Instead of blogging about each article individually, I’ve decided to lump these three blurbs of articles that discuss the latest and greatest regarding our fabulous city… These are the types of articles I send out to out-of-town buyers keeping them informed of what is going on locally. It can be a bit depressing to hear what is going on nationally, but there’s a little ray of sunshine shining down on our market:)
Friday, October 23, 2009
BusinessWeek: Austin 2nd strongest economy in the nation
Austin Business Journal
Recovery is still in the works, but the overall economic picture isn’t quite so bad in Austin as it is elsewhere.
According to a new ranking from BusinessWeek, Austin is the second strongest city in the nation right now, right behind No. 1 San Antonio.
BusinessWeek used research from the Brookings Institution that looked at a number of factors across the 100 largest U.S. metro areas, including job growth, gross metro product, unemployment change and home prices. Austin won praise for its relatively low unemployment rate and stable housing picture.
Texas came out well ahead of the other 49 states. Not only did San Antonio and Austin rank first and second respectively, but Texas had five cities among the top 10.
Click here for the Business Week Article : http://images.businessweek.com/ss/09/10/1022_40_strongest_us_metro_economies/index.htm
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Thursday, October 22, 2009
Stratus lines up replacement loan for W
Austin Business Journal
Stratus Properties Inc. and Canyon-Johnson Urban Funds, the two partners in the downtown W Austin Hotel & Residences, said Thursday that they have closed on a replacement construction loan for the project.
The loan is being funded by Beal Bank Nevada and originated by Beal’s wholly owned lending subsidiary, CLG Hedge Fund LLC.
Earlier this year Stratus bought back the construction loan from Corus Bank NA when that bank began to fail. The search then began in earnest to find a replacement loan before funding ran out. Construction continued on schedule and currently the building is at the 25th of its 37 total floors.
“Our ability to secure a construction loan in the current economic climate reflects the strength and quality of this project and of the relative strength of the local Austin real estate market,” said Beau Armstrong, CEO of Stratus Properties (Nasdaq: STRS).
Armstrong also credits the relatively small supply of high-end condos in downtown Austin for the team’s ability to secure the loan.
The mixed-use project, known as “Block 21,” is bounded by Second, Third, Lavaca and Guadalupe streets. It will include 159 luxury condo units, 252 hotel rooms, 18,000 square feet of retail and restaurants, 37,000 square feet of office space and a live music venue that will be the new home of Austin City Limits.
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Tuesday, October 27, 2009 According to NAR
Market Conditions
Realty Times
Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.09 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.
Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Regionally, existing-home sales in the Northeast increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price in the Northeast was $234,700, down 7.0 percent from a year ago.
Existing-home sales in the Midwest jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price in the Midwest was $147,600, which is 1.0 percent below September 2008.
In the South, existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price in the South was $153,500, down 7.6 percent from a year ago.
Existing-home sales in the West surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.