Register Real Estate Advisors

November 2011 real estate search results are in and Houston, TX was the #27 most searched market in the country in November 2011, based on data released today by Realtor.com, the #1 homes for sale real estate web site.  The Median list prices for homes in Houston, TX hit $174,500 in November 2011, a 2.79% increase from one year ago this month, and -0.20% decrease from October 2011.  The national median list price in November 2011 was $189,900, a 4.05% increase compared to November 2010.  Active for sale inventory of homes in Houston, TX in November 2011 leveled out at 24,561, a -21.68% decrease compared to November 2010. National inventory counts for November 2011 were 2,014,352, a -21.30% decrease as compared to a year ago.  The median age of inventory in Houston, TX in November was 91 days, a 2.25% increase compared to October 2011.  Nationally, the median age of inventory was 114 days, a 3.64% increase compared to October.

HOUSTON (Houston Business Journal) – Metrostudy President Mike Inselmann predicts 2012 will bring about a 10 percent increase in both single-family home starts and existing home sales in Houston.

Speaking Wednesday at the 2012 Houston Housing Forecast, Inselmann predicted the number of home starts will rise from 18,000 in 2011 to as much as 20,500 this year.

He also also predicted sales of existing single-family homes will increase by at least 10 percent, rising from 2011′s 54,000 to as much as 59,400 this year.

First of all, home ownership is the American Dream.  It’s creating a home for your family with potential finacial rewards in the future.  How can you benefit in the future from home ownership?  Appreciation.  Usually land and homes appreciate in value over time.  Historically, your home will be worth more in the future than when you purchased it, but you can’t sell it the year after you purchase it.  It’s considered a long term investment.  As your home appreciates and you have been paying down the mortgage, you can use the equity in your home to move to a more expensive or nicer home.  Or move to a smaller home and use that equity to pay off bills, pay for a child’s college, or fund your retirement.  It gives you some flexibility for your future.  If you don’t want to sell the home, you can still tap into the equity by refinancing or getting a home equity loan to remodel or make a large purchase.  Basically, you can leverage your property.  This is just another benefit of home ownership.  Lastly, you get tax breaks when you own a home.  You can deduct property taxes and mortgage interest.  Owning a home has always been a wise investment.  If you would like to know more about the benefits of home ownership, please call Register Real Estate Advisors at 281.288.3500 where we can advise you on purchasing land, a home, or any residential or commercial property.  Our Realtors fall under a strict code of ethics and can help you make the best financial decision for your family!

WASHINGTON, D.C. (Urban Land Institute) – The U.S. Chamber of Commerce has released its ”Enterprising States 2011″ report, and it enhances Texas’ reputation for being a business-friendly state.

The Lone Star State ranked sixth on the list of top ten states for low business taxes and regulations. The report said “the Lone Star State is a low-tax state that offers a low cost of living and has an enterprise-friendly climate that’s paying off with high job growth rates. Recent state initiatives include a business tax reform that raises the revenue exemption.”

Ahead of Texas were Tennessee, South Dakota, Wyoming, Alaska and Indiana.

According to the Urban Land Institute, “states were ranked in a variety of performance metrics, including their tax and regulatory environments. Those environments were compared in five ways: overall state and local tax burdens, corporate taxes, small-business costs, state government budget gaps, and cost-of-living indices.”

The U.S. Chamber of Commerce noted that states making the top ten were mostly inland locales, saying desirable coastal states don’t always need incentives to attract business investment and expansion.

HOUSTON (Houston Business Journal) – A new report from Clear Capital provides further evidence that Texas housing markets are faring better than the nation’s.

According to the real estate data provider, the average home price in Houston dropped .8 percent in 2011. Nationally, prices dropped 2.1 percent.

In fourth quarter 2011, the city’s home prices increased by 1.8 percent compared with the national decrease of .4 percent.

Clear Capital expects Houston home prices to increase by 3 percent this year, compared with the nation’s .2 percent.

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.

As a member of the GHBA, RREA received the Houston Custom Home Builders Resource Guide.  The article below was reprinted from an article in the 2011 Resource Guide.  I felt it was very informative for consumers and wanted to share it with you so when you purchase a new home, you will know how to maintain it.  It’s very important that you maintain the home so that the warranty will work in your favor.  I hope you enjoy this information:

Maintaining a clean home is one way to ensure its longevity.  Here are some tips for properly maintaining some of the systems in your new home.

Heating and Cooling Systems

• Late summer or early fall are the ideal times to do an annual inspection and cleaning of these systems.
• Change or wash the filters every three months.
• If you have a gas furnace, keep your pilot light burning during the summer to help keep the furnace dry and prevent corrosion.
• Registers help regulate the flow of air and maintain the desired temperature in your home.  Keep registers closed in rooms you don’t use to save on cooling/heating costs.

Plumbing

• Every member of your family should know where the intake valves are located.  Label each one.
• If any of your appliances develop a leak, inspect your drain trap.  A partially clogged drain can cause overflow.  Use a plunger or a plumber’s snake to unclog the drain.  If you need to, use boiling water to help unclog a partially opened drain.  Call a plumber if these techniques don’t work.
• A worn washer, a loose part in a faucet or steam in a hot water pipe are generally the causes of a noisy pipe.  Do not hesitate to repair the noise—vibrations can follow the noise and lead to leaks.

Gutters and Downspouts

• Clear away leaves, tree limbs and other debris from gutters and downspouts.
• Turn the downspouts away from your home’s foundation.
• Every four to six years, paint gutters that are not made of aluminum or vinyl to help prevent rust.

Remember to read the instruction manual for every appliance in your new home.  The manuals provide recommended cleaning and maintenance schedules.  Also familiarize yourself with any warranties you have on both the house and its systems.  Some warranties may be voided if problems arise because of failure to perform routine maintenance.

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.