Austin Real Estate & Economy News Articles

Real Estate Market Update – December 18, 2008

2009-01-20T19:55:00.001-06:00

The Austin real estate market is touted as one of the best in the country. Our strong real estate market is supported by a healthy job market. Job growth is in turn propelled by a high quality work force, availability of housing, and desirability of Austin as a good place to live and work. Several studies during the past year have confirmed this:

American Business Journals analyzed employment trends in the nation’s 100 largest labor markets, and placed Austin in the #2 spot.

The Milken Institute, an economic think tank, ranked Austin-Round Rock #4 on their list of top performing cities. Their study looked at where jobs are being created in America, as well as salary growth, high tech output, and other factors.

Forbes Magazine named Austin #2 on their list of Best Cities to Buy a Home, and #3 on their list of Most Recession Proof Cities. “This state capitol is a hip area on the rise,” they say.

Austin did not have the run up in home prices that occurred over the past five years in many cities. From 2000 to 2004, Austin was recovering from the slow down resulting from the dot.com bust of 2000. The dot.com implosion was fairly localized, and many parts of the country did not notice it. However, Austin experienced elevated inventory and flat appreciation levels during that time.

When the real estate market began to heat up in 2004, there were lots available for builders to increase inventory and balance the demand with supply in suburban areas. In the central neighborhoods of Austin, where supply of homes was tight, we did see some double digit appreciation. However, the overall home price appreciation for Austin in the peak year of 2007 was about 7%. This is up from our usual 5%-6%.

During 2008, the Austin real estate market slowed down in response to the credit crisis affecting the country. The number of home sales in 2008 dropped by about 20% compared with the previous 12 months. This needed to happen in order to bring supply and demand back into balance. Builders have slowed construction, and are working on selling existing inventory. To be sure, neighborhoods where there is an oversupply of homes will experience longer marketing times for the near future.

One of the key ways to gauge the condition of the market is to estimate the number of months of inventory on the market for sale. In the Austin area as a whole, we have about 6 months of inventory on the market. This means that it will take about 6 months to sell the current inventory, given the sales rate of the past 12 months. Since 1990, the inventory of homes for sale has been in the range of 4 – 6 months, most of the time. In the peak of the dot.com boom (early 2000) we were down to about 2 months of inventory, and in the worst of the dot.com bust (mid 2003) we averaged just over 7 months of inventory.

Six months of inventory is considered a balanced market. Of course, inventory levels vary throughout Austin. Areas that have higher levels of inventory are often the more popular neighborhoods where builders anticipated lots of demand. These neighborhoods are going to be buyer’s markets for the near future, but they will eventually come back into balance. This has happened before. Austin is a resilient economy.

Certainly, the financial uncertainty that is happening now has created a lull. But, we can expect to see some pent up demand when the national economy stabilizes. The important thing is that we have good market fundamentals in Austin. This is recognized by study after study. We have had market slowdowns before, and have come back strong. We are down from a recent peak, but are settling into a normal, balanced market. There are plenty of people with jobs, good credit, and funds for a down payment who want to live and work in Austin.

See months of inventory data by neighborhoods: Austin Market Status - 2008

It's Back to the Future for Austin Real Estate!

The serious downturn in housing sales in many parts of the country is well known. This downturn was preceded by a strong escalation in home prices. In many areas, prices rose beyond levels that were supported by local salaries and income. The driving force that fueled the growth in home prices was the availability of money. The easy availability of home buying money allowed the demand side of the market to build.

When buyers could expect 10% - 30% appreciation and get 6% interest rates, who would not be motivated to buy? It's a no-brainer, right? Right. But, high demand leads to higher prices. And, high demand leads to more inventory, as builders respond to the need for homes.

The sources of money for mortgages came from new and unregulated sources. Prior to this, government regulated entities, such as Fannie Mae, were the main buyers of mortgages from lenders. Then, new Wall Street investors entered the market for buying real estate loans.

Alternative loans, interest-only loans, 100% loans, creative ARM’s, no-documentation, and other high risk products became commonplace. Some of these loans began with a low interest rate that the borrower barely qualified for, and then switched to a higher rate after a short time. In many cases, the borrowers did not understand the risk that they were taking.

For most of my experience in real estate, buyers were limited to 80 - 90% loans, with 28% of their income allowed for mortgage payment, and their income was fully documented. When we began to see 100% financing on contracts, we were concerned by the buyer’s lack of personal investment, or skin in the game, as they say. Loans such as these have an underlying expectation that the value of the home will increase quickly, and the buyers will be covered, if they need to sell.

Sub-prime, alternative, or high risk loans are not limited to low income buyers, and are not always predatory. Often, very sophisticated buyers elected to keep their cash and leverage more. On a large scale, the easy availability of money, through higher risk loans, fueled the growth of home ownership and investment in rental real estate. The demand for homes raised prices, and then raised inventories, as builders supplied more homes. Then the cycle was broken.

What caused the break? Foreclosures began to show up. Investors who bought mortgage backed securities realized that they contained more risk than they expected, and stopped buying them. Lenders lost the market for selling many of their loans. When home buying money dried up, demand for homes slowed down, and prices began to fall in many parts of the country.

Of course, real estate markets are local. Many areas will survive this much better. Fortunately, Austin is one of those areas. To be sure, we are experiencing the effects of the reduction in demand for homes, but it is not devastating. Why?

