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Austin Tops in Housing Affordability

Austin Housing and Affordability Rankings

  Forbes magazine named Austin the No. 3 city on a list of "recession-proof" cities due to its strong housing market, low unemployment rates and growth in agriculture, energy and manufacturing. (May 2008)

 

 • Austin is listed as one of the Top 10 Best Places to Live in the U.S. by Msnbc.com, due to its strong economy and natural beauty. (June 2008)

 

 • Forbes used data supplied by Moodyseconomy.com and Global insight to rank Austin #1 among the country's most economically healthy large metros. (Jan, 2008)

 

 • Austin ranks 1st in Fastest Growing Metro's in 2008 by Business News and Financial News (Forbes.com, March 2008)

 

• Cedar Park is ranked number 11 among the Top 20 Fastest Growing U.S. Suburbs (Forbes, July 2007)

Energy Efficient

When are buyers are considering a home purchase energy efficiency is becoming increasingly a part of the their top criteria in a home.  In addition, those who have purchased in the past few years are calling us for advice on what appliance should they upgrade in their homes to get the most energy effcient "bang for the buck".  Below is some advice from local inspector expert Steve Medina. 

1st  REFRIGERATORS

If you are thinking of replacing an old appliance, the refrigerator is a good place to start. New refrigerators consume 75 percent less energy than those produced in the late 1970s. A family replacing a 1980 vintage fridge with one that meets today's standards will save more than $100 a year in utility costs. Go one step further and buy an Energy Star-qualified model, and your new refrigerator will save you an additional 15 percent or more by employing better insulation, more efficient compressors and more precise temperature control and defrost mechanisms. Energy-Saving Purchasing Tips:
Refrigerators with freezers on top use 10 to 15 percent less energy than a side-by-side model of equivalent size.

Generally, the larger the refrigerator, the greater the energy consumption. But one large refrigerator will use less energy than two smaller ones with the same total volume or a smaller fridge plus a separate freezer.


2nd CLOTHES WASHERS

The energy efficiency of standard top-loading washers has doubled over the last two decades, mostly by decreasing the amount of water used. (Most of a washer's energy consumption goes to heating water.) Front-loading washers have also become more readily available. They generally use less water than top-loaders because they don't have to totally submerge clothes. Their tumbling action constantly lifts water and drops it back down onto clothing. Energy Star top-loaders, however, can be just as efficient as front loaders. Look for the EnergyGuide or Energy Star labels to compare efficiencies.
Replacing a pre-1994 washer with an Energy Star model can save a family $110 a year on utility bills. Energy Star washers use 50 percent less energy than other standard models, and only 18 to 25 gallons of water for a full-sized load, compared to 40 gallons for standard full-size washers. Many Energy Star models also advertise lower fabric wear, better stain removal and briefer drying times.
Energy-Saving Purchasing Tips:
Choose the right size washer. A smaller washer may be more efficient for small households. But if you have a large family and have to do multiple loads in a washer that's too small for your needs, you could lose any possible energy savings.

Look for a washer with adjustable water levels. This gives you the option of using less water to wash small loads.

Choose a washer with a faster spin speed. This allows more water to be removed after the wash, reducing the drying time and your dryer's energy use.

Use a gas dryer rather than an electric dryer where possible.


3rd  DISHWASHERS

A new dishwasher is not only more efficient than older models, but it's also better at getting dishes clean. Manufacturers no longer recommend that you pre-wash your dishes. Simply scrape the remaining food off your plates and place them in the machine as is. This will save you time and save money on your water bill.
The most efficient dishwashers use less hot water, have energy-efficient motors and use sensors to determine the length of the wash cycle and the water temperature needed to do the job. The newest Energy Star dishwashers are 25 percent more efficient than the minimum federal standards. Replacing a pre-1994 dishwasher with an Energy Star model can save $25 a year on utility costs.
Energy-Saving Purchasing Tips:
Choose a dishwasher with a "light wash" or "energy-saving" wash cycle. It uses less water and operates for a shorter period of time for dishes that are just slightly soiled.

Look for dishwashers that have an energy-saving cycle that allows dishes to be air-dried with circulation fans, rather than heat-dried with energy-wasting heating coils.


