Christian Realty San Antonio

TEXAS DOMINATES BEST-PERFORMING CITIES INDEX

SAN ANTONIO (San Antonio Express-News, Milken Institute) – Milken Institute just released its “Best-Performing Cities” index for 2011, and Texas is everywhere you look.

Nine Texas MSAs landed in the top 25 on the institute’s list of 200 largest metros, and four of those ranked in the top five, including number one San Antonio.

Others on the list were El Paso (2), Austin–Round Rock (4), Killeen-Temple-Fort Hood (5), Houston-Sugar Land-Baytown (16), McAllen-Edinburg-Mission (18), Dallas-Plano-Irving (20), Fort Worth-Arlington (24) and Lubbock (25).

The state’s smaller metros didn’t do too shabby either, with five among the top 25: College Station-Bryan (4), Longview (9), Waco (12), Tyler (20) and Midland (22).

While it’s good news for Texas to do so well on in index that is based largely on employment growth, Real Estate Center Research Economist Dr. Jim Gaines said the state looked good mainly because other states didn’t.

“Our growth rate and advancement isn’t all that wonderful,” Gaines told the San Antonio Express-News. “We’ve managed to stay flat or have very small positives. But because everybody has so many negatives, we look so much better.”

Texas accounted for one in every five jobs created in the country between June 2010 and June 2011, reported the Express-News. Houston and Dallas alone were responsible for one in every ten new jobs in the country.

It takes money to buy a home: yours or theirs. If you’re not going to pay cash for a home, you need to find out exactly what you can borrow and what it will cost before you start looking at homes.

The mortgage process is not as clear cut a path as it was a few years ago. It is certainly more complex, takes longer and assumes that you’re credit worthy. If you have less than stellar credit, a trusted mortgage professional can advise you how to improve your individual situation.

You are entitled to a free credit report from each of the three major credit bureaus each year. Go to AnnualCreditReport.com to get a copy of each from TransUnion, Experian and Equifax. Read the reports to determine if they’re accurate. Surprisingly, about 90% of all reports have errors.

You can try to correct them directly with the credit bureau, but a trusted mortgage professional can help you with this process too. They have tools that are not available to individuals. Some errors may not be serious but others will keep a person from qualifying.

Housing affordability is at a near record height due to the incredibly low interest rates and low home prices. Some areas are experiencing absorption of the inventories which could impact price. If you’re going to use “their” money to buy a home, the first step is to talk to a trusted mortgage professional. Call me for the name of a trusted mortgage professional.

Nearly a third of the 23 housing markets listed on the October National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI) are in Texas.

The index reveals metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices.

Texas markets making the list were Amarillo, McAllen, Midland, Odessa, Sherman, Waco and Wichita Falls.

“While Pittsburgh and New Orleans remain the two largest improving markets, the October IMI is heavily weighted by smaller cities in which energy and agriculture are the primary economic drivers and where the effects of the recession have been less pronounced,” said NAHB Chief Economist David Crowe. “In particular, Texas stands out for its seven entries on the improving markets list.”

Last month, only 12 housing markets nationally were listed in the index.

Source: RECON, October 11, 2011

People are staying longer in their homes according to the National Association of Realtors and the U.S. Census. Over time, even a modest appreciation could result in a significant gain and homeowners should have a strategy to minimize possible taxes.

Maintenance on a principal residence is not deductible but improvements can add to the basis which can reduce the gain in the sale. Improvements are easily identified if they add to the value of a home, prolong its useful life or adapt it to new uses.

Receipts and other proof, such as pictures, should be kept during ownership and for several years after the sale of the home. They can include the closing statements from the purchase and sale of the home and all receipts for improvements, additions or other items that affect the home’s adjusted basis or cost.
For a principal residence, basis includes the price paid, plus certain acquisition costs and capital improvements made. When the property is sold for more than the basis, there is a gain. Currently, homeowners that meet the requirements can exclude up to $250,000 of gain if single or up to $500,000 if married filing jointly.