First, the Austin market has not had double digit appreciation during the past few years. During the years from 2001 to 2004, after the Dot.com bust, the market in Austin was somewhat soft. The median price rose by about 3.5% per year, on average.

From 2005 through 2007 our market tightened up, and we began to see very low inventory and strong demand, especially in the central areas. Throughout Austin, especially in suburban areas, builders produced inventory to keep up with demand. Overall, appreciation in Austin has been steady, but reasonable. Home prices have not risen excessively, and are not falling precipitously. Austin home prices are still in line with local salaries.

Second, the real estate market always reflects the job market. Approximately 20,000 new jobs were added during the past year. Our unemployment level is about 3.5%, a level that some would consider full employment. Retail outlets are opening at a fast clip – a result of widespread employment. New jobs are being created as companies move here and Austin companies expand. Jobs bring in people, and people buy homes.

It is true that the "new" restrictions on obtaining a mortgage will have a slowing effect on the Austin market. For the next year, we will see a more balanced market than we experienced in 2006 and 2007. Sellers will have to consider the fundamentals to attract a buyer. They will need competitive pricing, excellent presentation, and top level marketing. Buyers will have to have a down payment, good credit, and proper income for their loan.

So, it’s back to the future for the Austin real estate market.

Number of Residential Sales.
The graph below shows the number of residential sales in Austin during the past 5 years. About mid-2007, we experienced a drop in the volume of sales. This coincides with the abrupt decline in the supply of money for mortgages. The decline in sales numbers can be attributed to reduced investor buying, tighter loan qualification, and slower production of homes by builders.

Real estate economist, Dr. Jim Gains (2008 Home Sales Outlook), points out that this slowdown brings our market back down to normality. Although Austin has been above normal in terms of number of sales during the past 3 years, fortunately we have not been that much above normal.

The reduction is number of buyers has slowed construction of new homes by 25%, and an additional 25% is expected. This is a good thing. It has put a break on new home starts before we became too overloaded with inventory.

Newspapers will be reporting that “sales are down.” But, keep in mind that they are down from a peak in 2206 to a more sustainable level. In general, prices have not fallen in Austin. Homes sales will be at 2003 levels in next few years.

Jobs in Many Sectors Keep Austin Economy Humming

2008-08-05T17:02:00.001-05:00

Click on the image below to zoom/read article.

Development at Former Mueller Airport Site - Condos/Lofts in Austin

2008-08-05T16:57:00.001-05:00

< Click to view full sized copy of article.

Austin apartment rents on the rise

2008-02-01T16:56:00.000-06:00

(Multifamily : Austin-Round Rock) 1/9/2008 Prices for apartment rentals in Austin are on the rise as occupancy rates increase, according to Capitol Market Research. One-bedroom apartments have increased to an average of $714 a month, about $100 more than they cost two years ago. Two-bedroom, two-bath units are up to $938, also about $100 more than two years ago. The market is seeing a mix of newcomers and renters who are shopping around after their rents were raised. Strong job growth in the past 12 to 18 months has also kept the apartment market healthy. Charles Heimsath, president of Capitol Market Research, predicted that occupancy rates will hold at 96 percent this year. Heimsath predicts Austin-area rents will rise 5 percent to 6 percent this year, with ample demand to fill the estimated 6,000 units that are expected to open. Last year, the market absorbed 5,600 units.
[Austin American-Statesman]

Austin Apartment demand expected to remain strong in '08

2008-02-01T16:55:00.001-06:00

A new multifamily report from Marcus & Millichap Real Estate Investment Services ranks Austin the 22nd strongest apartment market in the country in 2008, down from 16th in 2007 thanks to increased levels of new construction and above-average vacancy. Developers are forecasted to bring 5,100 new apartment units online in the year ahead - up from 4,800 in 2007 -representing a 3.6 percent increase in the overall stock. With many older units in and around Central Austin being torn down to make room for new construction or converted to condos, developers are responding by adding product in areas like Northwest and South Austin. That increase in inventory is likely to lead market-wide vacancy to inch up to 7.6 percent in 2008. At the same time, asking rents are anticipated to rise 3.7 percent to $851 a month and effective rents will advance 3.4 percent to $767 a month.
[Austin Business Journal]

Best and Worst Places to Buy a House

2008-01-29T20:53:00.000-06:00

Whether you're looking for an investment property or a place to live, here's a look at the cities you should seek out and avoid in 2008.

By Danielle Babb | January 23, 2008

The housing crunch and the excessive inventory--exceeding 10 months on resale homes--continues to take its toll on housing prices. But over the long term, housing is still a good investment. In fact, it's more than an investment; it's a home. Plus, you're not really saving anything by renting, as the costs of renting and owning are about equal (well, owning may be a little more). The tax benefits of home ownership far outweigh renting, too. With good housing prices in many great areas, this may indeed be the time to buy.

So now that I've convinced you this is a good time to buy a home, the next question is, Where do you buy one? No matter where you look, you should check out some basic economic fundamentals before buying. Is job growth stable in the area? Is income keeping up with inflation? Is crime above the national average? Is there a higher-than-average rate of foreclosures? These issues and others play a factor when deciding where to buy a house.

As a real estate investor and analyst, it's my job to provide buyers with qualified information on where to buy--and where to stay away from. Here are my thoughts for 2008 based on the indicators noted above.

