NOW'S THE TIME TO BUY, IF . . .

COLLEGE STATION- "It appears we are at the bottom of the housing market in most Texas cities," said Real Estate Center Director Mark Dotzour after reviewing the state's latest home sale numbers.

Dotzour mentioned two years ago that new home construction needed to fall dramatically to avoid the level of overbuilding that could damage Texas housing markets. He even picked summer 2009 as the bottom of the housing cycle because bankers would constrain credit to homebuilders and developers.

Apparently he was right on all counts. The Texas inventory of unsold new and existing homes is in good shape.

"I feel now is the time to buy a house in most Texas cities," he said. "Housing affordability has never been higher, and I never thought I would see 5 percent mortgages in my lifetime. If you plan to live in the house for at least two or three years, now is the time to buy.

"If you are planning to build a home to retire to in the near future, now is a great time to do it. Contractors are plentiful, construction costs are lower and mortgage money is cheap," he said.

Dotzour said mortgage rates should remain low as long as the federal government continues to purchase almost all residential mortgages. When they stop, rates will move up.

The Center's chief economist is quick to note, however, that everything hinges on one crucial assumption - "that the federal government doesn't cause further damage to the U.S. economy with higher levels of intervention in healthcare, taxation, cap and trade and rewriting accounting and legal standards."

RECON Real Estate Center Online News August 14, 2009 Copyright 2009. All rights reserved. Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source.

Focusing on Property Values Bexar

County leaders do more with less.

Like most Texas local governments, Bexar County is being forced to tighten its belt in response to tougher economic times.

But quick reactions and careful planning are making the process as painless as possible, according to David Smith, the county’s budget and chief investment officer.

Bexar County began keeping an eye on the national housing debacle a year ago.

“We’ve been watching developments since last summer, in part due to being in the bond market and seeing the massive changes that were already starting to take place on Wall Street,” Smith says. “So we were already concerned by the future implications.”

And while San Antonio-area property values haven’t taken the kind of body blows seen in other states, its county government, which collects no sales tax, will feel any drop in home prices. Bexar County currently derives about 55 to 60 percent of its ad valorem revenues from residential property.

“In late November, when we started to see the first signs of impact to our county revenue collections, the commissioners court reacted immediately,” says Smith. “By taking early action, we were able to estimate the potential impact and spread it out over two budget cycles, rather than doing it all at once later. That gave our departments and elected officials time to adjust their expectations and their operations to an environment with less revenue.”

The commissioners court quickly ruled out a tax increase. “We made some cuts midyear,” Smith says. “They were mostly voluntary and across departments. People can read headlines as well as we can–they didn’t need a whole lot of persuading. The economy was turning, and turning rapidly.”

But the county, which employs about 5,000, chose to use a scalpel rather than a cleaver. “We sent out what were essentially spending targets to our offices and departments, and asked them how they would propose to meet those targets,” Smith says. “We individualized and adjusted the targets for each department to reflect the likelihood of them being able to achieve those cuts.”

Bexar County is planning to pull the belt in another notch. “We’ll go through a second round of cuts in the upcoming budget,” Smith says, estimating that the total impact of both rounds of cuts will be in the range of 6 to 7 percent of operational spending, or about $20 million.

But current conditions aren’t all bad news. “We’ve been directed to speed up capital projects,” he says. “The environment is favorable for locking in longer-term interest rates. Bond costs are near historically low levels. Eighteen months ago, we were using 6.5 to 7.5 percent interest rates on long-term debt for planning purposes. Today, it would be about 5 percent.

“We’ll be in the market pretty heavily this year, trying to get at least a couple of years’ worth of capital funding in place,” Smith says, noting that the county plans to issue bonds for flood control projects and a new county office building.

Download the latest Bexar County budget.

