get FREE Automatic Austin Property Updates  |  Get Austomatic Highland Lakes Property Updates

There are several programs with these benefits - Professional Educators, Homes for Texas Heroes or Home Sweet Texas Home.  Visit TSAHC for more information on qualifications for this home buyer program.  Requirements include:

• Must be a 1st Time Home buyer or not owned a home in 3 years
• Must meet certain income and home purchase price limits
• Must complete a HUD-approved homebuyer education course before closing on the home
• Must live in Texas

Contact Paragon Property Group for more information or to get pre-approved by a participating lender.   In addition, we may be able to offer additional cash back after closing through our Home & MovePlus program through Coldwell Banker United REALTORS, for Education Professionals, First Responders, and Individuals employed in the Medical Professions.  

Act NOW while funds are still available.    Search Austin Area Homes  |   Search Highland Lakes Area Homes

If you're interested in visiting with a lender to see what purchasing power you have with these low, low mortgage rates, Contact Us!  We would be happy to put you in contact with lenders and see what you can do!  It may be a great time for you to buy in the greater Austin and Hihgland Lakes areas   Search Austin Homes  |  Search Highland Lakes Homes

What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
 
30-yr Fixed – Slightly Lower
Last Week: 3.89%
Previous Week: 3.91%
1yr Ago: 4.71%

15-yr Fixed – Slightly Lower
Last Week: 3.16%
Previous Week: 3.23%
1yr Ago: 4.08%
 
5-yr ARM – Slightly Lower
Last Week:  2.82%
Previous Week:  2.86%
1yr Ago:  3.72%

Jumbo (Average 30-yr Fixed) – 4.125%

Short-Term Rate Outlook
* Bankrate.com Survey for January 12-18 *
 
6% expect rates to fall in the next week
47% predict an increase in mortgage rates
47% forecast that mortgage rates will remain relatively unchanged

***courtesy of Marie Funston, Capstar Lending

Speakers included Eldon Rude, from Metrostudy, Dr. Greg Hallman, of the McCombs School of Business at UT and Jim Spencer, Chief Weathercaster at KXAN News here in Austin.  

In short, we are extremely fortunate to be living in this part of the country (and the world) in terms of economic growth and stability (not to mention our gorgeous Hill Country sights, scenery, lakes, music, barbeque wineries and just good old Texas hospitality!)  Overall, Texas has fared much better than most of the country during the recent economic downturn. Nearly 7 out of 10 jobs created in the US in the last 12 months were created in Texas.  Austin was #29 in the nation for Job Growth. 

Austin, in particular, is suffering from a drought which is affecting businesses on the lakes.  According to Jim Spencer, the drought is expected to continue, but there is always hope that we will be lucky enough to have a tropical storm come through this year and give us a good soaking to help us get back on track.  A really good storm or two can fill our lakes practically overnight. 

New housing starts in Austin were about 5900 in 2010, 6100 in 2011 and expected to be about 6400-6700 this year. (2006 had almost 16,000 starts!)  Availability of buildable lots in areas that are desirable and selling well  is probably less than a 2-year supply.   Basically, developers will need to step it up or we may experience a lot shortage in the future.  This is something that will have to start now since it can take a couple of years to take dirt to a finished lot product.  In  2013, Eldon Rude is anticipating a 15-25% increase in new housing starts.  Basically, Austin has fared well, been mostly stable and it sounds like 2013 may be our year to really start getting back on a stronger positive trend, real-estate wise. 

Texas is experiencing a net positive migration and Austin and Central Texas are no exception. 
The population in our MSA in 2011 was 1.76M and is expected to grow to 2.3M in 2020.   If you extrapolate that out, Austin is likely to have about 22,000 new households every year for the next 10 years!   Even if only 50% purchase a home, that's over 11,000 homes purchased by people who don't even live here yet.  (Something to look forward to!)

Apartment Rents are increasing and occupancy levels are considered to be at full capacity.  We have some catch up to do on creating new multifamily housing units since few were built in 2010 and 2011.  Increases in rent and occupancy in Austin over the last 2 years have been the most significant than in the last 25 years, according to Eldon Rude.  Rental rates will continue to experience upward pressure in the near term.   After all, where are all of these 22,000 new households/year going to live??!

Here in the greater Austin area, we didn't have the meteoric home  appreciation that some states did and thus, also did not have the tremendous losses.   We do have some foreclosures and short sales, but we are currently experiencing low home inventories on the market for sale.  Some neighborhoods have less than 5 months inventory and homes are selling briskly and often close to asking price (if priced appropriately).  We recently put a home on the market (beautifully staged, well cared for and in a popular location, I might add) and it went under contract within 4 days (2 offers).

Mortgage interest rates are incredibly low, although the general concensus is that they will start creeping upwards, possibly later this year.   Really, you can't go wrong with a 4% mortgage!  Home prices are beginning to trend upwards in Austin on average. 

All, in all, it sounds like 2012 should be a good year in real estate, and hopefully in 2013 we can pull out all the stops!  Our stability makes Buying or Selling a home in Austin a pretty good bet, too.

I look forward to all of us experiencing a happy, healthy and prosperous 2012 here in Austin and Central Texas!

Contact Us if we can help you with Buying or Selling a Home in the Austin or Highland Lakes areas. 

Search Austin Area Homes  |  Search Highland Lakes Area Homes