Austin Ranked Best City to Invest in Commercial Real Estate

Austin has the best prospects for commercial real estate investment this year, a Grubb & Ellis Co. (NYSE:GBE) forecast reported today. The Santa Ana, Calif-based real estate services and investment firm said it expects commercial real estate will continue to falter this year, but at a slower rate, according to the 2010 forecast. Most property types will reach bottom pricing near the end of 2010 with a slow recovery beginning in 2011, officials said.

In a ranking of the top 10 markets for long-term office, industrial, retail and multi-housing investment potential, Austin was listed No. 1. Houston was the only other Texas city to make the list, taking the sixth spot.

“Because commercial real estate lags the labor market, it still has a ways to go before reaching its own low point,” said Bob Bach, Grubb & Ellis senior vice president and chief economist. “The good news is that the freefall we saw in 2009 is over and the future is more certain, giving owners and users of real estate the confidence to begin making decisions again.”

The investment market will see a slight rebound in 2010, according to the forecast, with at least some assets entering the market in 2010. Officials said the shift should prompt increased sales volume of 20 to 30 percent. The report said record-high office vacancy rates will likely continue, reaching as high as 19 percent by the year’s close.

Courtesy of Austin Business Journal

Austin Real Estate- A Snap-shot...

Recently a lot of people have been asking me for information on the Austin real estate market. Here is a quick look at what is happening:

The number of sales is down compared to recent years, but not drastically. Inventory is up but prices are holding steady. Austin has seen a slight decrease in average price, but this is a statistical drop and not consistent with real estate prices. There are a couple of reasons for this: jumbo and stated loans are much harder to get now so the activity in the upper price ranges has decreased. (jumbos loans are much harder to get and stated loans have gone the way of sub-prime loans) Also, because of the economic climate many people are remodeling and staying in their current homes rather than moving up. These factors have drastically reduced the upper tier activity. Furthermore, the federal first time home buyer tax credit is spurring activity in the lower price ranges. Record numbers of homes in this price point are selling. The decrease in activity in the upper tier market and a disproportionate amount of activity in the first time buyer category has altered statistical real estate values in Austin, but we have not seen a meaningful drop in actual prices.

On the whole Austin real estate is very strong. Unlike the rest of the United States foreclosures have been a non-issue in Austin. Homes are tending to stay on the market longer than in previous years. This is consistent with the higher inventory numbers. Periodically buyers will find a seller in a difficult situation and capitalize on the opportunity. For the most part buyers are not getting away with many low-ball offers or cherry-picking under priced REO homes, but his hasn’t stopped them from trying. The higher inventory levels have given them the luxury of being picky in their home search.

Austin Real Estate

If it works for him it will work for you...

"Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming financially independent. For real estate is the basis of wealth."

1. -Theodore Roosevelt
   

Desperate times can present the most uncommon opportunities. Have you thought about investing in real estate?

The Village Walk in Port Aransas!

The Buena Vista I is a gorgeous home in the Village Walk, Port Aransas. Close to the beach, town and new Arnold Palmer golf course. Come and relax on the beach and enjoy beautiful ocean views!! The Buena Vista I is a spacious three story 4 bedroom 3 full & 1 half bath home with an open floor plan and over 2000 square feet of living space with ocean views. The ground floor is comprised of an oversized two car garage and a guest suite complete with living area, kitchenette and patio. The second floor is dedicated to the 2 guest bedrooms, the master suite, 2 full baths and a balcony. The third floor is ideal because it is completely devoted to functional beach living and entertainment. Enjoy floor to ceiling windows with views of the ocean, relax in the open living area that blends into the dining and gourmet kitchen. Pass through the French doors to a second large balcony. Take the stair case to the left and you will discover the large and panoramic rooftop terrace perfect for sunning, your afternoon barbeques or evening sunsets. Sound like too many stairs? The Buena Vista includes an elevator to make life a little easier. Flexible, spacious and beautiful, you will love the Buena Vista I!

