Once again, Austin has been named one of the best, most affordable cities to live and work in. Check out the article at http://finance.yahoo.com/real-estate/article/107080/Americas-Best-Bargain-Cities?mod=realestate-buy
Whether it be a leisurely stroll or a steady sprint, you're sure to find a race to match your pace or purpose. Austin hosts a variety of races throughout the year, several of which are for charity organizations.
Information about races can be found at www.runtex.com
Running Clubs
RunTex Free Groups / Austin
Tri Zones Training / Austin
Rogue Programs / Austin
Gilbert's Gazelles / Austin
Strength Endurance Training 4 Runners / Austin
RunSmart Running Group / Austin
Jeff Galloway / Austin
www.jeffgalloway.com/training_groups/austin.html
South Austin Steel Youth Track Club / Austin
The Waterloo Track and Field Club / Austin
Round Rock Stars Track Club / Round Rock
http://eteamz.active.com/RoundRockStarsTC/
San Marcos Runners Club / San Marcos
Texas Thunder / Cedar Park
www.neighborhoodsports.us/Sports/TrackandField/tabid/139/Default.aspx
For youth born between 1991 and 2001
CP Classic Running Club / Cedar Park
Competitive Youth Track and Cross Country
Georgetown Running Club / Georgetown
The Lake Travis Titans Track club / Lake Travis
All boys and girls ages 5 to 18 and adults
Austin's Triathlon Source / Austin
Austin Runners Club / Austin
Join a Running Meetup Group near Austin
http://running.meetup.com/cities/us/tx/austin/?from=loc_pick
Texas Iron / Multisport Training / Austin
T3 / Austin
Life Time Fitness Indoor Triathlon / Austin
www.lifetimefitness.com/events/indoor-tri
Tough Cookies Don't Crumble!
Trails Directory
Lady Bird lake Hike and Bike Trail
www.gracytitle.com/page/Relocation/Additional%20Links/ladybirdlake.pdf
Plot your running routes
4/18/09 Dripping Springs
Fun Fun Sober Run
www.healthyhorns.utexas.edu/funrun/
4/18/09 Austin
Lake Georgetown Adventure Sprint
4/25/09 Georgetown
6th Annual Texas Round Up
www.texasroundup.org/10K_5K_Race.aspx
4/25/09 Austin
7th Annual Cedar Park Kids Triathlon
www.leaguelineup.com/welcome.asp?url=cptri
4/26/09 Cedar Park
PurpleStride 5K
pancan.kintera.org/faf/help/helpEventInfo.asp?ievent=298579
4/26/09 Leander
Texas State Sprint Triathlon
Here is a precursor to Residential Stratigies' review of the first quarter 09 numbers for Austin. It is actually pretty good... compared to the rest of the world. Austin added jobs, reduced inventory and is below or at equilibrium (6 month supply) even with lower demand due to the disasters in the economy. Pretty amazing really!
New home starts continued their decline in the Austin area for 1Q09 according to the latest
market census prepared by Residential Strategies, Inc. Builders started 1,215 homes for the
quarter, a decrease of 280 units from 4Q08, and down 47% (-1,082 units) from 1Q08. The annual
start rate has now fallen to 7,938 units. At the market peak in 3Q06, Austin produced 17,128
annual starts.
Closings also fell for the quarter to 2,145 units. In 4Q08 builders closed 2,305 houses, and in
1Q08 3,120 units were closed. The annual closing rate now stands at 9,984 units (2,046 units
higher than the annual start rate). "While many may see the lower start rate as a negative
situation in Austin, it should be pointed out that builders entered 2009 with more finished
inventory than they wanted" says Austin partner, Mark Sprague. "The consumer was pounded
with negative news in 4Q08-a declining stock market, credit crisis and revelation of the depth of
the current recession-and because of this, confidence was eroded. As a result, most builders had
higher cancellation rates on previous orders than was normal at the end of 2008. The good news
is that builders have cut back on starts and focused on selling this inventory in the First Quarter,
2009."