The Top Places to Buy
Whether you're an investor like me or you're looking to purchase that next move up, here are my picks for the best areas to buy a home:

Killeen, Round Rock, Austin, Texas: Killeen has the lowest average home price in any market in the nation while still maintaining quality. Round Rock and Austin have seen incredible job growth and very stable home prices despite the downturn nationwide. Jobs continue to grow here--a factor for keeping inventory low and prices stable.
Mission Viejo, California: Mission Viejo has the lowest crime statistics in the nation. With no murders in 2007 and a low rate of violent crime, this is a good place to raise a family. Prices are relatively stable, and the job market in the nearby cities of Irvine and San Diego means there is consistent demand from job seekers.
Palm Beach, Florida: I'm taking a risk here because this area has been pummeled by foreclosures in 2007. But there are also a lot of boomers retiring, and Palm Beach is looking mighty attractive. If you don't like this high of a risk (which translates to great prices), check out Tampa or Clearwater in the same state.
Las Vegas, Nevada: Yes, Las Vegas has been hit hard by incoming investors, who watched their home values disappear and then left those homes empty. Las Vegas comes in quite high on the national foreclosure list, almost always within the top three metro areas. But there's an upside--a very strong job market. In 2007, Las Vegas experienced a 12 percent increase in population, partly driven by retirees looking for Sunbelt states to move to. Coupled with low prices, we could see inventories reduced here, which would also stabilize prices. Be careful what you buy, but I like it.

Places to Avoid
And now for the places you definitely want avoid:

Detroit, Michigan: The job market is in chaos. People are getting laid off left and right. National statistics seem to point to a significant problem with job loss and job income not keeping up with inflation. As a result, many nice neighborhoods are now abandoned due to people leaving their homes. Inventories exceed one year (under six months is what we want to see), and the foreclosure problem hit Detroit hard. With fewer jobs to support home purchases, I don't see Detroit turning around anytime soon.
Miami, Florida: Palm Beach is different than Miami, which sits in its gorgeous aqua water with half-built and abandoned condos, a shrinking job market, a tough time getting insurance against hurricanes and a job problem. Yes, you can get a good deal, but do this only if you don't need the appreciation from the home in the next decade.
Riverside/San Bernardino, California: Even those lucky homeowners that bought before the boom are feeling now. Riverside and San Bernardino counties in Southern California consistently lead California in foreclosures and rank in the top three metro areas nationally. The prices have plummeted, and jobs in the area are scarce. People moved there due to lack of affordability in Orange and Los Angeles counties (where their jobs were), so it's a commuter's area. Now that prices in the two counties have dropped, people can live close to their jobs. Although I grew up in Riverside County, I could never recommend it to anyone looking to buy a home.

Danielle Babb is an experienced real estate investor and specialist on the use of technology and real estate. She is also the co-author, with mortgage broker and realtor Bill Nazur, Finding Foreclosures: An Insiders Guide to Cashing in on the Hidden Market of available from http://www.entrepreneurpress.com/

Commercial Property Report - Georgetown, Texas

2008-01-22T11:25:00.000-06:00

by Ercel Brashear

Activity in the commercial market has continued on a torrid pace since my last report in mid-2005. Over the last 10 years, Georgetown has moved from an ‘inner-tube’ floating down the San Gabriel to a full-throttle cruiser out on the lake.

During the last 12 months, another 600,000 square feet of space has been added to the total non-institutional database bringing the commercial sector to just over 8 million square feet. When the institutional sector is added to the mix (schools, churches and government buildings), the entire database is now over 12.8 million square feet. That’s over 300 square feet of space for every man, woman and child living in Georgetown. That number is high, but partly it is the result of being the County seat. Every person moving into Williamson County increases the demand for services from the County which leads to a need for space inside Georgetown. The growth of County government, for example in the judicial sector, leads to increasing demands for legal space in and around the downtown courts complex.

As to the non-institutional portion of the database, Georgetown’s most active sector still remains in retail where the total square footage has grown from just over 2.2 million square feet in 2005 to over 2.6 million square feet in 2006. Additionally, in the banking category, the number of new banks entering the market seems to be accelerating. There are three new banks coming to West Georgetown Village, located at the intersection of Williams Drive and Shell Road. Those banks are Wachovia, World Savings and Hibernia (now Capitol One), while a new credit union is on the drawing boards for the Rivery. Clearly the financial institutions are bullish on the Georgetown market!

Whenever possible, Georgetown will need to aggressively promote local employment opportunities in order to generate the income needed to support the large surge of retail development that has taken place during the last five years. While the growth of new retail is always welcome, the addition of over 100,000 square feet occupied by the Tasus Corporation is extremely encouraging. Kudos to the folks involved in getting Tasus up and running.

Land prices are surging, but the buyers are generally users, not speculators. So far, the reported transactions have involved substantial amounts of buyer equity, which is reassuring in light of the rapid price increases.

Georgetown’s commercial property base keeps expanding!

At the beginning of 2005, the total square footage in this sector was just over 2.2 million square feet. 1.8 million square feet was classified as occupied (83%) with about 374,000 square feet (17%) listed as vacant. As of today, this sector contains just over 2.6 million square feet. 2.2 million square feet is classified as occupied (85%) with 381,000 square feet (15%) listed as vacant. In the last month, two large blocks of space, totaling about 86,000 square feet, have moved into the vacant classification with the closing of Albertson’s and Celebration.

