PLANO (HousingWire.com) – Many jobless homeowners unable to make their monthly mortgage payments will soon get a little help from Fannie Mae and Freddie Mac.

The government-sponsored housing finance companies have announced plans to allow such borrowers to defer part or all of their mortgage payments for up to 12 months while they are out of work.

Fannie Mae will require mortgage servicers to install a new program providing forbearance relief to unemployed borrowers beginning March 1.

Servicers will be able to provide up to six months of relief without getting approval from the government-sponsored enterprise. Special consideration can be given to borrowers who require up to 12 months of forbearance.

Freddie Mac will begin offering 12-month forbearance plans on Feb. 1.

Delinquent borrowers and others on the verge of default are eligible for the program. Second homes and investment properties will not be considered.

Servicers must determine that a borrower has less than 12 months worth of mortgage payments in reserves and has monthly housing expenses above 31 percent of their income before extending a forbearance plan.

COLLEGE STATION (Real Estate Center) – Texas gained 227,800 nonfarm jobs from November 2010 to November 2011 according to the Center’s latest Monthly Review of the Texas Economy. That represents an annual growth rate of 2.2 percent compared with 1.2 percent for the United States.

The state’s nongovernment sector grew at an even faster rate, adding 292,700 jobs (3.4 percent) compared with 1.7 percent for the nation’s private sector.

Texas’ seasonally adjusted unemployment rate fell to 8.1 percent in November 2011 from 8.3 percent the year before. The nation’s rate decreased from 9.8 to 8.6 percent.

All Texas industries except the information industry and the state’s government sector had more jobs than the same time a year ago. The state’s mining and logging industry ranked first in job creation, followed by the professional and business services industry and the leisure and hospitality industry.

Abilene, Wichita Falls, Killeen-Temple-Fort Hood and College Station-Bryan were the only metro areas that had fewer jobs in November 2011 than in November 2010. Victoria ranked first in job creation followed by Corpus Christi, McAllen-Edinburg-Mission, Lubbock and Laredo.

The state’s actual unemployment rate in November 2011 was 7.5 percent. Midland had the lowest unemployment rate followed by Amarillo, Odessa, Lubbock and San Angelo.

COLLEGE STATION (Real Estate Center) – Texas’ economic outlook for 2012 is positive. Job growth is occurring in several sectors, and a low cost of living is enticing businesses to move to the Lone Star State.

It will be tougher going for the nation, however, because of several factors. The housing market needs to clear a high number of foreclosures. Consumers need to pay off their debt. The banking system needs to write off bad debt. Small businesses need to start hiring again.

Writing for the January issue of Tierra Grande magazine, Real Estate Center Chief Economist Dr. Mark Dotzour says, “Fortunately, Texas is poised to outperform the U.S. averages. Home sales volume in Texas should show modest improvement over 2011, and prices should be stable throughout 2012.” Dotzour’s economic outlook is titled “Texas Sails On: Nation Battles Headwinds.”

Other articles detailing findings from the nation’s largest publicly funded real estate research organization are in the issue scheduled for mailing in late January.

• “Beyond      a Reasonable Drought” by noted agricultural expert Dr. Joe Outlaw and      Center Research Economist Dr. Charles Gilliland. Farmers, ranchers and      service businesses that support them are suffering negative effects of the      drought. To make matters worse, federal agricultural programs are on the      chopping block to reduce the deficit.
• “The      Great Recession: Why Intensity and Duration Varied” by Center Research      Economist Dr. Ali Anari. Why did some Texas metros fare better in the      Great Recession? Results from the Center’s business cycle research program      pinpoint several reasons. These included shares of employment in the      government sector, education and health services industry, mining and construction      industry, and the metro’s level of educational attainment.
• “Dialing      Down Debt: Road to Recovery Begins at Home” by Center Research Analyst      Gerald Klassen. It will hurt, but American households will have to      liquidate their assets and reduce debt if they want the economy to      recover. This means selling luxury items including vacation homes, boats      and RVs, as well as selling investments, declaring bankruptcy or suffering      through foreclosure.
• “For      the Record: When to Toss Old Tax Records” by Center Research Fellow Dr.      Jerrold Stern. At a minimum, tax records should be kept three years.      However, a period of seven or more years is recommended. Tax and nontax      factors play a role in the decision.
• “Vested      Rights: Project Protection for Developers” by Houston attorney Reid C.      Wilson. Vested rights freeze land use regulations affecting property      classification, building size, lot size-dimension-coverage and certain      other matters once the owner or developer files a permit application for      that project.
• “The      Trouble with Troubled Assets” by Center Research Economist Dr. Harold      Hunt. The volume of distressed property sales was expected to be much      higher by this time. So far, everyone is still waiting. However, according      to commercial real estate insiders, distressed sales are on the way up.
• “Terminated:      Transfer Fees Outlawed” by Center legal expert Judon Fambrough. Transfer      fees, money paid for transferring interest in real property, were      implemented in 2007 legislation. Four years later, that law was repealed,      prohibiting any future transfer fees and terminating existing fees that do      not comply with the new legal requirements.

