Register Real Estate Advisors

HOUSTON (CB Richard Ellis) – H-Town’s office market finished 2011 with more than three million sf of positive net absorption, reports CB Richard Ellis (CBRE) in its latest market analysis. The firm credits area job growth, increasing shale exploration activity and stronger oil prices for the surge in leasing. According to the report, predictions for the city’s 2010 employment gains of 13,700 were later revised to reflect the addition of around 40,000 more new jobs than anticipated. The Greater Houston Partnership’s figures show the city gained 170,700 jobs since economic recovery began. That’s 111.7 percent of the 152,800 jobs lost because of the recession. In addition, CBRE said employment forecasters expect 84,000 jobs to be added this year. Office space absorption in the early part of 2011 was the result of several large transactions that had been shelved during the recession. Fourth quarter absorption, on the other hand, was from many small to medium-sized deals. Class-A vacancy dropped 150 basis points from 12.14 in fourth quarter 2010 to 10.6 percent a year later. With the decreasing vacancy rate and shrinking Class-A available space, proposed developments and new construction are on the rise in the suburban markets.

Thought this might be useful information for investors.

The Federal Housing Administration is extending its “anti-flipping” waiver through the end of 2012, which allows buyers to purchase homes that have already been sold in the last 90 days.

The waiver, which was soon set to expire, is “intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,” Carol J. Galante, the acting Federal Housing Administration commissioner, said in a statement. “FHA remains a critical source of mortgage financing and stability and we must make every effort to promote recovery in every responsible way we can.”

An anti-flipping rule originally took effect in 2003 to stop a spike in home flipping that was being blamed on driving up home prices during the housing boom. The rule prevented FHA-backed loans from being used to purchase homes that had been owned by a seller for less than 90 days. But the U.S. Department of Housing and Urban Development decided to reconsider the 90-day limit in 2010 after skyrocketing foreclosures and abandoned homes were causing blight in neighborhoods across the country and hampering nearby property values.

The temporary waiver to the anti-flipping rule will allow buyers and investors to quickly resell refurbished homes and not have to wait 90 days to do so. Since the waiver took place in 2010, FHA has insured nearly 42,000 mortgages worth more than $7 billion on homes resold within 90 days of the last purchase, according to HUD.

“It’s certainly an inducement to move real estate and reduce inventories,” says Don Cameron, a real estate investor who owns a franchise of We Buy Ugly Houses in South Florida. “Why wait 90 days before you can close on a home?”

The waiver, however, still prevents predatory flipping, and sellers must justify any increases in value if the sales price of the property is 20 percent more than what the seller had recently purchased it for (such as by providing extra documentation on renovation expenses). Sales also must be in “arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.”

Source: “Government Extends Waiver of Anti-Flipping Law, Allowing Homes to be Bought and then Sold in 90 Days,” McClatchy-Tribune Regional News (Dec. 29, 2011) and HUD.gov

NAR released its latest pending home sales index figure last week and for the second month in a row the index is up. But more than that, the index has broken 100. This is significant because the only time since the housing boom collapsed that the index has broken 100 is when the home owner tax credit was in effect. The fact that the index has returned to that level a year since the credit has been in effect means the housing market is strengthening completely on its own, without any stimulus.

Every year the National Association of Realtors surveys homebuyers and sellers to monitor housing trends.  Below are Top 10 Housing Trends from 2011.

1.  There were fewer first time home buyers in 2011 than in 2010.

2.  Almost 90% of homeowners used the internet to search for a home.

3.  The average homebuyer searched for 12 weeks and viewed 12 homes.

4.  Almost 90% of homebuyers used a real estate agent or broker.

5.  Only 10% of sellers sold their homes without a real estate agent.

6.  Home Buyers choose their houses based on commute to work, the neighborhood, and affordability.

7.  Buyers said the loan process was more difficult than they expected.

8.  Over half of home sellers traded up for a larger, newer, or more expensive home.

9.  People move about every 9 years.<

10.  Most homes sold for 95% of the listing price.

If you own property in Texas your Property Taxes were due December 31st.  If you have not paid them they will be delinquent on February 1st.  That is when the penalties and interest charges get added to the original amount.

