$70 million condo development on East Riverside

(Austin American Statesman)

Within a few weeks, demolition is scheduled to begin on the Wellesley Inn & Suites to make way for a $70 million development where the first condominiums will cost from $700,000 to $1 million.

The 254-unit luxury condo project along East Riverside Drive is also expected to expedite a long-awaited extension of the Town Lake hike-and-bike trail.

The tallest building will be the one nearest the interstate. A 90-foot building will be closest to Riverside on the southeast side. Two 60-foot buildings will replace the motel. There also will be a three-level underground parking garage for 400 cars.

Construction is expected to start in mid-2007 on the first phase — two 60-foot buildings with 68 units. Most of those units will have three bedrooms and average 1,500 square feet, with prices from $700,000 to $1 million. The first residents would arrive in mid-2008.

The company also says it will donate $250,000 toward a boardwalk or pontoon bridge on the river beneath I-35. This would close a gap in the hike-and-bike trail that now forces runners to cross a busy intersection. The multimillion-dollar boardwalk project, which could be a few years away, would connect the trail from the east with parkland west of the interstate.

Further east, near Riverside and Lakeshore and south of Town Lake, Cypress Real Estate Advisors Inc. plans to build a $400 million to $500 million development with townhomes, condos and apartments. Austin-based Cypress hopes to start construction in late 2007, adding about 2,500 residential units over eight years.

Lot 67 Porter Rd - For Sale: $79,990

Location: Lot 67 Porter Rd, Bastrop TX 78602

Virtual Tour: - click here -

Lot Size: 640 x 476 (7 Acres)

Subd: K C Estates Sec 2*

Remarks: GREAT BUILDING SITE FOR A SECLUDED HOME!!! TOWERING PINE TREES!!! CLOSE TO TOWN FOR SHOPPING, ENTERTAINMENT COMPLEX AND 3 MAJOR GOLF COURSES! Restrictions Available!!!

Directions: HWY71, L(N) HWY95,R HWY21,4.5MI L ON PORTER (about 1,000 ft before LCRA Power Lines) Property on Right

Merry Christmas!!!

I just want to wish everyone a Merry Christmas and Happy New Year!!!

Dan

Austin real estate posts record November

Inman News - Austin, Texas

Home sales and prices in the Austin, Texas, area reached new highs for the month of November, signaling a still-hot market, the Austin Board of Realtors reported today.

According to the latest Multiple Listing Service report, a record 1,902 single-family homes were sold last month, up 6 percent from approximately 1,795 sales in November 2005. Last month was the 11th consecutive month of year-over-year sales gains, according to statistics.

The median home price of $175,000, although unchanged from October, set a record for November and was up 3 percent from a year ago.

Property owners are beginning to postpone their selling plans, as the 2,340 new listings added to the market last month represented a drop of 24 percent from October and 3 percent from a year ago. Despite the decline in new listings, active inventory at the end of November totaled 7,354, still 3 percent higher than the same month last year.

Single-family homes that sold in November spent an average of 68 days on the market, which is unchanged from a year ago, but is two days longer than the October average, according to statistics.

***
Copyright 2006 Inman News

Congress Helps Homeowners With Last Minute Legislation

Last two days of this session produce homeowner tax breaks!!!

In a last minute flurry of tax legislation, the Congress passed 75 tax provisions just in time to get out of town for the holidays. One of the new provisions will be the ability to deduct Mortgage Insurance premiums. This movement will allow some middle-income families to deduct mortgage insurance premiums.

Currently homeowners can deduct mortgage interest, but can't deduct mortgage-insurance premiums. Mortgage insurance is often required for home buyers unable to make a 20% down payment.

"Making the cost of mortgage insurance tax deductible helps those who need it most: low- and moderate-income Americans, primarily first-time home buyers, who are financially responsible but simply don't have the means to amass a 20% down payment," said Steve Smith, chief executive of the PMI Group Inc. ( See release from Mortgage Insurer's Association)

The response from consumer groups was just as positive as the benefit will help more people get into their first home and help those moving or refinancing to see some benefit.
For taxpayers with adjusted gross income of $100,000 or less, they can fully deduct the cost of private or government mortgage insurance.