COLLEGE STATION (Real Estate Center) – Texas’ economic outlook for 2012 is positive. Job growth is occurring in several sectors, and a low cost of living is enticing businesses to move to the Lone Star State.

It will be tougher going for the nation, however, because of several factors. The housing market needs to clear a high number of foreclosures. Consumers need to pay off their debt. The banking system needs to write off bad debt. Small businesses need to start hiring again.

Writing for the January issue of Tierra Grande magazine, Real Estate Center Chief Economist Dr. Mark Dotzour says, “Fortunately, Texas is poised to outperform the U.S. averages. Home sales volume in Texas should show modest improvement over 2011, and prices should be stable throughout 2012.” Dotzour’s economic outlook is titled “Texas Sails On: Nation Battles Headwinds.”

Other articles detailing findings from the nation’s largest publicly funded real estate research organization are in the issue scheduled for mailing in late January.

• “Beyond      a Reasonable Drought” by noted agricultural expert Dr. Joe Outlaw and      Center Research Economist Dr. Charles Gilliland. Farmers, ranchers and      service businesses that support them are suffering negative effects of the      drought. To make matters worse, federal agricultural programs are on the      chopping block to reduce the deficit.
• “The      Great Recession: Why Intensity and Duration Varied” by Center Research      Economist Dr. Ali Anari. Why did some Texas metros fare better in the      Great Recession? Results from the Center’s business cycle research program      pinpoint several reasons. These included shares of employment in the      government sector, education and health services industry, mining and construction      industry, and the metro’s level of educational attainment.
• “Dialing      Down Debt: Road to Recovery Begins at Home” by Center Research Analyst      Gerald Klassen. It will hurt, but American households will have to      liquidate their assets and reduce debt if they want the economy to      recover. This means selling luxury items including vacation homes, boats      and RVs, as well as selling investments, declaring bankruptcy or suffering      through foreclosure.
• “For      the Record: When to Toss Old Tax Records” by Center Research Fellow Dr.      Jerrold Stern. At a minimum, tax records should be kept three years.      However, a period of seven or more years is recommended. Tax and nontax      factors play a role in the decision.
• “Vested      Rights: Project Protection for Developers” by Houston attorney Reid C.      Wilson. Vested rights freeze land use regulations affecting property      classification, building size, lot size-dimension-coverage and certain      other matters once the owner or developer files a permit application for      that project.
• “The      Trouble with Troubled Assets” by Center Research Economist Dr. Harold      Hunt. The volume of distressed property sales was expected to be much      higher by this time. So far, everyone is still waiting. However, according      to commercial real estate insiders, distressed sales are on the way up.
• “Terminated:      Transfer Fees Outlawed” by Center legal expert Judon Fambrough. Transfer      fees, money paid for transferring interest in real property, were      implemented in 2007 legislation. Four years later, that law was repealed,      prohibiting any future transfer fees and terminating existing fees that do      not comply with the new legal requirements.

COLLEGE STATION (Real Estate Center) – Texas’ economic outlook for 2012 is positive. Job growth is occurring in several sectors, and a low cost of living is enticing businesses to move to the Lone Star State.

It will be tougher going for the nation, however, because of several factors. The housing market needs to clear a high number of foreclosures. Consumers need to pay off their debt. The banking system needs to write off bad debt. Small businesses need to start hiring again.

Writing for the January issue of Tierra Grande magazine, Real Estate Center Chief Economist Dr. Mark Dotzour says, “Fortunately, Texas is poised to outperform the U.S. averages. Home sales volume in Texas should show modest improvement over 2011, and prices should be stable throughout 2012.” Dotzour’s economic outlook is titled “Texas Sails On: Nation Battles Headwinds.”

Other articles detailing findings from the nation’s largest publicly funded real estate research organization are in the issue scheduled for mailing in late January.

