Texas Property Insider- Austin Real Estate and Texas Coastal Real Estate Blog

Welcome to Texas Property Insider. The purpose of this blog is to provide accurate and helpful information about market trends and issues important to property owners in Central Texas and on the Texas Coast. You hear a lot of talk out there. You see the statistics, read the stories in the newspaper and you see practitioners regurgitate those same stories and statistics. There is more information available then ever before. But why is it, even after all of the stories and pundits have had their say, you still feel you can’t grasp what’s really happening in the real estate market?


There is a lot more to it than simple statistics and market info. These numbers are helpful and vitally important, but if taken at face value they can be misleading, even deceiving. As Mark Twain once said, “There are lies, damned lies and then there are statistics.” I created this blog to pull back the curtain on Texas real estate, interpret the market information and present it to you in a format that is both pithy and easy to digest.

Monday, January 31, 2011

Texas Public Beaches vs. Private Property Rights...


Hi all, I just found an article by Gabriel Lopez in the most recent issue of Texas Realtor. It sheds some light on the new Supreme Court rulings on Texas beaches, public easements and private property owners. It is definitely worth the read. Enjoy...
Marcus

A new line between private property and the beach?
Court case shores up property rights for coastal properties.

by Gabriel Lopez

The Texas Supreme Court recently issued an opinion
that slightly waters down the powers the state of Texas has to enforce the Open Beaches Act. If you sell beachfront property or work with buyers interested in acquiring property at the coast, you’ll want to know about this change.

Just how do you define beach?
The Open Beaches Act, passed in 1959, sought to codify rights already granted by earlier court rulings. The act prohibited anyone from creating, erecting, or constructing any “obstruction, barrier, or restraint” that would interfere with the unrestricted right of the public to access Texas beaches (where the public had acquired a right of use or easement).

While inland easements are easy to define by their static metes and bounds, anyone who has ever gone to the beach knows that, depending on the time of day, there may be more or less beach to use. There’s also a distinction between wet and dry beaches.

Wet beaches are the zone that extends from low tide to high tide. These have always been considered public property held in trust for the people of Texas. A dry beach is considered the area between the high tide and the vegetation line. In Texas, dry beaches have remained open to the public by virtue of continuous use for as long as anyone can remember. The recent court case concerns dry beaches.

A little iced-tea analogy
If you, like me, have a fondness for sweetened iced tea in summer, you can appreciate having the perfect mix of ingredients in your glass. Any iced-tea drinker worth his weight in sugar (or NutraSweet or Extra or even Splenda) knows that balancing the tea, the melting ice, and the sugar is a skill just short of alchemy.

Sometimes you have just the perfect mix and, while you’re not looking, an oblivious server—like I was during college—refills your glass. Everything changes.

Oceanfront beaches are a little like that iced tea. They change all the time. The tide and vegetation lines shift. Beachfront property lines retract or extend when previously dry lands become submerged by the surf or dry out after being submerged. That makes public beach easements dynamic as well.

Most boundary shifts are gradual, like the ice melting in the tea. So the law does not require the state to constantly reestablish the easements each time the boundary moves. This is how public easements work along a beach. Gradual changes are accounted for, and equilibrium is maintained between private property and public easements.

What happened on the beach in Galveston

Sometimes, though, like the perfect glass of tea disrupted by a clueless server, a beach undergoes a sudden, drastic change. That’s what happened to Carol Severance, who owned several beachfront homes along Galveston’s West Beach. Hurricane Rita devastated her investment properties and moved the vegetation line dramatically up the shore.

After the storm, the entirety of one house was now seaward of the vegetation line. This made her property subject to the public easement. The state was seeking to use the Open Beaches Act to forcibly remove any structure that came to be located on what was now considered the public beach. That included the house Severance owned on Kennedy Drive.

The end of the world as we know it? Hardly…
It is extremely difficult to balance the public interest in the enjoyment of public beaches with the almost sacrosanct ability for private-property owners to exclude others from their property. Imagine if every Tom, Dick, and Harry could waltz onto your property, set up a towel, and cavort on your lawn.

The Texas Supreme Court ultimately decided that although a property owner can potentially lose property if it becomes part of the wet beach or is submerged after a natural disaster, it is not reasonable to suddenly encumber an entirely new portion of a landowner’s property that was not previously subject to a public easement.

There are those who would have you believe this will spell the end to public beaches in Texas. This is a knee-jerk reaction and a wild exaggeration. This ruling will only apply in an extremely limited set of circumstances after a natural catastrophe. The court also held that if the state wanted to preserve the public easement along Severance’s property, it could (gasp) pay for it.

To see the article click here.

To read more about the Supreme Courts ruling and opinions click here.
Interested in Texas Coastal Real Estate? click here.

Thursday, January 27, 2011

Market for vacation homes is on the rise...


The Wall Street Journal just recently featured an article discussing the growth in the vacation home - second home real estate markets. The article is very interesting, but does not feature Texas coastal real estate. We have a seen a pretty significant increase in activity on the Texas Coast since September 2010, as many buyers/investors are comfortable with the economic climate and looking for an opportunity to enjoy the beach and safely park money. Click the link below for the full article. Enjoy...


Vacation Home Article





Photograph By: King Lawrence - www.kinglawrence.com

Thursday, January 6, 2011

Austin Real Estate Market Update: Pemberton Heights/Enfield & Brykerwoods...


We have started to see some interesting things in the Pemberton Heights, Brkyerwoods, Enfield area of Austin. I went in and did a market breakdown, enjoy...
East 1B Luxury Comps – Enfield, Pemberton Heights and Brykerwoods January 6, 2011

(Area defined by: South of 35th St., West of Lamar, East of MO-Pac & North of Enfield)

- There are currently 20 luxury homes available in this area with 3 others currently under contract. Over the last 3 months 11 luxury homes have sold. At this rate of absorption there is 5.5 months worth of inventory. Things were very slow last fall in Pemberton/Enfield. The 3 pending homes, while not an amazing number, still signifies a rate of increasing activity, and I anticipate this higher activity to continue.

The activity in the $500k to $999k range accounts for more than 60% of the areas luxury activity, which is not surprising. There are currently 10 homes available but only one of the 4 pending homes is in this price range. Over the last 3 months 7 homes have sold between $500k and $999k. With this rate of absorption there is 4.2 months of inventory, which is better than the ULTRA luxury market.

The activity in the ULTRA luxury market, $999 and up, has been solid, especially considering the holiday season and new year. There are currently 11 active homes available and 2 pending sales in this market. Over the last 3 months 4 ULTRA homes have sold yielding an absorption rate of .75 homes a month. At this rate there is currently 14.6 months of inventory. Again, activity in the late summer was very slow and days on the market crept over 100 days on market. During that time frame several homes were purchased well below list price and original list/sale price dropped into the 70 percent range. Activity has increased in this area but Sellers appear to be discounting their properties in order to sell.

Final Thoughts: The activity below $1 million has been solid and accounts for over 60% of the sales. The ULTRA market has been more active as the winter season progressed but is still saturated at this time. The luxury sellers have had to discount their homes in order to find real buyers, this is also true for the <$999 market, but to a much lesser extent. The increased activity, especially during the winter holiday season is encouraging and I expect this market to continue to improve and the weather warms!
Best, Marcus