4th  ROOM AIR CONDITIONERS

The most efficient room air conditioners have higher-efficiency compressors, fan motors and heat-transfer surfaces than previous models. A high-efficiency unit reduces energy consumption by 20 to 50 percent. Replacing a 10-year-old model with an Energy Star model can cut energy bills by an average of $14 a year.
Energy-Saving Purchasing Tips:
Remember, the biggest unit isn't always the best choice, especially for small areas. A smaller unit running for a long period of time operates more efficiently and is more effective at decreasing humidity than a larger unit that goes on and off frequently.

If you're comparing several similar units, choose the one with the highest Energy Efficiency Ratio. You can find the EER on the unit or its packaging. The minimum EER required by federal law is 9.7; the most efficient air conditioners of 2003 have an EER of 11.7.


5th  CENTRAL AIR CONDITIONERS

If your central air conditioning system is more than 10 years old, replacing it with an Energy Star model could reduce your energy consumption for cooling by 20 percent.

Energy-Saving Purchasing Tips:
Look for the seasonal energy efficiency ratio (SEER). Old units typically have a SEER of 6 or 7. In 2006, new standards go into effect, raising the minimum SEER for central air conditioners to 13. Energy Star models already meet the SEER 13 standard, and also perform more efficiently when it's hot.

For maximum efficiency on the hottest days, the air conditioner should have a thermal expansion valve (TVX), and the high temperature rating (EER) on your unit should be at least 11.6.

For optimal performance, buy a matched system of indoor unit, condenser and even thermostat.

Get a reliable contractor to make sure your new unit is the right size for your home, and have it professionally installed. Even the most efficient system can't make up for the energy loss due to improper sizing and poor installation.

Have your contractor make sure all your ducts are sealed and insulated. Duct tests require a fan and a pressure gauge -- they cannot be done by sight.


6th  WATER HEATERS

Water heating is typically the third largest energy expense in your home, accounting for about 14 percent of your energy bill. An old water heater can operate for years at very low efficiency before it finally fails. If your gas water heater is more than 10 years old, it probably operates at less than 50 percent efficiency.
Energy-Saving Purchasing Tips:
Calculate how much hot water your household uses at peak times. Figure that a clothes washer on hot wash/hot rinse can use about 32 gallons of hot water; a shower, 20 gallons. Washing dishes by hand can use 10 to 15 gallons, and automatic dishwashers, about 8 gallons.

Match this figure with the "first hour rating" (FHR) on the EnergyGuide label. The FHR measures how many gallons of hot water your heater can deliver during a busy hour. Don't be misled by the size of the tank -- it doesn't necessarily correlate with FHR.

Once you've found the right FHR range for your household, check the unit's Energy Factor (EF), which rates efficiency. A high-efficiency gas model would have an EF around 0.8.

A natural gas unit will cost less to operate than electric.

Austin 1st to Bounce Back

TEXAS QUICK TO BOUNCE BACK FROM RECESSION, FORBES SAYS

WASHINGTON (Forbes) – According to Forbes Mag several Texas cities are poised for a quick recovery from the national recession, according to Forbes.

Austin–Round Rock ranked first on the magazine’s recent list of ten cities most likely to bounce back quickly.

Meanwhile, San Antonio ranked fifth, Dallas–Fort Worth–Arlington seventh and McAllen-Edinburg-Mission ninth.

To compile its list, Forbes looked at estimates from Moody's Economy.com of the projected gross domestic product of metropolitan areas across the United States, as well as unemployment figures from the Bureau of Labor Statistics and home prices, incomes and affordability data from the National Association of Home Builders.

Forbes also put together a list of ten worst cities for recession recovery. No Texas cities made that list.

EEK! Those Texas bugs....

Oftentimes when we follow up with homeowners a month or so after closing a common concern we here is how do I deal with these Texas bugs and critters. While most pests are simply a nuisance, some can become a health issue.

Below are some homeowner pest tips we have compiled.

