Jutta “Utah” Burden’s Market Update!

Texas economy still best; 2012 looks to mirror 2011

David S. Jones | columnist

Dec. 27, 2011

On New Year’s Eve, many bid farewell to the old year by singing “Auld Lang Syne” lyrics that include, “Should old acquaintance be forgot and never brought to mind.“

Apparently, it will be hard to forget 2011 because 2012 is expected to look pretty much like it.

If the experts are correct, however, Texans will again have more to sing about in the New Year than will their fellow Americans.

Texas: Slow but still leading

Real Estate Center Chief Economist Mark Dotzour, Ph.D., sees “modest, positive economic growth” for the nation in the next 12 months. Nationally, he expects 2012 to look something like 2003-06.

By comparison, Dotzour predicts a “much more robust economic outlook” for Texas in the coming year. He bases this on documented evidence that Texas dramatically outperformed the United States in 2011.

The state’s positive job growth came not only in the energy industry but also in construction, manufacturing, retail, transportation, professional business services, health care, and hospitality.

“Job growth is occurring in nearly all Texas metro areas and is likely to continue into 2012,” says Dotzour.

Wait-and-see election watch

Real Estate Center residential expert Jim Gaines, Ph.D., doesn’t expect major business and investment decisions until after the 2012 election. Even then, he predicts first quarter 2013 will be sluggish despite what should be low interest rates through 2013.

Gaines believes the U.S. housing market will remain steady with no major movement in 2012. He says Texas and local housing markets should show some modest improvement but no major upgrade.

“In general, Texas’s housing markets in 2012 are expected to show small, but nevertheless positive gains,” Gaines says. “The projected levels of home sales, prices, and new construction statewide for 2012 and into 2013 indicate gradual improvement. This gradual improvement should also prevail in most local markets, with some doing better than others based on local factors.”

Dotzour says buyers and sellers are aware there is a “shadow inventory” of between 4.5 million and 6 million homes that have delinquent loans and will soon need to be sold.

“It is unlikely that home sales volume will return until this overhang of distressed houses sells to investors,” he says. “Unfortunately, the foreclosure process is severely retarded from the normal pace.”

Distressed commercial sales going up

According to commercial real estate insiders, distressed sales are on the way up. Real Estate Center Research Economist Harold Hunt, Ph.D., talked with Texas commercial real estate professionals about the outlook for 2012.

Real Capital Analytics reports about $1.2 trillion in commercial real estate assets were traded nationally between 2005 and 2007.

“For the most part, these assets are still being held by those purchasers,” Russell Ingrum, managing director of investment sales in the CB Richard Ellis Houston office, recently told Hunt. “As a result, many of them will come up for sale in the next four years, depending on holding period, market conditions, and so on.”

These properties could represent $200 billion per year in transactions. Many of them will be in the distressed category because of when they were purchased.

“If you are a broker, you should consider focusing on what traded back then,” says Ingrum.

Stagnant land market

“The trouble is we have not dealt with the problems that caused 2008,” says Research Economist Charles Gilliland, Ph.D., the Center’s authority on rural land. “In the early 1980s, the Latin American sovereign debt defaults wrecked balance sheets.

“The solution was to pretend that nothing had really happened and let the economy come back to allow write offs of those bad debts. This time we are trying the same thing, but the recovery is not happening.

“Nobody knows how long it might be before a reckoning ensues. It would appear that an increasing number of observers are deciding that it is going to be a while. So, with that preamble, I’m thinking that the land market is likely to extend recent trends through 2012.

“Those are fewer sales than had been the norm. Smaller sales than had been the norm because larger properties still are not selling. Overall, it looks like a rather stagnant market.”

Oil shines bright in Texas

“The Texas story is brighter,” confirms Dotzour. “For the past 15 years, Texas seems to double the U.S. economy in terms of job growth. It will continue to do so in 2012.”

Dotzour sums up the Texas economic outlook heading into 2012 and beyond …

“The oil and gas industry is on fire,” he says. “We are experiencing job growth in all sectors except for government and information. Our population is expanding. People are migrating here from places like California and Illinois, where taxes are much higher and regulations more prohibitive. Businesses and investors are cautiously hopeful that the economic environment in America could become substantially more attractive in 2013.”

