Real Estate Information

David S. Jones | columnist

Dec. 27, 2011

On New Year’s Eve, many bid farewell to the old year by singing “Auld Lang Syne” lyrics that include, “Should old acquaintance be forgot and never brought to mind.“

Apparently, it will be hard to forget 2011 because 2012 is expected to look pretty much like it.

If the experts are correct, however, Texans will again have more to sing about in the New Year than will their fellow Americans.

Texas: Slow but still leading

Real Estate Center Chief Economist Mark Dotzour, Ph.D., sees “modest, positive economic growth” for the nation in the next 12 months. Nationally, he expects 2012 to look something like 2003-06.

By comparison, Dotzour predicts a “much more robust economic outlook” for Texas in the coming year. He bases this on documented evidence that Texas dramatically outperformed the United States in 2011.

The state’s positive job growth came not only in the energy industry but also in construction, manufacturing, retail, transportation, professional business services, health care, and hospitality.

“Job growth is occurring in nearly all Texas metro areas and is likely to continue into 2012,” says Dotzour.

Wait-and-see election watch

Real Estate Center residential expert Jim Gaines, Ph.D., doesn’t expect major business and investment decisions until after the 2012 election. Even then, he predicts first quarter 2013 will be sluggish despite what should be low interest rates through 2013.

Gaines believes the U.S. housing market will remain steady with no major movement in 2012. He says Texas and local housing markets should show some modest improvement but no major upgrade.

“In general, Texas’s housing markets in 2012 are expected to show small, but nevertheless positive gains,” Gaines says. “The projected levels of home sales, prices, and new construction statewide for 2012 and into 2013 indicate gradual improvement. This gradual improvement should also prevail in most local markets, with some doing better than others based on local factors.”

Dotzour says buyers and sellers are aware there is a “shadow inventory” of between 4.5 million and 6 million homes that have delinquent loans and will soon need to be sold.

“It is unlikely that home sales volume will return until this overhang of distressed houses sells to investors,” he says. “Unfortunately, the foreclosure process is severely retarded from the normal pace.”

Distressed commercial sales going up

According to commercial real estate insiders, distressed sales are on the way up. Real Estate Center Research Economist Harold Hunt, Ph.D., talked with Texas commercial real estate professionals about the outlook for 2012.

Real Capital Analytics reports about $1.2 trillion in commercial real estate assets were traded nationally between 2005 and 2007.

“For the most part, these assets are still being held by those purchasers,” Russell Ingrum, managing director of investment sales in the CB Richard Ellis Houston office, recently told Hunt. “As a result, many of them will come up for sale in the next four years, depending on holding period, market conditions, and so on.”

These properties could represent $200 billion per year in transactions. Many of them will be in the distressed category because of when they were purchased.

“If you are a broker, you should consider focusing on what traded back then,” says Ingrum.

Stagnant land market

“The trouble is we have not dealt with the problems that caused 2008,” says Research Economist Charles Gilliland, Ph.D., the Center’s authority on rural land. “In the early 1980s, the Latin American sovereign debt defaults wrecked balance sheets.

“The solution was to pretend that nothing had really happened and let the economy come back to allow write offs of those bad debts. This time we are trying the same thing, but the recovery is not happening.

“Nobody knows how long it might be before a reckoning ensues. It would appear that an increasing number of observers are deciding that it is going to be a while. So, with that preamble, I’m thinking that the land market is likely to extend recent trends through 2012.

“Those are fewer sales than had been the norm. Smaller sales than had been the norm because larger properties still are not selling. Overall, it looks like a rather stagnant market.”

Oil shines bright in Texas

“The Texas story is brighter,” confirms Dotzour. “For the past 15 years, Texas seems to double the U.S. economy in terms of job growth. It will continue to do so in 2012.”

Dotzour sums up the Texas economic outlook heading into 2012 and beyond …

“The oil and gas industry is on fire,” he says. “We are experiencing job growth in all sectors except for government and information. Our population is expanding. People are migrating here from places like California and Illinois, where taxes are much higher and regulations more prohibitive. Businesses and investors are cautiously hopeful that the economic environment in America could become substantially more attractive in 2013.”

There is a lot of Spring Texas real estate available for sale nowadays, so potential homeowners won't have trouble finding homes that will suit their needs. In fact, regardless of whether you want to find a luxury home, a planned community home, a single family home or an inventory home, you will definitely find one to meet your family's needs.

If you are looking for a single family home, then you should take a look at Northcrest Village, which focuses on environmental conservation and has an Esmart feature theme. This means that the homes are constructed with indoor air quality and water and energy conservation in mind. There are a lot of different facilities and amenities available here, too, and the international airport and shopping malls are easy to access, including various entertainment and sporting facilities.

Another great place to find Spring Texas real estate would be Legends Ranch 50. The homes here focus on energy and water conservation, as well, but are mostly set in more luxurious surroundings. They have great features available, too, including 24/7 guards and recreational facilities, like walking trails, amenity lakes and a clubhouse, to name a few.

Spring Texas real estate has a lot of things going for it, so it appeals to all kinds of homeowners. And, since it is located near Houston, the town's residents can get to the city with ease and enjoy the facilities there, as well. The same goes for the Woodlands amenities. Spring also has a lot of good golf courses and recreational facilities available and it is on the borders of Montgomery County, too, so it has both the country and city experience going on.

There are also a lot of different shopping facilities available in Spring Texas, including a Kroger, a Walmart a Palais Royal and Walgreens. The town's business is also very vibrant as can be seen through its Chamber of Commerce in Spring itself.

