Though 48 states predicted budget shortfalls at the beginning of the year, with Texas projecting a 9.5 percent deficit, it is the only state among the seven Sun Belt states covered by BBVA Compass to forecast a balanced budget in 2010.

“Texas has fared the best with revenue growth exceeding the U.S. average,” the report said. “The higher than average growth throughout 2008 could be one of the reasons that Texas is better positioned with a smaller than average budget gap going into FY2010 and no expected gap for FY2011.”

For the full story visit Austin Biz Journal.

© Albert Cheng/Shutterstock 

For the exasperated job-seeker to whom employment opportunities seem bleaker than ever, salvation may lie in the Lone Star State. Texas, home to dozens of energy heavyweights and nearly as many innovative small companies, has three of the best cities to earn a living: Dallas, Houston and Austin.

When taking into account the cost of living, strength of industry, economists' predictions for the future state of employment and, of course, salary, these are some of the best U.S. cities in which to take home a paycheck.

It's no secret that, in general, jobs are tight: The U.S. Bureau of Labor Statistics reported on Aug. 7 that non-farm payroll employment sank further in July, and unemployment is entrenched at 9.4%. But some job markets manage to remain healthier due to one or more factors, like a concentration of top companies a resulting prospective annual jump in job growth. Such is the case for the Texas towns on our list.

See the full article at Forbes.com.

Samsung to Upgrade 8" Memory Fab Over Next Year
Samsung Austin Semiconductor recently announced that it will upgrade its existing eight-inch semiconductor fabrication plant to a state-of-the art 12-inch facility. The upgrade will necessitate current Fab 1 operations to stop in October to allow reconstruction of the manufacturing area and the re-equipping of the tool set. Samsung's Fab 2, a two-year-old 12-inch wafer fabrication facility, will remain fully functioning while the scheduled remodeling of Fab 1 will begin next year with the new facility ready for initial operation in 2010.
              
"The conversion of the old 8-inch plant to a new 12-inch facility is good news for Austin," said Mike Rollins, President of the Austin Chamber.

An economic analysis of such a conversion and the operation of the complex as a 12-inch fab show that the total economic impact, including the ripple effect throughout the community, would likely be about $1.3 billion annually and create as many as 5,500 jobs with an estimated payroll of $196 million.

See Austin Human Capital for story.

With new appraisal guidelines and stricter loan processes it can often times take 45 days from contract to close. That will give you a fair amount of time to shop and still put in an offer by mid September and still be OK.

Click here for a comprehensive list of the American Recovery and Reinvestment Act of 2009 guidelines.

Check out our buyer resources page and or search page to see what is out there. It truly is a great time to buy a home and the tax incentive may be a once in a lifetime chance as well.

Feel free to contact us with any questions. Email is great and you can always call our office.

The gain over May was much greater than expected. A consensus of housing industry analysts had forecast seasonally adjusted sales of 352,000, according to Breifing.com.

However, sales are still 21% below the levels of a year ago, when new homes sold in June at an annualized rate of 488,000, according to the report released by HUD.

The median price paid for a house sold in June 2009 was down about 3% to $206,200; the mean price was $276,900.

For the full story visit CNN.com

Many people know about the $8,000 home buyer tax credit, but did you know that the American Recovery and Reinvestment Act of 2009 also established a number of tax breaks for current homeowners who want to improve their home’s energy efficiency?

Energy-efficient improvements to exterior windows, skylights and doors as well as certain metal and asphalt roofs qualify for 30 percent of the project cost, up to $1,500. The credit covers installation costs for HVAC, gas, oil and propane water heaters and biomass stoves. These improvements qualify for the credit through December 31, 2010.

Owners who go a step further by adding geothermal heat pumps solar energy systems or small wind energy systems will qualify for 30 percent of the entire cost, including installation, and the tax credit doesn’t expire until December 31, 2016.

For more infoormation on green building click here.

"We've seen the year-over-year gap in sales volume close steadily throughout 2009 and that momentum continues this month," said Jay Gohil, Chairman of the Austin Board of REALTORS®.

Home prices in the Austin area have also continued to gain momentum from the beginning of the year. Over the first two quarters of 2009 (January 2009 to June 2009), the average sale price for a single-family Austin home has increased $20,824, while median sales price has increased $24,400.

Also, from January 2009, sales volume is up 61 percent and active listings are up 14 percent. “This signifies a healthy Central Texas real estate market and good news for both local home buyers and sellers,” said Gohil.