1. Install a Tight-Fitting Weather Strip on the Bottom of All Doors.
Rats are capable of squeezing through openings the size of a quarter, and mice can fit through gaps as small as a dime. Doors that do not seal tightly can be a weak point in the home's defense against rodents. Experts estimate rodents will enter 21 million homes this winter, and these vermin can cause serious problems. Rodents carry dozens of pathogens and bite thousands of Americans each year. They are also considered a fire hazard because of their habit of gnawing through electrical wires.

2. Regularly Clean Floors and Countertops.
Crumbs that are left on floors or countertops or even dirty dishes left in the sink can be an easy meal for roaches and keep them coming back for more. Roaches can slip into homes through extremely small openings and commonly invade human structures through small openings in the home's exterior. Roaches can be a health threat. They are known to carry a number of diseases and have been shown to be a contributor to the development of asthma.

3. Store All Human or Pet Food in Lid-sealed Containers
Food that is left unsealed and in the open can serve as an all-you-can-eat buffet for ants. All food should be stored in sealable containers, and pet and human food should not be allowed to sit out overnight. Ants are the No. 1 nuisance pest in the United States. While most ant species are only an annoyance, some like the carpenter ant can be a concern because of the structural damage they can cause.

4. Keep piles of firewood, lumber or similar items from being stacked against the side of your home.
Having items stacked against the home may be convenient for you, but it's also ideal for termites. Termites are wood-destroying insects that forage for food 24 hours a day. Piles of firewood and lumber that are allowed to pile up against the side of the home can serve as an easy food source for termites, and once they're finished they may move to your home. Termites live in every state except Alaska and cause more than $5 billion in damage each year. To make matters worse, the damage termites leave behind usually isn't covered by homeowners insurance.

5. Use low-watt, yellow insect bulbs around exterior doors.
Insects are attracted to white light. By using a yellow light instead, you will attract fewer flying insects and fewer hungry spiders. Spiders are opportunistic and often invade homes in search of food and shelter. While all spiders are venomous, there are few that are a significant threat to humans. Spiders can be beneficial because they eliminate other pests. However, because they eat other bugs having them in the home is often a sign that other pests are nearby.

Home Prices Drop in April

According to the Texas A&M Real Estate Center a total of 17,147 existing homes were sold in Texas last month, a 21 percent decline from April 2008, according to MLS data compiled by the Real Estate Center at Texas A&M University. The median price dropped 2.8 percent to $142,700 during the same period, and the state finished the month with a 7.1-month inventory of existing homes.

Here is how select Texas cities fared in April (data current as of May 29, 2009):

 

Sales

Change from
Last Year

Median
Price

Change from
Last Year

Months'
Inventory
 

Amarillo

227

down 24.1%

$126,000

up 0.9%

6.7

Austin

1,728

down 21.1%

$185,300

down 0.9%

6.8

Beaumont

175

down 16.7%

$131,200

up 3.6%

8

College Station–Bryan

183

down 27.7% 

$142,800

down 0.3%

1.9

Corpus Christi

283

down 19.8%

$122,200

down 17.4%

na

Dallas

3,613

down 24.2%

$150,000

down 4.8%

6.9

El Paso

381

up 30.5%

$128,100

up 1.1%

9.8

Fort Worth

679

down 25.1%

$111,100

down 3.1%

6.5

Galveston

68

down 24.4%

$85,000

down 51.7%

16.1

Houston

4,621

down 23.6%

$148,800

down 1%

6.3

Laredo

86

up 3.6%

$116,000

down 4%

8.7

Longview-Marshall

133

down 32.1%

$128,300

up 2.1%

8

Lubbock

289

down 10.2%

$115,200

up 6.3%

5.6

San Antonio

1,484

down 14.9%

$146,800

down 3.6%

8.5

Texarkana

57

down 36.7%

$102,000

up 2%

8.4

Tyler

221

down 22.7%

$132,600

down 2.1%

11.7

Victoria

57

down 30.5%

$117,000

down 8.6%

6.3

Waco

163

down 21.3%

$111,900

up 0.6%

8

Additional home sales data for these and other major Texas cities are available on the Center’s website.

Nationally, sales of existing single-family homes last month were down 3.5 percent compared with April 2008, according to the National Association of Realtors. Sales were at a 4.68 million annual rate. At $170,200, the median sales price was down 15.4 percent from a year earlier. Inventory was at 10.2 months.

