The Williamson County Association of Realtors compiles data from MLS to keep us up to date as to how well our sales are doing compared to recent years (for Williamson County).  I thought it might be interesting for you to see some of the numbers and trends that we are seeing right now (although I can't seem to get the graph in this blog).  So I thought I would just tell you in summary form what it looks like.  In 2007, we had our highest sales record ever set in June for Williamson County.  And since then, the sales rapidly declined to around our 2005 sales numbers.  Then progessing through 2008, the sales numbers have been following around our 2004 numbers, and may even approach our '03 sales figures.  That follows my own instincts and what we have seen in our Team's sales of listings as well...I can follow that back to around mid '07 when things started slowing down (as the mortgage crisis started and the MEDIA started blowing out of proportion how bad the real estate market was doing).  The sellers that were very optimistic about getting their high price started having to get real in their prices if they wanted to sell.  We are basically seeing prices level out.  This is the same trend we saw after the tech bust in '01.  Remember, that our local economy continues to be one of the best in the nation, and that will help to keep our real estate market steady.

There is an upside to this blog...the numbers in 2003 and 2004 were still good sales numbers with sales ranging from 350 sales/month to around 700 sales/month.  So the sky is not falling at all here...BUT it is a great time to buy.  Interest rates continue to be near record lows, and there is still plenty of financing in the market place to get a loan.  So if you are on the fence about buying, jump off, give us a call, and let's get you in a house during a great time to buy!!

 

  

As you may have heard, on July 30th, 2008 President Bush signed into law the Housing & Economic Recovery Act of 2008 in order to stimulate the economy. Among other items in the bill, Congress created a new home buyer tax credit. The Housing & Economic Recovery Act of 2008 authorizes a $7,500 tax credit (better than a deduction!) for qualified buyers purchasing homes from 4-9-08 until 6-30-09.  Below is a synopsis of how the program works and who can benefit from it.  I took this information from a flyer that Gray Buffington, one of our lenders we use, sent to me...AND if you or anyone you know can benefit from this program and is looking to buy in this incredible market, please let us know!!!

 

7,500 Reasons Why NOW Is the Best Time To Buy!
Close Before July 1st of 2009 for $7,500 Tax Credit
Here’s How it Works...

?h?n The tax credit is for anyone who has not owned a home within the last 3 years. (This qualifies you as a “First Time Home
Buyer”.) You must purchase a new or resale home as your primary residence in order to qualify.
?h?n The maximum credit amount is $7,500
?h?n The full credit will be given to single taxpayers with incomes of up to $75,000 or married couples with incomes up to $150,000. However, some homeowners with higher salaries can also qualify for partial tax credits for
home purchases.
?h?n Owe little to no taxes? No problem...this is a tax CREDIT, not a deduction. Typically this involves the government sending the taxpayer a check for a portion or all the amount of the tax credit left after the rest is paid towards taxes owed.
So...this would mean if you owe $1,000 in taxes and qualify for the $7,500 credit, you not only have unexpected money to pay your taxes but still have $6,500 to spend on home decorating, landscaping, your kid’s college fund...you stimulate
the economy with your savings however you decide. All that money you saved to pay Uncle Sam? Yours to keep.
?h?n The tax credit is INTEREST FREE! …You have 15 years to pay it back (that’s approximately $500 per year interest-free for 15 years), if you sell your home and do not make a profit prior to paying back the loan, the loan is forgiven. Should the tax credit be given to someone who is deceased prior to loan repayment, the loan is forgiven as well.

Questions? We are happy to help answer any questions you may have! This is an exciting bonus for homeowners & it’s time allotment means many have time to build a home & still qualify…& enjoy an unexpected $7,500 at tax time.

BUFFINGTON MORTGAGE
10711 Burnet Rd. Suite 210
Austin, TX 78758
Phone: 512-672-4729 x303
gray@buffingtonmortgage.com
www.buffingtonmortgage.com

One of my lenders sent me an email this morning with his thoughts on some of the current financial issues and what we are hearing in the media...especially in regards to the mortgage industry.  His thoughts fit right in line with what I have been saying for quite some time...that the media seems to really blow out of proportion what is really happening...but that makes for better news stories.  I have included some of his thoughts below with permission...Thanks Gray Buffington!! 

