Austin / Central Texas Real Estate News & Updates

Mortgage Market Explanations

noreply@blogger.com (Violet Crown Realty) — Fri, 03 Oct 2008 11:22:00 +0000

Hello All! I wanted everyone to have this information, so that you can share it with your buyer’s and seller’s to hopefully add understanding and to show them that you are their trusted advisor. Good luck! I will keep you posted.

The Chinese have a proverb: “May you live in interesting times.” And we are living through interesting times indeed.

Whatever the political posturing regarding the current rescue plan, a plan needs to be passed. Credit markets are frozen and banks are going bust every day. This is not totally because of "toxic" mortgages. This has a lot to do with FASB 157, also known as "mark to market". Each day lenders must mark their assets to the marketplace. It's like you having to appraise your home everyday and if your neighbor was under duress because they got very ill, divorced, lost their job and was forced to sell their home quickly they may have sold it super cheap. Now, does that mean your house is worth that super cheap price? Clearly not. Why? Because you are not under duress. You have the time to sell your home and get a more normal price, which more accurately reflects true market conditions.

But "mark to market" does not allow for this, which creates a vicious cycle. Why is this so bad? Because as lenders mark down their assets, the amount that they have loaned previously becomes much riskier in relation to their assets. For example, say a bank has $1 million in assets and say they have $15 million in loans outstanding. Their ratio is an acceptable 15 to 1. But should they take a paper write down of $500 thousand due to "mark to market" requirements, their ratio suddenly changes to 30 to 1. This is because their assets are now only $500 thousand after taking the paper loss, while their loans outstanding are $15 million. And at 30 to 1 this bank is viewed as a risky investment. So the stock price starts to get hit, it becomes harder to borrow, and most importantly harder to make money. The bank is then forced to sell some of its loans to reduce its ratio...at cheap prices. And this makes the vicious cycle continue.

And a quick look at the holdings of these loans show that 95% are problem free. Additionally, the Credit Default Swaps (CDS) that are used with the pools of mortgages are relatively safe. But this requires a bit of understanding. You see, when a pool of mortgage loans is put together, it isn't just A paper or B paper etc….it's everything. It’s got some A paper, B paper, C paper…and even what looks like toilet paper. An "A" investor buys the whole pool but because they are an "A" investor their safety is greater because they can avoid the first 20% (an example) of defaults. So they own the whole pool but are sheltered from the first batch of defaults, and for this they get the lowest rate of return. As you can figure from here the more risk investors want to take, the higher the return. So the investments are relatively safe, but the accounting rules currently place undue pressure on the banking institutions.

Now add to all this, the opportunistic “shorting” done on the financial stocks, much of it illegal because those shorts did not legitimately borrow shares (called naked shorting), and you exacerbate this whole problem. Thank goodness for the recent temporary ban on shorting in the financial sector. As for the plan the government is the only one who can step in to do this. And they have to do this. And they will do this. The nauseating political posturing from both sides is just part of the process. This is not easy to understand for the general public. In fact most politicians don't get this either. That's why it is a difficult yet critical bill for them to vote on.Once this is done it will take some time but the markets will stabilize. As for the real estate and mortgage industries, it will take a bit of time but we will make it through this. Rates will remain attractive and the influx of credit availability will help the housing market gradually improve. This ultimately will be the medicine needed to improve the situation overall.

As always – please keep in touch, especially during these volatile times. I am here to help you in any way that I can.

Wishing you Abundance!

Nan

Mortgage Broker #72387
Abundance Home Mortgage LLC
12885 Research Blvd., Suite 102
Austin, TX 78750
512-335-7800 Office
512-335-7805 Fax
512-970-8617 Cell
www.nankirkpatrick.com

Value of Austin Homes Remains Stable

noreply@blogger.com (Violet Crown Realty) — Tue, 22 Jul 2008 21:29:00 +0000

Value of Austin homes remains stable: Real estate market grows due to first-time buyers and young people in their early 20s

Despite home price depreciation around the rest of the country, Austin housing is holding its value. According to an Austin Board of Realtors study, the median price of single family homes is at $200,000, a 4 percent increase from last June. "Our homes are affordable in comparison. Less than $200,000 is amazing," said Socar Chatmon-Thomas, chairman of the board. "In most parts of the nation you can't buy anything as a first home for less than $350,000."Sales of single-family homes are coinciding more with national figures, as they have decreased by 20 percent since last June."

Austin is a vital and dynamic environment because of business growth," said Beverly Kerr, vice president of research at the Austin Chamber of Commerce. "We're a lot less expensive in terms of taxes and regulation than other tech industry centers and we're a great place for quality of life."

Forbes magazine ranked Austin as America's third-most "recession-proof city" in April. At 3.7 percent, Austin's unemployment levels are nearly 2 percent below the national average."Growth in Austin is really driven by the job market," said Chay Walker, senior agent manager at Austin's Uptown Realty.

However, Walker said, Austin's 6 percent unemployment rates in 2001 and 2002 prevented the city's housing market from growing at 45 percent, the highest appreciation rate seen in some parts of the country, Walker said."Austin's real estate market stayed flat," Walker said. "When the rest of the country started having problems, our markets were just coming around." Austin builders responded to the crisis by scaling back production of new homes, Chatmon-Thomas said. Austin housing appreciation continues to hold steady at around 5 percent.Chatmon-Thomas said some of Austin's real estate growth stems from an influx of Asian-American and Hispanic first-time home buyers and younger buyers. "A lot more young people are buying homes in their early 20s," Chatmon-Thomas said. "I think it's that younger people realize the value of a home and realize that 'If I purchase this home now, I can use it as an investment property when I get married or change lifestyles or whatever.'"

By Mohini Madgavkar
The Daily Texas

Top 25 Markets Shake-Up

noreply@blogger.com (Violet Crown Realty) — Wed, 16 Jul 2008 15:22:00 +0000

Top 25 Markets Shake-Up

The once top-rated housing market Yakima, Washington is beginning to run out of gas, and falls from the number #1 forecast position in Housing Predictor's Top 25 markets for 2008.

After years of strong sales and appreciation, the Yakima market is slowing and is forecast to slide over the rest of the year. A ripple effect of tighter mortgage lending standards and increasing inventory is beginning to impact the marketplace.

Biloxi, Mississippi all but destroyed by Hurricane Katrina, is in the number one position. A government sponsored program is helping the area rebuild what was once the second largest casino business in the country to Las Vegas.

