Report brings new perspective to Austin housing market

December 30th, 2008 3:27 PM

While the last two years of declines in new housing activity have been difficult for Central Texas, some housing market indicators show Austin is relatively balanced, according to a report from the Austin Chamber of Commerce.

Residential permits for 2008 will be at their lowest level in decades, at approximately 14,000 units, a total similar to the activity of the late 1990’s. But, according to research the Chamber cites from Residential Strategies Inc., Austin’s “employment change to residential permit ratio”--measured over a nearly two-decade period--is at a healthy 1 single family permit to 2.15 net new jobs.

The employment change-to-permit ratio is one metric used to examine the balance between supply and demand in the market, based on the assumption that new jobs create demand for new homes. In other words, for every 2.15 new jobs created since 1990, one single-family residential building permit has been issued.

For 2008 through November, the employment change to permit ratio is 1 to 1.42 for Austin. In 2007 the ratio was 1 to 1.87 locally.

Nationally in 2008, 852,529 permits were issued, but the net change in jobs was negative 1.8 million for the first 11 months of the year.

Aqua America snags two Hays County water cos.

December 30th, 2008 3:28 PM

The Texas subsidiary of Aqua America Inc. has bought Cardinal Valley Water Co. and the Mountain Crest Water Co. in Hays County.

Bryn Mawr, Penn.-based Aqua America's (NYSE: WTR) Aqua Texas subsidiary bought the water companies that together service about 400 people for an undisclosed amount.

Aqua Texas President Bob Laughman said the company has operated the two water systems for years. Both systems are in an area surrounded by other water and wastewater systems owned by Aqua Texas and will be operated out of the company’s Wimberley office.

“These tuck-in acquisitions allow us to further complete our footprint in the Wimberley area,” said Aqua America Chairman and CEO Nicholas DeBenedictis.

In October, Aqua Texas purchased Saddle Club Water Co. Inc. in Weatherford, which serves approximately 500 residents. That transaction was valued at $420,000. Laughman said Aqua Texas, which has 107 employees around the state, is working on three or four more purchases that should be finalized in 2009.

“These three 2008 acquisitions in Texas—our fifth largest state operation—are a reaffirmation of our growth-through-acquisition strategy that allows Aqua to increase our economies of scale, and provide our technical and engineering expertise to smaller water systems,” said DeBenedictis.

Aqua America is a water and wastewater holding company with operating subsidiaries serving approximately 3 million people in 13 states.

Census: Texas the fastest-growing state

December 22nd, 2008 6:37 PM

Texas gained more residents than any other state between July 2007 and July 2008, according to new data from the U.S. Census Bureau .

The state gained about 484,000 people during the 12-month period. Second was California, which added 379,000 people, followed by North Carolina with 181,000, Georgia with 162,000 and Arizona with 147,000.

Michigan and Rhode Island were the only states to experience a population decline, according to the Census.

The Lone Star State’s 2 percent population growth rate during the period was the third-highest in the nation.

Utah was the nation’s fastest-growing state. It saw its population climb 2.5 percent to 2.7 million people, according to the Census. Arizona took the No. 2 spot with 2.3 percent population growth.

California remains the most populous of the 50 states with about 36.8 million people, followed by Texas with 24.3 million, New York with 19.5 million and Illinois with 12.9 million people.

Report: Texas restaurants to thrive in 09

December 22nd, 2008 6:35 PM

The Texas Restaurant Association said the Lone Star State is expected to lead the country, in terms of sales growth in 2009.

Texas’ restaurant sector is expected to grow 4 percent with total sales expected to reach $35 billion in 2008, according to the National Restaurant Association’s 2009 Restaurant Industry Forecast.

Meantime, national restaurant industry sales are anticipated to reach $566 billion in 2009, with the industry employing 13 million individuals in 945,000 restaurant and food service outlets nationwide. The NRA forecasts that restaurant industry sales will increase by 2.5 percent over 2008.

Texas restaurants will employ more than one million Texans next year.

The number of restaurant jobs in the state is projected to grow 23.4 percent by 2019, resulting in 1.2 million new jobs.

“Even in these tough economic times, it is clear that the Texas restaurant industry is the best place to do business in the nation,” said Richie Jackson, TRA executive vice president/CEO. “While our country is coping with the weakest economy in decades, Texas restaurateurs continue to buck the trends and post positive sales and job growth.”

Mortgage rates fall to 37-year low

December 19th, 2008 9:11 AM

Austin cyclists feel safer than those elsewhere in Texas

December 15th, 2008 3:56 PM

Cyclists in Austin feel safer than those in other major Texas cities, according to a new report from the Center for Transportation Research at the University of Texas at Austin.