Secondly, what I've heard over the news the past week reminds me of when a hurricane was set to hit Destin Florida. The next day the national news showed a building with no walls,  blown over signs on the ground, etc. Calling folks we know who live there they said the storm died out prior to reaching shore and they barely got rain and had no wind. What was shown on all over the  TV was a restaurant that was remodeling and had put up a new sign and removed walls. It was not a building blown to rubbish as was implied...but it was dramatic and certainly made for a better news story across the country.

 

Similarly, over the past week, I have been watching the news about our financial markets unfold. While the financial crisis is certainly having a significant impact on the US economy, I have been concerned about dramatic statements I've heard in the media regarding the availability of mortgages. I've heard several, so called “experts” make the comment that it's almost impossible to obtain a mortgage loan. This could not be further from the truth. Mortgages are readily available at GREAT rates to those borrowers with at least a  3% down payment, credit scores at least 620 and debt to income ratios in line with traditional guidelines. Because we've fielded calls with questions on the above, we know you may be as well.

It's simply not the case...certainly guidelines have tightened over the past year, the elimination of stated income loans, zero down programs, down payment assistance, increases in mortgage insurance, etc. but mortgages are not difficult to obtain by any means!

I am concerned that some in the media have portrayed such a bleak picture for those who may want to buy, that it may discourage some from even looking...further hurting the economy unnecessarily. Now is actually the BEST time to buy...there are new tax credits, there are great rates & the future could very well hold changes in guidelines & potential increases in mortgage insurance. 

 

With all the turmoil in our current mortgage industry, I thought it would be helpful to explain a little about some of the basic types of mortgages that are out there and the benefits of each.  Then I actually ran across an article that the Williamson County Association of Realtors sent out to its members that does just that..so I hope you enjoy learning a little about fixed vs. variable rate mortgages.  And if you still have questions after reading this about these or any other types of mortgages, please contact me and I can put you in touch with some of the best lenders in our area to help you understand more.  I hope you have a great day!!

  

   Security or Lower Payments?
One characteristic of the two most common type of mortgages is that their names tell you how they work. For example:

1. A fixed rate mortgage carries a specified interest rate that is fixed and cannot change during the term of the mortgage. They are commonly available in 15- and 30-year terms.

2. An adjustable rate mortgage or ARM, on the other hand, allows the lender to adjust the interest rate during the life of the loan. During the initial loan term, most commonly 3-10 years, the initial interest rate cannot change. Future changes are determined by applying a margin to an interest index rate. If your mortgage interest rate goes up or down, it's reflecting current rate changes in the market at the time of the change. A cap generally limits periodic interest rate changes and represents the highest amount a mortgage rate can change over a certain period. A lifetime cap, which is the highest amount of change that can occur during the term or lifetime of the mortgage, is another way rates are kept within a certain range.

Once you understand these two types of mortgages, you can decide which product is right for you. Here are some of the advantages and disadvantages:

• A fixed rate mortgage is a good choice if you want predictable monthly principal and interest payments for the life of the loan, if you expect to live in a home for an extended period, or if you want to lock in low interest rates. If interest rates drop lower, you can always refinance the loan, although there will be a cost.
  
  
• Fixed rate mortgages let you budget payments more easily. You don't have to worry about being unable to afford the mortgage because there are no sudden rate changes.
  
  
• On the downside, with a fixed rate mortgage, you need to show more income to qualify because of the higher initial interest rate.
  
  
• An adjustable rate mortgage is a good choice if you plan on living in your home for a short time or if you plan to pay down your mortgage faster than a fixed rate loan. The initial interest rate on an ARM is generally lower than that of a fixed-rate mortgage, which means lower monthly payments. Plus, if interest rates continue to drop, so does your monthly payment.
  
  
• If rates rise and your have an adjustable rate mortgage, however, you will need to appropriate a bigger portion of your monthly budget to your mortgage payment. If the payment becomes too large, you may no longer be able to afford your mortgage.

Here are four questions that can help you decide which mortgage product is right for you:

Question	Yes	No
1. Is your income likely to increase enough to cover higher mortgage payments if interest rates go up? If you answer "Yes," either an adjustable rate or a fixed rate mortgage would work for you.
2. Will you have other substantial debts, such as car loans or school tuition, in the near future? If "Yes," a fixed rate mortgage might be better for you.
3. Can you handle increased payments? If "No," a fixed rate mortgage would be better suited to your situation.
4. Do you plan to own the home for less than three years? If you answer "Yes," an adjustable rate mortgage might be more beneficial.