The big story for this sector is the increase in occupied space during the last year. Between 2005 and mid-point of 2006, total occupied retail space increased by 410,000 square feet. Most of that increase come from the completion of tenant spaces at Wolf Ranch; namely Kohl’s, Target, Best Buy, Office Depot and numerous other Wolf Ranch tenants.

In the pipeline are several projects that will add roughly another 120,000 square feet to this sector. Those projects include the Monument Café remodeling of the old Draeger dealership and the Choi project for downtown, combined with the construction of Discount Tire and the City Lights Movie Theater in the Rivery. Finally, West Georgetown Village, under construction across from HEB on Williams Drive, will be adding new retail space. With the Choi, Draeger, and West Georgetown Village projects, the actual available retail space is not finalized. Of the total square footage being built, approximately 68,000 square feet will be classified as “occupied” the day construction is completed.

The interesting thing to me about the retail sector is the magnitude of the change in the past ten years. Since 1996, Georgetown’s population has doubled, while the total square footage of retail space increased by 200%. In 1996 Georgetown had 864,000 square feet of retail, roughly 42 square feet for every person in town at that time. Today, total retail space has swelled to just over 2.6 million square feet, roughly 53 square feet per person.

One of the areas offering a significant growth in available choices over the past ten years has been the restaurant category. In 1996, Georgetown had just over 91,000 square feet of total restaurant space. Today that number is just over 236,000 square feet, with over 193,000 square feet (89%) reported as occupied. Of the currently vacant space, only 24,700 square feet is on the ground ready for tenants, roughly 11 % of all space. Three major projects under construction comprise the balance of the square footage in the database. Those projects are the Village Inn restaurant,
Panda Express, and the proposed Monument Café downtown. Compared to ten years ago, this sector has experienced nearly a 260 % increase in total square footage. Lets go eat!

Office Report

In 2005, Georgetown had just over 526,000 square feet of office space. As of the midpoint of 2006, this sector has increased to just over 661,000 square feet, an increase of 135,000 square feet. The bulk of that increase came from the completion of Jimmy Jacob’s office condominium project on Williams Drive, the addition of new units at Dawn Plaza, and the completion of the first phase of the Embree construction project on Williams. Of the total, about 590,000 square feet are occupied, with about 71,000 square feet vacant; a vacancy rate of 11%. This sector has had a net absorption of space in the last year of almost 143,000 square feet - much of that being owner-occupied - while total available square footage of office space has declined slightly.

Again, comparing the market in 1996 versus 2006, the total office square footage has increased from 351,000 to 661,000 square feet. On a per capita basis, the total office market has decreased from 16.7 square feet per person in 1996 to 15.7 in 2006. This sector still is not seeing any significant upward pressure on lease rates despite rising construction costs. The average lease rate tends to run from $12-$18/sf per year, with newer units commanding the highest prices.

Single Family Homes on the Rise

During 2005 there were 1074 single family building permits issued in the Georgetown market. The permits issued were fairly evenly split between the age-restricted category versus traditional category. The 2005 permit total is the highest number of single family permits issued in Georgetown in the last 10 years. Based upon permits issued to date for 2006, the pace of the single family market shows no signs of easing in the near term.

This year the NW sector will see the first phase of the revised Georgetown Village project coming on-line. Additionally, new subdivisions are coming on-line in the Williams Drive corridor; which when combined with Sun City’s steady performance, will result in continuing the NW corridor’s domination of the local market. The emerging market NW is SH 195 with at least 3 major residential land purchases completed in
the last 12 months. Activity is now underway to develop two of the tracts. The southeast side of town should continue its steady growth pattern with arrival of the Pinnacle project on Maple Street. SW will see new activity as Reagan Blvd. is completed to SH 29 and the LCRA sewer plant comes on-line. There are even rumblings of the NE sector awaking with report of a 300+ acre tract on FM 971 being in negotiations for residential development.

All in all, the rise of rooftops around Georgetown appears to continue unabated; a very good sign for the commercial sector!

Austin-San Marcos Non-Agricultural Wage and Salary Employment 2007

2008-01-22T11:17:00.000-06:00

» Click Link above to download PDF File [50 KB]

Austin-San Marcos Percent Change in Non-Agricultural Wage and Salary Employment 1981 - 2007

2008-01-22T11:15:00.000-06:00

» Click link above to download PDF File [120 KB]

Austin SMSA Non-Agricultural Employment: Summary Chart 1986 - 2007

2008-01-22T11:14:00.000-06:00

» Click above to download PDF File [230 KB]