Almost 70 percent of respondents in the statewide survey said they feel bicycling is “very dangerous” or “somewhat dangerous” in terms of traffic accidents. By comparison, only 21 percent of respondents said bicycling is “somewhat dangerous” or “very dangerous” in the context of crime.

"This is quite intuitive, given the high levels of traffic congestion in Houston, Dallas and San Antonio," said Professor Chandra Bhat, who spearheaded the survey.

The survey, sponsored by the Texas Department of Transportation and the Federal Highway Administration, was conducted online and included more than 1,600 bicyclists in more than 100 Texas cities. The results are going to be used to help establish planning guidelines for the design of safe and efficient bicycle facilities and environments in Texas and around the country.

According to Bhat, the transportation sector accounts for about one-third of all human-generated greenhouse gas emissions. Within that sector, travel by personal vehicles accounts for nearly two-thirds of those emissions. And only 0.9 percent of all trips in the United States are made by bicycle. That number drops to 0.4 percent for commute trips—despite the fact that a significant amount of trips are deemed short-distance and can be made using a bike.

One finding that may have immediate relevance is that individuals who have a more positive perception of the quality of bicycle facilities have a higher propensity to bicycle to work. In October, Congress passed the Bicycle Commuter Act (as part of the bailout package), which starting in January will give companies a tax credit of up to $20 a month per employee who bicycles to work.

However, only about 14 percent of commuter bicyclists report the presence of bicycle lockers or safe storage rooms at their work place, and 72 percent of commuter bicyclists indicate they travel on unsigned roadways during their commute.

"The frequency and use of bicycling to work can potentially be increased by having bicycle lockers, bicycle racks and showers at work," Bhat said.

Other survey findings:

• Individuals living in Austin, Bryan and Fort Worth are more satisfied with the quality of bicycle facilities than bicyclists living in the rest of the state.

• Bicyclists prefer no parking on their route, which is logical because parking reduces sight distance. If parking is necessary, they prefer angled parking over parallel parking.

• Men and young bicyclists perceive the bicycle facilities in their community to be better than do women and older bicyclists.

• The commute distance of those who bicycle to work ranges from one-fourth of a mile to 35 miles. The average is about 6.5 miles.

• Bicycling is more common for non-commute reasons than for commuting. Those who bicycle to work tend to be young and environmentally conscious. Also, men are more likely to bike than women, regardless of the purpose of the bicycle trip.

To see the full report, click here. http://www.utexas.edu/research/ctr

Gas prices continue to plummet

December 13th, 2008 3:33 PM

Austin area gas prices dropped a whopping 15 cents in the last week, according to AAA Texas.

The latest report shows the average price for a gallon of regular unleaded at $1.60, down from $1.75 a week ago. A year ago, the average local price was $2.93 a gallon.

The statewide average is about $1.57 per gallon, which is 9 cents less than the national average, $1.66.

Currently, Amarillo drivers are seeing the cheapest gas in the state at about $1.43 per gallon, while El Paso drivers are paying the most, about $1.69.

AAA attributes the drop in energy prices to a soft demand for oil and gasoline, which may stem from increased unemployment, leading to a decrease in commercial activity.

Texas foreclosures down in November

December 11th, 2008 3:22 PM

Texas’ real estate foreclosures declined during the month of November, and are also down compared with the same month last year.

According to a November report released Dec. 11 by Irvine, Calif.-based RealtyTrac, a total of 7,843 homes in Texas entered the foreclosure process, a 20 percent drop from October 2008 filings and a 32 percent decline from filings from the same month last year.

Nationwide, foreclosure filings fell 7 percent from October postings but rose 28 percent compared with the same month last year. According to the report, 1 in every 488 households in the U.S. were in foreclosure in November.

“Foreclosure activity in November hit the lowest level we’ve seen since June thanks in part to recently enacted laws that have extended the foreclosure process in some states, along with more aggressive loan modification programs and self-imposed holiday foreclosure moratoriums introduced by some lenders,” said James Saccacio, CEO of RealtyTrac. “There are several indications, however, that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months.”

Saccacio said delinquencies on loans not yet in the foreclosure process jumped to nearly 7 percent in the third quarter, which is a record high according to the Mortgage Bankers Association. Many of those deliquencies could translate to more foreclosures in 2009, he said.

California, Florida and Michigan saw the most foreclosure activity in November, according to RealtyTrac’s report.

