The Austin area has been less affected by the current economic slowdown than many parts of country.  Yet, like many Americans, we continue to be inundated by negative media coverage.

In fact, a new poll conducted by Opinion Research Corporation reports that 77 percent of Americans believe that the U.S. media is making the economic situation worse by projecting fear into people’s minds.

The majority of those surveyed feel that the financial press, by focusing on and embellishing negative news, is damaging consumer confidence and damping investment, making the situation worse.

The phone survey of 1000 adults was conducted by Opinion Research Corporation, December 4 - 7, and is statistically representative of the total U.S. population. The poll asked: “Do you think the financial press is making the economic crisis worse by projecting fear into people’s minds?”

The overall response indicated that 77% of Americans answered YES.

What do you think?  Is the media making things worse by projecting fear into people’s minds?  Share your feedback in the comments.

Source: Opinion Research Corporation

Tags: economy, media

If you’re in the market for a home, now is a great time to get in touch with a Realtor and mortgage professional. 30-year fixed-rate mortgages set another record low this week, at least since Freddie Mac began tracking them in the 1970s.

30-Year Fixed Rate Mortgage Averaged 5.14 Percent

The rate for 30-year fixed-rate mortgages (FRM) averaged 5.14 percent with an average 0.8 point for the week ending December 24, 2008. This is lower than last week, when it averaged 5.19 percent, and more than a full percentage point lower than it was this time last year, at 6.17 percent. The 30-year rate has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

Act Now to Take Advantage of Low Rates

Contact me today to start your home search or receive a referral to a mortgage professional.

Sources: WSJ.com, Freddie Mac

Tags: interest rates, mortgage

Although Austin is not immune to the economic challenges facing the rest of the country, we continue to see better results in than many other metropolitan areas.

Unemployment in the Austin area reached 5 percent in November, up from 4.2 percent a year ago. While the rate is higher than it has been since February 2004, it is still lower than the 5.7 percent jobless rate for all of Texas, and is significantly lower than the national rate of 6.7 percent.

Texas employers have added 221,200 jobs in the past 12 months, for an annual job growth rate of 2.1 percent. The Austin-Round Rock area has added 12,600 jobs during the same period, for a 1.6 percent annual rate. In contrast, the United States recorded 1.9 million job losses during the same period, for a negative annual job growth rate of -1.4 percent.

“Our Texas employers still are adding jobs and continue to outperform the United States over the year,” said Texas Workforce Commissioner Representing the Public Andres Alcantar. “Although we recorded a slight rise in the unemployment rate in November, it is encouraging that a number of industries have been able to sustain job growth throughout the year.”

Austin compares favorably to other tech-friendly cities, with Seattle’s unemployment rate at 5.4 percent in November, and California’s Silicon Valley at 7.2 percent.

Additionally, unemployment rates in some other states are much higher than those in Texas. Florida reached 7.3 percent in November, with California at 8.4 percent, and Michigan at 9.6 percent.

Sources: Texas Workforce, Bizjournals.com, LATimes.com, MSNBC.com

Tags: Austin Economy, Employment, Jobs

Freddie Mac’s Primary Mortgage Market survey reports that interest rates on 30-year fixed-rate mortgages have fallen to the lowest level on record, reaching 5.19 percent for the week ending December 18.

At this time last year, the same rate averaged 6.14 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

“Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The decline was supported by the Federal Reserve announcement on December 16th, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant.”

Source: www.freddiemac.com

Tags: interest rates, mortgage

Austin Real Estate owners may be glad to see a report released today by Irvine, Calif.-based RealtyTrac.

According to the company, foreclosure activity decreased 7 percent nationwide last month, while still being up 28 percent from November 2007.

In Texas, however, the statistics are much better.  While the report states that foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 259,085 U.S. properties during the month, only 7,843 of these filings were in Texas.  By comparison, Arizona had 13,136 filings, Michigan had 14,594, Florida had 49,190, and California had 60,491.

Texas foreclosure activity was down 20 percent compared with the month of October, and foreclosures were down more than 32 percent when compared with November 2007.

Additionally, while 1 in every 488 households across the U.S. was in foreclosure in November, the rate in Texas was only one in every 1,176 households for the same period.

Source: http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=5543&accnt=64847

Northwest Austin Commute off to a Quick Start

Homeowners who commute from Cedar Park, Leander, Liberty Hill, or Northwest Austin may have noticed that their commute began a bit faster this week, after the 183A tollroad officially went cashless. With the change, drivers without a TxTag no longer have to stop at toll booths; instead, their license plates are photographed and they receive a bill in the mail.

The Central Texas Regional Mobility Authority, which operates the 183A toll road, expects the transition to reduce toll plaza operating costs by more than $1 million a year, improve roadway safety, cut vehicle emissions, and reduce fuel consumption.

More than 85% of 183A users already pay their tolls electronically with TxTag, saving 25% off the Pay-by-Mail toll rate. If you don’t have a TxTag sticker, you can get one online at www.TxTag.org, by phone at 1-888-Go-TxTag or in person at the TxTag customer service center located at 12719 Burnet Road.