This is hands down the best value on the Texas coast and perfect for vacationing or to add to your rental pool. Do not buy on the Texas coast until you have seen Village Walk!! Each home soothes the soul with stained concrete floors, Hamptons style wood ceilings and walls, great use of space with open floor plans, user friendly kitchens, fenced private yards and convenient enclosed two-car garages. The community is gated and welcomes you with a palm tree-lined blvd, landscaped greenbelt walkways, extensive sidewalks and two pools & pavilions. Every homeowner will love the protective architectural covenants, low HOA fees and income potential of short-term rentals. To top it off, Village Walk is less than two minutes to the beach!

Texas Coastal Real Estate, Port Aransas Real Estate

Village Walk, Port Aransas -Vacation Homes

Resort community: Big problems at the Sanctuary at Costa Grande?

The following article was published in the Victoria Advocate the other day. It is pretty interesting information. We have done some business in the development and they have done a phenomenal job of pre-selling the development and building the amenity package. Many times developers will come in sell all of the lots and disappear over night. This is far from the way The Sanctuary has been developed. The quality of the community speaks for itself, but foreclosures are always concerning. It will be interesting to see how things shape up this year.

Activity on the coast has been strong as more and more people look for second homes, investments and ways to protect themselves from inflation. It will be interesting to see if the foreclosures in the Sanctuary move quickly or languish on the market.

"Resort community: Big problems at the Sanctuary at Costa Grande?

PORT O'CONNOR - While a number of resort community lot owners face foreclosure, the Sanctuary at Costa Grande developer says he swims still with his head above deep financial water.

"I've heard at different times that the Sanctuary is broke. Absolutely not true," said Darryl Hammond, general manager of D.H. Texas Development and the project's principal developer. "We now have 600 owners who pay $2,000 a year to keep the grounds up. We're not going anywhere."

The Sanctuary at Costa Grande, located just outside Port O'Connor, is a high-end residential development. Work began in March 2007. Hammond and investors poured $60 million into leveling the ground, installing streets and building the infrastructure, as well as the bulkhead for the 150-acre marina, boat slips, pools and clubhouse.

When the economy dove, foreclosures rose. This year, foreclosure threatens about 50 home site owners, Hammond said.

"As a percentage of the development, that's not very much," he said.

David Roberts, the Sanctuary's Port Lavaca lawyer, confirmed Hammond's account. He said many buyers were outside investors who had visions of beach-front appreciation.

The development boasts 767 single lots and space for 35 multi-family lots. So far, Hammond's group of salespeople sold 600 lots at prices ranging from $69,000 to $500,000, he said.

"We still have to sell about 200, but the homeowners' association is in good financial shape and taking care of the grounds," Hammond said. "We haven't made a lot of money, but all the property the HOA owns is free and clear. The development is sound, as far as I'm concerned."

Nobody lives at the Sanctuary year-round. The development for now is largely a place for second homes and investments. So far, three lot owners built homes and Hammond said he expects more this spring.

He also expects to break ground on Phase III of the plans: developing about 300 lower-priced units next summer. This phase was part of the plan all along, he said.

"With the rest of the economy moving in the right direction, we feel our place will, too," he said. "We just don't know if it will be six months, a year or longer."

Had the country and region not been hit by recession, Phase III would be complete, Hammond predicted. So long as the real estate and stock market fluctuate, buyers remain cautious. Breaking ground on Phase III plans this summer will hinge on an upswing in markets and confidence.

He declined to discuss phases planned beyond the third, as well as possible timelines for future phases. "Until we see what this market does, it's hard to say what we'll do," Hammond said.

For now, about 6 percent of the high-end lots face foreclosure. This remains a positive sign for the resort community's future, suggested Lee Swearingen, a Victoria broker.

"If that's all there is, that's pretty good," Swearingen said."

For more information on The Sanctuary at Costa Grande

Senate Clears Homebuyer Tax Credit Extension; May Pass as Early as This Week

Great news for real estate!!!

“RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire at the end of November would beextended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.

The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008.

The legislation included provisions added to address complaints of fraud as well. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.”

Courtesy of www.RISMEDIA.com

For more Information or Questions about this issue, Austin Real Estate or Real Estate on the Texas Coast please visit:

Marcus P Cox