Meanwhile, the U.S. Commerce Department reported that new home sales were almost flat last month. Sales rose 0.3 percent in April to a seasonally adjusted annual rate of 352,000, but the increase came from a downwardly revised rate of 351,000 in March. The median sales price fell to $209,700, a 14.9 percent drop from last year.

IE 7 / Firefox - Tips

Those around our offices are always looking for shortcuts and ways to better use our time.  We compiled a list below of our favorite Shortcusts and Tip with Internet Explorer 7 or Firefox.

If you find an interesting in web page, add it to your Favorites or Bookmarks:
Press the CTRL + D keys

If you don't want to lose the web page you are currently looking at but you want to click on a link on that web page, open it in a new window:
1. Right Click on the link
2. Select 'Open in new window'

Instead of using the mouse to click the 'Back' button
Press the BACKSPACE key

To open a new Window (Tab)
Press the CTRL + T keys

To move to another Window (Tab - within IE or Firefox)
Press and hold the CTRL key and press Tab

To find a phrase or keyword on the web page
Press the CTRL + F keys (this is my personal fav!)

When completing an on-line form:
• Press the TAB key to move to the next field (instead of using the mouse)
• Press and hold the SHIFT and press TAB to move to the previous field

Instead of typing 'www.myfavoritewebsite.com', just:
In the address bar (where you see 'http://wwww.myfavoritewebsite.com')
1. Enter the name of the website you want to visit
Ex. 'statesman' for the Austin American Statesman
2. Press the CTRL + ENTER keys
-This inserts the 'www' and .com' before and after 'statesman'
-You are taken to the website

More shortcuts = more time to bike, run, hang with friends, fish or you fill in the blank.

Forbes Picks Austin #1

Thursday, May 14, 2009 provided by FORBES Magazine……

 

Try these places if you want to get the most for your money

 

Nearly a decade ago, after making a donation to a volunteer-run radio station in Austin, Texas, local librarian Red Wassenich was asked why he chose to support a broadcaster with a penchant for playing strange crooner music. "Because it keeps Austin weird," he said.

 

Since then, the phrase "Keep Austin Weird" has become the city's official rallying cry against the establishment of large chain stores near mom-and-pop shops--and, more generally, for maintaining the city's eccentric feel. The city may be weird, but perhaps more redeeming is that it's also a bargain to live there: Austin is the place where people pay the least to get the most.

 

"Austin has always been really different from the rest of Texas," says Wassenich, 59.

 

He's talking about the city's weirdness, but he might as well be talking about its affordability and profusion of job opportunities. Four other Texas cities make the list of America's Best Bargain Cities, but none come close to Austin, whose 5.5% unemployment is the best in the country and about half the national average.

 

Behind the Numbers

 

To determine which U.S. cities are the best bargains, Forbes looked at the country's 50 largest U.S. metropolitan statistical areas and metropolitan divisions--geographic entities defined by the U.S. Office of Management and Budget used by federal agencies in collecting, tabulating and publishing federal statistics.

 

We assigned points to metro regions across four data sets: Average salary for workers with a bachelor's degree or higher, from PayScale.com; annual unemployment statistics, from the Bureau of Labor Statistics; cost of living, from Moody's Economy.com; and the Housing Opportunity Index, from the National Association of Home Builders/Wells Fargo, which measures the amount of homes sold in a given area that would be affordable to a family earning the local median income based on standard mortgage underwriting criteria.

Austin earned high marks across the board.

 

"They have the triple-whammy of being a university town, a state capital and a technology center," says Al Lee, director of quantitative analysis at PayScale.com, a salary data aggregator based in Seattle. "It makes for a very robust economy and a great place for people to work."

Second on our list is Phoenix, Ariz., but what makes this city affordable isn't quite the same formula as in Austin. The real estate bust left the desert oasis as one of America's emptiest cities, which has also driven down home prices. As a result, Phoenix is one of the most affordable big cities in the nation.

 

Washington, D.C., rounds out the top three, thanks to an employment rate rivaled only by Austin. That comes as no surprise to Lee.

 

Home Warranty on a Foreclosed Home?