From Texas Rising by Bruce Wright

The Ghost of South Presa Street

On a mild spring day, my daughter and I walk on a narrow trail, trampled out between tall grass and wildflowers grown knee-high, waist-high, shoulder-high. A light breeze ruffles the flowers, around which orbit a fair of butterflies. The sounds of the city, of traffic and commerce seem to come from a long distance; the birdsong and the rustle of moving leaves are much more immediate. We are on a quest, looking for the past, and exploring the ruins of the old Hot Wells resort, a sort of architectural sleeping beauty.

Hot Wells today lies in a clearing among a grove of trees, across the railroad tracks, between South Presa and the San Antonio River. Someone casually driving by might think the ruins are of a factory or a mill... little knowing that once there was a long elegant promenade, a carriageway ornamented with a planting of flowerbeds, hedges and footpaths on either side.  Little is left of that glory now: the central promenade devolved decades ago into a rutted footpath trampled out in the grass, lost in the creeping undergrowth. The central ruins seem to float in a rippling green sea, a wrecked ship of buff-colored brick.

And yet, if you close your eyes, sit quietly and hold your breath in this place, one can almost hear the sound of ragtime music floating on the air from a nearby bandstand under the trees, or a wind-up Victrola paying in a high-ceiling room behind a deep verandah. Gravel crunches under the narrow tires of tinny little sedans and open touring cars, sweeping up to the front of the sprawling grand hotel, and a train-whistle blows, from the spur where a wealthy magnate has his private parlor car waiting. The past is just barely out of reach here at Hot Wells, the sounds of it just beyond our hearing, in this twenty-first century.

Women stroll past, shading themselves with fragile lace parasols. The hems of their skirts nearly touch the ground, rustling around their high-buttoned slippers as they laugh softly, perhaps recounting a tale of flirtation on the paths in the pecan grove, or at the luxurious baths. The rotten-egg smell of water infused with sulfur floats on the summer-warm air, drifting from the direction of the ornate brick and wood bathhouse with the three pools in it. This bathhouse, immortalized in a thousand hand-tinted postcards... this is the central jewel of this place, a fanciful bubble on the river of time.

Today among the crumbled walls, plaster falls from the sides of the sulfur-water pools, where men bathed on one side, women on the other, and families splashed together in the pool between, but it is easy to call them into imagination.... Even if plants grow in cracks, clinging to vertical surfaces like a drawing of the bathing pools, and the whole of it is open to the sky. "Ladies Pool" is still visible in paint once black and now faded to grey. The concrete steps going down into the pool are so weathered by exposure that the pebbles in it are visible, and lantana grows in the pools where another faded sign forbid bathers to high-dive.

We close our eyes and imagine again... that these walls are crisp and new-plastered, the paint on the signs is fresh, and the changing rooms stocked with clean towels, everything polished and pristine under the grooved-board ceilings. Hot Wells was built in another world, a slower-moving world than our hyper-kinetic present but no less perilous. It was a world that did not know penicillin or the atom bomb, a world that was barely acquainted with powered flight and civil rights.  There are movies and movie theaters, but so primitive that we would barely recognize them: silent, a jerky blur of black and white, filmed with hand-cranked cameras. An early movie company has just filmed the very first film version of the battle of the Alamo nearby, using one of the old missions as a stand-in.

The world changed first through war and then depression, both of which affected Hot Wells... but not as much as fire. The hotel building burned to the ground in the Twenties, never to be rebuilt. Today another footpath leads into the woods where it once stood, towards two ranks of tourist cabins that replaced it; pastel stucco structures with oddly peaked roofs. The luxury resort became a motor court, then a trailer park. The music of my imagination changes here, in the sunny glades between the shattered stucco walls; it becomes big-band swing on a car radio, crackling with static and interspersed with an announcers' voice reading a bulletin about a distant war and far away events.

Is that the perfume of honeysuckle, hanging on the air? We wade through wildflowers again; the cabins are as ruinous as the bathhouse; just enough of them left to hint at what was once here, which continue to haunt the woods on this patch of the Southside.  There is a different feel to the ruins of place where happiness has been, though; melancholy, but without the oppressive sense of tragedy, and the knowledge that blood has been spilt into the ground. All the ghosts of Hot Wells are benign, even wistfully friendly, welcoming those who softly set foot in the places where joy and mirth have been. These woods, this clearing is indeed haunted... but haunted in a good way.