Searching for Northwest Austin Real Estate?

To learn more about living in Northwest Austin, check out our Northwest Austin Real Estate Guide.

Tags: Austin Real Estate, Cedar Park, Leander, Liberty Hill, Northwest Austin, Tollroads

While many other cities face job losses, the Austin area continues to demonstrate its strength in job creation.

Austin Job Growth Increases 1.9 Percent

According to a report released by the U.S. Bureau of Labor Statistics, job growth in the Austin-Round Rock area increased 1.9 percent between October 2007 and October 2008, outpacing many other U.S. cities.

Approximately 14,700 jobs were created during that 12-month period, for a total employment figure of about 781,000.

Rates Vary in Other Cities

Other cities that experienced increases include:

• San Antonio (+2.9%)
• Raleigh, N.C. (+1.7%)
• San Jose, Calif. (+0.8%)

The report also noted decreases in a number of cities, including:

• Seattle (-0.1%)
• Phoenix (-2.3%)
• Memphis (-1.7%)

Source: Austin Business Journal: Austin job creation slower, but still outpacing rivals

Relocate to Austin

To learn about relocating to the Austin area, click here to request a free Austin Relocation Guide.

Or, call us today to speak with one of our relocation experts:
(512) 241-1300 or (888) AUS-RELO

In 2004, the City of Austin adopted the University Neighborhood Overlay, often called UNO, to change zoning and height allowances in the neighborhood surrounding the University of Texas. Since then, approximately 13 apartment buildings have been completed or are under construction.

New retail shops have come to the area as well. Cookie Lounge, Drungo Ice House, West Campus Market, Pie Guy, and Saxby’s Coffee have all signed leases recently. They’re joined by a number of new businesses, such as Cotera + Reed Architects and advertising firm Sanders-Wingo.

With its variety of new dining, entertainment, and employment options, a central location near UT, and easy access to downtown, West Campus has become a destination more people want to call home. It offers a variety of condos ranging in size from 400 to 2,000 square feet, as well as single-family homes.

To learn more about living in the West Campus/UT area, check out Realty Austin’s UT West Campus Real Estate Guide.

Source: Austin Business Journal: West Campus Boom

In the midst of a tumultuous election, a looming recession, and troubles on Wall Street, many buyers are concerned about purchasing a property, only to see values fall over time.  One thing Realty Austin agents have been discussing with clients lately is the fact that since Austin never saw the outrageous year-on-year price increases of markets like Miami and Las Vegas, we are more protected than most cities during these troubled times.

A new report this week from Housing Predictor places Austin real estate as the 6th best buyer’s market in the United States, and predicts that “[each of] the Hottest 10 forecast in 2008 have regional economies that are healthy and have strong potential for being exceptionally prosperous through the end of the year.”

Survey after survey and article after article prove what we continue to see: while Austin real estate is not completely immune to the national market woes, we are not only weathering the storm better than most, we’re actually doing pretty well as a housing market! With mortgage rates under 6% at present, buying power in Austin is strong, and those entering the market are very pleased with their purchasing power.

Price and demand vary greatly by neighborhood, so contact us if you’d like to learn more about buying in your preferred neighborhood.

The Rankings - Top 10 Most Promising Housing Markets:

Rank	Real Estate Market	2008 Forecast
1.	Biloxi, MS	4.9 %
2.	Salem, OR	4.7%
3.	Bismarck, ND	4.6 %
4.	Spokane, WA	4.4 %
5.	Yakima, WA	4.1 %
6.	Austin, TX	4.0 %
7.	Grand Junction, CO	4.0 %
8.	Fargo, ND	4.0%
9.	Mobile, AL	3.9 %
10.	Albuquerque, NM	3.5 %

Source: Housing Predictor, November 2008

Source: Realtor.org, November 2008

Tags: Austin, Best Real Estate Markets, Housing Predictor, Real Estate News

The recent Emergency Economic Stimulus Plan was unfortunately not as effective as was hoped in improving the nation’s housing market.  So, the National Association of REALTORS (NAR) proposed a Four-Point Housing Stimulus Plan that should be part of any new stimulus package.  NAR endorses a new plan that would:

1) Make the $7,500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit’s limited availability and repayment requirement severely inhibit its use and effectiveness.

2) Make the 2008 Federal Housing Administration (FHA), Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce the loan limits, but now is not the time to tighten mortgage affordability.

3) Get the Emergency Treasury bank relief program back on track and allocate more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices. The proposed rate buy-down is close to two points below the current rate.

4) Permanently bar banks from engaging in real estate brokerage and management. The banks have proven they have enough to do simply managing the loan process. They should not handle home sales and purchases as well.

While we are doing better than most, Austin’s real estate market is not immune from the turmoil in the financial markets.  I just sent a letter to my Members of Congress urging them to support these initiatives!  You can also send a letter, just like I did using this site: http://www.realtoractioncenter.com.