RealtyTrac figures are based on filings for all three phases of foreclosure: default, auction and real estate owned. (Real estate owned, or REO, means that the property has been foreclosed on and is now owned by a lender.)

New York Times: Maybe It’s Time to Buy That First House

December 10th, 2008 4:03 PM

Bill proposed to shield homeowners from foreclosure scams

December 10th, 2008 3:37 PM

Texas Attorney General Greg Abbott and state Sen. Craig Estes are proposing legislation that is meant to protect homeowners from foreclosure rescue scams.

The Foreclosure Rescue Fraud Prevention Act would require foreclosure prevention consultants to provide customers a written, plain language contract outlining their services agreement. It would also require that the consultants obtain their customers’ written consent, in the form of a signature, before beginning any services or accepting any fees. An additional requirement mandates a written disclosure statement instructing homeowners to contact an attorney or a housing counselor before signing mortgage rescue agreements.

“This morning I filed the Foreclosure Rescue Fraud Prevention Act, which was drafted in coordination with the attorney general’s office,” Estes said. “This issue has impacted constituents in my district and across the state, we are here today to send a very clear signal that these actions by unscrupulous mortgage foreclosure consultants will not be tolerated.”

The written agreements mandated by the proposed law would apply to both foreclosure prevention consulting and equity purchase contracts. Both types of agreements would have to include plain language cancellation procedures.

The proposed act would give the attorney general’s office expanded authority to crack down on mortgage rescue fraud scams under the Texas Deceptive Trade Practices Act.

The proposal would also place new limits on equity purchase agreements, requiring equity purchase agreement buyers to pay at least 82 percent of the property’s fair market value.

In announcing the legislative proposal on Dec. 10, Abbott also discussed the results of recent enforcement against an alleged mortgage rescue fraud scheme.

Abbot’s office charged Arizona-based Abell Mediation, Inc., and its president and vice-president, Elizabeth Cory and Michael Cory, with fraudulently claiming that their company could save homeowners from imminent foreclosure. Homeowners who were delinquent on mortgage payments responded to the defendants’ solicitation cards and Web site.

Under an agreement secured by the attorney general, the defendants are permanently enjoined from conducting a foreclosure mitigation business in the future. The defendant is also required to pay a total of $1.55 million in fines, restitution and attorneys’ fees.

Texas Boasts Strongest Economy in the Nation This Year

December 9th, 2008 2:56 PM

Ten percent of homeowners facing mortgage woes

December 5th, 2008 6:57 PM

The latest look at home foreclosure rates paints a bleak picture: As of the end of September, a record one in 10 American homeowners with a mortgage were either at least a month behind on their payments or in foreclosure.

The Mortgage Bankers Association said Friday the percentage of loans at least a month overdue or in foreclosure was up more than 9 percent in the April-June quarter, and up more than 7 percent from a year earlier.

A record 1.35 million homes were in foreclosure in the third quarter, driving the national foreclosure rate up to 2.97 percent, according to the MBA’s National Delinquency Survey. That’s a 76 percent increase from a year ago

At the same time, the number of homeowners falling behind on their mortgages rose to 7 percent, up from 5.6 percent a year ago, the association said.

While 20 states showed declines in the rate of foreclosure starts between the second and third quarters, every state but Alaska had an increase in the 90 days or more delinquent category, the MBA said in a release.

Nine states had foreclosure start rates above the national average: Nevada, Florida, Arizona and California, Michigan, Rhode Island, Illinois, Indiana and Ohio. The others were below the average. No specific numbers for Arizona were immediately available.

Employers slashed 533,000 jobs in November, the most in 34 years, catapulting the unemployment rate to 6.7 percent, the Labor Department said Friday.

The U.S. tipped into recession last December, a panel of experts declared earlier this week. Since the start of the recession, the economy has lost 1.9 million jobs.

Treasury Department Considers Plan to Lower Mortgage Rates

December 4th, 2008 10:49 AM

Companies sign on to local clean energy initiative

December 3rd, 2008 3:40 PM

Major companies from Freescale Semiconductor Inc. to Dell Inc. are partnering on a bold new effort to make Austin a clean energy hub.

Representatives from the city of Austin, the University of Texas’ Austin Technology Incubator and others gathered at the Clean Energy Venture Summit at UT today to announce details of the Pecan Street Project, which seeks to establish the infrastructure and business model for a vibrant clean energy sector in Central Texas.

“Austin has the opportunity to play the same role in the evolution of America’s energy economy that it did with the semiconductor boom in the ‘80s,” said Austin City Council member Brewster McCracken. “The Pecan Street Project will bring together the best talent from Texas and across the country to address the infrastructure, technology and policy challenges that stand between us and a cleaner, reliable, affordable and modernized electricity system.”