A simple strategy is to put documents that affect the basis of the home in one envelope. Any receipt for money spent on the home that isn’t the house payment or utilities, goes into the envelope. Your tax advisor will be able to sort through them to determine the capital improvements.
For more information on determining basis or capital improvements, see IRS publication 523, Selling Your Home.

For the third straight week, fixed-rate mortgages inched down, reaching new lows. The 30-year fixed-rate mortgage averaged a record low of 4.01 percent this week while the 15-year fixed-rate set a new record of 3.28 percent, Freddie Mac reports in its weekly mortgage market survey. In Western areas, 30-year rates moved even lower, averaging 3.95 percent, Freddie reports.

“Fixed mortgage rates fell to all-time record lows this week following the Federal Reserve’s announcement of its Maturity Extension Program and additional purchases of mortgage-backed securities,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.

Here’s a closer look at rates for the week ending Sept. 29:

•30-year fixed-rate mortgages: averaged 4.01 percent, inching down from last week’s previous record of 4.09 percent. A year ago, 30-year rates averaged 4.32 percent.
•15-year fixed-rate mortgages: averaged 3.28 percent, dropping from last week’s previous record of 3.29 percent. Last year at this time, 15-year rates averaged 3.75 percent.
•5-year adjustable-rate mortgages: held steady this week at 3.02 percent. Last year at this time, 5-year ARMs averaged 3.52 percent.
•1-year ARMs: averaged 2.83 percent, up slightly from last week’s 2.82 percent average. A year ago, 1-year ARMs averaged 3.48 percent.

Starting Saturday, many borrowers in pricey housing markets may find they’ll need a higher down payment or pay higher rates. The size of mortgages that the government will back in several high-priced regions is set to drop on Oct. 1, which some analysts expect will serve as another thorn to the housing market.

In 2008, Fannie Mae and Freddie Mac raised its cap on conforming loans up to $729,750 in some of the most expensive housing markets so that larger mortgages would be available to home buyers. But those caps are set to reset on Oct. 1, scaling back to a maximum of $625,500 in some areas of the country.

Housing analysts say the drop will make it more expensive and harder for some buyers to qualify for home purchases in expensive markets, particularly along the coasts.

        For the 56th straight month, Nevada continued to have the highest foreclosure rate in the country, where one in every 118 homes received a foreclosure filing during August, according to the latest figures from RealtyTrac.

        Nationally, 1 in every 570 households received a foreclosure filing in August.  

        Meanwhile, five states accounted for 53 percent of the foreclosure activity in August, led by California. In California, 59,383 properties received foreclosure filings last month. The state saw a 55 percent month-over-month increase in default notices.  

        The following are the states that posted the highest foreclosure rates in August, according to RealtyTrac™s latest report:

1. Nevada  

One in every 118 households received a foreclosure filing during August.

Total foreclosure filings in August: 9,677

2. California

One in every 226 households  

Total foreclosure filings in August: 59,383

3. Arizona

One in every 248 households

Total foreclosure filings in August: 23,569

4. Georgia

1 in every 346 households

Total foreclosure filings in August: 11,743

5. Idaho

1 in every 348 households

Total foreclosure filings in August: 1,860

6. Michigan

1 in every 349 households

Total foreclosure filings in August: 13,016

7. Florida  

1 in every 376 households

Total foreclosure filings in August: 23,569

8. Illinois

1 in every 424 households

Total foreclosure filings in August: 12,493

9. Colorado

1 in every 439 households

Total foreclosure filings in August: 4,933

10. Utah

1 in every 450 households

Total foreclosure filings in August: 2,119

Source:   By REALTOR ® Magazine Daily News

 It™s cheaper to buy a home rather than rent one in 72 percent of the 50 largest U.S. cities, according to Trulia™s rent vs. buy index, which compares the total cost of home ownership to the cost of renting. “Since the start of the ‘Great Recession,’ many former home owners have flooded the rental market, Pete Flint, CEO of Trulia, said in a news release about the index. œFollowing the principles of supply and demand, renting has become relatively more expensive than buying in most markets.