Answer the questions honestly and you'll have a realistic picture of your financial situation and a solid understanding of whether you could comfortably afford to take on increased interest rates.

I ran across a very good article with tips on how to improve your credit score.  Your credit score is an important factor in determining whether or not you can obtain financing to purchase a home for sale, and also what kind of loan terms they will be able to offer you.  The better your score, the more favorable terms and interest rates that will be available when you are ready to purchase.  I hope you take the tips, and use them wisely...and if you are interested in our current inventory of homes for sale in Liberty Hill, Georgetown, Leander, or Bertram, just check them out on our website at www.shanetwhiteteam.com .  Enjoy!!

Tips for Helping Your Clients Boost Credit Scores, Strengthen Financial Footing

 

RISMEDIA, Sept. 16, 2008-It is a three-digit score that can shape your financial future, whether you plan to buy a new car or qualify for a reasonable mortgage loan to buy the home of your dreams. Your credit score is a determining factor in whether you obtain financing and at what cost, and there’s never been a better time to clean up your credit history and boost your score.

“With today’s tightened credit market and lenders becoming more selective about issuing loans, a good credit score has become more important than ever,” says David Hanna, president of the Chicago Association of REALTORS®. “Lenders consider credit scores when determining the risk associated with a loan application, especially for people looking to buy a home. REALTORS® know well that credit can be the difference between simply finding the home of your dreams and actually buying the home of your dreams.”

The first step in improving your credit score is to know where you stand. Your credit records have been reduced to a three-digit score commonly known as a FICO, or Fair Isaac & Co., score. Each of the three major credit bureaus (TransUnion, Experian and Equifax) have assigned a score that shows how likely you are to pay back a loan on time - the higher the score, the lower your presumed risk of default. By law, you may obtain one free report annually from each bureau online at www.AnnualCreditReport.com . By accessing your credit information one agency at a time, you can get a free credit report three times a year.

The average U.S. credit score is 694, according to Experian’s National Score Index. FICO credit scores can range from 300 to 850 and are based on the length of your credit history, the mix of credit you already have, and your number of recent credit applications.

Once you know your FICO score, you can work toward improving it. But improving your credit score can require time and commitment.

Here are some valuable tips to get you started:

- Pay your bills on time. Your payment history, including late payments and foreclosures, can count for one-third of your credit score. Accounts more than 60 days past due will be indicated on your credit report. As the length of your on-time payments increase, so too will your score.

- Check your credit report for errors. Removing errors, especially those negatively reflecting late payments or unpaid credit, is one of the easiest ways to improve a credit score. Look for expired negative records and file a dispute if necessary.

- Reduce your balances. One-third of your FICO score depends on the total amount of balances you owe versus your total credit limit. Try to keep your balances less than 80% of your credit limit to maximize your score benefit. Start with those credit cards that are closest to their limits.

- Keep older credit lines open. Having a long history of active accounts indicated to lenders that you are a good credit risk. It also accounts for 10% of your credit score. Try to use your oldest cards regularly for small purchases and pay balances each month.

- Use credit - but use it responsibly. This includes having credit cards and installment loans with timely payments. Accounting for 15% of your score, a balanced account including a mortgage payment can help homeowners boost their score.

- Avoid new credit. Opening new credit will lower your average account age. In addition, the number of new applications counts for 10% of your score. Under the Fair Credit Reporting Act, you may limit “prescreened” offers by removing your name from nationwide lists. Apply in moderation and take on new credit only when you need it.

- Check regularly for identity theft. Agencies may only provide your information to those with a valid need, such as a creditor or insurer. In addition, you must give consent for this information to be seen by an employer.

For most, credit is a way of life. Installment payments and credit cards can be useful financial tools if they are kept under control, but many let credit control them.

“A good credit score is a consumer’s financial calling card, and it is important that they do everything they can to boost their score and put themselves on the best financial footing possible,” says Hanna.