The Top 25 with the highest forecast appreciation have the greatest probability of reaching their forecast of the more than 250 local housing markets Housing Predictor forecasts.

Conservative North Dakota with one of the strongest statewide economies nationally, and the lowest subprime mortgage activity in the country, placed three cities on the list. Four states each placed three communities on the list.

Interestingly, the top markets for 2008 are scattered throughout all parts of the U.S. from the west to the east and into the southern states. No particular region of the country was more dominate than another as more and smaller communities based on population made the Top 25, which have less appreciation forecast than earlier in the year.

Rank Real Estate Market 2008 Forecast

1. Biloxi, MS 4.9%
2. Salem, OR 4.7%
3. Bismarck, ND 4.6%
4. Spokane, WA 4.4%
5. Yakima, WA 4.1%
6. Austin, TX 4.0%
7. Grand Junction, CO 4.0%
8. Fargo, ND 4.0%
9. Mobile, AL 3.9%
10. Idaho Falls, ID 3.8%
11. New York, NY 3.8%
12. Glen Falls,NY 3.8%
13. Salt Lake City, UT 3.8%
14. Grand Forks,ND 3.8%
15. Pascagoula, MS 3.8%
16. Hattiesburg, MS 3.7%
17. Albuquerque, NM 3.5%
18. Kellogg, ID 3.5%
19. Boise, ID 3.5%
20. Provo, UT 3.1%
21. Ogden, UT 2.7%
22. Edmond, OK 2.6%
23. Oklahoma City, OK 2.5%
24. Amarillo, TX 2.4%
25. Lubbock, TX 2.3%

Austin Home Sales Gaining Strength

noreply@blogger.com (Violet Crown Realty) — Fri, 20 Jun 2008 16:27:00 +0000

It's showing signs of a possible rebound, but the Austin home market remains sluggish.
Single-family home sales in the metro area totaled 2,154 in May, down 20 percent compared with May 2007, according to data from the Austin Board of Realtors. However, the May figure is the highest number of total sales the area has experienced in eight months.

Austin is not seeing the drastic price drops that many other markets around the country have experienced. The average price for a single-family home stood at $263,151 in May, up 5 percent from a year ago.

"Despite economic conditions across the nation, Austin continues to have a relatively low unemployment rate and cost-of-living index," says ABoR Chairman Socar Chatmon-Thomas. "While we're not enjoying the booming real estate markets of 2006 and 2007, we have seen steady increases in sales volume since January 2008."
Pending single-family home sales totaled 1,418 in May, down 55 percent from May 2007. New listings for the month were down 7 percent from a year ago.
Townhome and condo sales are also on the downswing. A total of 239 units were sold in May, a 24 percent decline from a year ago.

from: Austin Business Journal

50 Reasons to Love the USA: Austin Music!

noreply@blogger.com (Violet Crown Realty) — Fri, 20 Jun 2008 00:00:00 +0000

Texas:

Because you don’t have to be 22 to get excited about Austin’s music scene. Known as a mecca for the indie–music set (thanks to the annual South by Southwest festival in March), Austin now has a venue for Bach, Mozart, and Stravinsky as well. On the edge of Lady Bird Lake, the Long Center for the Performing Arts (701 W. Riverside Dr.; 512/474-5664; thelongcenter.org) houses the city’s ballet company and symphony orchestra. The performance hall, designed by Nelsen Partners and Zeidler Partnership Architects, is in tune with Austin’s unconventional spirit—70 percent of the structure was made from recycled materials, including the gigantic concrete ring that encircles the central building like a halo. On the lineup this summer: Austin’s Chamber Music Festival, the Austin Shakespeare Festival, and free weekend symphony performances on the public terrace.

Travel & Leisure's state-by-state guide to fun summer travel.
updated 8:43 a.m. CT, Thurs., June. 19, 2008

Best Cities to Live, Work and Play

noreply@blogger.com (Violet Crown Realty) — Wed, 04 Jun 2008 18:32:00 +0000

These ten great places will only get better.

Our approach this year to picking the ten best cities in which to live and work was simple: Look for places with strong economies and abundant jobs, then demand reasonable living costs and plenty of fun things to do. When we ran the numbers, some of the names that popped up made us do a double take at first. So we hit the road to meet movers, shakers and regular folks, experience the ambience and take in the sights.

We discovered that our numbers guru, Kevin Stolarick, hadn't steered us wrong. Stolarick, research director at the Martin Prosperity Institute, a think tank that studies economic prosperity, says: "Our formula highlights cities not just with strong past performance, but also with all the ingredients for future success." One key to a bright future is a healthy shot of people in the creative class. People in creative fields -- scientists, engineers, architects, educators, writers, artists and entertainers -- are catalysts of vitality and livability in a city.

The cities that made our list also represent larger surrounding areas. And because we understand that city living isn't for everyone, we've highlighted some great suburbs, too.

Pack a bag and join us on a tour of the Best Cities for 2008 and prepare for some surprises.

1. Houston
Population: 5,542,048
Population Growth Since 2000: 14.9%
Percentage of Workforce in Creative Class: 31.3%
Cost-of-Living Index: 88.1 (100 being national average)
Median Household Income: $50,250
Income Growth Since 2000: 13.1%

2. Raleigh
Population: 995,662
Population Growth Since 2000: 19.9%
Percentage of Workforce in Creative Class: 36.1%
Cost-of-Living Index: 99 (100 being national average)
Median Household Income: $56,150
Income Growth Since 2000: 10.3%

3. Omaha
Population: 821,356
Population Growth Since 2000: 6.6%
Percentage of Workforce in Creative Class: 30%
Cost-of-Living Index: 89.4 (100 being national average)
Median Household Income: $51,627
Income Growth Since 2000: 15.1%

4. Boise
Population: 568,086
Population Growth Since 2000: 18.2%
Percentage of Workforce in Creative Class: 33.2%
Cost-of-Living Index: 95.5 (100 being national average)
Median Household Income: $49,833
Income Growth Since 2000: 16.6%

5. Colorado Springs
Population: 600,444
Population Growth Since 2000: 10.5%
Percentage of Workforce in Creative Class: 34.1%
Cost-of-Living Index: 95.3 (100 being national average)
Median Household Income Since 2000: 53,486
Income Growth Since 2000: 16.1%