The Woodlands Homes – Why You Should Look into Them

The Woodlands Homes – Why You Should Look into Them

If you want to find a home in Houston, you should check out one extremely popular community today: the Woodlands. This city happens to have many opportunities and is a wonderful place to live in overall. The community is very tight and the environment is simply stunning. Filled with tall trees, this particular city has a lot of much-needed relief available for its residences who need the time off from freeways, building and retail stores that can be otherwise found in Houston, Texas. In fact, the Woodlands homes would be the perfect choices for those looking into living hear Houston nowadays.

Here are several reasons why you should take the Woodlands homes into consideration:

Shopping in the Woodlands is great as its resident mall has a lot of nice retail stores and boutiques in it. And, since it is located close to Interstate 45, any shopping needs can be dealt with there – right away. If you are simply having a hard time deciding, various other anchor shops are also located close by that can satisfy your various demands.

The rate of crime happens to be low in this neighborhood, too. Practically every home owner and renter is worried about crime and if you live next to hundreds of people in your community, it is only common sense for you to want to seem safe. A lot of statistics show that the crime rate in the Woodlands is very low as opposed to other areas within the country. Everybody has the right to want to feel safe, after all, and the Woodlands homes can do that for you and your family.

If you simply want to leave the house to enjoy the city every now and then, the Woodlands would also be the perfect place for you as it has a lot of options available. There is an amphitheater that is open air and boasts a lot of live events and concerts. If you love to golf, canoe, or hike near trees, all of these things are mere minutes away from the Woodlands homes, as well.

In general, Texas has a good accompany, but the Woodlands really does contribute to that particular growth. Both health care and education have shown recent job strength, as well so if you have kids or plan on having them, you will be glad to learn that a lot of award-winning schools and fine institutions exist within the area. So, take a look at the Woodlands homes today.

Enchantment of The Woodlands Market Street

Enchantment of the Woodlands market street

The setting of all the modern cities is more or less as most of these cities are developed according to a plan and that is why it is always possible to find every part of these cities well managed and well organized. There is no doubt that the market and business establishments get enough attention in these cities as these market places work as the hearts of the city life.  All these cities are planned with special attention towards the placement of the market places. The city of Woodlands in Texas in the United States of America is another example of great planning that is proving to be boon for the proper development of the city. As per the noted facts, most of these developed cities from all over the world have well developed market places that are known for their extraordinary facilities and services.

The Woodlands market Street is an example of great planning of township. This street is the life line of the city as it plays a very important role in the life of every native of this city. If you ever visit to this city of Woodlands, then you must not forget to visit the Woodlands market street which is indeed the most attractive place in the entire city of Woodlands. This city street has separate areas for different types of business establishments. It is an important principle of modern planning of any city. Due to this well managed planning, it becomes easier for the people to find out the things that they are looking for as they are only required to know which area of the city market they are supposed to appear.

The Woodlands market street is wide and smooth and that helps ion the smooth flow of traffic on this extraordinary street.  The activity of the traffic authorities can be noticed all through this market street. These authorities work relentlessly and selflessly to make the most important street of the city to make it free from any traffic trouble. The flow of traffic remains closed during a certain part of the day as the business activities remain on the height during this part of the day. The Woodlands market street is probably the best example of well organized city life. This market street is like an important place of visit for the people who come to Woodlands on a personal or business trip set at the side walk cafe and visit with friends !! The Best Place to  call HOME

Ready to Refinance ?

By The Associated Press

Mortgage rates have fallen to their lowest levels ever, making this a golden opportunity to refinance.

But many people can’t. Homeowners who want to refinance in today’s tougher lending environment face hurdles.

Credit scores must be higher than they used to be. Debt loads must be smaller. Employment must be documented.

The biggest obstacle? A lack of home equity. Some people owe more on their mortgages than their homes are worth. They’re considered “underwater.” Banks aren’t inclined to lend to them.

But for those with stable jobs, extra cash, little debt and some home equity, low rates could allow for sharply reduced mortgage payments.

— BARRIERS TO ENTRY

For many homeowners, refinancing is impossible.

The lowest rates are generally reserved for those with credit scores of 720 or more, said Mark Goldman, a Southern California mortgage broker who lectures at San Diego State University. About 40 percent of U.S. homeowners have scores that high.

You’ll also typically need at least 10 percent equity in your home. Depending on where your home is, the required equity might be as high as 20 percent.

