Take a look at this very encouraging October report on Central Texas real estate from the Real Estate Center at Texas A&M at: http://recenter.tamu.edu/pdf/1862.pdf.  You can get more information on Texas Real Estate From the Real Estate Center at http://www.recenter.tamu.edu/ including signing up for their monthly newsletter and/or RSS feeds.

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Texas employee confidence in the economy remained steady in September despite the recent financial crisis, according to the monthly Spherion Employment Report.

Thirty-seven percent of Texas workers said they believed the job market was steady, up from 25 percent in August.

The report also found that fewer workers - 28 percent - responded that they were going to look for jobs over the next year, compared with 39 percent in August.

Seventy-two percent of workers thought their companies were doing well, up from 69 percent the previous month.

"With all of the news surrounding the financial crisis, the latest national job numbers, and the aftermath of Hurricane Ike, it is certainly a surprise to see that the Employee Confidence Index is continuing to rise," said Kim Lockhart, regional vice president for Spherion in Texas.

"Even though the Texas unemployment rate is consistently lower than the national level, the state is certainly feeling the effects of the economic slowdown. There seems to be a lot of hesitation being seen by both job seekers and employers and I don't see this fading as we enter the fourth quarter.

"Despite all this, the Texas job market continues to add jobs while many other parts of the country are losing them. The state job market remains strong, particularly in education, accounting and energy-related industries."

From the Austin Business Journal

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When it comes to getting the most for your money, Texas appears to have a lock on the country.

The state's four biggest cities are among the top 10 on Forbes magazine's list of the best bang-for-your-buck places in the United States. And garnering the top spot-where the magazine says one's money goes the farthest-is Austin.

San Antonio is ranked No. 2 on the list and Houston and Dallas rank 4th and 7th respectively.

According to Forbes, "residents of both [Austin and San Antonio] enjoy affordable housing and promising prospects for job growth in coming years."

Andrew Gledhill, an economist at Moody's Economy.com told Forbes that "Texas, as a whole, is one of the few economies that's performing extremely well because of the energy and technology sectors."

The worst city for the value this year was Los Angeles, followed by Providence, R.I.; New Orleans; Philadelphia; and Cleveland.

To rank the list, Forbes looked at projected job growth through 2012 in the 40 largest metro areas. Researches then calculated the ratios between each city's median home price and median income and compared that to Moody's cost of living index. Other factors included gas prices in each city and year-over-year inflation growth.

From the Austin Business Journal

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Abha Bhattarai, Forbes.com  

The economic storm sweeping the country has left Americans with few places to hide.

But those looking to hunker down might want to head to Texas, where they can get the best value for their dollar.

That's because Austin and San Antonio lead our list of places where your money goes farthest. Residents of both enjoy affordable housing and promising prospects for job growth in coming years. Houston and Dallas also land in the top 10, at Nos. 4 and 7, respectively.

"Texas, as a whole, is one of the few economies that's performing extremely well because of the energy and technology sectors," says Andrew Gledhill, an economist at Moody's Economy.com. Plus, he added, military bases in San Antonio have continued to draw a steady steam of personnel and federal employees to the city, spurring widespread job growth.

The state's manufacturing sector has also grown in recent years, and a reputation for affordable housing continues to lure people to the South. When accounting for median household income, a house in Dallas, for example--with a median price of about $150,000--is four times more affordable than a house in Los Angeles, the worst-ranked city on our list.

A house in New York is three times less affordable than in Charlotte, N.C., and four times less than in Denver, two cities where your money goes far and where the median house costs $245,000, according to the National Association of Realtors.

Housing has remained affordable in the South and Midwest, thanks to growing populations, relatively lax building regulations and "lots and lots of land," said Daniel McCue, a research analyst at Harvard's Joint Center for Housing Studies.

Plus, he added, housing in cities like Houston "grew at a more controlled pace and didn't go overboard like in Phoenix or Las Vegas," which means houses won't lose much value in coming months.

Three Midwestern cities round out the top 10: Indianapolis; Columbus, Ohio; and Minneapolis. The worst-ranked cities, after Los Angeles, were Providence, R.I.; New Orleans; Philadelphia; and Cleveland.

