NOT IN MLS...

Fantastic buy in Section One of Berry Creek Country Club Neighborhood.  One-story home on .5-acre on cul-de-sac street.  Sought after, tree filled street - asking only $250,000.  That's about $88/sqft - homes in this area are going for $110/sqft.  Contact me for details - 512.439.3696.

Not sure how you feel about this - but we're likely going to see an extension on the credit.  While I think it's super that we're seeing some traffic into the real estate market and an increase in transactions - I can't help but be concerned about:

1.  Short-term artifical market stimulation for PR

2.  The long-term effects - if the financial burden is off-set by these investments

3. Issues stemming from buyers who closed on homes recently - feeling as thought they may have done under falsely placed duress

4. Whether buyers will now take a "wait and see" attitude with this - belieiving that the government will extend again.

Anyway - here's the story from Yahoo!:

WASHINGTON – Buying a home is about to get cheaper for a whole new crop of homebuyers — $6,500 cheaper.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House is scheduled to vote on the bill Thursday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

Today is always such a reminder of hope for me - as I celebrate the 3rd birthday of my sweet daughter.  She is the child I never thought I'd have...brought to me out of a relationship I'd never anticipated.  Makes me teary-eyed when I consider the blessing.

My Viper is sweet, scheming, funny, bright, quirky, effervescent, clever, and silly.  She equally adores pink fluffy icing and "spider chasing" in our yard.  She wears her ballet shoes to jump into the rainy afternoon's mud puddles.  Though refusing to have her hair brushed, she demands to wear her princess dress when we go out.  She's the loveliest mishmash of contradiction and complexity. 

Happiest of birthdays to my wonderful girl.  Your mommy is so excited that you're in her life...

I've received a lot of inquiries and emails from folks regarding the upcoming propositions related to real estate - specifically propositions 2,3 and 5.  It's tough for us to figure out who to believe...

With that said, I was talking with my trusted colleague Avis Wukasch (current Commissioner for the Texas Real Estate Commission and former chair of the Texas Association of Realtors) about this topic this morning and she sent me the below op ed piece that will be provided to local papers around the state.  Thought it worth passing along to you as it may provide some clarification on nebulous language.  Additionally, if you'd like another resource - please visit: http://www.texasrealestate.com/web/3/34/index.cfm.

As always, I'd love your comments and input.

Kiersty

OP ED:

"Voting for Props 2, 3 & 5 will improve our property-tax system

I haven’t met a Texan yet who wants to pay more property taxes. If you’re not careful, though, you might vote to do exactly that. In fact, somebody out there is encouraging you to. I’m not sure who is behind this misinformation campaign or why, but I’d like to set the record straight.

The misleading e-mails I’ve seen seem reasonable. They ask you to vote against Propositions 2 and 3. They even accurately quote the ballot language for those propositions. But they whiff completely on what the propositions mean.

That’s the problem with constitutional-amendment ballots—the proposition language often is just complicated enough to be confusing. Whoever’s sending the e-mails takes advantage of that haziness to state that Propositions 2 and 3 will allow the state of Texas to “start taxing Residential Homeowners.” Not even close.

Here’s the actual ballot language for Proposition 2: "The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property’s value as a residence homestead." All this means is that the appraisal district has to appraise your home as a home.

Currently, county appraisers can use the “highest and best use” method. So if your residence has the potential to be used for something more valuable—a commercial property, for example—your home could be appraised on that possible use rather than its existence as your home. This is especially worrisome for people with houses near commercial developments and houses not covered by tight zoning standards.

Proposition 3 will appear on the ballot as follows: "The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem tax purposes." Here’s the translation: Tax-appraisal methods in our county probably differ from those used in many other Texas counties. There are no uniform standards, no oversight.

One of the hallmarks of a fair system is a single set of rules for everyone. Proposition 3 would give the state the ability to make sure appraisal methods are consistent throughout the 254 Texas counties. With state funding for public schools based on the taxable property in each school district, it makes sense to ensure that property values are derived from the same procedures.

While I’m at it, I’d like to mention Proposition 5. This amendment would give two appraisal districts the ability to consolidate their boards of equalization, or appraisal review boards. These bodies hear formal protests from taxpayers who believe their properties were unfairly appraised. Some appraisal districts in rural counties have had difficulty finding enough qualified people to serve on these boards. The amendment will help those counties provide an appraisal process that is handled professionally and in a timely manner. It doesn’t require consolidation; it simply offers it as an option.

All three of these propositions will help us take a few steps toward a better property-tax system. Don’t be led astray. Now that you know what these measures will mean for Texans, I encourage you to get to the polls on November 3 and vote for Propositions 2, 3 and 5."