(The site of the Hot Wells Resort is owned today by  Lifshutz  Companies, who have long-term plans to develop it in a way that benefits the community, and respects the history of the site as well as the existing remains.)

The Little Agency That Could

August 3, 2009
The Little Agency That Could
By LAYLAN COPELIN

Like the little engine that could, the Texas Department of Housing and Community Affairs has a large mountain to climb — about $1 billion in federal stimulus money spread over seven (very) different programs.

The common theme is helping low-income Texans with housing and, by extension, adding jobs with the construction, repair and weatherization of residences.

The agency, with about 300 employees, will add 30 or 40 workers over the life of the stimulus programs to help push the federal windfall out the door.

A quick recap of the programs:

Weatherization
$327 million has been allocated to weatherize at least 40,000 homes over the next three years. Before the American Recovery & Reinvestment Act, the agency spent about $13 million annually to weatherize 4,000 to 5,000 homes.

Up to $6,500 can be spent weatherizing a household.

To manage such a huge increase, the agency is sending about $180 million through its 34 nonprofits with experience overseeing the weatherization of homes. The nonprofits put the contractors and homeowners together. (Other service providers are being trained to supplement the work of the 34 nonprofits.)

Another $100 million is going to cities with populations of more than 75,000 that have weatherization programs. Smaller cities and nonprofits can compete for a $7.5 million program.

First-time homebuyers
Some homebuyers may struggle to come up with the down payment necessary to buy their first home. The agency has $7.5 million to advance money against the existing $8,000 income tax credit. More than 900 families, who file before the Dec. 1 deadline, could be helped.

Tax credits for developers
There are two programs with a combined $520 million to jumpstart the market for affordable housing. Before the recession, developers would sell their tax credits to investors for cash flow. The government is now stepping in for jittery investors who have largely abandoned that market. The second program allows the exchange of tax credits for grants.

Neighborhood stabilization
This program allows communities to buy foreclosed residences and sell them to low-income Texans. It splits $102 million between targeted counties. The state agency is also applying to U.S. Housing and Urban Development for another $110 million for a second program.

Homeless prevention
Local governments and nonprofits can apply for $41 million to prevent homelessness with rental assistance and other aid.

Brooke Boston, who worked at the state agency for a decade, recently returned as deputy executive director of community based programs.

The recovery money is a boon, she says. It’s also a challenge to manage the disbursements quickly but effectively.

"Our staff morale is higher than ever," Boston says. "People are excited to be part of something big."

E-mail your comments or suggestions for future columns to Laylan.Copelin@cpa.state.tx.us

Texas State Parks Coping with Summer Heat, Drought

News Release
Media Contact: Rob McCorkle, 830-866-3533, robert.mccorkle@tpwd.state.tx.us

July 31, 2009
Texas State Parks Coping with Summer Heat, Drought

AUSTIN, Texas — Visitation to more than 90 Texas state parks, up significantly in June compared to last year, remains steady this summer, even as much of central and south Texas  suffers with above-normal temperatures and severe drought conditions that have negatively impacted river flows and lake levels, and sent all but the hardiest campers indoors.

In the more than a dozen parched state parks in the Hill Country and South Texas Plains regions, visitors are flocking to the sites blessed with steady lake levels and still-flowing rivers — places such as Inks Lake State Park near Burnet and South Llano River State Park in Junction — and parks like Bastrop and LBJ that have swimming pools.

"The drought’s effect on state parks is being felt most acutely in the central and southern parts of the state," Walt Dabney, Texas state parks director, said. "Many parks report being busy and people having fun outdoors, but water-related activities, especially on Hill Country rivers, are more limited until we get some significant rainfall. East, north and west Texas parks are in pretty good shape for normal, water-based recreation."