The mortgage insurance contract must be issued in 2007 . This means the benefit will only cover new mortgages including refinancings.

The benefit of this deduction begins to phase out for taxpayers making more than $100,000. Taxpayers making more than $110,000 are ineligible to deduct anything premium relatedThe bill also revives the deduction for state and local sales tax for 2006, and extends it through 2007.

The law allows taxpayers to deduct state and local sales tax from their federal returns. The measure is a top priority for taxpayers in states that don't have a personal income tax.

New Development!!!

AUSTIN (Austin American-Statesman) – Goodnight Ranch, the 700-acre former dairy farm about ten miles south of downtown, will be home to a giant mixed-use development including 3,500 homes and 250,000 square feet of neighborhood shops and offices.

Developers Dean Goodnight, Terry Mitchell and David Mahn say Goodnight will have about 100 acres of open space and more than three miles of hike-and-bike trails around the mixture of single-family houses, condominiums, townhouses and apartments.

Slowed by a lack of utilities, Austin city officials recently agreed to reimburse the developers $3.8 million for the cost of extending water lines to Goodnight Ranch. The area on the east side of I-35 and south of the future Slaughter Lane extension falls within the Creedmoor-Maha Water Supply Corp.'s service area. No agreement has been reached on whether the city or the water corporation will eventually serve the area. Developers will not be reimbursed for the cost of extending city wastewater service..

Developing lots for the first 300 homes will begin in the spring, with move-in beginning by the end of 2007. Target price for the first condominiums, single-family houses and townhomes is about $100,000 to $300,000.

Other Links: http://www.bizjournals.com/austin/stories/2004/10/25/daily28.html

1800 Lavaca St #308 - Best Deal Downtown

http://www.visualtour.com/show.asp?T=832042

GREENWOOD TOWERS HUGE 2 BEDRM!WALK ACROSS ST TO CAMPUS. SOME UPDATES, SHOWS WELL. Secured Entry, Pool, Hot tub, Elevator. HURRY WON'T LAST!

ONLY $180.28 per sq/ft. 2nd cheapest in 78701 zip code. Call or e-mail me for a list of downtown properties.

Bed: 2
Bath: 1
Sq/Ft: 857
Yr Built: 1966
Parking: 1 (garage)
View: City, UT Tower
HOA: Covers Utilities, Very Nice Pool: $460/m Mandatory

Offerd and Marketed by:
Dan Price, REALTOR
DOWNTOWN SPECIALIST
Keller Williams Realty
Team Price, Committed to Excellence
512.963.3768 (mobile)
512.439.7571 (office)
521.692.9888 (fax)

Hill Country Galleria

AUSTIN (Austin American-Statesman) – The Hill Country Galleria in Bee Cave is signing new retailers and restaurants as tenants in its 1.3 million-square-foot center on the north side of Texas 71 between RM 620 and RM 2244 (Bee Cave Rd.).

A 150,000-square-foot Dillard’s will anchor the center. Other tenants will include retailers Ann Taylor Loft, Barnes & Noble, Eddie Bauer, New York & Co. and a Cinemark movie theater.

The new two-story, 30,000-square-foot Bee Cave city hall, with council chambers and a new city library, will be at the center of the project. Construction on the Galleria’s 50 brownstone condominiums and 309 apartment units begins in January.

Bee Cave Pkwy., a four-lane road along the north side of the Galleria, is slated to open in mid-January. It will provide an alternate route connecting RM 620 with Bee Cave Rd.

$185,000 ~ 1/2 Acre Lot - Near Lake Austin - Excellent Location - Virtual Tour

Virtual Tour: http://www.visualtour.com/show.asp?T=830664

Steiner Ranch has 819 acres of nature preserve and miles of paved running areas. Excellent school district!!! Mary Quinlan Park is located on the upper reaches of Lake Austin. This small, moderately visited park is only 2 minutes from this amazing lot and it offers 5.8 acres of rolling hills with 200 feet of shoreline access, including the only public boat ramp for several miles.

Email me at dan@teamprice.com for Building (Deed) Restrictions and Survey!!!

