Aaron Layman's Katy Texas Real Estate Forum

Panel Of Experts Points To Tempered Growth, Soft Landing For Katy, Houston Texas Economy

While the credit crunch and falling oil prices are certainly being felt locally, several experts seem to agree that the sky is not falling, at least not for Houstonians.  The Houston Chronicle on Sunday published the latest sentiments from a panel of experts including an international trade specialist, a personnel CEO, a banker, and an economist.

The jobs outlook in Houston will likely soften as tight credit slows some expansion projects.  The energy industry will resume a more normal pace of growth as it absorbs the reality of stabilizing oil prices.  Businesses in general will seek to tighten their belts to clean up their balance sheets, preparing for a possible recession.

The Houston area housing market has already witnessed the softer economy, with lower annual sales totals and pockets of weakness in some areas.  On the bright side, the housing market is still performing quite well and prices appear to be stable.  One panel expert agreed that the Houston area is poised to lead the nation when the U.S economy rebounds.  We won't see huge appreciation in area housing prices, but then again we shouldn't have to worry about the severe price drops being felt in real estate markets like California, Florida or Nevada.

For area home shoppers, this holiday season may turn out to be a great opportunity to buy a new home.  With the recent slowdown, builders are offering generous incentives to move existing inventory.

Solar Investment Tax Credit Could Boost Demand In Katy, Houston Texas

There has been a lot going on in Washington lately so it's understandable that some good news has gone relatively unnoticed.  One such item is the investment tax credit for solar energy.  Congress extended the 30% tax credit for residential and commercial solar installations for another 8 years.  More importantly, the $2000 credit cap for residential properties will no longer apply after December 31st, 2008.  That means home owners will receive a true 30% credit on the cost of residential solar projects.

Home builders in the Houston area have not shown much interest in solar projects.  Much of the reluctance can be attributed to the lack of incentives.  With this increased federal subsidy for solar projects, we may just see our first solar neighborhood in Houston.  The benefits of energy efficiency and higher resale value could spur a green wave of building in the area.  The new law may also spur homeowners associations in the area to think about how solar projects will fit into the landscape. 

Many homeowners are already frustrated with high utility bills in the deregulated electricity market.  The new solar tax credit will make it a little easier to absorb the high upfront cost of a solar installation and ditch their electric providers altogether.  I have to admit that the possibility is pretty intriguing.  I have mentioned in previous posts that the Public Utility Commission of Texas currently has no clear plan for homeowners to sell electricity back to the grid.  Maybe now would be a good time for the commission to outline their plan!

Texas 99 Grand Parkway Toll Road Still Up In The Air

Fort Bend County officials approved a resolution last week that would lay out the terms of a proposed 180-mile toll road around Houston.  The resolution stipulates the scope of the work and initial toll rates.  It also opens the possibility of a market valuation study to determine the project viability.  Ironically, the toll rate aspect of the resolution will likely put a halt to the project in Fort Bend County.  Current average toll rates in the area of approximately 15 cents per mile are nowhere near the 50 cent per mile figure desired to fund the project.  Part of Texas 99 (Grand Parkway) was built as a non-tolled highway several years ago, so it will be interesting to see how TXDot and local government entities try to "sell" the toll road project to local citizens.

Newland Communities, Cinco Ranch Host Life Is Good Pumpkin Festival

Newland Communities will host its third annual Life is Good Pumpkin Festival on October 25th at the Cinco Ranch Southwest lake & recreation area at the corner of Cinco Ranch and Spring Green.  The event begins at noon and goes to 4 PM.  Activities will include pumpkin decorating, games, music and food.  Proceeds from the event will go to the Life is Good Kids foundation.

For more information you can visit www.newlandpumpkinfestival.com/cincoranch.

Fun Fair Positive Soccer League FFPS Serves Youth In Katy Texas

Organized in 1986, Jack Hendrie's non-profit Fun Fair Positive Soccer League (FFPS) has grown from a small organization to a membership of more than 15,000 players.  The league seeks to provide opportunities for participation to children of all skill levels.  FFPS also includes a Special Needs Program for special needs children.  FFPS operates from spaces throughout the Houston area, including a Katy league hosted at George Bush Park.  

For more information you can visit www.ffps.org.

Fort Bend County To Increase Toll Fees January 1st 2009

Fort Bend County toll roads will see higher fees beginning January 1st 2009.  Commissioners approved the rates increases to fall in line with recent hikes with Harris County toll roads.

For more information about the rate increases you can visit the Fort Bend County Toll Road Authority at www.fbctra.com.

ProTerra Realty To Begin Katy Business Park In 2009

ProTerra Realty is slated to begin development of a 460 acre tract between Interstate 10 and Highway 90.  The site calls for several million square feet of office and industrial space.  The project will also include a new road to be called Cane Island Parkway.  The city of Katy and the Department of Transportation will cooperate on new road construction.

For more information about the project you can visit www.proterrarealty.com

Falling Oil Prices Wildcard In Katy, Houston Texas Housing Market

Something very strange happend during the past week.  Local gas stations couldn't change the prices on the boards fast enough to keep up with the falling prices and demand for fuel.  When was the last time that happened?  While the relief at the gas pumps is a welcome sign, it also signals a downturn in the energy industry which has kept the Houston area housing market afloat during the nationwide housing bust.

While other parts of the country have watched real estate bubbles burst, Houston has yawned, barely paying attention.  A robust energy industry has meant increased job growth and plenty of potential home buyers.  Houston's economy is certainly more diverse than it was during the last oil bust, but a downturn in the energy industry could have a negative effect on the real estate market here.  Much hinges on how low oil prices go and how long they stay there.  Houston did not participate in any housing bubble during the latest cycle, so any downturn in the market should be modest.

With global financial markets in turmoil and demand for oil in a steep decline, we can only estimate where the bottom will be.  The good news for the energy industry, and Houston for that matter, is that any rebound in the economy is going to put us right back where we were a few months ago.  America desperately needs alternative sources of energy.  The writing is on the wall.  Demand for oil may be temporarily depressed, but we should not forget what happened during the past year.  Our future and prosperity depend on it.

While there may be some bumps in the road ahead, I think the Houston area real estate market will do just fine.  I'm not getting my hopes up for $20 per barrel oil.

For more information about real estate in Katy or West Houston contact Aaron Layman.  He is a licensed real estate broker and mortgage broker.  You can contact him directly at 281-994-5190.  You can also visit him on the web at www.AaronLayman.com.

Katy Texas & West Houston Real Estate Market Update - October 2008

The Houston area housing market suffered one of its worst months in years when August sales dropped some 30% or more. The area has seen modest sales declines for most of the year, but Houston was performing quite well compared to the rest of the nation. As the quarter came to a close, we did see a rebound in September sales figures in the Katy area, which may be attributed to Hurricane Ike. Katy received only minimal damage. Sales data for rest of Houston will be available later this month, and it will be interesting to see how other markets fared.

Katy area sales continue to lag 2007 figures but prices have been quite solid. With the exception of the August figures, sales are off by some 15% in South Katy and prices are steady to slightly higher. Area 25 north of I-10 has seen the brunt of the slowdown in Katy with sales off some 40 to 50 percent. Prices in area 25 have also decreased slightly.

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