It’s been raining steadily the past few weeks in Texas Panhandle parks such as Palo Duro Canyon, and in the Piney Woods, Tyler State Park Superintendent Bill Smart says there’s been plenty of rain in East Texas parks and more is predicted over the next two weeks.

"We’re sitting pretty good up here," Smart said. "The only park in our region with a burn ban is Mission Tejas down in Houston County. "Business is steady as far as traffic goes, considering after July 4, visitation generally slows down."

Burn bans are common in many of state parks in counties suffering from drought. Some park managers report that they still are allowing campers to have small cooking fires in ground pits as long as they are supervised.

Cabins at Bastrop, Brownwood, Possum Kingdom and other state parks that offer air-conditioned accommodations report reservations are going strong, especially on weekends. Recreational vehicle campers are still filling the campgrounds at parks such as South Llano River, which continues to see plenty of visitors seeking refuge from the heat in the cool, spring-fed waters that flow through the park. The clerk there reported renting all 100 of the park’s tubes during the past weekend.

A few intrepid campers are braving the heat in tents, keeping cool by using fans and taking an occasional dip in a nearby lake or river.

At Blanco State Park, where office manager Jim Cook reports the park campground has been full every weekend. He says that although the river is lower than normal, visitors are still finding relief from the heat with a soak in a deeper part of the river behind one of the dams.

At several state parks, rangers report that hiking trails are still being utilized, though use has dipped in recent weeks due to the summer swelter. Heat-related incidents are possible, prompting words of caution.

"You need to take plenty of water, wear proper clothing and hike early in the morning or late in the evening," said ranger Christine Clopton of Colorado Bend State Park, which has had some instances of hiker struggling with heat exhaustion.

Clopton says the park’s boat ramp has been closed down due to a significant drop in the river level, but creeks are still flowing and the Spicewood Springs swimming hole is seeing plenty of action. Many of the campsites are still busy despite the heat as families try to get in last-minute summer campouts.

Office manager Lisa Fitzsimmons has been amazed by the tenacity of campers at Garner State Park in recent weeks in the face of soaring temperatures.

"People are still enjoying the park and we’ve had as many tent campers as we’ve ever had," Fitzsimmons said. "Mostly it’s the water level and condition of the river that they ask about. The river is low, but still flowing and cool."

Inks Lake State Park in Burnet County is actually busier than normal because boaters who can’t launch at nearby Lake Buchanan due to low water levels are finding the smaller flow-through reservoir still accessible. The park’s air-conditioned, limited-use cabins are booked up on weekends until Aug. 22-23. Ranger-led interpretive tours, however, have been limited to canoe tours, moonlight hikes and owl prowls to avoid the heat.

It’s been so dry along Texas’ mid-coast that the Lamar Volunteer Fire Department has been watering the state champion live oak in Goose Island State Park that’s known as The Big Tree. The volunteer community effort is making an extra effort to assure the survival of the massive coastal live oak that has survived countless hurricanes and other natural calamities over the centuries.

In the adjacent county, San Patricio, pumpers can’t help Lake Corpus Christi, which is at 37 percent of capacity, leaving the state park’s boat ramp and fishing pier totally out of the water, negatively affecting park use. Other lake parks, such as Birch Creek and Nails Creek state parks on Lake Somerville southwest of College Station, haven’t suffered as big a drop, but are still feeling the impact. Though the lake level is down only three feet from normal pool elevation, it’s been enough to make all but one double-lane boat ramp at Birch Creek unusable.

Meanwhile, out in the Davis Mountains, normal late summer rains have fallen, greening up the hillsides and filling mountain creeks.

"In some places," said far West Texas parks regional director Mike Hill, "we’ve even had too much rain in too short a time, washing out some roads. And on parts of the Rio Grande, they recently got eight inches of rain in a six-mile stretch in just two hours. That’s a year’s worth of rain for some of us out here."

So, depending on which part of the state you’re traveling and what your outdoor interests are, plenty of recreational opportunities in Texas state parks remain. To book a cabin or campsite, call (512) 389-8900 or visit the Texas state parks Web site. For general state park information, call 1-800-792-1112.