Behind the Numbers
To ensure that our list reflected future value instead of past bargains, we began by looking at projected job growth through 2012 in the 40 largest U.S.-Census-defined metropolitan areas of the country with data from Moody's Economy.com.

Texan cities were a clear winner, with economists predicting job growth of at least 2% by 2012 in Austin, San Antonio, Dallas and Houston. By comparison, job growth in cities at the bottom of our list, including Los Angeles, Philadelphia and Cleveland, is expected to be about 0.2%.

We then calculated the ratios between each city's median house price and median household income, using 2000 U.S. Census figures, the latest available, and 2007 data from the National Association of Realtors. Next, we compared median income to Moody's cost of living index.

Final factors included the average gas price in each city on a given day in October as collected by AAA, and year-over-year inflation growth as calculated by Moody's and Forbes.com.

Top Spots
The factors that make the cities on our list valuable--affordable housing, relatively low gas prices, sluggish inflation, a job market that's more vibrant than most--are more than an indication of cheap deals. Instead, they give us a glimpse of the cities that are likely to offer value. Cities like Detroit (which didn't make it to our list) are cheap, but low-income figures and a fading job market won't do much for sustaining worth.

The cities where you'll get the least value include areas like Los Angeles, New York and Washington, D.C., where median house prices are more than $400,000 and relatively few people can afford them. Cities like Providence, R.I., and Philadelphia are suffering from large waves of out-migration as more and more residents decide to pick up and leave. As a result, local economies stagnate, and prospects for job growth seem bleak--economists predict the number of jobs in Philadelphia will grow by 0.2% by 2012 and by 0.1% in Providence.

But, economists say, no state has been as hard hit as California.

"California is being faced with a combination of a zillion things--the state's been in a prolonged recession, and at the same time, you have some of the least affordable housing in the country," says Gledhill. "We'll probably start seeing a bottom in the housing market late next year, but it'll be a while until we see a real recovery."

Los Angeles' misfortunes, however, have helped boost the economy in cities like Portland, Ore. It and Seattle have become attractive alternatives for those looking to leave California in search of affordable housing and lower costs of living.

The value of a dollar in different cities is also closely linked to local inflation rates. In Austin, for example, year-over-year inflation rates rose by 5%, while in Portland, that figure was nearly 5.7%. Local inflation rates ranged from 3.2% in St. Louis (No. 8 on the worst list) to 5.82% in Dallas (No. 7 on the best list).

But keep in mind, even cities that ranked well on our list aren't immune from the forces of today's downturn. Gledhill says economic growth in Portland, which has already begun to slow, will be compounded further by California's slowdown.

Things won't be much better in Columbus, according to Bodhi Ganguli, an economist at Moody's. So far, the city has weathered the storm better than its local counterparts. But he said, "an extremely high foreclosure rate" and bleak expectations for job growth will begin to take their toll on the city's economy.

Things may turn for those in Charlotte, which has fared relatively well so far. That's because housing prices never reached exorbitant highs, which shielded the city from a major housing bust.

But as the Charlotte-based Wachovia (nyse: WB - news - people ) get swallowed by Wells Fargo (nyse: WFC - news - people ), Gledhill says, "a more measured deterioration is on its way."

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Even in a tougher economy Austin is still outperforming many other areas of the country in job creation and other economic markers.

The Austin-Round Rock region ranks 4th among the country's largest metropolitan areas on the Milken Institute and Greenstreet Real Estate Partners' 2008 Best Performing Cities list. That's a dramatic improvement from Austin's 20th place ranking on last year's list. The list ranks cities according to a series of matrices such as job creation and salary and technology growth.

Provo-Orem, Utah; Raleigh-Cary, N.C.; and Salt Lake City, Utah, were the top ranked cities on the list, in that order.

Among other Texas metro areas, the McAllen-Edinburgh-Mission region ranked No. 7 on the list followed by Killeen-Temple-Fort Hood at No. 13, San Antonio at No. 15, Houston at No. 16, and Dallas at No. 23.

To see the full rankings, click here.