June 2009 Statistics

• $537,981,570 was the dollar volume of single-family properties sold

   

• $199,900 was the median price, unchanged from one year ago

   

• 2,135 was the number of homes sold, a 4 percent decrease compared to June 2008

Find the report at ABOR.com

   This bodes very well for our market as a whole compared to other markets across the country. That doesn't mean that some neighborhoods aren't taking a beating or that the houses are flying off the shelf like no tomorrow; it simply means that as a whole we are holding strong.

   This is do to a lot of factors around the Austin area, including jobs, unemployment rates, and the fact that Austing is a desirable place to live and we are still growing at a rapid rate.

Absolute® Software Corporation (“Absolute” or the “Company”) (TSX: ABT), the leading provider of firmware-based, patented, computer theft recovery, data protection and secure IT asset management solutions announces that it has opened its new U.S. headquarters in Austin, Texas. The new office is home to Absolute's U.S.-based sales team and Consumer business.

"Austin is known for its well-educated, talented professionals with expertise in technology and business," said John Livingston, chairman and CEO of Absolute.

The company is best known as the creator of the computer theft recovery market and is the maker of the popular Computrace® and Computrace® LoJack® for Laptops product lines.

To mark the occasion the new office opening, Absolute will be hosting a ribbon cutting ceremony and open house on July 16. More information about the open house can be found at http://www.absolute.com/landing/austin-open-house  

Absolute is headquartered in Vancouver, Canada with offices in the U.S., U.K. and Western Europe and partner sales offices in Australia, Latin America, the Caribbean and South Africa.

View the full story at Abolute Software

I don't think that it is any big secret that Austin is the place to be. Obviously we all know that and more and more businesses are figuring this out as well.

All of these factors make for a ripe enviroment for Austin real estate to appreciate. Currently there are some great deals but with the city growing as fast as it is prices are bound to go up.

The new store will serve a growing East Riverside area where hundreds of apartments and condominiums are under construction, some of which will open by mid-2010.

The new store is scheduled to open in March or April, the day after the current store closes.

It will be 104,000 square feet, compared with the 60,000 square feet of the current store. The company's Plus format stores are larger and offer a wider array of merchandise than its traditional stores.

It will have about 350 employees, compared with 215 who work at the current store.

In 2008, nearly 266,000 people lived within five miles of the store, with average household incomes of $71,647 a year, according to Pitney Bowes Mapinfo demographic data provided by the Weitzman Group, a retail brokerage.

For the full story visit the Austin American-Statesman

This is further proof of the rapidly developing East Riverside Area. We recently listed two beautiful, new construction condominiums (click links to see virtual tours 1500 Summit #1 and 1500 Summit #2)  with gorgeous views of the Austin Downtown Cityscape and just a stones throw from the river.

Most Americans still consider having enough money for downpayment and closing costs to be the biggest obstacles to buying a home. That’s according to the 2009 National Housing Pulse Survey, an annual survey released July 9th by the National Association of Realtors®.

The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in seven years of sampling. Two-thirds of Americans think job layoffs and unemployment are a big problem; eight in 10 cite these issues as a barrier to homeownership.

Click the link below for the full story: http://www.realtor.org/press_room/news_releases/2009/07/obstacles_homeownership

5 Easy, Inexpensive Ways to Add Value and Comfort to Your Home

If you've been thinking about increasing your home's value or just making your living space more comfortable, these ideas can help you start off simply. Before you start knocking out walls and renovating your roofline, consider these ways to make a big difference...cost-effectively!

1. Spruce Up Your Curb Appeal

Buyers often decide whether to look at your house before they even get out of the car. So, before you spend a lot of time and money remodeling the inside, take a good look at the outside. Washing windows, repainting trim, planting flowers and small shrubs, trimming tree branches and overgrown bushes, fixing screens, resealing your driveway, and mowing the lawn can make a big difference. Start out by making a list of 4 to 7 simple projects and then set aside an hour or two each day. In just one week, you - and potential buyers - will be surprised how appealing and welcoming your house looks when driving up.

2. Does Your Entryway Invite People In?

A cozy first impression is crucial. Now that you've boosted your curb appeal, it's time to turn your attention inside - starting just inside the front door. To make sure your entryway invites people to come in - rather than turnaround and run - try adding a wicker chair and table outside the door along with a fresh coat of paint to your foyer.