City of Georgetown TX New Building Permits Issued By Year

2008-01-22T10:44:00.000-06:00

Current year includes permits from 01/03/2006 - 01/18/2008

	Residential				Commercial		Multifamily		Total
Year	Total	Traditional	*Age Restricted	Est Value		Est Value		Est Value		Est Value
1997	779	264	515	$105,539,896	18	$13,393,100	3	$5,126,810	800	$124,059,806
1998	680	288	392	$91,988,128	37	$40,830,960	3	$9,316,600	720	$142,135,688
1999	655	368	287	$98,873,694	71	$25,357,788	4	$8,440,500	730	$132,671,982
2000	911	553	358	$130,994,610	20	$12,988,770	24	$39,659,200	955	$183,642,580
2001	681	488	193	$95,416,750	49	$36,634,728	11	$2,478,462	741	$134,529,940
2002	687	338	349	$128,849,224	45	$48,142,032	0	$0	732	$176,991,256
2003	578	277	301	$106,737,544	79	$24,535,163	1	$4,451,550	658	$135,724,257
2004	945	431	514	$174,419,048	136	$49,894,081	7	$2,303,840	1,088	$226,616,969
2005	1,074	517	557	$204,473,694	183	$62,336,105	5	$12,836,040	1,262	$279,645,839
2006	1,166	538	628	$230,258,251	151	$71,315,439	4	$37,031,033	1,321	$338,604,723
2007	893	435	458	$222,318,719	119	$233,208,424	0	$0	1,012	$455,527,143
*Total*	*9,049*	*4497*	*4552*	*$1,589,869,558*	*908*	*$618,636,590*	62	*$121,644,035*	*9,070*	*$2,330,150,183*

CENTRAL TEXAS POPULATION TRENDS More migrating to region

2008-01-11T11:10:00.000-06:00

Thursday, January 03, 2008

The boom is back: More migrating to region

In 2006, more people moved to Central Texas from elsewhere in the United States than in any year since the tech bust.

Net migration into Hays, Travis and Williamson counties exceeded the levels experienced in the height of the tech boom in 2000, according to an analysis of 2006 IRS tax data by the Capital Area Council of Governments.

Total California migration to Travis, Hays and Williamson counties

Houston, San Antonio and other Central Texas counties continued to be the top sources for new residents in all three counties, but the number of people moving from California has increased significantly.

About 2,700 more people moved here from California in 2006 than in 2005, driven largely by lower housing prices and job opportunities.

Forecast: Austin economy stays strong

2008-01-11T11:07:00.000-06:00

05:56 PM CST on Friday, January 4, 2008

By OLGA CAMPOS - KVUE News Watch Video Clip

Rising gas prices and higher unemployment figures have yet to take a toll on Austin's economy. In fact, the financial forecast for 2008 is strong.

Luminex employees like to say they're in the business of saving lives. The Austin-based company expects to do just that now that their product has received approval from the federal Food and Drug Administration.

"We received FDA clearance on January 3, and we began shipping the product on January, 3," said Patrick Balthrop, Luminex CEO.

The product is the first of its kind test for a dozen different respiratory viruses for patients of all ages.

“It tests at the DNA level for all these different respiratory viruses and the physician gets the results in a matter of hours," said Balthrop.

Luminex is the type of fast-growing, ground-breaking business that's leading the local economy in 2008.

"The bios and the nanos are growing. The next generation of medical and technology will continue to drive the economy also," said Marvin Rickabaugh, regional president of Frost Bank.

Rickabaugh says with half a dozen new hospitals opening or under construction, the medical sector is also strong.

Retail growth and the service industry are both expected to create more new jobs in 2008.

Experts say Austin can also count on continued economic strength generated by both the University of Texas and by state government.

On the downside, traffic congestion and public education are two issues local leaders are trying to tackle to prevent them from slowing the economy.

It's part of the strategy that attracts booming businesses like Luminex to Austin.

"In a company that's growing like we are, Austin has a lot of things that allow us to sell the company and sell our location," said Balthrop.

Capital MetroRail

2007-12-21T15:04:00.000-06:00

Austin American Statesman

By Ben Wear | Monday, December 17, 2007, 11:50 AM

Passenger trains in Austin, after 22 years of debate, an election and something like $100 million (and counting) spent, will begin running this evening. Well, one of them will. However, the only people on board will be transit workers.

This is just testing, but a transportation milestone for Central Texas nonetheless.

The transit agency this evening (and overnight) will begin testing the first of two diesel commuter trains it has on hand and assembled. Runs should begin about 8 p.m. and be done by 5 a.m. between the Capital Metro maintenance facility at Burnet Road and U.S. 183 and the intersection of Howard Lane and the Loop 1 tollway. Testing, at least this first flurry, should run for the next three nights.

The car will be tested for now at no more than 20 mph, about a third of the speed they will run in some sections of the Leander-to-downtown-Austin line when it opens next fall. The train will be blowing its horn at road crossings. However, the agency is installing special gates with four arms at most road crossings, which are virtually impossible for a car to pass. Eventually, this will allow the train operators to pass such intersections without blowing the train horn.

The agency is buying six cars for more than $35 million (on time payments). Each car is 138 feet long, with 117 high-backed cloth seats, built by Stadleer Bussnang, a Swiss company. The cars are being manufactured in Switzerland, where they undergo on-track testing and then are broken down in three pieces for shipment to the United States.

The first two cars arrived several weeks ago and were assembled at the Burnet Road facility. Two more cars arrived in the past few days, again, in pieces for assembly. Agency officials have said in the past that they intend to give each vehicle about 1,000 miles of testing on the actual rails. The full commuter line will run 32 miles, with nine stations.

The other two cars should arrive by the end of January, the agency says.

It’s Bigger in Texas (Even Austin’s Housing Market)

2007-10-11T11:50:00.000-05:00

October 2, 2007

This is an article that was somehow missed back in August- which is unfortunate because we are constantly telling our home buyers and sellers the state of Austin housing market is great. Normally, an eyebrow rises and a curious look appears on the buyer or seller’s face, but darnit, it’s the truth. Here are some quotes:

Texas is at the forefront of emerging markets and industries. It’s no longer just about cotton, cattle, and crude—it’s about technology and communications, manufacturing, and international trade, too.

