Aaron Layman's Katy Texas Real Estate Forum

Spring Is In The Air In Katy Texas

After what seems like an unusually long winter this year, the plants are finally starting to bloom again.  Unfortunately for many Katy home owners, not everything has come back to life.  Some of our favorite tropical plants didn't fare too well in the twenty degree temperatures this winter.

That means its time to get out the gardening tools and get to work replacing dead landscaping, and sprucing up the landscape.  New plants, and fertilizer for the lawn should have most Katy area yards looking green again.  Local nurseries are likely to be very busy this spring break with so many homeowners working on their yards.  Many lawn service companies have been piling on the mulch again in what has become an annual ritual.  Remember to be kind to your trees and take it easy on the mulch volcanoes.

If you're planning on selling a home, a little attention to detail will go a long way when it comes to your bottom line.  Good landscaping will certainly add value to your home, and bad landscaping can prevent some potential buyers from even looking beyond the front door.

Katy Texas & West Houston Real Estate Market Update - February 2010

Katy home prices saw a surprising jump for the month of February compared to year-ago levels. Both South Katy and North Katy experienced year-over-year gains during the month although actual sales were off by a significant margin in area 25.

The jump in average prices is likely a direct reflection of the tight  inventory levels in the area.  Inventory in area 25 currently stands at 4.9 months, while South Katy currently stands at 3.5 months, one of Houston's tightest markets in terms of supply.

With the tight inventory levels, it's no surprise that sales of distressed property showed little change for February.  The foreclosures that do hit the market are selling quickly, and short-sale listings are still taking time to move as banks drag their feet.

Area 36 - South Katy	Feb 09	Feb 2010	Change
Closed Sales	145	148	3
Average Sales Price	$239,658	$269,687	$30,029
Ave SqFt	2878	2968	90
Ave Sales Price per SqFt	$83.27	$91	$7.59
Days On Market	89	73	-16
Area 25 - North Katy	Feb 09	Feb 2010	Change
Closed Sales	85	59	-26
Average Sales Price	$116,203	$142,154	$25,951
Ave SqFt	2144	2273	129
Ave Sales Price per SqFt	$54.20	$62.54	$8.34
Days On Market	97	56	-41
Foreclosure Report		Area 36	Area 25
Foreclosure Sales Closed Feb 2010		8	14
Short Sales Closed Feb 2010		3	1
Distressed Property Sales Feb 2010		11	15
Distressed Property % of Sales Feb 2010		7.43%	25.42%
Active Forclosure Listings		19	45
Active Short Sale Listings		21	37
Active Distressed Property Listings		40	82

Shopping For Elecricity in Katy, Houston Texas

It's time for this Realtor/blogger to shop out the electricity plan for our Katy home.  Our fixed rate plan is set to expire in the next month, so I thought I would check current rates in the Houston area.  The big name carriers continue to be some 20 to 25 percent above the competition.  I've been hearing ads from TXU lately about their fabulous fixed rate plans (no variable rate plans from TXU), but their fixed rates are all high.  Centerpoint, our local transmission provider, is even higher.

Electric Provider	KWh Price For 12 Month Fixed Rate
Mega Energy	10.6
Spark	10.8
Gexa	10.9
Reliant	13.4
TXU	12.7
Green Mountain	13.4

While shopping for a plan, I was looking for a provider with a good 12 month fixed rate and reasonable complaint statistics.  It looks like this year's winner is going to be Mega Energy.  They are one of the newer companies in the area, but they seem to be offering some of the best rates and also have one of the lowest levels of complaints.

Prices for solar panel modules continued to fall in the first quarter of 2010.  I recently priced out a 4.8 kW grid-tie system for only $3.54 per watt.  The cost of the system was under $12,000 after the 30 percent federal rebate.  If we see similar price reductions in the market going forward, the argument for going solar will be too compelling to resist.  Things are shaping up such that I hope to pull the trigger by fall and make a sizable dent in my electric bills.

Home Affordable Refinance Program (HARP) Extended Through June 30 2011

After evaluating the state of the nation's current housing market, Federal Housing Finance Agency director Ed Demarco said, "FHFA has reviewed the current market situation and the state of mortgage insurance availability and has determined that the market conditions that necessitated the actions taken last year have not materially changed."

With these comments, FHFA is authorizing the extension of HARP through June 30 2011.  They are also signaling that the mortgage market is still performing poorly and many more borrowers are at or beyond their walkaway threshold.  With LTV's as high as 125%, HARP allows moderately underwater borrowers the opportunity refinance into a better fixed rate loan with a lower monthly payment.  The HARP refinance program has been more successful than the much-maligned Home Affordable Modification program.  The extension of HARP could be a carrot to keep more borrowers paying on their mortgages.  It may also be a trade-off for the soon-to-be-expiring home buyer tax credits.

Home Price Forecast For Katy, Houston Texas Shows Little Change in 2010, 2011

While much of the nation may be looking at still lower home prices over the next 12-18 months, Katy and the Greater Houston area should remain relatively stable.  A recent Fiserv analysis shows that prices in the U.S. will fall by another 6% on average.  The forecast for the Houston area shows little change, with a drop of 0.8% this year with a gain of 0.5% next year.