• “Beyond      a Reasonable Drought” by noted agricultural expert Dr. Joe Outlaw and      Center Research Economist Dr. Charles Gilliland. Farmers, ranchers and      service businesses that support them are suffering negative effects of the      drought. To make matters worse, federal agricultural programs are on the      chopping block to reduce the deficit.
• “The      Great Recession: Why Intensity and Duration Varied” by Center Research      Economist Dr. Ali Anari. Why did some Texas metros fare better in the      Great Recession? Results from the Center’s business cycle research program      pinpoint several reasons. These included shares of employment in the      government sector, education and health services industry, mining and construction      industry, and the metro’s level of educational attainment.
• “Dialing      Down Debt: Road to Recovery Begins at Home” by Center Research Analyst      Gerald Klassen. It will hurt, but American households will have to      liquidate their assets and reduce debt if they want the economy to      recover. This means selling luxury items including vacation homes, boats      and RVs, as well as selling investments, declaring bankruptcy or suffering      through foreclosure.
• “For      the Record: When to Toss Old Tax Records” by Center Research Fellow Dr.      Jerrold Stern. At a minimum, tax records should be kept three years.      However, a period of seven or more years is recommended. Tax and nontax      factors play a role in the decision.
• “Vested      Rights: Project Protection for Developers” by Houston attorney Reid C.      Wilson. Vested rights freeze land use regulations affecting property      classification, building size, lot size-dimension-coverage and certain      other matters once the owner or developer files a permit application for      that project.
• “The      Trouble with Troubled Assets” by Center Research Economist Dr. Harold      Hunt. The volume of distressed property sales was expected to be much      higher by this time. So far, everyone is still waiting. However, according      to commercial real estate insiders, distressed sales are on the way up.
• “Terminated:      Transfer Fees Outlawed” by Center legal expert Judon Fambrough. Transfer      fees, money paid for transferring interest in real property, were      implemented in 2007 legislation. Four years later, that law was repealed,      prohibiting any future transfer fees and terminating existing fees that do      not comply with the new legal requirements.

By David S. Jones, Senior Editor, Real Estate Center at Texas A&M University

COLLEGE STATION, Tex. (Real Estate Center) – Some people never throw tax records away. Others do not keep them long enough.

Knowing what to hang on to, why certain records are needed and how long they should be saved can save storage space and prevent problems should you be audited by the Internal Revenue Service (IRS).

“There are tax and nontax reasons for keeping records,” says Dr. Jerrold Stern, professor of accounting in the Kelley School of Business at Indiana University. “For tax purposes, income sources and amounts need to be identified through W-2 wage statements, 1099 forms — interest income, mutual fund income and stock transactions — and other documentation.”

Writing in the January issue of Tierra Grande magazine, the quarterly magazine from the Real Estate Center at Texas A&M University, Stern notes that records also may be needed for insurance purposes or to obtain a loan.

“Expenses need to be documented to support deductions in the event of an IRS audit,” says Stern, also a Center research fellow. “Documentation can be in the form of a cash receipt, credit card statement or cancelled check. Interest and penalties may be levied if deductions are disallowed for lack of records.”

Keeping tax records is helpful to guide the preparation of future tax returns and for filing an amended tax return, he says. The IRS can furnish copies of prior-year tax returns if necessary.

“Records associated with tax returns should be kept at least until the statute of limitations runs out,” writes Stern. “The statute of limitations is the time during which the IRS is allowed to audit a tax return.”

“For most people, tax records other than those pertaining to assets, such as real estate and securities, could be discarded after three years,” says Stern. “Even so, a longer period — seven or more years — is prudent.”

Stern’s complete article, “For the Record: When to Toss Old Tax Records,” is available online at the Real Estate Center’s website.

By David S. Jones, Senior Editor, Real Estate Center at Texas A&M University

COLLEGE STATION, Tex. (Real Estate Center) – Some people never throw tax records away. Others do not keep them long enough.

Knowing what to hang on to, why certain records are needed and how long they should be saved can save storage space and prevent problems should you be audited by the Internal Revenue Service (IRS).

“There are tax and nontax reasons for keeping records,” says Dr. Jerrold Stern, professor of accounting in the Kelley School of Business at Indiana University. “For tax purposes, income sources and amounts need to be identified through W-2 wage statements, 1099 forms — interest income, mutual fund income and stock transactions — and other documentation.”

Writing in the January issue of Tierra Grande magazine, the quarterly magazine from the Real Estate Center at Texas A&M University, Stern notes that records also may be needed for insurance purposes or to obtain a loan.

“Expenses need to be documented to support deductions in the event of an IRS audit,” says Stern, also a Center research fellow. “Documentation can be in the form of a cash receipt, credit card statement or cancelled check. Interest and penalties may be levied if deductions are disallowed for lack of records.”

Keeping tax records is helpful to guide the preparation of future tax returns and for filing an amended tax return, he says. The IRS can furnish copies of prior-year tax returns if necessary.

“Records associated with tax returns should be kept at least until the statute of limitations runs out,” writes Stern. “The statute of limitations is the time during which the IRS is allowed to audit a tax return.”

“For most people, tax records other than those pertaining to assets, such as real estate and securities, could be discarded after three years,” says Stern. “Even so, a longer period — seven or more years — is prudent.”