———
On the Net:

* http://www.tpwd.state.tx.us/spdest/

August Mission Realty Sudoku

Sudoku instructions: Complete the 9x9 grid so that each row, each
column, and each of the nine 3x3 boxes contains the digits 1 through 9.
Contact me for the solution!

This newsletter and any information contained herein is intended for informational purposes only and should not be construed as legal advice. The publisher takes great efforts to ensure the ccuracy of information contained in this newsletter. However, we will not be responsible for errors or omissions or any damages, howsoever caused, that result from its use. Seek competent legal counsel for advice on any legal matter. This newsletter is not intended to solicit properties currently for sale.

Recipe: Brie and Fresh Tomato Pasta

4 Servings
·    ½ cup finely chopped red onion
·    1-2 cloves garlic, minced
·    ½ teaspoon salt
·    12 ounces (340 g) brie
·    1 pound short pasta, like farfalle or penne
·    4 cups chopped tomatoes
·    ¼ cup extra virgin olive oil
·    ½ cup shredded basil leaves

In a small bowl, combine the onion, garlic and salt. Cover and set aside at room temperature for 30 minutes to an hour, stirring occasionally.

Place the brie in the freezer until firm and then carefully slice off and discard the rind with a sharp knife. Cut the remaining cheese into cubes and set aside.

Cook the pasta in plenty of water until tender but firm and then drain, reserving one cup of the cooking liquid. Gently toss the cooked pasta with the onion mixture, brie, tomatoes and olive oil. Gradually add as much of the reserved liquid as needed until the brie melts and a creamy sauce coats the pasta.

Add the shredded basil and serve.

Ask the Agent: This Month’s Question

I want to sell my house as quickly as possible and for a good price. What kind of mistakes must I avoid making?

The single biggest mistake people make is setting the asking price too high. An amount suited both to the home and to the market conditions attracts the greatest number of prequalified buyers, increasing the likelihood that you’ll get a higher price in the end.

Houses not shown at their best are another source of lost profit. Act on any advice you are given about cosmetic changes and minor repairs.
Also:
·    Set viewing hours for the greatest accessibility to buyers. In a competitive market, people can easily go elsewhere and fall in love with another house.
·    Don’t be home during the showings. Prospective buyers feel more comfortable raising concerns and poking about when the current owners are not present.

August Birthdays to Remember This Month

Lucille Ball, born on August 6, 1911, is best remembered as everyone’s favorite redheaded comedian featured on I Love Lucy.

Robert Redford, born August 18, 1936, became a legend in his own time by staring in hits like The Sundance Kid, The Horse Whisperer and Out of Africa.

Mary Wollstonecraft Shelley, born August 30, 1797, was the wife of poet Percy Shelley and later became famous for her tale of terror in the story Frankenstein.

Cameron Mathison, born August 25, 1969, in Ontario, Canada, is best known for the role of Ryan Lavery on All My Children. Diagnosed with Perthes disease at an early age, he spent four years in leg braces and underwent extensive treatment to avoid complications.

Why GPS Is More Than Just Maps

Think GPS is just a fad? Better think again. GPS, or Global Positioning Systems, are being used for more than just traffic. In fact, GPS is one of the fastest-growing technologies in the world and is rapidly being adopted by commercial and private interests both domestically and internationally. Here is just a few samples of the useful ways you can use GPS:

911: Emergency assistance is only a call away even when on the road, thanks to GPS-enabled cell phones.

Pet Finder: Keep a virtual eye on your favorite four-legged friend through the use of a GPS-embedded tracking device. It’s especially useful for those who travel with pets. Farm animals, livestock and even birds can also be fitted with the same device for quick tracking in the event of an escape.

Roadside Assistance: Being in an auto accident without the ability to speak or call for help is a concern for every driver, but thanks to OnStar and other similar systems, automobiles around the world can summon help even if you are unable to do so. Consider requesting this feature when reserving your next car rental.