Yes, Spring Texas real estate definitely has a lot going for it, so it really isn't any wonder why so many potential homeowners go there looking for a home. However, if you want to find a home for sale in Spring Texas yourself, then it would be highly recommended to find a realtor who works in the area and knows the place by heart. This way, you can be sure that you find the perfect home for your family.

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Purchasing Homes

Everyone in Spring Texas eventually experiences that moment of clarity in which they realize that they are at a point in their lives at which they should look into purchasing a home of their own. No more pouring money into the pit of rent fees. No more gaining nothing from your monthly payments. Everyone reaches that point where they are ready to work towards owning a home in Spring Texas for their family and themselves. However, it can be confusing to decide which home is the right one for you. Homes with more bedrooms have more space, but do you want the extra hassle? Homes with more bathrooms are more comfortable for larger families or couples who entertain frequently, but do you have the time to keep that many bathrooms clean and stocked? Homes in Spring Texas with a yard are awesome for those who have a dog or little children who want to play, but are you prepared to take care of the necessary upkeep that comes along with homes with a yard? When deciding between the scores of homes that are available for purchase, it is important that every potential homebuyer pays careful attention to the pros and cons of all the features of those homes such as bedrooms, bathrooms and a yard.

Touring Homes

When touring various homes with your real estate agent in Spring Texas, are you left puzzled as to how many bedrooms you should ideally purchase? You are not alone. In Spring, Texas, it is quite a puzzle as to how many bedrooms make homes too large and how few bedrooms make homes too small. Homebuyers want to see enough space in their homes for every member of the family to have their own personal bedroom, however, many homebuyers also consider purchasing homes with an extra bedroom so that they can have a guest bedroom for out of town family and friends. On paper, this idea sounds foolproof, without a single negative aspect. When you take a second glance though, homebuyers realize that homes with extra bedrooms require extra cleaning time. For the busy working couple, extra cleaning time may not be a possibility. For others, who have hired cleaning services, this extra cleaning time is worth having a guest bedroom in their homes. This is all up to your personal preference, though the cleaning time associated with that extra bedroom should definitely be discussed prior to purchasing one of the larger homes that you toured with your realtor.

Homes Planning

For those in Spring Texas with a large number of social events and gatherings planned for their new homes, it is important that a home with more than one bathroom is purchased. However, these homes with more bathrooms require more cleaning attention, just as homes with more bedrooms. If you are one of the home buyers who cringed at the idea presented above that you may need to log a few extra hours in order to assure that your home is squeaky clean, maybe an extra bathroom is not the choice for you. But, for some, the idea of having an extra bathroom for the nights that they are entertaining is entirely worth the extra scrubbing time.

Home buyers

Another issue for potential home buyers who are looking at prospective homes in Spring, Texas is whether or not a large yard will be necessary for their growing family. Once again, the labor that accompanies this luxury in homes needs to be considered. There will be mowing that needs to be kept up with, either by you or by a contracted lawn service. For some, mainly those with pets, this is a no brainer. They want Fido to have a place to run around, so they are willing to do whatever it takes to tame the lawn.

Homes Spring Texas

Looking at homes in Spring Texas can be an extremely confusing experience. Prospective home buyers need to keep in mind not only the benefits of the extras the homes they see have to offer, but also the maintenance that will be necessary for the upkeep of those homes.

Buying a home can be a long, complicated and frightening process, and it is important to be prepared. Knowledge is power when it comes to negotiating the difficult world of home prices, interest rates and mortgage loans. For a first time home buyer, there are many factors to consider before you buy. The more information you can gather before you start shopping, the better off you will be.

Look Beyond the Price

When it comes to securing a quality mortgage loan, it is important to look beyond the interest rate to the true cost of the loan, both now and in the future. Read the paperwork, including the fine print, carefully, especially if the interest rate is below market rates. Upon closer inspection you may find that the interest rate is guaranteed for only a short period of time, or that it is subject to rise sharply in the future. Your mortgage loan may be the most important contract you will ever sign, and it is essential that you understand your rights and your responsibilities before signing on the dotted line.

In many cases it will make sense to hire a lawyer to review the mortgage paperwork for you. Many communities provide some sort of first time homebuyer program designed to help renters become homeowners, and these organizations may be able to provide the legal advice you need at a price you can afford.

Every Situation is Unique

Every homebuyer will have a different set of circumstances, and it is important for the lender to consider those factors. Some homeowners may plan to move in a year or two, and they may be able to benefit from a variable rate mortgage. Others will plan to remain in their home for decades, and those home buyers may benefit from the stability of a fixed rate mortgage and its predictable and stable monthly payment.

It is also important for those buying a first home to factor in the additional costs of the mortgage when deciding how much they can afford to pay. Things like closing costs and the high price of private mortgage insurance can drive up costs and eat into funds that would otherwise be available for home improvements, furnishings and other essentials. In some cases sellers may be willing to pay some of the closing costs, and some lenders will be able to negotiate those closing costs downward. The key is to ask those questions before the closing date arrives, and to be prepared to search for a better deal if necessary.

First time buyers should also be on the lookout for any hidden fees. These small nuisance fees can add up to hundreds of dollars on closing day, so be sure to scour your paperwork for any such fees. If you are unsure about the legitimacy of any charge be sure to ask for a valid explanation. Again, an experienced real estate attorney can provide valuable insight into which fees are reasonable and which are out of bounds.

And of course first time home buyers should not lose sight of the home itself in the quest for the perfect mortgage. Any defects should be pointed out to the seller well before the closing is to take place. The costs of every needed repair should be carefully negotiated prior to the purchase, and buyers should always follow up to make sure that all requested repairs have been made. A home is a major purchase, and it is important to make sure that everything has been taken care of before moving in.