It's a familiar scenario these days in neighborhoods across the Austin area.  A financially distressed home goes on the market.  It might be a short sale situation or a foreclosed/REO home.  It's likely a good deal for a prospective buyer, but the property has been vacant for while, the utilities have been cut off and the home does not look like it's been well maintained. 

Mr.Super Agent, "Should a home warranty be included in this transaction?"

The answer is a resounding yes.  Home warranties are particularly advantageous for foreclosure, REO and short sell transactions for numerous reasons.  When the condition of home appliances and systems is unknown or questionable, an home warranty can add protection from expensive and time-consuming breakdowns for the buyer.   

Complete and thorough home inspections on such properties may not be possible without access to utilities, making the condition of home systems even more uncertain.  It's also a well-known, unfortunate fact that owners anticipating foreclosure may stop caring for and maintaining the property, leaving systems and appliances in precarious shape.  In fact, buyers express more concern regarding financially distressed properties than any other type of property.  A warranty alleviates many of these worries, and can offer budget protection to the buyer as well as to future resale buyers under the term of the contract.  In short, a home warranty is one of the best, most cost effective investments a buyer can make to help preserve the value of an REO property.

HVAC, BTU's, Tonnage...WHAT?

While showing homes to potential buyers, a frequent question comes up that is understandable, but also sketchy to answer; "Is the size of this air conditioner the right size for this home"? My answer, "Well...ah...duh...sure it is." 
Nah.  Not really.  It is always my policy to defer to the professionals in field.  In this case, I reference Steve Medina, a local Austin inspector.
 
Steve indicated there are many variables and factors to heating and cooling buildings that only experts know.  But there is a short cut you can do yourself is to find the tonnage or BTUs of your outdoor condenser unit. The condenser is the big square box (sometimes round) outside  the home with the loud fan blowing every time the A/C kicks in. On the back of that unit near where the coolant/electrical lines enter and exit is a label often referred to as the "nameplate". This label has many confusing numbers and codes that mean something to someone, but no body I know. Steve said the label gives indications of model numbers or serial numbers. The tonnage number is usually listed in the model number.
 
The number to look for is the one that has units of twelves. For ex:
 
MODEL CTF-36-12TI
 
The magic number is 36. This is usually the shortest number and is divisible by 12. Sometimes this can be tricky even for professionals, especially on older models.  The number 36 represents 36000 BTUs (12k BTU per ton). In this case this unit provides 3 tons of cooling energy.
Now you know...are do you? 

Austin Energy Audit Update

Austin's new Energy Conservation Audit and Disclosure (ECAD) ordinance applies to homes over ten years old, located in the city of Austin and receiving electric service from Austin Energy. With a few exceptions, it’s mandatory that after June 1, 2009 an energy audit be done before a house is sold.  The new Energy Conservation Audit and Disclosure (ECAD) ordinance applies to homes over ten years old, located in the city of Austin and receiving electric service from Austin Energy.

What is an energy audit?

An energy audit is an evaluation of your home’s energy efficiency, performed by a registered Austin Energy Auditor. The cost varies by auditor but plan on spending about $300 per two thousand square feet for the audit. You won’t have to make the changes recommended by the auditor but you will have to give a copy of the audit report to buyers. When deciding if you want to make energy improvements keep in mind that with the current trend in real estate, anything you do to make your home more appealing to a buyer is a plus!

What the Auditor does:

An ECAD audit takes about an hour per thousand square feet of house. The auditor will:

  • Inspect and measure the attic insulation in multiple areas
  • Pressure test the duct system and assess its condition and adequacy
  • Examine heating and cooling equipment
  • Inspect weather stripping around exterior doors, plumbing penetrations beneath sinks, and air tightness of attic entries
  • Identify and measure the amount of glass in windows that receive more than one hour of direct sunlight each day

The auditor submits the results of the audit to the city and it's valid for ten years. For more information about the ordinance and exemptions, contractors, rebates, and more, go to www.austinenergy.com

Contact Information

Photo of Kent Redding Real Estate
Kent Redding
Prudential Texas Realty
115 Wild Basin Road
Austin TX 78746
512-306-1001
Fax: 512-366-9905