6. Austin
Population: 1,506,425
Population Growth Since 2000: 17%
Percentage of Workforce in Creative Class: 36.5%
Cost-of-Living Index: 92.8 (100 being national average)
Median Household Income: $52,882
Income Growth Since 2000: 12.2%

7. Fayetteville
Population: 419,455
Population Growth Since 2000: 17.3%
Percentage of Workforce in Creative Class: 31.4%
Cost-of-Living Index: 90.4 (100 being national average)
Median Household Income: $42,267
Income Growth Since 2000: 17.6%

8. Sacramento
Population: 2,067,117
Population Growth Since 2000: 13.1%
Percentage of Workforce in Creative Class: 34%
Cost-of-Living Index: 121.7 (100 being national average)
Median Household Income: $56,953
Income Growth Since 2000: 19.1%

9. Des Moines
Population: 532,425
Population Growth Since 2000: 9.6%
Percentage of Workforce in Creative Class: 32.1%
Cost-of-Living Index: 90.6 (100 being national average)
Median Household Income: $53,384
Income Growth Since 2000: 16.3%

10. Provo
Population: 474,351
Population Growth Since 2000: 20.6%
Percentage of Workforce in Creative Class: 32%
Cost-of-Living Index: 97.7 (100 being national average)
Median Household Income: $50,583
Income Growth Since 2000: 12.2%

Wednesday, June 4, 2008, provided by www.kiplinger.com

31 Places to Go This Summer

noreply@blogger.com (Violet Crown Realty) — Sun, 01 Jun 2008 16:00:00 +0000

1. TEXAS HILL COUNTRY
“Who needs Europe? The Texas Hill Country, west of Austin and north of San Antonio, might be the next best thing to crossing the Atlantic. The region is lush, colorful and, unlike much of the pancake-flat state, dotted with beautiful green hills that are evocative of Tuscany or the south of France. Moreover, the region is speckled with 22 wineries (http://www.texaswinetrail.com/) that buzz with food and music festivals year round. And towns like Fredericksburg offer a taste of the Old World, with German-style biergartens and schnitzelhäuser.”

New York Times: 6/1/2008

Austin keeps truckin' on job creation

noreply@blogger.com (Violet Crown Realty) — Sat, 17 May 2008 04:38:00 +0000

Providing more evidence of Austin's economic resilience, the region added 4,100 jobs last month with big gains in sectors such as hospitality and professional and business services.
The April additions included 900 new positions each in the government and leisure/hospitality sectors. Professional/business services added 500 jobs as did retail trade, according to the latest figures from the Texas Workforce Commission.

In the last year, Austin has gained 20,100 jobs for an annual growth rate of 2.7 percent. Retail trade added 2,900 jobs since April 2007; professional/business services added 5,700 positions, leisure and hospitality grew by 2,900 and government increased by 3,700 jobs. The largest job declines came in the manufacturing sector, which saw a year-over-year drop of 2,100 positions.

The unemployment rate in the Austin-Round Rock area stood at 3.3 percent in April, down from 3.2 percent a year earlier. That remains better than the Texas unemployment rate at 3.9 percent and the national rate at 4.8 percent.
Texas employers added a total of 15,400 jobs in April for a 12-month job increase of 262,000 positions since April 2007.

Austin Business Journal

Austin: Top 10 "Recession-Proof Cities"

noreply@blogger.com (Violet Crown Realty) — Wed, 30 Apr 2008 01:48:00 +0000

Austin was named third on the Forbes.com list of the top 10 "Recession-Proof Cities" in the United States.
To create the list, the magazine looked at the 50 largest U.S. metros, examining key measures, such as unemployment data, non-farm related job growth, median home prices and data from a 2007 report, "U.S. Metro Economies: The Mortgage Crisis" by the U.S. Conference of Mayors.

At number three, Austin was right behind San Antonio, which grabbed the second spot thanks to solid employment figures and affordable home prices that continue to rise.
Oklahoma City took the No. 1 spot because of its strong housing market and solid growth in agriculture, energy and manufacturing. For its part, Austin was lauded for being a hip town with one of the lowest unemployment rates in the country.

Forbes magazine's list of recession-proof cities also included: Houston, Dallas, Charlotte, N.C., Raleigh, N.C., Salt Lake City, San Jose, Calif. and Seattle.

Forbes says that Texas cities such as San Antonio, Austin, Houston and Dallas-Fort Worth have benefitted from historically lower home prices, land availability and 'little zoning'. All four Texas cities boast falling unemployment rates, according to Forbes, with Austin dropping from 3.8 percent to 3.6 percent.

Why Mortgage Rates Aren't Lower

noreply@blogger.com (Violet Crown Realty) — Tue, 01 Apr 2008 02:33:00 +0000

With storm clouds hanging over the U.S. economy, Federal Reserve Chairman Ben Bernanke has gone on the offensive, slashing the federal funds target rate by 3 full percentage points—to 2.25 percent—since September. But despite the central bank's aggressive action, prospective homebuyers are left scratching their heads. After all, the average interest rate on a 30-year, fixed-rate mortgage has fallen by only about half a percentage point, to 5.85 percent, since mid-September. So what gives?
Here's a look at the factors influencing today's mortgage rates and a peek at where rates might be headed.

Does the Fed set mortgage rates? No. The Fed is responsible for setting the federal funds target rate, which is the interest rate that banks charge each other for overnight loans. "A bank's balance sheet needs to balance every day," says Ken Mayland, president of ClearView Economics. "If a bank needs funds, it will borrow. If it has a surplus, it will lend—at the federal funds rate." Interest rates on short-term certificates of deposit and commercial paper are closely linked to the federal funds rate, Mayland says, but its influence on fixed-rate mortgages is less direct.

Does the federal funds rate affect mortgage rates? Only indirectly. The fed funds rate affects a lender's borrowing costs. When the federal funds rate is cut, lenders pay less for the funding they need to finance loans. As such, they can reduce the interest rates they charge on mortgages without hurting their profit margins. "You're not looking at any kind of direct relationship," says Christopher Thornberg of Beacon Economics. "When you think about a fixed-rate mortgage, you're talking functionally about a 30-year bet of which the short- run costs of capital are but a minute part."