Lot Size: 120 x 175 ft

MLS#: 7038391

Acres: .48 Directions:

Dir 2222, L on 620, L on Quinlan Park Road (Steiner Ranch), Continue on Quinlan - Lot on the left.

Remarks: Approximately 1,000ft from Lake Austin!!! Must See!!! A few blocks from the Lake Austin Spa

Listed and Marketed by: Dan Price, REALTOR

Keller Williams Realty

512.439.7571 (office)

512.963.4092 (mobile)

dan@teamprice.com

Team Price

"Committed to Excellence"

Best October Ever!!!

AUSTIN (Austin American-Statesman, inman.com) – Central Texas’ housing market posted an October record for both single-family home sales and prices, as homes sold at the fastest pace ever for the month.

Although homes sold in October were on the market an average of 66 days compared with 58 days for homes sold in September, the Austin Board of Realtors’ latest Multiple Listing Service report said the number is still a record low for October.

In the South Austin area that includes neighborhoods such as Cherry Creek and Tanglewood Forest, active listings took about 18 days to sell.Last month was the tenth consecutive month of year-over-year sales gains, with nearly 2,075 single-family homes sold, up 8 percent from the approximately 1,920 sales last year. October’s median price set a monthly record at $175,000, an increase of 9 percent from approximately $160,500 posted a year ago.

The number of new listings jumped 12 percent during the period to almost 3,075. The nearly 7,950 active listings at the end of October, although down from September, were up 4 percent from a year ago.

Pending sales were up 19 percent to more than 2,400.There are fewer homes selling for under $120,000 so far this year, down 6 percent or more compared with the same period a year earlier. Home sales in the $200,000 to $249,000 price range, however, are up 18 percent.

Renaissance Austin hotel sold to Maryland company

(Austin) - DiamondRock Hospitality Company announced that it has entered into a definitive binding agreement to acquire the 521-room Renaissance Waverly Atlanta Hotel and the 492-room Renaissance Austin Hotel. The hotels will be acquired for a combined purchase price of $237.5 million.

The Renaissance Austin Hotel is in Austin's Arboretum submarket along Research Boulevard.

The hotels will be enhanced by $12 million in renovations during 2006. The renovations include revenue-enhancing projects such as adding 14 new keys at the Austin hotel. [Austin American-Statesman]

Rent up, occupancy down in major metros

(Austin) - The apartment markets in Austin, Dallas, Fort Worth, Houston and San Antonio each saw decreases in occupancy and increases in average rent for the year ending September 2006, according to Carrollton-based ALN Apartment Data, a market research firm.

Austin had the smallest change in occupancy, dropping from 94 percent in September 2005 to 93.7 percent a year later (.3 percent drop). Houston had the biggest change, going from 96 percent to 90.1 percent (6.1 percent drop).

Austin had the largest increase in rental rates for the year, going from $725 to $773 (6.6 percent increase). Fort Worth had the smallest, going from $640 to $658 (2.8 percent).[ALN Apartment Data]

UT gets OK to buy property

(Austin) - UT-Austin is running out of space on campus. So officials sought and obtained approval from the Board of Regents to spend $22 million to acquire a building and an adjacent parking garage on Guadalupe Street for office space and possible future use as a data center.

The building at 1616 Guadalupe St., three blocks south of campus, was previously occupied by Southwestern Bell. The property has 178,400 square feet of usable space and parking for about 540 vehicles. [Austin American-Statesman]

Downtown Austin Living Options

Call me at (512) 439-7571 for a list of active properties downtown. You can also search for properties at www.teamprice.com

Downtown Luxury Condo's for UT Fans

A developer plans to build a luxury condominium complex near the University of Texas campus, aiming for Longhorn fans who want a home-field advantage during game weekends.

The Texas Gameday Center, at Dean Keeton and Red River streets, will include 51 units in a converted apartment building, with another 136 units in a new building nearby. The developer, Atlanta-based Gameday Centers Southeastern LLC, is in negotiations for the site of the new building.

The first part of Texas Gameday Center, which is expected to open by next season's kickoff, involves converting the Windsong Apartments into upscale condominiums. The units will be professionally decorated and furnished with Longhorn themes.

Work is expected to start next spring on the new building, which could be ready in fall 2008.