From the Austin Business Journal

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Alycen Delrie
Alycen Delrie Agency of Farmers Insurance
(512) 280-5977

Devastating floods occur throughout the United States every year. The risk of flooding increases as weather patterns change, coupled with overdevelopment and leveling of forests that reduce the land's natural ability to absorb water. Even those who don't live near water are at risk. Flooding causes more than $2 billion in property damage every year. Fortunately, Flood insurance is available to cover homes and businesses and their contents in communities that participate in the National Flood Insurance Program (NFIP). Here are some myths and facts you should know about Flood insurance:

Myth: "It won't happen to me."

Fact: You don't have to live by water to be at risk. Approximately 25 percent of all flood claims occur in low- to moderate-risk areas.

Myth: "My homeowners insurance is enough."

Fact: Homeowners insurance does not cover flood damage - federal flood insurance does. Flood insurance also covers damage from mudflow, dirt and debris resulting from moving water.

Myth: "I don't need flood insurance."

Fact: Homeowners with mortgaged property in a Special Flood Hazard Area (SFHA) are now required by federal law to obtain flood insurance. Lenders must comply by requiring flood insurance on the outstanding mortgage balance for the life of the loan.

Myth: "The government will pay."

Fact: To receive federal disaster assistance, a flood must first be declared a federal disaster by the U.S. president. Less than 50 percent of the floods that damage homes across the country every year wind up being classified as federal disasters.

Myth: "Flood insurance is expensive."

Fact: Flood insurance is affordable. Flood damage is not. The average loss of property and contents from the 2007 flooding in Marble Falls, Texas was more than $25,000. Compare this to the average annual flood premium of $350. Your coverage is based on your home's value, minus your land value. Flood insurance up to $250,000 is available for residential buildings. Since flood policies are backed by the U.S. government, all valid claims are 100 percent guaranteed.

Myth: "Flood insurance covers contents."

Fact: Standard flood coverage doesn't cover the contents of your home. Separate Contents coverage is available up to $100,000. Preferred Risk policies for structures in low-risk areas offer "combination coverage" of up to $250,000 for a residence and $100,000 for its contents. A separate contents deductible applies on all contents claims.

Myth: "I can buy flood insurance anytime."

Floods can happen anytime: There is a 30-day waiting period between purchasing a flood policy and being covered by it.

Here are a few exceptions to the 30-day wait:

• There's no waiting period if you have an existing flood policy and an additional amount of flood insurance is required with making, increasing, extending or renewing of a loan, such as a second mortgage, home equity loan, or refinancing. Coverage is effective immediately, as long as the premium is presented at or prior to loan closing.
• There's no waiting period when flood insurance is required by a lender for a loan. Coverage is effective immediately, as long as the premium is presented at the completion of a loan application.
• There's a one-day waiting period when an additional amount of insurance is required as a result of a map revision. This applies when the map revision from a non-Special Flood Hazard Area to a Special Flood Hazard Area, only if the endorsement is received within 13 months of the map revision. The increased amount of coverage will be available 24 hours after the amount of coverage is applied for and the additional premium is made.

Discover the advantage of personal service from the Alycen Delrie Agency

When you're covered by the Alycen Delrie Agency of Farmers Insurance, you have a personal, professional agent helping you every step of the way. Here's how the personal touch can make a difference to you:

• I will work with you to identify your needs and find the right coverage for you.
• You won't be alone when you need assistance or go to file a claim - you'll deal directly with me and my staff.
• I will review your policy each time that it renews in order to insure you are properly insured.
• Should an unfortunate incident occur, my agency will be there to help get you back where you belong.

I will be glad to speak with you at your convenience to discuss flood insurance and share with you the benefits of allowing Farmers to provide you with flood insurance. If this sounds good to you, please give me a call at (512) 280-5977 and I will give you - without obligation - a free flood insurance quote.

 

 

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The Texas Comptroller of Public Accounts has an excellent brochure available online that lays out taxpayers' rights and responsibilities regarding property taxes. The brochure includes basic information on the property tax system, how to save on property taxes, how to save on agricultural land taxes, filing for exemptions, and how to file a protest, among other things. To view the brochure, visit the Comptroller's Web site at http://www.window.state.tx.us/taxinfo/proptax/remedy08/.