So what are the key factors that determine mortgage interest rates? Fixed mortgage rates typically track the yield on the 10-year treasury note. "The 30-year mortgage tends to have roughly the same [sensitivity to interest-rate changes] as a 10-year treasury," says T.J. Marta, a fixed-income strategist at RBC Capital Markets. "On average, people pay off their mortgage roughly every 10 years." The outlook for inflation plays a key role in determining the yield on the 10-year treasury, Marta says.
In order to compensate lenders and investors for the risk that home loans will not be repaid, mortgage interest rates are set higher than the yields on 10-year treasuries, which are essentially risk free. Historically, the typical difference between mortgage rates and the 10-year treasury yield—known as the spread—has been roughly 1½ percentage points. In the mortgage industry, the difference between these two rates is often referred to as a "risk premium."

How have those factors influenced mortgage rates lately? Although 10-year Treasury yields have declined in recent months, risk premiums have widened dramatically. The spread between the average 30-year fixed mortgage rate and the 10-year Treasury yield has ballooned nearly 60 percent over the past year, to about 2½ percentage points, according to HSHAssociates.com, which tracks mortgage rates. "That spread—the normal 1.5 percentage points—has gone haywire," says Orawin Velz of the Mortgage Bankers Association.

What is driving up those risk premiums? Before the housing crisis, mortgages were considered safe investments, so risk premiums were slim. During the housing boom, huge swaths of home loans were pooled together and sold to investors in the form of mortgage-backed securities. But rising delinquencies on subprime home loans led to large-scale losses for investors holding such products.
With demand for mortgage-backed securities evaporating, higher returns were required to attract new buyers, who were fleeing to safer investments like treasury securities. Meanwhile, banks—which have absorbed billions of dollars in losses since the onset of the crisis—have been requiring tougher underwriting standards and wider spreads on new mortgages.
"The spreads [between the 10-year treasury yield and mortgage rates] are wide because of a pickup in defaults and delinquencies and an expectation of more to come," says Michael Darda, chief economist at MKM Partners. (As a result, the recent declines in the yield of the 10-year treasury have been more than offset by the escalating risk premiums. That has prevented mortgage rates from falling as much as they otherwise might.

Will these risk premiums decrease anytime soon? As portfolios begin to heal from the housing market's wrath, risk premiums should begin to decrease, says Keith Gumbinger, vice president of HSHAssociates.com. "We'll start to get to a point where lenders will feel more comfortable passing along more of those declines in interest rates [to customers] and certainly expanding—nibbling at the fringes—of lending they used to embrace wholeheartedly," Gumbinger says. "So you should see some of those risk premiums start to decline, especially for the best credit quality borrowers."
Indeed, the risk premiums have decreased recently—although they remain well above historical norms. Gumbinger credits the narrowing in part to recent changes allowing government-sponsored mortgage finance giants Fannie Mae and Freddie Mac to increase their holdings of mortgage-backed securities. "Lots of liquidity is becoming available to good credit quality borrowers," he says.

What's the outlook for the 10-year treasury? While risk premiums may decline, the 10-year treasury yield is expected to increase. Marta of RBC Capital Markets expects the yield to be about 3.9 percent by the end of the year, up from its current yield of about 3.5 percent. "Back in January, on the [Société Géneralé] meltdown, we made our second-lowest yield in [modern] history," Marta says. "I don't really see that yields are going to get a whole lot lower than this."
So where will mortgage rates be at the end of the year? Velz of the Mortgage Bankers Association expects the rate on the 30-year fixed mortgage to be just over 6 percent at the end of the year. Rates could go lower, she says, should the economy slip into a protracted recession—which she does not expect.

How attractive are current mortgage rates? Although higher risk premiums may be preventing rates from falling as low as they otherwise might, today's mortgage interest rates are still pretty darn compelling. After all, the lowest average 30-year fixed rate ever recorded by Freddie Mac's weekly mortgage survey was 5.21 percent in June 2003. By that standard, the current weekly average mortgage rate of 5.85 percent is "very attractive," says Lincoln Anderson, chief investment officer and chief economist at LPL Financial Services.

By Luke Mullins
Posted March 28, 2008
US News & World Report

Austin Fifth Fastest-growing Metro area in Nation

noreply@blogger.com (Violet Crown Realty) — Fri, 28 Mar 2008 13:42:00 +0000

Austin hasn't lost its allure.
The city was the only one in Texas to make the list of the 10 fastest-growing U.S. metro areas, ranking fifth, with a population increase of 4.3 percent in 2007, according to the U.S. Census Bureau.

The Austin-Round Rock area had the eighth highest numeric population gain, with 65,880 new residents moving into the region in 2007.
Overall, four Texas metropolitan areas saw big numerical population increases last year.
The Dallas-Fort Worth region ranked No. 1 in the list of top 10 U.S. metro areas by overall numeric population growth with an additional 162,250 people from 2006 to 2007.
The Houston metro area ranked fourth on that list, with an additional 120,544 people, trailing Atlanta, with 151,000 people, and Phoenix, with 132,000.
Neighboring San Antonio came in tenth with an increase of 53,925.
The Census Bureau also reports that eight of the fastest-growing metro areas were located in the southern part of the country.

-As reported in Austin Business Journal 3/27/08

Study Ranks Austin as One of the Least Stressful U.S. Cities

noreply@blogger.com (Violet Crown Realty) — Sat, 01 Mar 2008 02:35:00 +0000

We live in stressful times. Consider the evidence:

Forty percent of Americans say they are frequently subjected to stress, and another 36 percent sometimes feel that way, according to a January survey by the Gallup Poll.
Nearly half of U.S. adults believe the stress in their lives has escalated during the past five years, as reported in an October study by the American Psychological Association.
Three of every 10 Americans say they experience persistent stress or have panic attacks, as documented in a November survey by the Anxiety Disorders Association of America.

These numbers reflect the dimensions of a "national pressure cooker," to use the American Psychological Association's term, and it's causing untold damage to physical and emotional well-being and relationships. Several factors contribute to the daily pressure felt by millions of Americans, ranging from finances and unemployment to traffic, crime and pollution. The intensity of this toxic mixture varies from market to market across the country, as does the level of stress.

BizJournals Rankings of 10 Least Stressful Metros:

Virginia Beach-Norfolk, VA
Salt Lake City, UT
Phoenix, AZ
Oklahoma City, OK
Austin, TX
Las Vegas, NV
Denver, CO
San Diego, CA
Jacksonville, FL
Providence, RI

The worst (Most Stressful Metros - full article)
Nowhere is the situation worse than in Detroit, which ranks as the most stressful metropolitan area in America, according to a new Bizjournals study.
Detroit is saddled with the highest unemployment rate, 7.2 percent, in any of the nation's 50 largest markets. It also has the group's worst murder rate. And it's among the 10 places with the most robberies, the slowest rates of income growth, the most heart attacks and the fewest sunny days.