The new building will have studios and one-, two- and three-bedroom suites ranging from 350 square feet to 2,000 square feet. Amenities will include on-site management, private parking and a clubroom for tailgating before games.

Prices will range from $160,000 to $1 million. Owners will be able to rent out their units when they're not using them.

Gameday Centers plans an official sales kickoff at the Nov. 4 UT game against Oklahoma State.

For more information to include, floorplans, specific pricing information, and a reservation form call me at (512) 439-7571.

Key mortgage rate falls to 11-month low

This week, the Labor Department released the Producer Price Index for October. The measure of wholesale prices showed that a theoretical basket of wholesale goods that cost $100 in September dropped to $98.40 in October -- a 1.6 percent decrease. If you exclude food and fuel items, a theoretical basket of goods cost $100 in September and $99.10 in October -- a 0.9 percent drop in the so-called core rate.

For the 12 months ending in October, core wholesale prices went up 0.6 percent -- like going from $100 to $100.60 in one year. That's low inflation. Mortgage rates, as well as bond yields and some other interest rates, fell in response.

The benchmark 30-year, fixed-rate mortgage fell 8 basis points to 6.24 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.32 discount and origination points. One year ago, the mortgage index was 6.42 percent; four weeks ago, it was also 6.42 percent.

The 15-year, fixed-rate mortgage fell 4 basis points to 5.98 percent. The 5/1 adjustable-rate mortgage fell 3 basis points to 6.13 percent.

From: bankrate.com - click here - for complete article.

Lake Travis Level

Texas Montly - interesting set of events!!!

Ok... so the other day I was at H-E-B and saw the new Texas Montly cover page - a great cover page... excellent picture. So today we get the news that Gates will be the Secretary of Defense...



"Bush said Robert M. Gates, 63, a national security veteran, family friend and currently president of Texas A&M University, would be nominated to replace Rumsfeld."

Very interesting!!!

.48 acres near Lake Austin for only $185,000

Address: 1401 Quinlan Park Rd Austin, TX 78732
URL: http://steinerhomesforsale.com/listing/45584040

• Lot Size:120 x 175
• MLS#: 7038391
• Acres: .48
• Directions: Dir 2222, L on 620, L on Quinlan Park Road (Steiner Ranch), Continue on Quinlan - Lot on the left.
• Remarks: Approximately 1,000ft from Lake Austin!!! Must See!!!

Survey is available upon request. Call me at 512-963-4092 if you need more information or if you would like to schedule an appointment to view this amazing lot...

Best September ever for Austin real estate

Steady demand for homes pushes prices higher

Austin, Texas, home sales set another record in September as single-family transactions rose 2.7 percent over their year-ago level, the Austin Board of Realtors reported.

According to the latest Multiple Listing Service report, 2,341 single-family homes were sold last month, up from 2,280 sales in September 2005. Last month was the ninth consecutive month of year-over-year sales gains, according to statistics.

The median price of single-family properties gained 3 percent from a year ago to a September record of $167,000, up from $162,000 in September 2005.

The 8,203 active single-family listings in the MLS represent a 5 percent increase from September 2005, and were up from 8,137 in August. At an average of 58 days, the amount of time these listings sat on the market decreased by 15 percent, which is the shortest amount of time single-family listings have waited to sell since September 2001, when the average was 46 days.

"If you want proof that Austin is a real estate hot zone, all you have to do is look out your window," said ABoR Chairman John Rosshirt. "The construction cranes that have become fixtures around the skyline underscore the city's desirability. In North Austin, for example, the area around the Arboretum is the target of serious commercial development, and the home sales data complements that fact."

The 1N section of Austin, which encompasses ABoR's northwest Austin neighborhood, posted particularly noteworthy numbers in September. The area's single-family home sales increased 47 percent to 69 and earned a median price of $240,000, an 18 percent increase from last year. Averaging 38 days on the market, these properties sat for 40 percent less time than they did in September 2005.

The Austin Board of Realtors is a nonprofit, voluntary organization representing more than 8,500 licensed Realtors in Central Texas.

From: http://www.topproducer.com/news/58392.html

Forecast: Real estate boom to continue in 2007

With rents and occupancy rising across different product types and economic indicators pointing toward further population and job growth in Austin, local commercial real estate professionals say the industry's high times are likely to continue into next year.