“It’s tough to refinance a loan these days,” Goldman said. “Only the select few can qualify.”

Roughly 11 million U.S. homeowners — about 23 percent of Americans with a mortgage — are underwater. Some underwater homeowners with government-backed mortgages might be able to refinance through federal programs, such as the Home Affordable Refinance Program.

But these programs are generally limited to those who have lost no more than 10 percent of their home’s equity. In many hard-hit areas, such as Phoenix, Las Vegas and Tampa, Fla., home values have shrunk 60 percent or more.

— WHEN TO REFINANCE

The rule of thumb has been that it makes sense to refinance if a homeowner can save 1 percentage point on the current rate. Those who haven’t refinanced in the past few years and who plan to stay in their home for at least five years are best positioned to save.

If you’ve been paying your mortgage for 15 years or more, it’s sometimes not wise to refinance. In the latter years of a mortgage, a larger portion of your payment applies to principal. That builds equity. If you refinance late in your loan and don’t reduce the loan’s duration from, say 30 to 15 years, you’ll build less equity.

In some states, you might also face prepayment penalties if you pay off your mortgage early or refinance. In some cases, though, these penalties can be waived.

— WHAT YOU’LL NEED

Homeowners need pay stubs and bank statements to document assets and income. Lenders generally frown on household debt that exceeds 45 percent of a family’s gross income.

A solid credit score of at least 680 is also important, said Mike Anderson, a broker at Essential Mortgage Co. in Baton Rouge, La. That’s because lower credit are typically subject to higher extra fees.

“Once you get below 680, it gets dicey,” Anderson said. “With all the add-on fees, it may not be worth it.”

But the low rates, if they can be had, can produce big savings. A homeowner would have to pay roughly $1,074 a month for a 30-year, $200,000 fixed mortgage at 5 percent. If that rate were cut to 4 percent, the payment would drop to $955. The savings would be $119 a month, or $1,428 a year.

— WHAT IT WILL COST

Homeowners typically pay a few thousand in closing costs. An appraisal fee can cost 1 percent of the loan value. Extra costs, sometimes called “garbage fees,” include application, inspection, notary and recording fees.

These fees, called points, now average 0.8 point on a 30-year fixed mortgage. One point equals 1 percent of the loan amount. That means the 0.8 percent in extra fees on a $200,000 loan would run $1,600.

An example of how fees can increase costs: This week’s average rate on the 30-year fixed mortgage is 3.94 percent. It’s the first time it’s ever been below 4 percent. But once extra fees are added in, the effective average rate rises to 4.12 percent.

I though my reader would be interested in this article

Jutta ” Utah” Burden

Realtor Associate Keller Williams The Woodlands

visit my website

Investing in Real Estate

Lawrence Yun, NAR chief economist, understands the ebb and flow. “Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers,” he said. “Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs.”

Housing inventory dropped 1.7 percent to 3.65 million existing homes available, representing a 9.4-month supply at today’s current rate of sale.

Investing in Real Estate

Today’s low interest rates and stabilized home prices have created some great investment opportunities!  Investing in real estate has unique advantages over other types of investments:

• Interest in mortgage loans are tax-deductable.  Investors can lower their tax liability while increasing their equity.
• Renters pay down your mortgage loan.  Investors reap the benefits of rental income, which offsets your mortgage cost and build equity.
• Real Estate values increase over the long term.  Real Estate is limited and will always be in demand. 
• 1031 exchanges are available to defer taxable income when you are ready to sell.

Many investors are taking advantage of these great market conditions. Have questions? Give us a call. We are happy to help!

Home Warranties

New Homes come with warranties to protect the buyer in case of the unexpected.  But what about existing homes?  Fortunately, there are a number of companies today who offer warranties on existing homes.  Sellers can now offer their buyers a level of assurance that was previously reserved for new construction, and buyers can buy with confidence!

If you are in the market to buy or sell, ask us about the advantages of a home warranty.  You might be surprised at how much protection is offered for a very reasonable fee.

10 Tips for a Cleaner, Safer Kitchen

 The first day of spring has come and gone. To get the cleaning season started right, we looked for the best advice on cleaning the busiest-and maybe dirtiest-room in the house: the kitchen.

For a list of what we should clean, how and when, we asked a bunch of germ experts.

The biggest surprise? People with pets are six times more likely to get salmonella-based infections. The culprit is pet bowls, particularly the water bowl. We often dump it in the sink before we start handling food.