Total housing inventory declined by 930 units in 1Q09, dropping from 5,375 units to just 4,445
units (a decline of 17%). In aggregate, this inventory represents just a 5.3 month supply of
inventory, where a 6.0 month supply is considered equilibrium. "The number of finished vacant
homes has declined from a peak of 2,947 in 1Q08 to just 2,133 today. Builders and lenders are
reluctant to start speculative homes and are focused on managing their housing inventory" notes
Sprague.
Another noticeable trend is that builders have abandoned unprofitable locations. In 2Q08 there
were 605 model homes in the Austin area. At the end of 1Q09, there were 536 homes, a
reduction of 11%.
The vacant lot supply was reduced by 307 lots for the quarter to 30,984. However, with the
decline in the start rate, this lot inventory now represents a 46.8 month supply, where a 24 month
supply is considered equilibrium. "The over-supply of lots is deceiving" says Sprague. "There
are parts of the Austin market, especially in closer-in areas, that will face a shortage of lots in the
not too distant future. Conversely, some of the outer-ring areas, and areas that catered to the
subprime markets may take longer to recover."
Despite the continued challenging housing market, mortgage rates have recently dropped to a 52-
year low. According to Bankrate.com, the 30-year fixed rate mortgage at 5.19% is the lowest rate
since 1956.
Press Release
© 2009 Residential Strategies, Inc.
16660 Dallas Parkway, Suite 1200 Dallas, Texas 75248 tel 972.381.1400 fax 972.381.1410 www.residentialstrategies.com
Austin Dallas El Paso Fort Worth San Antonio
Job growth has weakened for the Austin area, but unlike most of the rest of the nation, it remains
in positive territory. According to the TWC CES estimate for the 12 months ended Feb., 2009,
Austin produced 1,300 net new jobs.
Finally, according to the Austin MLS and The Texas A&M Real Estate Center, Austin produced
21,371 resales for the 12-month period ended Feb., 2009. The 10,929 listings at the end of
February, 2009 represent a 6.1 month supply of inventory (A 6 month supply is considered
equilibrium).
"The balance in our new and existing home supply has prevented the downward pressure on
housing prices that is evident in other parts of the nation" says Sprague. The median price for a
new home start in Austin dipped from $220,111 at YE 2008 to $216,448 in 1Q09, but is up
versus a year ago ($212,897 in 1Q08).
This great info was shared with us by Tera Gilbert of Wells Fargo Mortgage.
Great Rates + Declining Values = No Refi for You. Maybe Not.
While interest rates have been at levels not seen in generations, not everyone has been able to benefit. As home values have come down across the country millions of homeowners have been unable to refinance.
When applying for a home loan, one key component in underwriting is the amount of equity or down payment in the transaction. As home values have declined, even in some cases where someone put a sizable down payment into the purchase of their home, refinancing to achieve a lower payment has been unfeasible.
In details of the Housing Affordability and Stability Plan released this week, four to five million responsible homeowners have been targeted to obtain assistance in lowering their payments. People who now have less than 20% equity in their home have experienced difficulty in achieving lower payments by refinancing. Homeowners with loans that are owned by Fannie Mae and Freddie Mac may now be able to refinance into a lower interest fixed rate. This will also apply to homeowners with an adjustable rate (ARM).
One caveat will be that the new loan amount will be capped at 105% of the value of the home. As many will seek to include their closing costs in the loan amount, this will need to be factored in when considering this as an option.
To pre-qualify for the Making Home Affordable refinance, you must be able to answer "yes" to each of the following four questions.
1. Is your home your primary residence?
2. Do you have a Fannie Mae or Freddie Mac loan?
3. Are you current on your mortgage payments? Current, in this case, means not having been more than 30 days late in the last 12 months.
4. Do you believe the amount you owe on your first mortgage is the same or less than the current value of your home?
To determine who owns your loan, call your servicing company and ask. If you have difficulty reaching them, you can also contact Fannie Mae at 800-7FANNIE or Freddie Mac at 800-FREDDIE between the hours of 8am and 8pm EST. You can also click the following links and request the information online.
www.fanniemae.com/homeaffordable
www.freddiemac.com/avoidforeclosure/
Other issues may exist for you in getting this loan. If you currently have a second mortgage or Home Equity Line of Credit (HELOC), the lender will need to re-subordinate their loan to the new first mortgage. Not all second lien holders have been willing to do this.