The index compares the median sales price of homes with the median rent on two bedroom apartments, condos, and townhomes that were listed on Trulia as of Jan. 10, 2011.

Here are the top 10 cities where it™s best to buy than rent, according to the index:

1. Miami
2. Las Vegas
3. Arlington, Texas
4. Mesa, Ariz.
5. Phoenix, Ariz.
6. Jacksonville, Fla.
7. Sacramento, Calif.
8. San Antonio, Texas
9. Fresno, Calif.
10. El Paso, Texas

              Recent comments made by two economists indicate their belief the San Antonio job growth forcast will be above average.

            As reported in a recent article by David Hendricks in the San Antonio Express-News, Chief Economist Steven Nivin of the SABER Institute, predicts job growth in San Antonio in 2011 will be between 2.75% to 3.25%.   Keith Phillips, Senior Economist for the Federal Reserve, thinks San Antonio’s job growth for 2011 may reach as high as 3.2%.   Either way, great news for our local economy.

            There are a number of factors that may have an impact on the San Antonio economy, as well as the Texas economy.   One is the health care reform bill which many businesses, small and large, are awaiting the release of the new rules so they can  plot out their 2011 economic business plan.   Depending on the potential burden on businesses due to a rise in health care costs borne by employers, the decision to expand and hire more employees is up in the air.

            The State of Texas faces a potential $27 billion shortfall in the upcoming budget.   This is a deficit predicted by the former Comptroller Carole Keeton Strayhorn, who made the prediction some five years ago.   The national economic troubles coupled with less than expected tax revenues have lead to this potential shortfall.   It remains to be seen how the Texas legislature will deal with the situation as the new legislative session has just begun.   However, for San Antonio, thins do look bright.

            The health care industry and industry continue to buoy the local economy as does tourism.   Local businesses seem to be holds their own with new re-locations into San Antonio being made by companies either relocating here or branching out.

            Regardless of the reason, the local economy is predicted to remain stable which means good news for the housing market.   Homes builders continue to build and buyers and sellers remain active.   2011 does appear from this desk to be looking like a better ride than previous years.

Overpriced, Underpriced Housing Markets

What are the most overvalued and undervalued housing markets in the country? The Local Market Monitor recently released a list for investors analyzing buying conditions for real estate markets in the United States.

Overall, Las Vegas was a city they flagged as the worst — or œfrankly dangerous, as they referred to it. They said the city is not only one of the most undervalued housing markets in the country but is also considered one of the worst housing buys. Orlando, Fla., was another city the Local Market Monitor considered a bad investment city.

Las Vegas™ median home price is less than $145,000–a drop of more than half in its median home price since its housing peak days. The Local Market Monitor says Las Vegas is also nearly 30 percent less than what would be considered fair market value. Both Las Vegas and Orlando have been plagued with high inventories of homes due to overbuilding from a few years ago, and also are two of the hardest hit areas for foreclosures.

Here™s a list of the most overpriced housing markets and the percentage they are overvalued by, according to the report:

1. Nassau-Suffolk, N.Y.: 26% ($418,416 median home price)
2. Los Angeles: 24% ($368,056 median home price)
3. Portland, Ore.: 24% ($240,912 median home price)
4. Anaheim, Calif.: 23% ($449,396 median home price)
5. Edison, N.J.: 20% ($286,900 median home price)

Here is a list of the top 5 most undervalued markets:

1. Las Vegas: -27% ($144,636 median home price)
2. Akron, Ohio: -22% ($155,673 median home price)
3. Cleveland: -21% ($154,674 median home price)
4. Warren, Mich.: -21% ($111,114 median home price)
5. McAllenn, Texas: -20% ($131,871 median home price)

View a complete list of overvalued and undervalued cities  at:

http://money.cnn.com/2011/01/10/real_estate/overvalued_housing_markets/

Source: œAmerica™s Most Overvalued – and Undervalued – Cities,” CNNMoney.com (Jan. 10, 2011)