The governor’s quote is backed by hard economic statistics as well. In fact, if Texas were its own nation (once more, that is), it would represent the world’s eighth largest economy.

Texas recently surpassed California as the largest exporter in the nation; it’s the gateway to trade with Latin America, with 75% of America’s commerce with Mexico traveling through the Lone Star State. Texas is the headquarters for 45 Fortune 500 companies, is home to 14 of the 100 Fastest Growing Businesses in America (as rated by Fortune Small Business)

Additionally, Texas employment growth exceeded national employment growth rates in 2005; December 2005 marked 16 consecutive months. Texas employment gained 153,500 non-agricultural jobs in 2005 for an annual growth rate of 1.6% of state non-agricultural job growth.

Hutto TX - “Fastest Growing Community in America.” “Center of the Universe.” “Hippo Capital of Texas.” From 1995 to 2005, the population in Hutto increased an astounding 866%—20 times the increase in the “high-tech Mecca” of Austin during the same period.

Just what does all this mean to the Austin housing market? Everything. Our market is being bogged down by the national idiots like Cramer from CNBC who yell that it’s a horrible time to buy. I could have agreed with Cramer had he specifically named a city on the East or West Coast, but you know what? He didn’t. Like I said, national idiots who could care less about their negative impact on citites that are just fine.

Our advice is continue to vet information, continue to be diligent in your Austin home buying and selling endeavors, and further- buy low and sell high. It is a buyer’s market in some areas of Austin, and a Seller’s market in others- Single Pointe is doing all it can to clear the muck for our Austin buyers & sellers and will continue to be responsible in reporting the absolute facts.

Source: www.singlepointerealty.com

Texas Ropes in More Industries and Trade

2007-10-11T11:41:00.001-05:00

By Donna Clapp

With titles like “largest exporter in the nation” and “world’s eighth largest economy,” its no wonder so many corporate site selectors see Texas as their location of choice.

“In days gone by, signs posting ‘G.T.T.’ or ‘Gone To Texas’ were displayed in windows of closed up shops all across America advertising the flurry of migration to a vast land of opportunity,” says Texas Governor Rick Perry. “Today, that tradition continues as people look to the Lone Star State to pursue their dreams. Texas is at the forefront of emerging markets and industries. It’s no longer just about cotton, cattle, and crude—it’s about technology and communications, manufacturing, and international trade, too.”
new U.S. Highway 287 Bypass U.S. Senator Joe Barton, State Representative Jim Pitts, County Judge Chad Adams, Mayor Boyce Whatley, and several community leaders cut the ribbon on the new U.S. Highway 287 Bypass. (SOURCE: Corporation for the Economic Development of Midlothian)

The governor’s quote is backed by hard economic statistics as well. In fact, if Texas were its own nation (once more, that is), it would represent the world’s eighth largest economy. Texas recently surpassed California as the largest exporter in the nation; it’s the gateway to trade with Latin America, with 75% of America’s commerce with Mexico traveling through the Lone Star State. Texas is the headquarters for 45 Fortune 500 companies, is home to 14 of the 100 Fastest Growing Businesses in America (as rated by Fortune Small Business), and has maintained healthy bond ratings despite tough economic times across America.

Additionally, Texas employment growth exceeded national employment growth rates in 2005; December 2005 marked 16 consecutive months. Texas employment gained 153,500 non-agricultural jobs in 2005 for an annual growth rate of 1.6% of state non-agricultural job growth.

But the best news about Texas is its business climate. Economic developers throughout the state are creating innovative incentives for businesses looking to expand or relocate in their region. Here are just a few of those regions that are ready and willing to work with you to make your business succeed.

Hutto: The Fastest Growing Community in America

2007-10-11T11:38:00.000-05:00

“Fastest Growing Community in America.” “Center of the Universe.” “Hippo Capital of Texas.” These are just some of the tag lines that capture the robust business and cultural activity in Hutto, TX, a city in dynamic Williamson County, on the eastern edge of the famous Texas Hill Country region. From 1995 to 2005, the population in Hutto increased an astounding 866%—20 times the increase in the “high-tech Mecca” of Austin during the same period. (Central Austin is about 20 miles southwest of Hutto.)

Hutto, long an agricultural town of fewer than 1,000 people, has developed into a diverse community of more than 18,000 residents. The city expects to hit 35,000 residents within the next decade. Light manufacturing is fast becoming a substantial part of Hutto’s economy as businesses learn of the many reasons why the city is perfectly located for them.

Located on the new State Highway 130—which will eventually be a component of the Trans-Texas Corridor—Hutto is strategically located with ideal access to major transportation corridors in all directions. With its proximity to Austin and Round Rock, Hutto is the ideal lower-cost alternative for many small and mid-size companies. Hutto is where site selection consultants and their clients have already discovered affordable real estate, a relatively young and well-trained workforce, safe neighborhoods, quality schools, abundant recreational opportunities, and an overall family and business friendly environment.

The Hutto Economic Development Corp. (EDC) can be your ally in finding an ideal location for your business. A wide variety of business incentives is available and will be packaged to best suit your needs.