The Wall Street Journal put out an article today in their "Careers" section, outlining the top ten "Youth Magnet Cities."  Number five for folks ages 18 to 29 is our terrific city: Austin, Texas.

Here's the full article:

http://online.wsj.com/article/SB10001424052748703787204574442912720525316.html?mod=WSJ_myyahoo_module

A recent conversation with my son about his not-quite-3-year old sister.

"Mom, come here." (said urgently) "Sit down.  I need to talk with you.  It's important."

"Sure, hon.  (concerned Mom...) What's going on?"

"It's about my sister.  I think that in the future, when she does something good - you should think about giving her money."

"Okay...why?"

"Well, I went in her room today.  And she has no bank.  No nothing.  She's BROKE, Mom.  BROKE!"

Later I went in to find that my son had taken some of his savings (about $.78, mostly pennies) and put it on his sister's dresser.  After seeing this - I went out and got her a little bank.  Not sure what my son thinks that his sister is going to do with this money - but couldn't resist supporting his "cause."

The Texas Real Estate Center at Texas A&M University has just published data from August sales in comparison with August 2008.  Overall, the median price dropped 1% year over year - to get some perspective, the national price dropped 2.8%.  Below, by looking at each area you can get a better idea of what's happening in your neck of the woods.

Here in the Austin area, we saw a 4% median price reduction - and we're down 10% in the number of transactions closed.  It will be interesting to see the data from September - November.  With the rush of many first time home buyers closing before the Dec. 1 deadline, I anticipate we'll see the number of transactions increase - and the median price to remain fairly steady.   

	Sales	Change from Last Year	Median Price	Change from Last Year	Months' Inventory
Austin	1,996	down 10%	$187,000	down 4%	6.7
Dallas	4,183	down 15%	$161,500	up 1%	6.5
Fort Worth	756	down 17%	$116,300	down 4%	6.8
Houston	5,555	down 11%	$159,700	up 1%	6.8
Killeen–Fort Hood	262	up 19%	$127,100	up 1%	9.8
Laredo	72	down 19%	$116,400	down 10%	9.4
Lufkin	48	down 20%	$95,000	down 17%	na
Odessa	92	down 39%	$118,700	down 13%	7.9
San Antonio	1,808	up 1%	$146,500	down 2%	8.3
Texarkana	85	down 11%	$111,000	up 25%	8.7

It seems that along with the very welcome rain and cooler temperatures also came a shift in the Central Texas market...  All of a sudden, there was increased activity, and dare I say - optimism - among the folks I talked with this week.

I gotta be honest - it was nice to no longer feel as though I was living in a sauna.  That I could play outside with my kids earlier than 10:30 pm.  It was wonderful to hear a smile in the voices of those folks I did business with this week.  Excellent to feel a release of the vice grip.

Beyond the "feeling" - this just hit my desk:

TEXAS TO LEAD ECONOMIC RECOVERY

SAN ANTONIO (San Antonio Business Journal) – The four major Texas metros will be among the first in the nation to recover from the recession, according to a nationwide forecast by IHS Global Insight.

San Antonio and Austin will lead the way, bouncing back to their prerecession job levels sometime next year, predicts the Lexington, Mass.–based economic forecasting firm.

Houston and Dallas–Fort Worth are among eight other metropolitan areas predicted to recover by 2011.

Other headlines I caught today: From the Austin Business Journal - Austin's August unemployment was down (though very slightly) from the month before - and worker confidence is up.  Whatever it is, it's okay by me.  I'm happy to see folks with a bit of a spring in their step.  I'm tired of all of the moping around - whether its the weather or whatever, I hope we can keep this up.

Super way to end the week.  Have a great weekend!

My sweet little almost-3-year old Violet, codename Viper, strikes again.  My husband, Viper, and I were heading to the airport last week - they were dropping me off as I headed out on a trip.  Vi had found her back up clothing that Daddy keeps in the backseat for her "just in case of emergency" -- and she'd proceeded to put all items on over her car seat harness.

So she had around her neck and on her arms as much as possible, her skirt, shirt and underthings...  Pretty cute.  When I turned around and saw her, I laughed and said, "Oh Violet, you are my darling girl."

Her response: "I not darling girl.  I Darth Vader."

Coming from someone who spent Sunday at Schlitterbahn, I gotta tell you: it will be SUPER to have a water park closer to home.  Pflugerville will be the site of a new water park - set to open in 2010 - that may bring 300,000 visitors each year.  The park will be located at the corner of Pecan Street and Tollway 130.

If you want to read the full story - check out Community Impact News.