A second Anadarko Tower is going to be built in The Woodlands, Texas.  The Woodlands Town Center will host the 31-story office tower.  The current Anadarko Towers at 30 stories high.  Rumor has it that the first 10 floors of the new building will be for parking.  Projections indicate the building will be completed by the spring of 2014.   The economy has not rocked the stability of jobs and growth in The Woodlands, Texas!

Ever wonder how to find the right builder to build your family a home?  Below are my Top 10 recommendations for finding the builder that is right for you!  If you would like to purchase a home, RREA has many experienced and seasoned Realtors that can help you and there is no cost to you.  Your builder will pay our commission!  Call RREA today to find the Realtor that best meets your real estate needs – 281.288.3500.

10.  Use a Realtor!  Realtor’s comply to a strict Code of Ethics and are licensed by the state.  They have a fiduciary responsibility to protect your best interest in a transaction.  Builders do not fall under this Code of Ethics.  They are looking out for their best interest, and many times have their attorneys write their contracts for them.

9.  Find the areas of town you want to live in and interview the builders that will build in those areas.

8.  Get Pre-Approved for your Financing or have a letter from your financial institution stating how much home you can afford to buy.

7.  Figure out the type of home you want – ranch style, basement, two story, patio home, etc.

6.   If your Realtor is a member of the Greater Houston Home Builders Association they have access to the list of builders who construct homes in the area.  All of the Realtors at Register Real Estate Advisors has access to this membership list.

5.  Once you have narrowed down a list of builders, see some of the homes they have under construction and some that have been completed.  Ask for testimonials from their clients or references.

4.  Before picking a floorplan, walk through as many new homes as you can.  You can do this by attending open houses or visiting new communities.  This way you can see the differences between builders and find ideas you want to incorporate in your new home.  Check out the quality of the homes and see what building trends they use (bay windows, art niches, etc.)

3.  Remember that you will be picking your tiles, carpet, countertops, paint, appliances, and much more.  When touring homes and looking at magazines, inspect these items to find out what you like best.  Take lots of notes to share with your builder and photos if possible.  Ask lots of questions!

2.  Your goal should be to find a builder you trust and feel comfortable talking to.  You will have a close relationship during the months that your home is being built.

1.  When you finally pick your builder, ask about his company history, experience, philosophy, and building and payment process.  Talk with the builder at length about what your expectations are for the new home.

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.

Here is some great information about short sales and the Mortgage Forgiveness Debt Relief Act written by Bryan Ellis.

Short sales are becoming more and more common, but that could change if the tax break that currently does not force homeowners who do short sales to claim the forgiven debt on their tax returns is not extended. At the end of this year, the Mortgage Debt Relief Act, also called the Mortgage Forgiveness Debt Relief Act, will expire if changes are not made to the legislation. When this happens, the amount a short sale falls short of the amount owed on a property will, once again, be viewed as income to the former homeowner and will likely make short sales far less attractive to nearly every distressed property owner.

Additional fallout could take the form of more strategic defaults once short sales are no longer an option, warn analysts. If homeowners stand to lose money in the form of additional taxes on the “forgiven” debts on their homes, they may simply opt to walk away from the property all together and hope that the lender ultimately recoups the bulk of the debt when the property is auctioned off or otherwise sold. Of course, in the case of strategic defaults – or other forms of foreclosure as well – lenders can pursue the delinquent borrowers for the difference between the amount that they owed on the property when they stopped paying and the amount the lender was able to make when the property was sold.

These debts are often difficult to collect, but some lenders opt to wait years before pursuing them in order to allow former homeowners to get back on their feet. Others sell the debts to third-party collections companies. Even if this part of the debt is ultimately written off, it can create tax problems years down the road for homeowners because when the debt is written off it may be considered income to the homeowner.

For the most part, real estate professionals are hoping that the Mortgage Debt Relief Act will be extended before it expires on December 31 of this year. If not, “it will be a shock to many taxpayers after 2012,” warns Mark Steber, a tax officer for Jackson Hewitt Tax Service. If the legislation is not extended, more homeowners may opt to declare bankruptcy in order to avoid paying income taxes on their “forgiven” debts.

Do you think that the Mortgage Debt Relief Act should be extended through 2013? Article Compliments of: Bryan Ellis

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.