Just one example of how the Hutto EDC has helped local businesses grow is Precision Engineering Ceramics, Inc. (PEC). From its origin in Hutto six years ago as a two-person operation with meager sales of ceramic components to the semiconductor industry in Austin and Dallas, PEC has now grown to a 17-employee firm with more than $2.5 million in annual sales and rapidly growing. The Hutto EDC is helping PEC grow even more by assisting the company with construction of its 25,000-square-foot, state-of-the-art manufacturing facility. With continued robust sales in the semiconductor industry, PEC has now entered the offshore petroleum exploration market, which is expected to double sales volumes almost immediately.

Ports-to-Plains Corridor Enters A More Serious Planning Phase

2007-10-11T11:33:00.000-05:00

From Texas Contractor, an Associated Construction Publications title

Texas Construction Notes
by Liz Moucka

Austin, Tex. – The Texas Department of Transportation (TxDOT) announced it will form a working group to develop a financial master plan a Ports-to-Plains Corridor, which would create new jobs and economic opportunity for West Texas. Ports-to-Plains is a proposed divided highway corridor stretching from Laredo on the Mexican border, through Midland/Odessa, Lubbock, and Amarillo in West Texas north to Denver, Colorado.

Designated as a High Priority Corridor by Congress in 1998, the Ports-to-Plains corridor is intended to expand economic opportunity and serve international trade from Mexico to Canada. Despite the congressional designation, adequate federal funding has not been provided to cover the cost of the project.

Earlier this year, Cambridge Systematics issued a report to TxDOT outlining the rural development opportunities if Ports-to-Plains is built as part of the proposed Trans-Texas Corridor project. In addition to being be a catalyst for economic development and job creation, the Ports-to-Plains Corridor could provide a way to transfer energy generated by wind turbines in West Texas to other parts of Texas and the southwest. Wind farms are currently located in 14 West Texas counties creating electrical generation capacity rated at 3,676 MW.

Electrical generation capacity is expected to reach 7,038 MW in western counties by 2010, according to the Public Utility Commission of Texas. Additionally, with nearly 40 percent of all U.S. agricultural products being exported, a Ports-to-Plains route would help farmers and ranchers from West Texas and throughout the U.S. Midwest compete in the global marketplace.

Construction Underway On Union Pacific Intermodal Yard In San Antonio
San Antonio, Tex. – General contractor SpawGlass and earthmoving contractor M. Hanna Construction have begun site preparations on the 300-acre Union Pacific Intermodal facility on the south side of San Antonio. The $90 million state-of-the-art terminal is expected to generate $2.48 billion in cumulative economic impact for the area over 20 years. Located strategically between rail lines traveling to and from the West Coast and Mexico, the 300-acre rail port will ship and receive containers and trailers with household goods and other items supporting retailers and distribution centers, as well as auto parts for the new Toyota plant in San Antonio.

The routes easily accessed by the facility will be along San Antonio’s Loop 410; Interstate 35 and the future Trans-Texas Corridor TTC-35 (Laredo to Dallas/Fort Worth and northern states); State Hwy. 37 (Port of Corpus Christi); I-10 (Houston and the Southeastern U.S. and El Paso on to Los Angeles). First Industrial Realty Trust, Inc., a leading provider of industrial real estate supply chain solutions, in partnership with 4M Realty, has been selected as the developer for the facility. Access and egress points for trucks and automobiles at Interstate 35, will increase the viability of an adjacent business park which First Industrial is currently planning.

When completed in late 2008, the new facility will use a combination of advanced computer systems and technology to coordinate all movement of rail cars, trucks, trailers and containers so that a truck entering or leaving the facility will be stopped at the gate for only 30 to 45 seconds, compared to the national average of four minutes.

Good or bad, cranes embody Austin's renaissance

2007-10-11T11:24:00.000-05:00

Source: www.news8austin.com
By: Tracey Panek
Watch Video

Today, construction cranes and new buildings dot the skyline of Downtown Austin. The boom has created shops, restaurants and luxury apartments in the Second Street District, along with the new City Hall, which opened in November 2003.

Downtown Austin has changed a lot since News 8 Austin went on the air eight years ago. We're taking a look back at where we've been since we launched in 1999.

This month, we're looking at changes in Central Texas.

In 2004, the block-long Frost Bank Tower on Congress Avenue opened as the city's tallest building, at 33 stories.

But in just a few years it'll lose that distinction. More than a dozen high-rises are in development right now. The tallest, the 55-story Austonian, is under construction at Second and Congress and should open in 2009. Condos there are said to start at $500,000.

Austin Mayor Will Wynn wants 25,000 people living downtown by 2025. Currently about 5,000 people live there, and the few residential developments have sprung up in the last few years after the dot-com bust.

"We did partner up with the community to take downtown to the next level. I think it's going to be an exciting downtown for this city for a long time to come," council member Brewster McCracken said.

The Nokonah, the Austin City Lofts and the Plaza Lofts were the first to open after the downturn in the early 2000s. Now they're being overshadowed by mixed-use towers with concierge services, expensive appliances and hefty price tags in the millions.

Whether you think the progress is good or bad, it's not going away. Critics say they don't want Austin to lose what they say separates it from other Texas cities like Houston and Dallas.

"I understand it's progress and it brings a lot to our economy, but at the same time you kind of drag your feet and you're a little nostalgic for the way it always has been," resident Chris Heiligenstein said.

For others, the way it's been is the wrong way to look at the future of downtown.