One other question will involve Private Mortgage Insurance (PMI). Will PMI be required on these new loans as it is required on all other agency loans when the loan-to-value exceeds 80% of the appraised value?
While a new appraisal will not be required, the parameters for determining the value used in the transaction are being delivered to loan servicing companies and additional information can be supplied by your servicer.
What if I Still Can't Refinance?
The final part of the HASP legislation involves assisting homeowners that will not be able to refinance but are still experiencing financial difficulty. For these borrowers, a loan modification may be warranted and it is expected that 3 to 4 million people may be able to get assistance.
Making Home Affordable modifications are intended for people that can no longer afford their monthly loan payments but still desire to remain in their home. In order to qualify, the affordability of your payment must have been impacted by a hardship.
A hardship that may qualify for modification could include, but not be limited to, a change in your interest rate, decreased income, or increased expenses related to issues like medical expenses, increased property taxes and/or hazard insurance.
To qualify for a modification under the terms of the plan, you must be able to answer yes to the following questions:
1. Is your home your primary residence?
2. Is the amount you owe on your first mortgage equal or less than $729,750?
3. Are you having trouble paying your mortgage? Reference above for examples.
4. Did you obtain your mortgage before January 1, 2009?
One item to note is that the program is not available for jumbo loans. In many areas of the country, a jumbo loan is any loan amount between $417,000 and $729,750. Areas of the country where the loan amounts exceed $417,000 and are still considered eligible include high cost areas like parts of California, Florida, Washington DC, and the Northeast. Your servicing company can provide greater eligibility details.
Loan modifications included in the program are designed to assist the homeowner reach a new mortgage payment, inclusive of principal, interest, property taxes, insurance and homeowner's association fees of not more than 31% of gross monthly income. In order to arrive at this number, participation from both the lender and the government may be involved.
What's Needed to Qualify for Either Program?
In order to qualify for either option, the homeowner needs to know that full qualification will be needed to ensure the borrower can meet the new payment. This will include supplying full income documentation and disclosure of assets. They will also be required to provide documentation proving the property is a primary residence. This can include verification through a credit report or other documentation such as utility bills.
To qualify for the modification program, evidence of additional housing expense items will be required including any other loans like cars, credit cards and student loans and their minimum payments, regular household expenses and a hardship letter detailing your situation and inability to make your payment.
Finally, all lender and loan servicers' participation is voluntary in either situation. Just because the programs are now available does not guarantee you will be able to find relief. Not all people in distressed situations will be helped. In these cases, there is a website detailing additional options that can be found at FinancialStability.gov.
Final Recommendation
The details of the legislation released this week may not assist everyone in need of relief. However, if the bill does what is expected, it could assist in lowering the mortgage payments or save people from foreclosure at the rate of 7 to 9 million homeowners. While the final impact on the economy may not be known for years, the first step is to find out if it will work for you.
Texas still most popular "moving-to" state
For the fourth straight year, Texas is the top state Americans are moving to, according to Allied Van Lines, which annually tracks US migration patterns. Texas had the highest net relocation gain (inbound moves minus outbound moves performed by Allied Van Lines) of 1,903 in 2008.
"With the continued job growth we're seeing in major cities like Dallas and Houston, and very affordable home prices statewide, Texas is still the place to be," says Brooke Hunt, 2009 chairman of the Texas Association of Realtors (TAR).
Texas' 9,879 total Allied shipments (inbound and outbound moves) in 2008 ranked second behind California, which had 11,400. But more people moved out of California last year, enabling Texas to retain its status as the number one "moving-to" state in the country. In fact, according to new data from the US Census Bureau, Texas gained more residents between July 2007 and July 2008 than any other state. Texas gained 484,000 residents during the 12-month period, followed by California (379,000), North Carolina (181,000), and Georgia (162,000).
Sources: Allied Van Lines, US Census Bureau, Texas Association of Realtors
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