Expiring stimulus efforts and a resurgence in foreclosures will challenge many markets.  A recent report on mortgage delinquencies showed that more than 10% of Texas mortgage holders had missed a payment.  While that's certainly a high number, it's still less than the national average.  Texas is still well below the national average in foreclosure rates with only 2 percent of loans in foreclosure.

Markets in California and Florida could be looking at additional price declines of 25 to 30 percent. Part of the problem with these areas is the shear number of homes on the market, and the number of borrowers who are already severely underwater beyond the point where they are willing to walk away from their mortgage.  Data suggests that the breaking point for homeowners is negative $70,000, meaning that when they are upside down by $70,000 the temptation to walk away from the debt becomes less about emotion and more simply a business decision.

Houston area housing numbers show relative stability compared to the rest of the country, and that picture looks to continue going forward.  Undoubtedly, some neighborhoods will not perform as well as others.  Much of that variation will likely be attributed to inventory levels.  It boils down to a simple supply and demand equation.  Here is a perfect example:

Cinco Ranch - 2.9 months' inventory with an average price of $304,010 (sold prices)

Royal Oaks Country Club - 18.6 months' inventory with an average price of $720,448 (sold prices)

One of these markets is going to be a poor performer during the next 12 months.  You be the judge.  

Katy ISD Board Approves Attendance Boundary Modifications and Volunteer Enrollment Option

The Katy ISD Board of Trustees officially approved attendance boundary modifications for the 2010-2011 school year, as well as a Volunteer Enrollment Option(VEO) which will allow students grandfathered to remain at their current high school to instead choose to move move to a new campus.  The district will hold an information meeting for those interested in the VEO on Monday, March 1st.  Attendees are encouraged to RSVP for the meeting.  Parents can download and print the VEO Applications for SLHS to CRHS or CRHS to THS.  The applications will be accepted between March 1st and March 12th.

The board's vote to approve attendance boundary modifications comes after hundreds of hours of staff work and evaluation of community input.  With growth in the southwest portion of the district outpacing construction of facilities, the district will seek to relieve some of the overcrowding that has occurred.  Many Kelliwood area communities will be rezoned from Cinco Ranch H.S. to Taylor H.S.  Some communities on the southeast side of district will be re-zoned from Seven Lakes to Cinco Ranch.

Lots For Sale, First St, Brookshire Texas 77423

Two adjoining lots in the city of Brookshire comprising almost one full acre.  Great home site with a little improvement.  Unimproved property is located in the flood plain.  Small build-up required.

Print Complete Details - Download Buyer Spec Sheet

0 First St $39,900 MLS # 56157471 Status: Active

 

 

Citimortgage Offering Texas Borrowers Pilot Program for Deed in Lieu of Foreclosure

Citimortgage will apparently launch a pilot program tomorrow for deed-in-lieu of foreclosure.  The Citimortgage pilot program will be offered in six states, including Texas.  Citimortgage is also considering opening up the program to other states if it's deemed to be successful.  Program incentives include relocation expenses and counseling for borrowers, with the stipulation that borrowers maintain the home in good condition.  The program, targeting those who have already missed at least three monthly payments, seeks to avoid the costs and delays of the judicial foreclosure process.  Texas borrowers should be careful to read the terms and conditions of the deed-in-lieu offer.  Texas, like most other states, has specific laws pertaining to deed-in-lieu of foreclosure (DILF).

Short Sales May Be Treasury Department's Answer To Failed Mortgage Modifications

Comments from Senior Advisor to the Treasury Department, Seth Wheeler, focus attention on the increasingly important role of short sales as a solution to failed mortgage modification efforts.  It's no secret that mortgage modifications have provided little assistance to troubled borrowers.  Without principal reductions and/or change in employment, many borrowers just end up defaulting again.  The Treasury department apparently now realizes this band-aid approach is simply unrealistic.  With the new HAFA program streamlining the process for short sales, more attention can be spent getting borrowers out of non-performing loans and writing down assets to market value.  The mark-to-market process is painful, but it's something that must take place for the real estate market to see any sustainable recovery.

Katy ISD Addresses Rumors, Concerns About Attendance Boundary Modification (Re-Zoning)

Katy ISD is taking proactive steps to address rumors about future re-zoning in the district.  FACT! or Fiction? is the latest press release to address some of the rumors which have caused a stir among Katy residents.  A brief summary of the facts thus far are:

1. The district has not yet considered moving neighborhoods from Seven Lakes to Taylor.  The district is considering moving some neighborhoods from Seven Lakes to Cinco Ranch.

2. Current high school students should not be affected by the attendance boundary modifications.  Students in the 9th-11th grades will stay at their current high schools until graduation.  This should prevent any UIL issues with eligibility.

You can view the current district map and verify attendance zones on the district's web site.  A list of Katy neighborhoods under consideration for attendance boundary modification is also available.  Residents are urged to address their questions to communications@katyisd.org.