Want to sanitize?
Professional kitchens use a sanitizing solution made with one teaspoon household bleach in four cups of water. It’s sprayed on counters and cutting boards. Experts disagree on the need to use it at home, but if you do, do it correctly: Let sprayed surfaces air-dry-drying with dish towels may recontaminate the surface. Always clean before you sanitize. If chlorine comes in contact with dirt or soil, it can no longer sanitize. Don’t use more than one teaspoon chlorine-stronger isn’t better. And change it about every five days. Chlorine dissipates quickly.

1. Microwave
Fill a bowl with two cups water and a whole lemon, cut into slices. Place it inside and microwave for two minutes, then wipe it out with paper towels. The hot water softens food spills and the lemon cuts grease and keeps the microwave smelling fresh

2. Stove and oven
Spray stove spills with an all-purpose cleaner and let stand 10 minutes for easier cleaning. Oven spills aren’t a food hazard if you regularly heat the oven to 400. Cover a fresh spill with salt until you have time to clean it.

3. Counters
Clean regularly with an all-purpose cleaner. Spray with a weak bleach solution and air-dry if needed.

4. Dishes and dishwashers
If you hand-wash dishes, be sure to air-dry them in a rack as dirty or wet dish towels can recontaminate clean dishes. To reduce soap buildup in a dishwasher, occasionally fill the soap dispenser with baking soda or place a small cup of vinegar on the top shelf, then run the dishwater empty.

5. Sink, drain and faucet handle
Clean regularly with household cleanser, especially after washing or rinsing raw meat. Don’t forget to clean the faucet handle.

6. Refrigerator
Every day, wipe down the handles, including the underside. Every week, throw out anything that’s past its date or shows age. Every three to six months, empty shelves and clean the inside with 1/4 cup baking soda in one quart warm water, then spray with a bleach solution and air-dry. Remove drawers and clean under them. Before you return the food, wipe jars to remove drips. Clean the rubber gasket inside the door to ensure a tight seal. Vacuum the coils in the back and empty and clean the drip pan if necessary.

7. Pet bowls
Find a place besides the kitchen to clean turtle or frog habitats and empty pet bowls, or clean and sanitize the sink before you start washing fresh food.

8. Cutting boards
Most scientists believe wooden cutting boards are safest, as long as they are kept clean, sanitized and dry. Studies have shown wood hampers bacteria growth, while bacteria thrive in scars on plastic. Either way, keep them clean by running them through the dishwasher, or sanitize by spritzing with a weak bleach solution. Always change boards or clean with soapy water after preparing raw food-even vegetables. They grow in dirt, after all.

9. Sponges and dish towels
Change dish towels daily, or more often if they’re wet or dirty. You can microwave a wet sponge for two minutes, but the time varies depending on the power of the microwave (and if the sponge is dry, it could catch fire). Instead, put sponges on the top rack of the dishwasher at the end of every day.

10. Cross-contamination
You know you’re not supposed to put cooked food on the same surface you used for raw food. But it’s not just a problem with cutting boards. You touch all kinds of things while you’re handling raw food: Salt and pepper shakers, cabinet handles, etc. Pay attention to what you touch so you can wipe things down. Tip: It’s not necessary to rinse raw meat and chicken-it just spreads bacteria.

Thanks to our sources: Benjamin Chapman, the extension food-safety specialist for N.C. State; David Sweat, foodborne-disease epidemiologist with the North Carolina Division of Public Health; Douglas Powell, professor of food safety at Kansas State University; and Dean Cliver and Linda Harris with the University of California-Davis.

Hope this is informative and enlightening.

-Written by Kathleen Purvis

Should You Buy a Home for Sale in the Woodlands?

Should You Buy a Home for Sale in the Woodlands? 

Are you ready to invest in a new home, but don’t know whether you should build a house or buy a home for sale in the Woodlands? Well, it really isn’t surprising if you can’t make up your mind right now. After all, the economy has taken a turn for the worse within the last few years, with unpaid mortgage payments, foreclosed properties and lenders being forced into foreclosure left and right. 

However, it is now high time for you to consider buying a home for sale in the Woodlands. Since buying a home is a serious matter, though, you will still need to weigh the advantages and disadvantages first. Remember: you shouldn’t invest your money on anything unless you are 100% sure it is actually worth it. 

