Aaron Layman's Katy Texas Real Estate Forum

Meritage Homes' Exit Of Vegas Market Points To Continued Struggles For Home Builders

Arizona-based Meritage Homes is pulling the plug on the Vegas market.  Who can blame them with prices down 60% from the peak of the housing boom.  58% of all mortgaged properties in Nevada are underwater, and the prospects for a meaningful recovery are pretty dim.

Fortunately, things certainly aren't that bad here in the Houston area.  That being said, we're likely to feel the headwinds of Europe's coming slowdown in the year ahead.  Builders in the Houston area will likely keep their inventories thin into 2012 to maintain some semblance of pricing power.  One of the key supports of pricing in Houston's stronger market areas has been the relatively low inventory levels.  Any builder who sticks their neck out looking for a meaningful market recovery will likely be disappointed. 

New Rules For Texas HOA Resale Certificates Effective Jan 1 2012

Katy area HOAs and managment companies have been using resale certificates as a profit center for years.  Fees of $200-$300 are not uncommon for some of the more popular master-planned communities in Katy.

Effective January 1, 2012, the Addendum For Mandatory Membership In A Property Owners' Association will change in accordance with new laws governing HOAs.  Starting next year, buyers can request a resale certificate directly from the homeowners association.  The key difference will be that the buyer will be responsible for payment of the fee related to processing that certificate unless otherwise stated in the contract.  That means the the inflated fees collected for processing these certificates should receive more scrutiny.

Tax certificates are prepared for property transactions during the normal process of title escrow.  The title company also normally collects an HOA certification for residential properties with these tax certs to verify clean title.  A quick examination of the tax certs provides a check for any outsanding assessments.  The Sellers' Disclosure Notice also addresses the issue of HOA assessments.  If a buyer wants to request a resale certificate as an added assurance, I would encourage them to do so.  I would also encourage buyers to ask the property management company to justify the fee for the ten to fifteen minutes needed to prepare that document.

Here's a brief summary of what some Katy area communities/management companies are charging for resale certificates.  Buyers should be aware that these base fees may not include a "CCI" inspection for the certificate which could add another $100 or more to the fee.

Cinco Ranch	$200
Cinco II	$150
Grand Lakes	$250
Seven Meadows	$220
Cross Creek Ranch	$105
Firethorne	$125
Woodcreek Reserve	$100

 

FHFA Sitting On Thousands Of Public Comments Which Could Have Halted HVCC Appraisal Mess

Anyone who's refinanced their home lately has likely been surprised at the increased cost of the appraisal reflected on their closing statement.  As noted by the NAIHP, the Home Valuation Code of Conduct was a disaster waiting to happen.  It didn't curb appraisal fraud, costs for appraisals increased dramatically, and appraisers were left with smaller paychecks as large financial institutions entered as middle-men in the "appraisal management company" business.  HVCC has resulted in banks obtaining a new revenue stream with ownership interests in these appraisal management companies while consumers have been left holding the bag courtesy of higher closing costs.

NAIHP is currently calling on the Federal Housing Finance Finance Agency to release all of the public commentscollected prior to implementation of the new appraisal rules.  FHFA has so far refused to release the information.  NAIHP claims that the HVCC policy was part of a deal struck between NY AG Cuomo and the GSE's to drop investigations into valuation fraud.

The NAIHP is correct to assume that the current mess consumers are dealing with (HVCC), is a direct result of government capture.  Various AG's offices have bent over backwards to cover up the rampant criminal behavior and fraud committed by banks and the GSE's.  The Florida AG even went so far as to fire the only people in that office actually doing their job when they published evidence of robo signing fraud in Florida.

When Should You Downsize Your Home?

A number of boomers are coming to grips with the new realities of real estate.  For many, downsizing the family home is a practical solution.  A smaller home can help boost retirement savings by decreasing outlays for typical carrying costs of a larger home.  Some active adult communities can also provide amenities and activities which also help curb transportation expenses.  Moving is rarely an enjoyable experience, but for many empty nesters downsizing is a practical and profitable exercise.

Dream Of Homeownership Alive But Wounded

Nice infographic from Trulia on the dream of homeownership in America, courtesy of their Fall 2011 survey.

Housing Tracker Shows 14.1 Percent Decline In Year-Over-Year August Listings

Housing Tracker tracks 54 metro areas including Houston.  Their data showed a 14.1 percent decline in August listings compared to last year.  Housing tracker provides another estimate of inventory changes vs NAR estimates.  The NAR does not aggregate data from local boards.

Local HAR data shows a 14.9 percent decrease in active listings compared to last year, with annualized sales down 6.4 percent.  South Katy (Area 36) continues to be one of the better performing Houston area housing markets, ranking high on the "hotness" index with strong sales and less than 5 months of inventory.

2011 Foreclosure Heat Map - Texas Real Estate Still Performing Better Than Most

1 in every 611 U.S. households received a foreclosure filing in July 2011 according to RealtyTrac.  This interactive heat map shows which markets have been hit hardest this summer.

U.S. New Home Sales Still Moving Sideways At Depressed Levels

New homes sales for July posted at 298,000.  The months of supply for new homes was 6.6 in July, just slightly above normal.  Inventory of completed homes for sale stood at 61,000 units.  The U.S. new home market continues treading water.

Houston Makes List Of Top Real Estate Markets In College Towns

Houston ranks a top U.S. real estate market for college towns.  From Marketwatch...

"Prices are low in Houston, with a $174,900 median list price in June. And average rental rates can more than cover a monthly mortgage payment. Two-bedroom units in Houston — whose universities include the highly regarded Rice (shown) — could be rented for $1,218, on average, and units with three or more bedrooms could be rented for $1,478 in June. The typical mortgage payment is about $710 on the median-priced home, assuming a 30-year fixed-rate mortgage with a 20% down payment."

Drought Conditions Spur More Water Restrictions - Online Calculator Can Help You Manage Irrigation Needs

Not sure how much water your lawn needs?  It's a question that's often asked, and the answer is more complex than you might think.  This year's drought conditions have taken a toll on the Houston landscape, and with additional water restrictions comes a greater need maximize the return on water usage.

The TexasET Network has a helpful online calculator that can help you determine the right amount of water for your lawn.  It features options for "home watering", "turf/landscape irrigation" and "crop irrigation".  If you aren't sure how much water your irrigation system is producing, you can even purchase Aggie Catch Cans to collect water into conical container with markings to help you assess water output.

To use the calculator, go to the TexasET network home page, and select your area (ex, Fort Bend County).