 

Our team has reduced prices on a couple of homes for sale in Liberty Hill, TX and now is a great time to take advantage of incredible interest rates if you are in the market to buy!!  These prices have dropped anywhere from $5K-$10K!!!  Check out the homes at these links:

http://shanetwhiteteam.com/inc/pmisc?pid=335

http://shanetwhiteteam.com/inc/pmisc?pid=444

http://shanetwhiteteam.com/inc/pmisc?pid=328

 

Our team just listed another brand new home for sale by Drennan Day Custom Homes in Liberty Hill, TX.  This affordable home is priced at only $195,000 and sits on a 1 acre lot close to town.  The house is also located close to the new 183A and Ronald Reagan Blvd. for easy access into Austin and shopping.  You can see more and learn more about this house here:

http://shanetwhiteteam.com/inc/pmisc?pid=508

I ran across this article from the Austin Business Journal and it has some EXCELLENT news about the economy here in Austin.  Even as things are continuing to slow down in the general economy, we are still shining above most of the other areas of the country.  Enjoy the good news!! 

 

Austin economy ranks 4th on Milken/Greenstreet list

Austin Business Journal

Even in a tougher economy Austin is still outperforming many other areas of the country in job creation and other economic markers.

The Austin-Round Rock region ranks 4th among the country’s largest metropolitan areas on the Milken Institute and Greenstreet Real Estate Partners’ 2008 Best Performing Cities list. That’s a dramatic improvement from Austin’s 20th place ranking on last year’s list. The list ranks cities according to a series of matrices such as job creation and salary and technology growth.

Provo-Orem, Utah; Raleigh-Cary, N.C.; and Salt Lake City, Utah, were the top ranked cities on the list, in that order.

Among other Texas metro areas, the McAllen-Edinburgh-Mission region ranked No. 7 on the list followed by Killeen-Temple-Fort Hood at No. 13, San Antonio at No. 15, Houston at No. 16, and Dallas at No. 23.

If you are in the market to buy a home, now may be the right time to buy...with recent news about the government bailing out Fannie and Freddie Mac, mortgage rates have seen a significant drop!!  Investors in that market see the takeover as adding stability to the housing and morgage markets, and therefore, rates are dropping accordingly.  One of our lenders quoted rates yesterday at 5.75%!!!  That is incredible...so if you are looking to buy a home for sale in Liberty Hill or any of our surrounding areas, now is the time to make your move.  Because we don't know how long these rates will stay at this level...

Check out this new listing...5 acres for sale on HWY 29 between Liberty Hill and Bertram!!  This one has well, septic, and electric already in place and is completely fenced...see more here:

http://shanetwhiteteam.com/inc/pmisc?pid=504

Our team just listed a beautiful custom home for sale on one acre in Carrington Ranch in Liberty Hill, TX.  Carrington Ranch is located just minutes from Ronald Reagan Blvd. and 183A for easy access and commute into Austin.  This home is ready to go...check out more here:

http://shanetwhiteteam.com/inc/pmisc?pid=502

Whether you like the decision by the Williamson County commissioners or not, at least they have FINALLY come to an agreement and a decision on the future expansion of HWY 29 through or around Liberty Hill, TX.  This study and discussion has been going on for over a year now, and has literally stopped any sales activity along the HWY 29 corridor for commerical properties in Liberty Hill, TX.  It has also taken a toll on many of the residential developments as well in the last 6 months.  You can read the county's comments about their decisions below and then follow the link to see the maps of the improvements from Georgetown to the Burnet County Line...

SH 29 STUDY RESULTS

For almost a year, we have met with Williamson County residents regarding the State Highway 29 Study, which was launched to proactively address the County’s two greatest issues – safety and mobility. 

Transportation issues are vital because of Williamson County ’s steady and continuous growth; we have been the second or third-fastest-growing county in the state for the last seven years.  And, several of our cities have experienced phenomenal growth.  Leander’s population was approximately 3,000 people in 1990 and is more than 30,000 today.  Georgetown grew from a city of 28,000 in 2000 to more than 48,000 today.  Hutto was home to 1,250 people in 2000, but more than 17,000 people call it home today.  

As we look toward the future, our county must plan in smart and prudent ways.   Today, approximately 20,000 new residences have already been platted in the surrounding area; that translates into 50,000 to 60,000 more people who would use SH 29 in the next 20 years.  More is anticipated.   This growth’s impact to SH 29, as the only remaining east-west road for the entire county, needed to be studied.