If you need help making up your mind or choosing the perfect home for sale in the Woodlands for you, then you can simply get some advice from a professional. A lot of lenders and real estate agents will be happy to help you make your decision on this. If you’d prefer, you can also do some research on your own instead. Just go online and look for trends in the residential real estate, or look for any available foreclosed lots or properties in the area. You can also look for articles about building a new house and about houses for sale in the Woodlands, in general. 

If you end up deciding to buy a home, make sure you bring a knowledgeable sales agent with you to inspect the houses that you like before making your decision and signing any documents. Also, make sure you only keep track of up to five houses at a time. If you look at more than that, then you will just have a harder time deciding which one to buy and live in. 

Aside from that, you should also keep an eye out for things in the houses that you might need to repair later on. If you’re lucky, you might get to haggle with the owner, or at least pinpoint something in your buying agreement that will get you a better deal in the end. 

Regardless of whether you choose to build a house or buy a home for sale in the Woodlands, you need to remember that houses will always come with imperfections, though. So, no matter where you choose to live, just be glad that you have your family with you, and you will always have a happy home.

Why is it Best to Buy and Sell Homes in Spring?

Why is it Best to Buy and Sell Homes in Spring?

A lot of people are unaware that there are good seasons to buy and sell homes in. Spring happens to be the best of them as it is the season of change and warm weather. Believe it – people tend to buy or sell homes in spring the most due to various reasons.

For one, people have a lot of more time to waste during the spring months compared to other busier seasons. Plus, the weather tends to be warmer, making it more convenient to move around in search of homes. Buyers would also prefer to move during spring break before school starts up again and this is probably one of the bigger reasons why families move to new homes in spring.

The weather aside, people usually get tax returns in the spring, as well, making home down payments much easier to deal with compared to other months. In fact, house sales in general remain steady in the spring and drop during the busier months of the year.

If you are a buyer, you are sure to have a much wider variety to choose from during the spring, though the competition will be much higher, as well. This conversely translates to sellers keeping to their original asking prices compared to the months where the market isn’t in such high demand. Additionally, if you want to find a mortgage, you will probably find much better deals if you apply in the off-peak seasons, too.

During off-peak seasons, sellers will more likely negotiate when it comes to price because not a lot of offers will be present then. So, although your choices of homes might not be huge, they still won’t be completely limited. A lot of homes will still be for sale this season.

As an extra tip: if you have plans of buying a brand new home and selling your home, you need to make sure you sell yours as early as possible, so you can alleviate some stress from selling your house because of financial pressure and time constraints. After all, you will now want to pay for two mortgages at the same time, right?

Now, the greatest season to buy and sell homes might still be relative to personal circumstances and preferences, though. So find out what would work best for you first, so you can put the seasons to your advantage and look into homes in spring if it caters to your needs.

Enchantment of the Woodlands Market Street

Enchantment of the Woodlands  Market Street 

The setting of all the modern cities is more or less as most of these cities are developed according to a plan and that is why it is always possible to find every part of these cities well managed and well organized. There is no doubt that the market and business establishments get enough attention in these cities as these market places work as the hearts of the city life.  All these cities are planned with special attention towards the placement of the market places. The city of Woodlands in Texas in the United States of America is another example of great planning that is proving to be boon for the proper development of the city. As per the noted facts, most of these developed cities from all over the world have well developed market places that are known for their extraordinary facilities and services.

The Woodlands market Street is an example of great planning of township. This street is the life line of the city as it plays a very important role in the life of every native of this city. If you ever visit to this city of Woodlands, then you must not forget to visit the Woodlands market street which is indeed the most attractive place in the entire city of Woodlands. This city street has separate areas for different types of business establishments. It is an important principle of modern planning of any city. Due to this well managed planning, it becomes easier for the people to find out the things that they are looking for as they are only required to know which area of the city market they are supposed to appear.

The Woodlands market street is wide and smooth and that helps ion the smooth flow of traffic on this extraordinary street.  The activity of the traffic authorities can be noticed all through this market street. These authorities work relentlessly and selflessly to make the most important street of the city to make it free from any traffic trouble. The flow of traffic remains closed during a certain part of the day as the business activities remain on the height during this part of the day. The Woodlands market street is probably the best example of well organized city life. This market street is like an important place of visit for the people who come to Woodlands on a personal or business trip.