Austin Business Journal - by G. Scott Thomas Contributing writer
and www.BizJournals.com

Austin Housing Demand Still Higher than Average

noreply@blogger.com (Violet Crown Realty) — Mon, 25 Feb 2008 23:47:00 +0000

By OLGA CAMPOS KVUE News

Nationally, home sales in January fell to the lowest level in nearly a decade while the median price for a home continues to decline. But in Austin, it's the opposite. While sales are down from year to year, 2007 is still on record as the second best ever for home sales with an increase in the median price.

In Austin sales are up 4 percent, the median price is up by 7 percent with houses staying on the market for about four months. While nationally home sales dropped by 13 percent with the median price down by 6 percent. Houses are staying on the market for more than nine months before selling.

The Austin Board of Realtors says homes sales in January 2008 are down 10 percent from January of the previous year, but even with that month-to-month decline, Gay Puckett, of J.B. Goodwin Realtors, says Austin is a hot housing market. "It was the second best year in the history of Austin real estate," says Puckett.

She says new homes are selling, others are being remodeled and local businesses are booming in neighborhoods like Crestview.
"It makes me thrilled because we just bought our house a year ago," said Jaime Brydson. Brydson is tracking the value of her new home in her North Central Austin neighborhood.
"I read the paper and I'll see how percentage wise our property has already gone up in the past year. I feel like not only did we get a great house, but we made a fantastic investment," she said.
Experts predict 41,000 new jobs will be created over the next two years making increasing population and new employment the key reasons why the local housing market stays in better shape than the national average.

Here are more housing stats: 1,321 single family homes sold last month and the Median price of a home was $183,000.

05:47 PM CST on Monday, February 25, 2008

Some Cities Are Spared the Slide in Housing

noreply@blogger.com (Violet Crown Realty) — Sat, 16 Feb 2008 03:34:00 +0000

AUSTIN, Tex. — The real estate market these days is a tale of two Americas, and one of them is not doing too badly.

In the America of big-city housing markets, especially on the coasts and in the struggling industrial Midwest, the huge run-up in values in recent years has given way to big drops in prices and sales volume. Millions of people owe more than their houses are worth.
But in the other America, specifically in cities like Austin; Grand Forks, N.D.; Yakima, Wash.; and Salem, Ore., the available evidence suggests the real estate market is holding up. Prices there never boomed as crazily as they did in the big cities, and now, even though volume is down almost everywhere, prices in many of these towns are firm or rising.

Consider the experience of one Austin resident, Dan Clark. Forced by a job change to put his house here on the market, he wondered whether he would get anything like the $385,000 he paid for it a year ago. He was floored when the second potential buyer to look at the place snapped it up for $429,000. “Manna from heaven,” he said. Many people are aware that a handful of big-city markets, like Manhattan and San Francisco, have largely resisted the real estate slide. It is less widely known that the same thing is true in scores of smaller markets.
“I would call them backcountry cities,” said Robert J. Shiller, an economist at Yale University and an expert on real estate markets who predicted the bursting of both the housing and stock market bubbles of recent years. “They are just going through normal growth, and they are out of the bubble picture.”

In figures released on Thursday covering 150 metropolitan areas, the National Association of Realtors said that median home prices were falling in 77 markets — but rising in 73.
Real estate statistics must be interpreted with caution, especially when sales volumes are declining, as they are all over the country. But an analysis by The New York Times of three distinct data sets — mortgage data from the government, sales figures from the Realtors’ group and courthouse records from a company called Data Quick — produced a list of 17 metropolitan areas where all three sources of information agree that prices were still rising as of late last year, the most recent figures available.

For another 43 cities, two data sets, from the Realtors and the government, suggested that prices were still rising late in the year. Data Quick could provide no information on those cities.
How long the situation will last is anyone’s guess. One possibility is that the smaller cities are just lagging behind the big ones in seeing prices fall. And if the economy weakens drastically, all bets are off. But for now, buyers in these towns seem to feel they are getting a lot of house for the money; sellers and brokers are realizing that they have, so far, dodged a bullet.

“When I read about the national real estate market, I feel fortunate I am in Austin,” said Shara Parker, a real estate agent who is happy she turned down a chance four years ago to relocate to Las Vegas, which was booming then and is sinking now. “Our highs are not as high and our lows are not as low.”

Economists say small and medium cities, especially those where land availability is not a constraint on growth, have done better than the nation as a whole because they have followed more traditional economic patterns. New-home prices in most of these places still reflect, more or less, the cost of the labor and materials used to build the houses, in addition to a profit margin. “There are a lot of places where you didn’t have flipping of real estate,” said Steve Dennis, a business professor at the University of North Dakota. “Since you didn’t have the price appreciation, you don’t have the price correction.”

Generally, the markets that are showing strength do not have the bulging housing inventories of larger cities, because there was relatively little speculative building during the early part of this decade. Most of the towns have only modest exposure to the subprime loan crisis. And falling mortgage rates are buoying these markets. Typically, their local economies are still producing new jobs and healthy income growth because of factors like rising crop prices (as in Bismarck, N.D.) or local oil booms (Midland, Tex.) or an influx of second-home buyers (Sun Valley, Idaho).
“In 2008, I see momentum growing in Middle America for prices to stabilize and increase, given the historic mortgage rates,” said Lawrence Yun, chief economist for the Realtors. But he added, “If we go into a recession, it’s possible some markets will reverse themselves.”

