Jessica Bruehl

Now is the time to buy! There are more homes on the market in the Austin area than ever before and interest rates are at a near 45 year low. I just got quoted 4.75% from my lender!

Austin has avoided the spiraling downward of real estate values due to our projected job growth and low unemployment rates and all signs say it will stay that way. All the financial guru's say that you make your money when you buy your new home, not when you sell. That means, buying in a buyer's market ... today! As a buyer, you can't perfectly time the market - no one can. But, the smart buyers purchase during what the industry calls the "safe zone", meaning a strong buyer's market which we are currently in.

When thinking about a move, you also need to take into account the affect it will have on your quality of life, not just your bank account. Will your children be able to enroll in better schools? Will you save on gas and cut your commute by being closer to work? Will you have less stress because you will have a smaller home to clean and maintain or will your family no longer be living on top of each other because you will have more room to spread out?

Each of these factors has an emotional cost and benefit every bit as important as the financial benefits of owning the home that is right for you!

Census bureau shows Texas economy attracting droves

More people are moving to Texas from other states than from other countries as the state's relatively strong employment base attracts families struggling with foreclosures and layoffs elsewhere, the Census Bureau reported in late December.

Between July 2007 and July 1, 2008, nearly 141,000 people moved to Texas from other states, compared with about 92,000 international migrants, the bureau said.

The data provide a fresh indicator of how longstanding immigration patterns into Texas are changing.

In the early years of this decade, international migration into Texas was two to three times as great as domestic, but the trend reversed starting in 2006.

Much of Texas' international migration historically hails from Mexico and Central America, where immigrants fled poor conditions. But the surging domestic migration into the Lone Star State is now likely to come from economically depressed states such as Michigan, which lost about 46,000 residents between July 2007 and July 1, 2008.

Texas gained 484,000 residents last year, more than any other state. In percentage growth, Texas' 2 percent tied for third with North Carolina and Colorado behind Utah, 2.5 percent, and Arizona, 2.3 percent.

Karl Eschbach, the state demographer, said Texas has continued to produce jobs while employment declined in many other states. He said this was the key factor driving the increased domestic migration.

"For the past several years, job growth in the United States means Texas," Eschbach said. "The Texas economy has so much outperformed the rest of the country."

Source: Houston Chronicle

Courtesy of Cameron Breed, SWBC Mortgage

While the mortgage market continues to generate a lot of chatter in both
the media and in Washington, interest rates are currently near or at
all-time lows. If you or anyone you know are looking to take advantage of
these low rates, let me explain why now is the time to act.

Lately there has been talk about the 4.5% 30-year fixed rate mortgage. Will
it become a reality though? Right now, no one really knows. Homeowners who
could benefit from a lower interest rate need to know that even if 4.5%
becomes a reality from Washington's actions, it would only be available to
home buyers, not homeowners seeking to better their rate. If you need to
refinance, you will be left out.

You also may have heard about Hope for Homeowners, which is a program
approved by legislators to help distressed homeowners. However, regardless
of its best intentions, the program has not been embraced by investors, and
it is not available to many it could help.

The bottom line is, the Fed announced recently that they are going to buy
up to $600 billion in mortgage-backed securities. This has already driven
rates to historical lows. In January, the SEC is meeting and information
may be released that could have a significant bearing on rates, potentially
for the worse.

Waiting to obtain the best rate is only possible for those with loan
applications already in process. Interest rates are incredibly volatile and
fluctuations that used to take months are now occurring in just days or
even hours. If you don't have an application in process, you could lose
out.

We are already seeing lender backlog due to low interest rates. In 2003,
with rates at these same low levels, we saw some lenders taking up to 90
days to close a loan.

Home loan rates are currently in the mid- to low-5% range. Home values are
currently at 2003-2004 levels, coming down significantly from their high
point. If you or friends and family members are contemplating
seeking financing, now is the time to act.

With a first time home buyer tax credit of up to $7,500 and low or no money
down programs available for many people today, now is a great time to buy a
home.

Remodeling Projects With the Highest Returns

For the second year in a row, REALTORS® report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report.

On a national level, wood deck additions and all types of siding replacements-upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl-returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent.

The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year.

Projects With Highest, Lowest Returns

In addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs on a national basis.

All types of window replacements-upscale and midrange wood and upscale and midscale vinyl-returned more than 76 percent of costs. A major midrange kitchen remodel returned 76 percent of project costs, while a minor midrange kitchen remodel returned 79.5 percent of costs.

On a national level, bathroom remodels, while still a relatively good investment, do not return as high a percentage as in previous years. A midrange bathroom remodel was estimated to return 74.4 percent on resale, comparable to a midrange attic-to-bedroom conversion, at 73.6 percent of costs recouped, and a midrange basement remodel, at 72.7 percent of costs recouped.

As in last year's report, the least profitable remodeling projects in terms of resale value were home office remodels, sunroom additions, and back-up power generators, returning only 54.4 percent, 56.6 percent, and 57.1 percent, respectively, of project costs.

National Association of Realtors® President Charles McMillan says the resale value of any given remodeling project depends on a variety of factors.

"A home's overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project," he says.

Source: NAR

Check out our website at www.jkbrealty.com to search for your next home in the Austin area or set up a custmized search, emailed to you every time a new property hits the market that meets your criteria!!

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1,700 realtors from around the state recently gathered in Austin for the annual "Realty Round Up" tradeshow and almost everyone had positive things to say about the current housing market. Hosted by the Austin Board of Realtors, an estimated 800 attendees filling the ballroom of the Austin Convention Center.

The event included a speech by the renowned real estate expert, Dr. Mark Dotzour, who responded to real estate predictions that housing prices will depreciate in the upcoming year. Experts forecast the median home price would decline between 5 and 10 percent, but the chief economist for the Texas A&M Real Estate Center not only rebuked the prediction, he boldly stated that now is, in fact, a great time to buy. Dotzour argued that the recession is already halfway through, and he expects it to end by summer 2009. He contends that the high proportion of individual debt compared to disposable income caused the crisis. In recent months, 14% of disposable income for individuals has been used on debt, compared to the average rate of 10%. Dotzour's outlook for 2009 shows that percentage going down. By the end of Q1, he shows a decrease in the unemployment rate and an increase in people moving into the area-projecting that 13 million people will to move into Central Texas by 2030.

Dotzour not only gave a positive outlook to the future, but he also addressed the current housing market. He disagrees with predictions of the Central Texas housing bubble, arguing that prices will not go down. He states that with the current low rates and the added benefits provided by home builders and sellers in Austin, now is a best time to buy in the area.

Austin has been insulated from the drastic downturn in the home market, thanks to all the new jobs available. Forbes has ranked Austin third among the best cities for jobs in 2008, ranked number one for income growth, and number two for employment growth. Home values won't be depreciating in this area, Dotzour argues. In fact the market is currently experiencing a three-and-a-half percent rate of appreciation. Additionally, the Austin real estate market currently holds about six-and-a-half months worth of housing inventory, and many builders are sacrificing their margins and providing extra incentives to drive sales.

Here's the link to his presentation: http://www.buffingtonsignaturehomes.com/pdfs/10-22-08-Austin-Realty-Roundup.pdf