The Institute of Real Estate Management sponsored its annual forecasting forum today at the Hyatt Regency on Town Lake. A panel of experts from different sectors offered their assessment of the market and their predictions for 2007.

Office

The Austin office market has absorbed about 1.7 million square feet of space in the first three quarters of 2006, according to data from CoStar Realty Information Inc. By comparison, the market absorbed only 1.1 million square feet in all of 2005.

"As the local economy has picked up, so too has the office market," says Diana Holford, principal with the Staubach Co. Leading the way is the Southwest submarket, which has fallen below 8 percent vacancy. It's followed by the Northwest submarket, where several companies have announced new development projects to meet rising demand.

But Holford says companies today are more conservative in the amount of space that they lease than they were during the last boom.

"They're almost Draconian in their approach," she says. "They still have the scars from taking more space than they needed."

Holford says tenants are also less concerned about extra amenities associated with their space, often referred to as bells and whistles.

"They're really trying to make the most out of what they've got," she says.
Andy Smith, managing director over the Austin office of Equity Office Properties, says his company is busy making deals with expanding firms and even a few that are relocating. Smith says that with growth among companies from advertising to finance, this office market recovery is much broader based than the last. Equity Office is Austin's largest office landlord.

Multifamily

The local apartment market has absorbed more than 1,800 units so far this year, according to Austin Investor Interests. Occupancy rose less than one percentage point in the last 12 months to 93.8 percent, while rents are up to 90 cents a square foot from 85 cents at this time in 2005.

From: Austin Business Journal - 2:55 PM CDT Thursday
by A.J. Mistretta
Staff writer

RIVER PLACE PROJECT RISING

RIVER PLACE PROJECT RISING

AUSTIN (Hill Country News) – Aspen Properties Inc. plans to break ground in February on a speculative development that includes 132,000 square feet of office space, a 36,000-square-foot medical office building and 11,600 square feet of retail space. A 100-room hotel is included in the plans.

The project will go up at RM 2222 and River Place Blvd. on 23 acres next to River Place Corporate Park, bringing the center’s total to 70 acres. Construction is expected to take 12 months.

The existing retail park includes 588,000 square feet of office space, and seven buildings. Aspen Properties Inc. purchased the park in May 2005 from Financial Industries Corp. for $103 million. Tenants include Motorola Inc. and Polycom Inc.

From: http://recenter.tamu.edu

Downtown post office site : developer picked

Highrise will replace 10-year old postal facility

After 10 years, the downtown post office could be getting a new address.

The U.S. Postal Service has chosen Atlanta-based Novare Group Inc. and its local partner, Andrews Urban LLC, to redevelop the site, on Guadalupe Street between Fifth and Sixth streets.

While plans still are being developed, Novare plans a "high-density, mixed-use development that Austin and the Postal Service will be proud of," said Billy Holley, the firm's lead developer for Austin.

The project will include a new post office, either as part of the new project or within a block.

The Postal Service put the site up for bid in August and got six proposals. The other companies weren't identified. Novare was the best qualified, spokesman Sam Bolen said.

"Now we'll begin negotiations to develop the downtown station property, which will include a new facility equal to or better than we have today and best meets the needs of our customers in that area," he said.

Novare already is making a mark in the residential development surge downtown.

At West Third and Nueces streets, it's building 360, a 44-story, 432-unit condominium tower that will open in 2008. It's also a partner in a $5 million expansion and renovation of the nearby Austin Music Hall that starts next year.

City leaders and developers long have said the post office site was underused, especially in light of the effort to dramatically increase the number of people living downtown and generate more tax revenue by making maximum use of prime sites.

Unlike some downtown sites, the post office block is exempt from Capitol view restrictions, meaning there's no limit on how high a building there can go. But the post office, built in 1996, is just two stories and occupies only about a quarter of the site.

Mayor Will Wynn has been lobbying postal officials for several years to "have the mistake of the current downtown post office corrected."

In an August e-mail to the Austin American-Statesman, he cited the "poor design and a horrific pedestrian environment" and called the underuse of the land "sinful."