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J.D. Power and Associates Reports:
Among Home Buyers, Keller Williams Ranks Highest in Customer Satisfaction
With Real Estate Companies, While Prudential Ranks Highest Among Home Sellers in Inaugural Study

Despite Popularity of Online Home Buying and Selling Tools,
Real Estate Agents are Key to Customer Satisfaction

WESTLAKE VILLAGE, Calif.: 23 July 2008 - Keller Williams ranks highest among real estate companies in satisfying home buyers, while Prudential ranks highest in satisfying home sellers, according to the J.D. Power and Associates 2008 Home Buyer/Seller Study^SM released today.

The inaugural study measures customer satisfaction of home buyers and sellers with the largest national real estate firms. Overall satisfaction is determined by examining three factors for the home-buying experience: agent (65%); office (21%); and services (13%).  Four factors are examined for the home-selling experience: agent (43%); marketing (38%); office (12%); and services (7%).

In the home-buyer segment, Keller Williams achieves a score of 831 on a 1,000-point scale, and receives highest ratings from customers in all three factors. Following in the rankings are Prudential (820) and Coldwell Banker (816). Prudential performs well in the agent and office factors, while Coldwell Banker performs particularly well in the services factor.

Among home sellers, Prudential ranks highest with a score of 793 and performs particularly well in the marketing and office factors. Coldwell Banker and RE/MAX follow Prudential in the segment rankings, in a tie. Coldwell Banker performs particularly well in the marketing factor, while RE/MAX performs particularly well in the agent factor.

"When buying a home, customers particularly appreciate agent professionalism, responsiveness to calls and e-mails and the agent's skill in locating and showing properties in the appropriate price range-all areas in which Keller Williams excels," said Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates. "When it comes to selling a home, marketing of the home is particularly critical, although professionalism and responsiveness of the agent are still important. Both Prudential and Coldwell Banker demonstrate considerable strengths in the area of marketing."

The study finds that despite the popularity of home-buying and -selling resources on the Internet, real estate agents are key to customer satisfaction with real estate companies. A large proportion of both home buyers and sellers rely on the Internet to facilitate the buying or selling process, with 68 percent of buyers saying that they used Internet tools to help them in the purchase process and 61 percent of sellers reporting that they used a Web site listing to market their home. In addition, among home sellers, online methods are the most important aspect of marketing. However, the agent factor carries the greatest importance among the factors that comprise overall satisfaction among both home buyers and sellers.

"Although the Internet provides home buyers and sellers with the ability to perform some essential tasks-such as listing a home for sale or researching a neighborhood in which to purchase a home-it still does not replace the importance of a good real estate agent," said Howland. "Particularly in an uncertain real estate market, professional advice from agents can be especially valuable to buyers and sellers. The knowledge and expertise provided by experienced agents is an important benefit of using a full-service real estate company."

The study also finds that the average time a home for sale remained on the market was slightly more than six months, although home sellers represented by the top-ranking real estate companies report that their homes were on the market for slightly less time-approximately five and a half months, on average.

"Satisfaction averages 794 among those customers whose homes sold within 5 months or less, but declines considerably to an average of 730 among customers whose homes took 7 months or longer to sell," said Howland. "A real estate company that provides agents who are skilled at determining the appropriate market value and listing price for homes, and who can effectively market properties, can help minimize the time that clients' homes remain on the market-which can not only save the seller money, but also diminish inconvenience and anxiety."

Additional noteworthy study findings include the following:

• Nearly one-half of respondents (46%) report using recommendations from family or friends to find their real estate agent. Approximately 28 percent used the Internet, while 23 percent used an agent they had used previously and 11 percent used a printed real estate guide.
• On average, home buyers were shown approximately 13 homes before making a purchase.
• Home sellers report that, on average, their home was shown approximately 11 times and approximately five open houses were conducted before the sale occurred.

The 2008 Home Buyer/Seller Study includes 3,670 evaluations from 3,205 respondents who bought or sold a home between April 2007 and June 2008.

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from the Austin Business Journal

The business climate in Texas is the best in the nation, according to a study by marketing company Development Counsellors International.

In the poll of 281 corporate executives across the country, 40.8 percent of participants say Texas had the most favorable business climate -- an accolade the Lone Star State has held since 1999.

Executives cited a strong labor market, low operating costs and a pro-business climate as factors in their decision.