Austin is a good example of a real estate market that was slow and steady for years and now appears to be taking off. Austin’s high-tech industries are attracting well-heeled buyers from cities where real estate is far more expensive.
Sales prices for existing homes barely moved from 2001 to 2005, when the markets in a handful of superstar cities were on fire. But last year, the median price for a single family home rose 6.4 percent, to $185,000. It was the second consecutive strong year.
“I have to calm my buyer clients down,” said Mark Minchew, an Austin Realtor, “so they don’t pay too much.” The fly in the ointment for these cities is declining sales volumes, which prompt some experts to argue that median prices are presenting an unduly rosy picture. If fewer houses sell, but the ones that do sell are at the high end of the range, that can skew median prices.
“In the markets that are doing better, lots of people are not selling their houses, so you don’t see the prices going down because they are not selling for a lower price,” said Todd Sinai, a real estate professor at the University of Pennsylvania. “The market is doing a lot worse than what the median prices would show.”
Still, in many of the cities where prices are strongest, local Realtors contend that volume drop-offs have been modest, just a few percentage points. Mr. Clark is one Austin home seller with a happy tale. When a recruiter called him late last year with an enticing executive health care job in Fort Worth, Mr. Clark thought twice about trying to sell a house he had bought only a year before. “I was concerned after my relocation package ran out I would have to carry either two mortgages or a mortgage and apartment rent,” he recalled. Instead he sold the house for a profit, and only $10,000 below his asking price. “A weight was taken off our shoulders,” he said.
Mike Colpitts, the editor of Housing Predictor, an online housing forecaster, says that the market is still slowing and that some smaller cities will be hit. He projects that only 60 of the 251 markets in the United States that he monitors will show price appreciation in 2008. “The housing market is real sad, and getting sadder,” he said.
Realtors in medium and small cities contend the median price figures may actually underestimate market sentiment, because the issuance of large mortgages has frozen up in recent weeks because of problems on Wall Street. In the view of these Realtors, it is the high-end sales that are stalled in smaller cities, skewing the median price data downward.
“Call me back next year, and we’ll probably have a 3 percent to 5 percent price increase in 2008,” said Rob Higgins, executive vice president for the Spokane Association of Realtors. The median price for a home sold in Spokane was up 2.6 percent in 2007.
In Salem, Ore., “everything is going up, even the lower-income homes,” said Marlene Scully, executive vice president of the Salem Association of Realtors. Realtor data for the metro area that includes Salem showed a 3.6 percent increase for the year.
Ms. Scully noted that of the houses that were listed in 2007, 97.6 percent sold for the listed price, “which tells me there is a strong market because if there weren’t, the sellers would have to negotiate down.”
Clifford Krauss reported from Austin in late January and later added updated information. Ron Nixon reported from New York.
This article has been revised to reflect the following correction:
Correction: February 19, 2008 Because of an editing error, an article in Business Day on Friday about cities in which real estate values are holding up misidentified the state of one city cited as an example. The city is Salem, Ore., not Salem, Mass.

Reprinted from NYTimes.com

How Austin Stacked Up in '07 - Austin Monthly Magazine

noreply@blogger.com (Violet Crown Realty) — Sat, 02 Feb 2008 04:03:00 +0000

Here are some top ratings that Austin has received in the past few months...

No. 1 greenest city in America, MSN.com
No. 1 in terms of job growth, Forbes' "Best City for Singles"
No. 1 city for growing businesses, Expansion Management's "2007 Mayor's Challenge Rankings
No. 1 overall economic vitality, Moody's Economy.com, "Business Vitality Index"
No. 1 of top four cities to watch, AARP's The Magazine's "Great Places to Live"
No. 2 for overall characteristics, Travel + Leisure's "America's Favorite Cities"
No. 2 best eco-neighborhood (SoCo took the honors), Natural Home magazine
No. 2 best walking city, Prevention Magazine
No. 2 fastest-growing wine region (Hill Country), Orbitz.com
No. 3 adventure city, National Geographic Adventure's "50 Best Places to Live and Play"
No. 3 best city for young singles, Kiplinger's Personal Finance
No. 3 top city for making movies, MovieMaker magazine
No. 5 luxury housing market, Unique Homes magazine
No. 7 hottest job market for young adults, Bizjournals
No. 10 healthiest city in America, Sperling's Best Places
No. 16 hottest entrepreneurial city, Inc. magazine, "Boomtowns 2007"

Historic Fed Move Cuts Both Ways for Borrowers

noreply@blogger.com (Violet Crown Realty) — Thu, 31 Jan 2008 16:07:00 +0000

Hot on the heels of its surprise inter-session rate cut of 75 basis points last week, the Federal Reserve cut key interest rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth." In other words, economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.

Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit (HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next statement.

What does this mean for long-term rates?
Long-term mortgage rates, the lowest we've experienced in years, could actually increase after today's cut, based on historical performance and recent trends. So if you're waiting for long-term rates to fall further, don't count on it. Your best chance to lock in the lowest rates since 2005 is now. Getting your application in process now will allow you to capture a great rate before it's too late.

What REALLY moves mortgage rates?
Fixed-rate mortgage rates aren't directly tied to Fed interest rate moves. Instead, they tend to follow in the direction of other long-term government bond yields, such as the 10-year Treasury, which historically moves in accordance with the economic outlook and in advance of Fed actions. The performance of Mortgage Backed Securities, issued by Fannie Mae and Freddie Mac, is what really determines long-term mortgage rates.

How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a double-edged sword for borrowers. Combined with recent Fed actions, the package could create inflation and bring about higher long-term interest rates. On the positive side, conforming loan limits are likely to be raised from the current $417,000 to upwards of $625,000. This means great potential savings for purchase and refinance candidates who live in 20 high-cost areas across the country.

What should you do next?
If you're unsure how the rate-cut or the proposed legislation affects your mortgage, don't worry, you're not alone. There's no one-size-fits-all answer. Contact your lender & they'll review your mortgage and see what, if anything, can or should be done to make the most of your individual financial goals and needs.

Don't have a great lender? Contact us at we'll send you a few names of super lenders in the Austin area.

Austin listed as Best Place to Buy a Home by Entrepreneur.com

noreply@blogger.com (Violet Crown Realty) — Sat, 26 Jan 2008 04:48:00 +0000

Best and Worst Places to Buy a House - Whether you're looking for an investment property or a place to live, here's a look at the cities you should seek out and avoid in 2008.
By Danielle Babb January 23, 2008

The housing crunch and the excessive inventory--exceeding 10 months on resale homes--continues to take its toll on housing prices. But over the long term, housing is still a good investment. In fact, it's more than an investment; it's a home. Plus, you're not really saving anything by renting, as the costs of renting and owning are about equal (well, owning may be a little more). The tax benefits of home ownership far outweigh renting, too. With good housing prices in many great areas, this may indeed be the time to buy.
So now that I've convinced you this is a good time to buy a home, the next question is, Where do you buy one? No matter where you look, you should check out some basic economic fundamentals before buying. Is job growth stable in the area? Is income keeping up with inflation? Is crime above the national average? Is there a higher-than-average rate of foreclosures? These issues and others play a factor when deciding where to buy a house.
As a real estate investor and analyst, it's my job to provide buyers with qualified information on where to buy--and where to stay away from. Here are my thoughts for 2008 based on the indicators noted above.