Nine corporate partners have signed on to the initiative so far, including GE Energy, Intel Corp., Oracle, Microsoft Corp. and others.

A recent inaugural report from the Austin-based clean energy advocacy group The Catalyst Project suggested that Texas, and Austin specifically, have an opportunity to capture a significant share of the emerging clean energy industry, but only if the city and state increase their competitiveness against other vying for their piece of the pie.

But leaders at Wednesday’s event said Austin is in a unique position to implement technology changes more quickly than competitors and offer its electric grid as a real-world proving ground for the next generation of energy technology.

“Several other cities are testing clean-generation or efficiency products,” McCracken says. “We’ll do that. But we’ll also test the software, storage and business models we need to make it all fit together."

The project includes designing a system that:

· delivers plentiful, reliable and affordable energy to Austin’s expanding population;

· is responsible with Texas’ natural resources;

· can eliminate the need for more power plants;

· produces a power plant’s worth of energy, generated within the city limits via renewable resources;

· Austin intends to share with cities across America and around the world.

The project will help cities map out the creation of the infrastructure it will take to power their economies and preserve the environment.

The corporate partners will assist in the project by providing staff resources and strategic guidance within their areas of expertise. Partners will also help the team identify technologies that can be pilot-tested on the local electrical grid once the initial phase of the project is completed.

Forbes Magazine: Austin one of 10 best cities to raise a family

December 3rd, 2008 12:57 PM

183A no longer accepting cash

December 2nd, 2008 4:27 PM

U.S. 183A has officially gone cashless.

The vast majority of 183A users will not be impacted by the change because more than 85 percent of users already pay their tolls electronically with TxTag, according to the Central Texas Regional Mobility Authority, which operates the toll road. Drivers who do not have a TxTag sticker will still be able to use 183A but will be sent a bill in the mail after their vehicle license plates are photographed while on the road.

CTRMA says all-electronic tolling is expected to improve roadway safety, cut vehicle emissions and reduce fuel consumption, while reducing operating costs by more than $1 million annually. About 15 toll booth employees have been transferred or provided a severance package.

“We always planned for 183A to be a state-of-the-art all-electronic toll road, but when construction began in 2005, we weren’t sure if Central Texans were ready for the concept,” says CTRMA executive director Mike Heiligenstein. “To be safe, we initially collected cash at several of our toll plazas, but as TxTag usage soared past 80 percent, it became clear to us that the community was ready for cashless tolling.”

In addition to TxTag, 183A will accept TollTag or EZ TAG. According to CTRMA, TxTag is the easiest and most economical form of payment, saving customers 25 percent off the regular toll rate. TxTag can be obtained online at www.TxTag.org or via phone at 1-888-Go-TxTag or in person at the TxTag customer service center at 12719 Burnet Road.

U.S. 183A is Texas’s fifth all-electronic toll road.

Austin job creation slower, but still outpacing rivals

December 2nd, 2008 4:26 PM

Employment in the Austin-Round Rock region increased 1.9 percent between October 2007 and October 2008, outpacing many of Austin’s economic development competitors, according to data released Tuesday by the U.S. Bureau of Labor Statistics.

The local region added about 14,700 jobs in the 12-month period, bringing its total employment figure to roughly 781,000, according to the report. By comparison:

• San Jose, Calif. added 700 jobs for a 0.8 percent increase

• Raleigh, N.C. added 8,800 jobs for a 1.7 percent increase

• Nashville, Tenn. lost 2,200 jobs for a 0.3 percent decrease

• Seattle lost 1,900 jobs for a 0.1 percent decrease

• Phoenix lost nearly 50,000 jobs for a 2.3 percent decrease

• San Antonio added 17,900 jobs for a 2.9 percent increase

• Memphis, Tenn. lost 10,800 jobs for a 1.7 percent decrease

• Albany, NY remained stagnant.

Holiday shopping up going into 'Cyber Monday'

December 1st, 2008 3:16 PM

Reports show better-than-expected results from online shopping over the Thanksgiving weekend.

Internet research firm ComScore said on Sunday that online spending was up 2 percent on Thanksgiving Day and Friday combined, compared with a year ago.

PayPal, the online payment service owned by eBay Inc. (Nasdaq: EBAY), said Black Friday transactions were up nearly 34 percent, compared with 2007.

Another research firm, ShopperTrak RCT, that tracks total retail sales at more than 50,000 stores said sales were up 3 percent to $10.6 billion on Black Friday, compared to a year ago.

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