An important part of this analysis has been citizen input.  Thank you for your participation in this process; we value your feedback.  More than 600 Williamson County residents attended the three open houses; we’ve participated in more than 40 meetings with individuals and groups and responded to more than 400 e-mails and phone calls. 

You shared your concerns with us about existing safety issues such as pulling out onto SH 29 from neighborhoods and the lack of overall mobility in northwestern Williamson County – a good example was the evening of the August 4^th meeting when a fire shut down SH 29 and alternate routes were badly needed. We have also heard your interest in a smaller footprint for the project to lessen the impact, as well as your preferences for roadway alignments that keep businesses in business.  Based on your input, today we are announcing the following.

1.       To address safety concerns, we will create a community-based safety/mobility task force in the next 30 days to examine and recommend ways to improve overall transportation safety and mobility on SH 29 for residents, businesses and visitors, while minimizing impacts to neighborhoods and communities.  The task force will include local officials, TxDOT representatives, county representatives, school districts, local law enforcement, first responders and EMS representatives.  This would be paid for using the County’s safety and mobility funds.

2.       To address mobility in northwestern Williamson County , we are announcing a comprehensive road-improvement plan for the area that will focus on the expansion and upgrades of local county roads and arterials including CR 200, CR 279, CR 214 and FM3405.  This comprehensive northwest plan will be incorporated into the updated long-range transportation plan, which is currently under development; once completed it will be submitted to the Commissioners’ Court for consideration – most likely, early next year.

 3.       To address the concern about a 400-foot purchase of right-of-way, the footprint has been scaled back to approximately 300 feet (this is 300 feet in total, not additional amount to what already exists).  This would preserve space for eight lanes – four access lanes (frontage roads for safety) and four express lanes (no stoplights).

4.       Based on the work of the engineering firm and input from the public, we have selected the combination alignment from west of D. B. Wood Rd. to Ronald Reagan Blvd.  The selection of this particular alignment is intended to minimize the amount of residential and business displacement in the area.

5.       After much study, we have also concluded that Highway 29 cannot be expanded on the existing road through the Liberty Hill area due to engineering and environmental issues and the exorbitant increase in the cost of the project.  As a result, we have selected the southern bypass alignment from the Burnet County Line to Ronald Reagan Blvd.  The selection of the southern alignment is also inteded to minimize the amount of residential and business displacement in the area. 

 In addition, both segments of the alignment have been further tweaked over the last month to address engineering issues and public concerns.   A map will be available on the Web site; please visit http://www.wilcogov.org/tabid/914/language/en-US/Default.aspx.

This SH 29 expansion will NOT be built until it is needed; construction would take place only when overall traffic volumes significantly increase, resulting in traffic congestion at both peak and non-peak periods.  We estimate that the road would not be built for at least 15 years, depending on traffic counts and safety issues along the highway.

By working to preserve options for SH 29 today, we are able to focus on the purchase of land, rather than the purchase of land and buildings in an effort to reduce the cost to our taxpayers.  We also believe that by informing people today about where the road will go in the future – at least 15 years into the future – everyone can plan better.

Moving forward, we will talk with willing sellers along this planned route to begin purchasing property at fair-market value.  These purchases would be funded through money specifically identified for State Highway or TxDOT projects in the 2006 Bond Program and would require approval by the Commissioners’ Court.  However, much of the funding for purchase of property would come from future road-bond programs, which would be voted on by the citizens of Williamson County .   We believe taking these steps will help address safety and mobility concerns for our citizens today and will best preserve our options for dealing with them in the future.  For more information about the study and the selected alignment, please visit http://www.wilcogov.org/tabid/914/language/en-US/Default.aspx.

Thank you for your input and participation in this important process for Williamson County .

Commissioner Valerie Covey , Precinct 3

Commissioner Cynthia Long , Precinct 2

Just wanted to pass along that we have reduced one of our listings in the highly sough after Sundance Ranch in Liberty Hill, TX...this home for sale is now listed at $308,000!!!  That is an incredible buy for Liberty Hill, and especially for Sundance Ranch...if you or someone you know is looking in this area...this is a must see house!!  Check out more here: 

http://shanetwhiteteam.com/inc/pmisc?pid=402