The Top Places to Buy

Whether you're an investor like me or you're looking to purchase that next move up, here are my picks for the best areas to buy a home:

Killeen, Round Rock, Austin, Texas: Killeen has the lowest average home price in any market in the nation while still maintaining quality. Round Rock and Austin have seen incredible job growth and very stable home prices despite the downturn nationwide. Jobs continue to grow here--a factor for keeping inventory low and prices stable.
Mission Viejo, California: Mission Viejo has the lowest crime statistics in the nation. With no murders in 2007 and a low rate of violent crime, this is a good place to raise a family. Prices are relatively stable, and the job market in the nearby cities of Irvine and San Diego means there is consistent demand from job seekers.
Palm Beach, Florida: I'm taking a risk here because this area has been pummeled by foreclosures in 2007. But there are also a lot of boomers retiring, and Palm Beach is looking mighty attractive. If you don't like this high of a risk (which translates to great prices), check out Tampa or Clearwater in the same state.
Las Vegas, Nevada: Yes, Las Vegas has been hit hard by incoming investors, who watched their home values disappear and then left those homes empty. Las Vegas comes in quite high on the national foreclosure list, almost always within the top three metro areas. But there's an upside--a very strong job market. In 2007, Las Vegas experienced a 12 percent increase in population, partly driven by retirees looking for Sunbelt states to move to. Coupled with low prices, we could see inventories reduced here, which would also stabilize prices. Be careful what you buy, but I like it.

To see the Places to Avoid: see the full article at: http://www.entrepreneur.com/money/personalfinance/article189454.html

Google signs lease in Austin at Scarbrough Building

noreply@blogger.com (Violet Crown Realty) — Sat, 26 Jan 2008 04:18:00 +0000

Google is headed to downtown Austin.
The Internet search leader has leased the second floor of the historical Scarbrough Building for an engineering center, said Office Leasing Advisors Inc., the Austin firm that represented Google Inc. in the deal.

Google will occupy 25,000 square feet of the art-deco-style building at Sixth Street and Congress Avenue, Office Leasing said.
Mountain View, Calif.-based Google did not respond to inquiries about the Austin office.
In recent months, Google has posted Internet job listings for an engineering director in Austin to head up a group of 100 or more engineers. It also has posted listings seeking software engineers in Austin. The Scarbrough office could hold 125 to 150 people, according to real estate brokers.
The entrance of a high-profile, national tech player like Google is a coup for Austin's technology industry, tech recruiters and executives said.
"Google is another marquee name in the technology world that we can say we have in Central Texas, and in addition to getting the Google name, we'll probably get some good-paying jobs with it," said David Porter, senior vice president of development for the Greater Austin Chamber of Commerce.
The Google news follows announcements by other California-based firms to relocate or expand in Austin, including PayPal Inc., an eBay-owned online payment system that is locating a data services center in Austin that could have up to 300 workers by next year. Also, Borland Software Corp., a personal computer software company, is moving its headquarters to Austin from Cupertino, Calif., and expects to have 150 to 200 employees in Austin this year.
High-tech recruiters said Austin is a natural fit for Google, which has nearly doubled its work force every year for the past four years and now has about 12,200 employees worldwide.
In addition to the specific technical skills that match Google's personnel needs, Austin's youthful, freewheeling attitude that encourages risk-taking makes it a good cultural fit, said Kim Butler of Greywolf Consulting Services Inc.
Google, which has become a high-powered recruiter on college campuses and has opened a number of research and development centers near university communities, stresses that it looks for ability more than experience when it hires.
"It's a tremendous match for the city," Butler said. "They're looking for innovation, and that's what Austin brings to the table."
In turn, Google will accelerate growth in Austin, he added, saying, "It's like if you're trying to start a fire, you can twirl the stick in the pit and wait for friction or you can get one of those Duraflame logs and light it up with a match. That's the kind of impact that a Google can have on a city like Austin."
Google's choice of ZIP code is also a boost for downtown, which is undergoing major changes, from the new shops and restaurants in the Second Street retail district to a residential building boom that is adding hundreds of apartments and condominiums. Tech companies expanding downtown include Silicon Laboratories Inc., the chip design company that has 430 employees at its headquarters on West Cesar Chavez Street and is negotiating to buy a neighboring six-story building.
"Downtown has always been home to state government and accountants and attorneys, and now we're becoming a destination for tech companies," said Molly Alexander, associate director of the Downtown Austin Alliance, which represents downtown business and property owners. "They're looking for unique and unusual spaces that are reflective of their culture."
When a player like Google lands downtown, Alexander said, "it raises the profile for others to say, 'If we want to go to Austin, we need to go downtown.' "
lhawkins@statesman.com; 912-5955
Scarbrough Building history
• The Scarbrough Building was Austin's first skyscraper and marked the beginning of Austin's downtown business district.
• It was built for Emerson Monroe Scarbrough, a successful merchant.
• It was designed in the Chicago style by Fort Worth architects Sanguinet and Staats and opened in 1910.
• Bets were taken on whether it, the city's first steel and concrete structure, would stand or fall.
• Art deco elements were added in 1930.
• The second story, which will be home to Google, housed the Scarbroughs department store for years until its closing in 1983.
Sources: Austin History Center, American-Statesman archives

By Lori Hawkins and Shonda NovakAMERICAN-STATESMAN STAFFThurs., January 24, 2008

AUSTIN: Top 10 Best Performing Housing Markets

noreply@blogger.com (Violet Crown Realty) — Thu, 24 Jan 2008 18:38:00 +0000

As anybody who has ever sold real estate knows, there are no national markets, only local markets. That adage holds true when you look at the condition of the real estate business nationwide. Business may be tough in many places, but it’s not tough all over.

In Salt Lake City, Charlotte, N.C., and San Jose, Calif., prices have climbed relentlessly. In the Northeast, the biggest gainers are the gritty cities of Buffalo, N.Y., Pittsburgh, Pa., and Philadelphia.

In the West, business is brisk in Northern California and the Pacific Northwest.

Here are the top 10 best performing housing markets, according to Forbes magazine, their third quarter median home sale prices, and the percentage that prices have risen compared to third quarter 2006.