For even more impact, replace old light fixtures and update the floor in your entryway with a throw rug or easy-to-apply self-adhesive linoleum squares. These projects are inexpensive and easy enough to do yourself in just a few hours.

3. Spiff Up that Old Bathroom

Remodeling an old bathroom can make a big impact. You should start by simply de-cluttering the countertop. It's amazing how spacious even a small bathroom appears after the styling products, pictures and miscellaneous bathroom decorations are removed.

From there, you can freshen up the paint, replace that old shower curtain, add a new medicine cabinet on the wall, and even upgrade your faucet and shower head for very little money. With a little more money, you can also install a double sink or re-tile the floor.

4. Hot in the Kitchen

Renovating an outdated kitchen is practically a sure thing - as long as you don't splurge on extravagant items like hand-painted Italian tile or built-in espresso machines. Instead, focus on the basics: replacing the handles on your cabinets and drawers, freshening up the paint, installing new flooring, adding a backsplash, and painting or re-facing your existing cabinets. You can also make a dramatic impact by installing new countertops and even replacing your appliances. All of these projects will go a long way to making a new buyer feel at home.

5. Add a Second Bathroom

Perhaps no improvement makes a bigger impact on your family's comfort and your house's appeal than adding a second bathroom. The number of bathrooms is always a big sticking point for potential buyers, especially families with two or three children.

Although adding a bathroom costs more than simply fixing up your old one, it also increases the value of your house more. Plus, having that second bathroom may help you sell your house faster than if it only has one, which is an important point to consider in today's market. So, if you have a house with roughed-in plumbing just waiting for you to take the initiative, you may want to consider adding that second bathroom you've always wanted.

However, if your house doesn't have roughed-in plumbing or floor plans that called for a future bathroom, you'll definitely want to consult a Realtor to discuss how much a second bathroom will add to your home's value. After all, if you have to start moving walls and re-plumbing your house just to add a bathroom, you may find that your time and money are better spent on a handful of smaller projects that will ultimately add more impact.

Plan Ahead and Avoid Headaches

Overall, the best advice about adding value to your home is to start small, work your way up, and always plan ahead. You don't want to get halfway into a renovation only to find that you have to update your entire electrical system or that your time and effort was wasted on a renovation that doesn't add as much value as you thought. With a little planning and prioritizing, you can make your house more comfortable and valuable with very little time and money!

Feel free to contact us if you have any questions.

Central Texas Economy In Perspective
by Beverly Kerr, Chamber Vice President of Research

Computer and electronic products accounted for 75% of the value of Austin's international exports in 2005 and 2006. With complete data for 2007 recently released, that share has dropped to 57%. While the value of Austin's computer and electronic product exports declined by $1.2 billion between 2005 and 2007, exports of machinery increased by $1.8 billion. This may be a curious development as machinery manufacturing employment in Austin is only about 4,000 during the period while the number of jobs in computer and electronic product manufacturing is roughly 31,000.

South Korea, Austin's largest export market, accounted for 20% of 2005 and 2006 exports, but that share dropped to 12% in 2007. Data is suppressed (withheld to avoid disclosing figures for individual companies) for Taiwan in two of the three years, but given the level reported for 2006, this trade partner may possibly be as significant as South Korea. San Jose exports more to South Korea (averaging $3.3 billion annually) and Taiwan ($2.3 billion) than any other reported metro, however, its exports to Japan are even greater ($3.4 billion).

Full Story

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Chart: Freddie Mac 30-Yr Fixed Rates

As we've mentioned in recent issues of this newsletter, added supply has been one of the main culprits behind the recent sell-off in Bonds and corresponding climb in home loan rates. So where is that supply coming from? First, all those refinances you've heard about lately are actually turned into Mortgage Backed Securities after they're closed, which adds more Bonds to the market. Plus, government spending plans have to be paid for somehow.so record levels of Treasury Securities are being auctioned off these days. Although the Fed has a program to purchase some of these Mortgage Bonds, the number of new Bonds simply outweighs what the Fed is able to buy - therefore driving Bond prices lower and home loan rates higher.