None of this would have been possible if Austin hadn't rebounded after the dot-com bust. New industries have created new jobs, which translated into construction jobs for the expansion of new businesses and homes.

"In terms of drawing new businesses downtown and making a more urban environment - it's great," resident Garry Ashcraft said.


	Downtown developments



		1. Austonian 2. Fifth & Congress 3. 800 West 4. The Monarch 5. 360 Condos 6. Block 21 7. 7 Rio 8. Spring Condos

Inside Real Estate - Objects Of Appreciation: Some Spots Buck The Housing Slump

2007-05-10T13:04:00.000-05:00

BY MARILYN ALVA, from INVESTOR'S BUSINESS DAILY

Cranes dot the skyline. Going up: luxury condo towers selling for as much as $800 a square foot.

It's not Las Vegas, Phoenix or Miami circa 2005. It's downtown Seattle and nearby downtown Bellevue — in the present day.

Buyers are not speculators, either. Most are people who actually plan to move into the units.

Call it the contrarian market. While most of the country's housing market continues to wither, some areas are still holding up, even seeing double-digit appreciation.

Seattle is one striking example.

"There are definitely pockets in the country that are doing better than others," said Lawrence Yun, senior economist at the National Association of Realtors.

Where are these spots? He cites areas in the Pacific Northwest, the mountain states of Idaho, Utah and New Mexico, and parts of the South, including Texas, Tennessee, Georgia and the Carolinas.

Florida, where speculative buying was rampant, is not on the list. "Struggling markets are the previous highfliers," Yun said.

While most of the 20 top metro markets in the 12 months ending in February saw home prices decline from the year before, Seattle home prices increased the most, by 10.6%, according to the recently released S&P/Case-Shiller housing price index. And they continued to show gains this year, albeit at levels lower than last year.

"Part of the reason is it never went up as much in the boom," said Robert Shiller, chief economist at MacroMarkets and a Yale University professor.

Points North

Seattle stands apart for several reasons. It had an economic downturn early this decade worse than what many other markets saw, and recovery got under way later, in late 2004.

The city's recovery is still at a fairly early stage, says William Riss, chief executive of real estate services firm Coldwell Banker Bain in Seattle. Large employers such as Boeing (BA) and Microsoft (MSFT) are expanding, as are other tech firms.

"Six months ago I would have said we're overbuilding," Riss said. "But the market is strong enough to accept (the new construction)."

California flight also has helped to keep housing prices strong in the Pacific Northwest. "Californians who have sold their expensive homes are not afraid to bid up home prices," Riss said.

Meanwhile, supply of new single-family homes in the Seattle area has been limited due in part to zoning restrictions in outlying areas. That has forced developers to "go up rather than out" in downtown, Riss says.

Single-family homes that do go on the market in Seattle are in high demand. They appreciated about 12% last year. Riss says real estate agents expect a 9% to 12% rise this year.

"This is all about supply and demand," he said.

Sales of single-family homes in the Seattle area would be more brisk if more homes were on the market, Riss says. King County, which includes Seattle, saw home sales dip 13.8% last year vs. 2005. The supply of homes in the county at year-end was a low 2.2 months' worth.

In March, the number of all homes sold in King County fell 1.4% from the prior year. That includes both condos and single-family homes. In Seattle, the number rose nearly 2%.

Supply and demand are well aligned in other still-strong housing markets such as Austin, Texas; Salt Lake City; and Charlotte, N.C. In Austin, sales were up about 6% in March vs. a year ago, as was the median home price, says Socar Chatmon-Thomas, chairman-elect of the Austin Board of Realtors. She's worked as a Realtor in Austin for 13 years. "I'm as busy as I've ever been," Chatmon-Thomas said.

In a twist for an area that prizes land, young professionals and empty nesters are now buying new condos and townhomes. That's driving up their prices about 15% over last year, Chatmon-Thomas says.

Like Seattle, Austin's housing market saw no big double-digit price gains during the boom. "We were just trotting along at 5%, 7% or 8% a year," she said.

Not only is Austin home to the state capitol and government jobs, it's also a university town and has a growing number of high-tech and biomedical offices. Home prices are still relatively affordable, averaging around $178,000.

Salt Lake City also benefits from a growing tech sector and strong job market. "I would not be surprised if it experiences something close to 20% price appreciation in 2007," said Yun.

Charlotte home prices rose 7.3% in February from a year earlier, but most of the jump occurred in the first half of 2006. "Charlotte is an up-and-coming city in the process of being discovered," Shiller said. "There's never been a boom there."

Lack Of Land

A strong local economy with tight supply often means appreciation. Compared with a year earlier, prices in land-tight Los Angeles rose 9% in February and 2.6% in March, says the California Association of Realtors. That's despite sales slowing for months. Compared with a year earlier, sales fell 15.9% in February and 4.6% in March.

Los Angeles' price resiliency contrasts with what's happened in the region's wider-open Inland Empire — Riverside and San Bernardino counties. There the median home price declined 1.7% in March from a year earlier, while sales plummeted 47.6%. Single-family home building in Riverside County peaked in 2004 and 2005, but has since fallen. It is expected to drop further this year.

Prices in the San Francisco Bay area have been relatively stable as the region recovers from the tech bust of 2000 and 2001.

Double-digit jumps are over, but New York housing is holding its own. The job market is strong, especially in the financial sector.

"Wall Street had a good year. That affected the New York City region," said Yun.