Salt Lake City — median home sales price: $246,700; Percent change: 14.1 percent
Charlotte, N.C. — $220,000, 11 percent
San Jose, Calif. — $852,500, 9.4 percent
San Francisco — $825,400, 8.6 percent
Raleigh, N.C. — $229,500, 7.5 percent
Austin — $188,200, 7.2 percent
Pittsburgh — $127,700, 6.1 percent
Seattle — $394,700, 6 percent
San Antonio — $154,700, 5.7 percent
Portland, Ore. — $299,700, 5.2 percent

Source: Forbes, Matt Woolsey (11/21/07)

Forbes votes Austin one of the Best Cities For Jobs In 2008

noreply@blogger.com (Violet Crown Realty) — Wed, 23 Jan 2008 15:00:00 +0000

The Lone Star State shines brilliantly in a list of the best places to work in the U.S. when some economists peer into their crystal balls for 2008.
Austin, Fort Worth, Houston and San Antonio all rank high on the latest forecast data from Moody's Economy.com. McAllen, Texas, is expected to have the highest job growth rate, as its leisure and hospitality, educational and health services and commercial construction jobs flourish.
"While the economy is cooling, Texas continues to generate more jobs than the national average," said Krista Piferrer, deputy press secretary to Gov. Rick Perry. "Unemployment is low in Texas, thanks in large part to a favorable business climate that encourages businesses to expand or relocate to our state."In Pictures: Best Cities For Jobs 2008
Even still, Salt Lake City, in all its tech-job abundance, looks like it will remain No. 1 since Forbes.com's most recent ranking ( see last year's story).
To compile the rankings for the Best Cities For Jobs list forecast, we used five data points, weighted equally: the state's unemployment rate, job growth, income growth, median household income and cost of living for full-year 2006 (only partial data is available so far for 2007). We measured the largest 100 metropolitan areas, as defined by the U.S. Census Bureau, and obtained the data from Moody's Economy.com.
The numbers are compiled based on greater metropolitan areas; it's also important to note that this list doesn't weigh specifics like job composition or job stability, two significant characteristics that will appeal to any job seeker.
Mark Zandi, chief economist and co-founder of Moody's Economy.com, acknowledged the housing market depression the company is facing and said the destinations that prevail on this list weren't as heavily vested in the real estate development boom, which ultimately led to a historic bust.
That's not to say the highest-ranking cities on this list are completely in the clear, though: "If we have a national recession, if problems intensify nationwide, these economies are going to struggle," Zandi said.
The top cities on this list also include Atlanta, plentiful in transportation, distribution and financial services careers. Indianapolis has a strong showing in agriculture, too. Omaha, Neb., Warren Buffet's hometown, offers jobs at opposite ends of the spectrum, in financial services and agriculture as well. The Emerald City--Seattle--brings aerospace and global trade professions to the table.
Kurt Ronn, president and founder of HRworks, an Atlanta-based job recruitment and consulting firm, said Americans gravitate to certain locales based on opportunity and affordability, both offered right in his backyard.
He noted that, on a broad scale, the employment picture has been strong in the areas of technology and logistics, such as in distribution and sales.
Some notables: Honolulu is the best in the pack for low unemployment, a good sign that tourism there remains healthy. Edison, N.J., ranked the highest in the median income category. Buffalo, N.Y., has the lowest cost of living, while San Jose, Calif., has the highest. New York sits at No. 58 on the list, while Los Angeles is No. 87.

http://www.forbes.com/leadership/2008/01/10/jobs-economy-growth-lead-careers-cx_mk_0110cities.html

The State of Austin's Housing Market

noreply@blogger.com (Violet Crown Realty) — Sat, 05 Jan 2008 04:28:00 +0000

The end of 2007 will see the Austin Housing Market sell about 94% of the number of homes that were sold through the Austin area MLS in 2006, the most prolific year ever in Austin home sales. Historically this will place 2007 Austin homes sales in second place.

Yet, concert has arisen about the slowing housing market due mostly to headlines comparing ’07 with ’06. Comparing any year to the best year ever is going to give less than impressive numbers; however, our average home price is up $16,000 over ’06 (through October ’07). Our total value of homes closed is above ’06, but the number of homes sales is down 5.7% and the days on the market is up slightly.

Austin’s job and population growth is very strong (4+%) and appears to be getting stronger. The report that Property & Portfolio Research, Inc. of Boston recently completed indicates that Austin has possibly the highest office rent growth in the nation and is projecting 2008 at a 9.2% increase. Google is nearing finalization of a lease for 25,000 square feet in the downtown area (ABJ) and is one of many such companies locating offices here. Our direct monetary impact from tourism is up 19% over three years (ABJ). Apartment occupancy rates rose 1.43% in the third quarter to 94.14% overall at a rate of $.95 per square foot (highest in the state and rose 6.2% over ’06) on an average of 834 SF apartment (Austin Trends Report and ALN). Unemployment is at 3.5% and more employers are being announced weekly.

So, why all the concern? Too many people read national stories and apply it locally. Austin is not a declining market. Austin’s inventory is growing and this means more days on the market and more motivated sellers. Our inventory is growing for only two reasons: fewer buyers and more homes. Why has this happened? We have fewer Buyers due to lack of easy money. We have more homes a 4.6 months supply which is up from our 3.1 months supply in 2006. The truth is, we has drifted into a period that anyone who wanted a loan could get one and the foreclosures are mounting so the lenders went back to the former standard.
Bottom line, this is healthy adjustment. Austin just happens to be in the right place at the right rime. The nation’s situation is bringing interest rates down while we are experiencing a rental boom.
There is no better place to invest today than Austin!

Austin No. 1 in a ranking of 381cities based on their Economic Vitality by Moody's Economy.com

noreply@blogger.com (Violet Crown Realty) — Sat, 15 Dec 2007 04:37:00 +0000

The clouds are gathering over the national economy, but the forecast is better for the Austin area. For the second time this year, the metropolitan area has come out No. 1 in a rating of 381 cities based on their economic vitality. Moody’s Economy.com rates the cities based not only on what’s happening now but also the near-term outlook and potential risk factors. Austin came out ahead on factors including the high quality of its work force, its strong base of innovation and population growth.
Austin American Statesman, Friday, December 14, 2007
Business & Personal Finance Section (Austin, Inc.)