North Carolina ranked second, while Georgia was third, followed by Tennessee and Florida, which tied for fourth place.

For the third consecutive year, California was viewed as the state with the least favorable business climate. New York, Michigan, New Jersey and Massachusetts rounded out the bottom five.

"With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey," DCI President Andrew Levine says in a statement. "Whether accurate or misguided, perceptions about a location's business climate often play a crucial role in site selection decisions and where companies invest money and create jobs."

DCI says its survey was sent to a random selection of 3,591 U.S. companies with annual revenue of at least $25 million. The study is conducted every three years.

 

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Relatively stable housing market, high energy costs and weak dollar all benefiting state

Dallas Business Journal - by Lyssa Jenkens Contributing writer

What is going on in Texas? We hear that question a lot lately. The business community in this country and abroad wonders how the Texas economy continues to grow as the nation struggles under the weight of declining housing markets, rising energy prices and the falling dollar.

Texas has added nearly 85,000 net new jobs since January. The other 19 states that have gained jobs this year, plus the District of Columbia, grew by 65,000 total. The remaining 30 states posted declines of some 288,000 jobs, driving the nation to a net loss of 138,000 jobs since January.

So what's going on in the Lone Star State?

Texas is reaping the benefits of relatively stable housing markets in recent years. According to the S&P/Case-Schiller composite index for 20 large U.S. metros, home prices climbed an average of 107% above their January 2000 levels before the housing bubble imploded. Coastal markets, from Los Angeles to Miami, nearly tripled their average prices with gains of 175% to 180%.

In Dallas-Fort Worth, the only Texas metro in the index, price increases topped out at just 27%, one-fourth of the national average.

U.S. housing prices have fallen 18% on average since the market peak in July 2006. More than 15% of that drop was realized in the last 12 months reported. D-FW shows total losses below 5%, with 3.4% declines in the last 12 months.

Market stability in Texas yields two important benefits for the state's economy: housing costs have remained relatively low and household wealth is not in free-fall. These are significant outcomes, especially as households and businesses are sorely tested by rising prices and declining dollars elsewhere in the economy.

Energy prices benefiting Texas

This leads directly to the second reason Texas is outperforming the nation in 2008: energy prices. Texas is the nation's largest energy-producing state, accounting for roughly one-fourth of oil and gas production and reserves. In 2006, when oil and gas prices were half of today's averages, this industry accounted for 15% of the gross state product in Texas.

In the near-term, high-priced oil and gas benefit Texas, spurring jobs and profits through local mining and directly related activities. High prices also generate new income streams for households that own mineral rights and for government tax coffers. Further, Texans benefit from the wide array of skills and resources they offer to worldwide oil and gas operations, ranging from the manufacture of drilling equipment to legal and financial expertise for this industry.

Declining dollar: near-term win

Finally, the declining value of U.S. dollars in world markets generates another near-term win for the Texas economy. Texas has a very strong global export economy, ranked first in the United States by widening margins over the years. The falling dollar benefits this sector significantly, unleashing new demand for U.S. products despite a slowing global economy.

Further, Texas export strengths in chemical and technology products are especially well-suited to current global needs. The short-term results for Texans are very much like those of rising energy prices - more jobs, more profits, more tax revenue.

In the coming months, Texans will continue to reap benefits from each of these factors that are so challenging to the rest of the country. Housing prices will continue to fall in key markets well into 2009; energy prices will remain significantly elevated in the foreseeable future; and the dollar will struggle as long as financial markets and the national economy are sorting out.

However, Texans cannot be complacent. Long-term costs will eventually overwhelm the benefits. Home prices are also falling in Texas, however slowly, and secondary impacts on financial services challenge business operations and household budgets alike. Most households and businesses bear direct costs of higher energy prices but benefits are not as widely distributed. New dollars generated by strong exports have less buying power here as well as abroad.

The one unqualified benefit for Texas from the current situation is the heightened, widespread, positive attention for the state. Business people in the United States and abroad are taking a closer look at Texas, appreciating old and new strengths that created an astoundingly resilient economy. That is the long-term payoff for Texas and it will be large.

 

Jenkens is chief economist/vice president of business information and research at the Dallas Regional Chamber.

 

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