Stern’s complete article, “For the Record: When to Toss Old Tax Records,” is available online at the Real Estate Center’s website.

HOUSTON (Houston Chronicle) – Real estate experts are optimistic about the Houston market’s prospects in 2012. Several recently shared their forecasts with Nancy Sarnoff of the Houston Chronicle. Here’s what they had to say.

Housing
Houston is going to see somewhere around a 5 percent increase in home sales and maybe as much 2 or 2.5 percent increase in median price, according to Real Estate Center Research Economist Dr. Jim Gaines. He said that’s still lower than the historical norm, but those are better numbers than the last two or three years.

Housing Permits
Bohlke Consulting Group Vice President Gary Latz predicts that the annual 2011 number will be 21,500 permits. This momentum will carry forward into 2012 due to strong job growth and low interest rates. The firm projects a minimum of 5 percent growth in new-home permits for calendar year 2012 over calendar year 2011. This translates to nearly 22,600 permits.

Foreclosures
Both foreclosure postings and actual foreclosures in Harris County declined year-over-year from 2011 compared with 2010. Amanda LeCureux, managing partner with Foreclosure Information & Listing Service, expects these declines to modestly accelerate in 2012.

Apartments
Apartment Data Services President Bruce McClenny said available high-end units are scarce, and it will take up to 18 months before any significant number of new units become available. He said to expect around 9,000 units to be delivered in 2012 and approximately 10,000 units in 2013.

Office Space
Transwestern Executive Vice President J. David Baker expects continued strong job growth to generate four to six million sf of positive absorption. He said the only thing that might hold it to the low end is energy and energy engineering companies not finding enough qualified people.

Retail
Wulfe & Co. President Ed Wulfe expects to see at least a 25 percent increase, or approximately 1.5 million square feet, in new retail construction in 2012. This will exceed the total amounts built and opened in each of the previous two years. Active growth within Loop 610, particularly of supermarkets, will prevail.

HOUSTON (Houston Chronicle) – Real estate experts are optimistic about the Houston market’s prospects in 2012. Several recently shared their forecasts with Nancy Sarnoff of the Houston Chronicle.   Here’s what they had to say.

Housing
Houston is going to see somewhere around a 5 percent increase in home sales and maybe as much 2 or 2.5 percent increase in median price, according to Real Estate Center Research Economist Dr. Jim Gaines. He said that’s still lower than the historical norm, but those are better numbers than the last two or three years.

Housing Permits
Bohlke Consulting Group Vice President Gary Latz predicts that the annual 2011 number will be 21,500 permits. This momentum will carry forward into 2012 due to strong job growth and low interest rates. The firm projects a minimum of 5 percent growth in new-home permits for calendar year 2012 over calendar year 2011. This translates to nearly 22,600 permits.

Foreclosures
Both foreclosure postings and actual foreclosures in Harris County declined year-over-year from 2011 compared with 2010. Amanda LeCureux, managing partner with Foreclosure Information & Listing Service, expects these declines to modestly accelerate in 2012.

Apartments
Apartment Data Services President Bruce McClenny said available high-end units are scarce, and it will take up to 18 months before any significant number of new units become available. He said to expect around 9,000 units to be delivered in 2012 and approximately 10,000 units in 2013.

Office Space
Transwestern Executive Vice President J. David Baker expects continued strong job growth to generate four to six million sf of positive absorption. He said the only thing that might hold it to the low end is energy and energy engineering companies not finding enough qualified people.

Retail
Wulfe & Co. President Ed Wulfe expects to see at least a 25 percent increase, or approximately 1.5 million square feet, in new retail construction in 2012. This will exceed the total amounts built and opened in each of the previous two years. Active growth within Loop 610, particularly of supermarkets, will prevail.

2011 YEAR OF ‘SIGNIFICANT CHANGES’ FOR HOUSTON OFFICE MARKET

HOUSTON (Colliers International) – Houston’s office market has undergone significant changes in the past 12 months, benefiting from positive absorption, falling vacancy and rising rental rates, according to the year-end market report from Colliers International.

Increased leasing activity has been key to the year-end positive net absorption of 2.6 million sf citywide, the report said. It attributed the increased business activity to the city’s healthy economic climate. The Houston metropolitan area has gained about 77,000 jobs through November 2011, representing a 3 percent growth rate.

Overall vacancy levels decreased by 50 basis points to 15.5 percent from 16 percent, which was also the citywide overall vacancy rate one year ago. The average suburban vacancy rate decreased by 30 basis points to 15.3 percent from 15.6 percent, while the CBD vacancy rate decreased by 100 basis points to 16.6 percent from 17.6 percent.

On a year-over-year basis the citywide average rental rate increased by $0.12 per sf to $23.20. The citywide average rental rate also rose slightly to $23.20 from $22.93 per sf.