There was some good news for the economy as Consumer Sentiment came in at its highest level in 9 months, and Retail Sales were inline with estimates, marking the biggest rebound for Retail Sales in 4 months. There was mixed news on the Jobs front: While Initial Jobless Claims were below estimates, continuing claims rose to 6.82 million, which is another new record. And US exports fell to the lowest level in almost 3 years, as the US Balance of Trade widened in April for the second month. However, US exports should improve a bit in the coming days, as the US Dollar recently sank against foreign currencies, which makes US goods cheaper and more attractive to buy. The flip side of that coin however, is that since oil is Dollar denominated, the price per barrel rises to compensate for the erosion in the Dollar.meaning higher prices at the pump and elsewhere.

Bonds and home loan rates were able to muster up some improvement on Thursday and Friday, helped in part by news that the Paulson & Co. hedge fund is purchasing distressed debt and Mortgage Backed Securities, which will help alleviate some of the supply mentioned above. However, home loan rates still ended the week .25% to .375% worse than where they began.

Since Bond prices react negatively to any news of economic recovery, it's important to work with a knowledgeable advisor who monitors the markets every move. Let me know if you have any questions about your situation.

Tools for Complying with the Energy Efficiency Ordinance

The City of Austin’s Energy Efficiency Ordinance, effective as of June 1, 2009, requires that energy audits be conducted and disclosed for many properties located within the Austin city limits.  Below, you’ll find resources to help you understand and comply with the City of Austin’s new Energy Efficiency Ordinance. 

• Have questions about how the ordinance will affect your business?  Download our eight-page Guide to the City of Austin’s Energy Efficiency Ordinance.

 

• Review and print the City of Austin’s Energy Audit Disclosure form, which will allow you to append a property’s energy audit to the Seller’s Disclosure Form.

 

• Looking for detailed information about the ordinance?  Visit the City of Austin’s Web site for additional forms and facts.

 

• Find out which properties will not be affected by the ordinance by reviewing this exemption list.

Green Real Estate Resources

ABoR is committed to the principles of energy conservation and sustainability. We strive to keep our members abreast of new technology, education and resources as they become available. As we look to the future, we know it is essential for our membership to understand the issues relating to green building and properties, as the green building movement is changing the way consumers buy and sell homes across the country.

Studies show consumers consider energy efficiency, a key green building feature, an important factor when buying a home. While energy efficiency is not the only green building feature we will focus on, it is an important aspect when determining a consumer’s ability to afford a home. Because of the important role rising energy costs play in homeownership, ABoR supports energy conservation efforts. We also understand the gravity of protecting Austin’s unique environment.

Consumer awareness of green building continues to rise. “Green” is defined in a variety of ways and those definitions are changing constantly. Regardless of the many ways green is classified, we are aware of its impact on the real estate industry. It is our hope that this online resource will help you identify new ways you and your clients can be a part of the movement.

Visit Austin Board of Realtors  www.abor.com/about_abor/GreenRealEstate.cfm for source and further information.

Tuesday, May 19, 2009, 6:08pm MDT  |  Modified: Wednesday, May 20, 2009, 3:44pm

Denver tops on 'Today' show list of cities poised for real-estate rebound

Denver Business Journal - by Mark Harden

Denver was named America's No. 1 city on the verge of recovery from the real-estate slump in a segment Tuesday on NBC's "Today" show.

Real estate expert Barbara Corcoran, a regular guest on the show, said Denver more than any other U.S. city is "clearly on a rebound."

"It's really the perfect real estate success story," she said. "It had one of the highest foreclosure rates in the nation for years running, and now they've cut that foreclosure rate in half and they've turned the corner."

Denver, Corcoran said, has "a vibrant downtown, it has a high employment base, it has educated people, it has youth, [and] it has one of the biggest park systems in the country.

"Everything about Denver is pointing up, up up," she added. "Prices are moving up just now for the first time after seven years."

Rounding out Corcoran's list of cities poised for a real-estate rebound:

                 2. Raleigh, N.C.

                 3. Austin, Texas

                 4. Seattle

                 5. San Francisco

Corcoran said she included cities on her list on the basis of eight factors:

•                  Job growth potential;
•                  A growing population;
•                  Good weather;
•                  Lots of first-time buyers;
•                  No overbuilding;
•                  A vital downtown;
•                  A well educated population; and
•                  Foreclosures earlier than other cities.

Click here to watch Corcoran's "Today" show segment on cities on the verge of real-estate recovery.

We received 15 drawings for our coloring contest, and here are the winning entries!  The two winners, Valerie and Samuel, will each receive a gift certificate to Toys 'R Us.  Thanks to everyone who entered, and everyone who came to the movie!  We had a lot of fun!