Bolen said Andrews Urban "basically was selected to provide the space that we need and to purchase the property at a price we can accept," although there's no offer on the table yet. City officials and the public will have input on the new postal facility, said Greg Eden, a consultant who bought postal officials and Novare/Andrews Urban together.

The developers could build a new post office nearby or include it as part of the mixed-use development on the current site.

Under federal regulations, there must be at least one public hearing to show the project to the public and let people comment. The hearing will involve only the post office, not the private development.

The first hearing could come within two months, Eden said.

"It's important that people know this is a public-private effort," he said, adding that he hopes the new facility "will be more attractive than the current facility."

By Shonda Novak
AMERICAN-STATESMAN STAFF
Thursday, October 05, 2006

From: American-Statesman - click here -

$2 Billion Community Planned

For 29 September 2006

$2 BILLION COMMUNITY PLANNED NEAR MANOR

AUSTIN (statesman.com) – Fort Worth-based Taurus of Texas Holdings LP, a subsidiary of Boston-based Taurus Investment Holdings, has purchased 2,200 acres of wooded land south of Manor from an investment group that includes local developer Jim Carpenter. Plans are to develop a $2 billion master-planned, energy-efficient community with more than 8,000 homes ranging from the $150,000s to $500,000, townhomes, condominiums, and hundreds of thousands of square feet of retail and office space.

Whisper Valley Ranch is slated for development near the ten-lane Texas 130 toll road, which is scheduled to be completed in mid-2007. About 1,965 acres is on the east side of Texas 130; another 241 acres is to the west. The land also borders the recently improved Travis County Northeast Regional Park.

The first homes could be underway by mid-2007 and ready for residents by the end of the year or early 2008. Final buildout of the community is expected to take seven to ten years, according to Douglas Gilliland, president of Taurus of Texas. Community amenities will include 11 soccer fields, nine baseball fields and stocked fishing lakes, with nearly 600 acres left as open space or developed with walking and jogging trails.

Most of Whisper Valley Ranch's 300,000 to 400,000 square feet of shops and offices would be built west of Texas 130 in later phases. Major employers in the area include Dell Inc., Samsung Austin Semiconductor LP and Applied Materials Inc.

Hotel Coming to Downtown Historic Power Plant

AUSTIN (Austin Business Journal) – A 163-room boutique hotel will be part of a 22-story residential tower under construction near the old Seaholm Power Plant downtown. The tower also will have 62 condominiums.

The Seaholm Plaza Hotel is expected to open in 2009. An art deco look will complement the historic power plant building. Hotel amenities will include indoor and outdoor meeting and exhibit space, landscaped gardens, health spa and heated pool.

In 2005, the City of Austin selected local developers to redevelop the 7.8-acre site. Among the developers in Seaholm Power LLC is La Corsha Hospitality Group, which is directing construction of the hotel. Austin-based Centro Partners is developing the condo portion of the project.

Description: The Seaholm Power Plant, built between 1950 and 1958, faces Town Lake on West César Chávez Street. It is composed of five gas/oil generation units (100 megawatts total when it functioned) and no longer generates power. The building features a towering turbine room 110 by 235 feet, with clerestory windows above flanking aisles, and a 65-foot-high ceiling.

Two lower floors contain an additional 75,000 square feet. In all, the building has more than 110,000 square feet of useable floor area. An electric utility substation, transmission and distribution facilities, and a utility microwave communications center are located at Seaholm.

From:

• City of Austin - City Connection
• Real Estate Center Online News

August sales show continued strength

Sales of single-family homes in August were up 6 percent year-over-year, according to the Austin Board of Realtors report released Friday.

That translates to 2,805 homes sold last month, the second highest monthly figure this year.

The median sales price was up 8 percent to a record $182,500.

Buyers are snatching up homes at a faster clip, which bodes well for the market next year, says John Rosshirt, chairman of the Austin Board of Realtors.

"People will be cautious during the winter," Rosshirt said. "But all indicators show it will really kick off again in the spring."

The number of homes for sale fell 8 percent in August compared with a year earlier, while the average time that houses spent on the market fell from 67 to 60 days.

Nationally, the most recent figures show that the median sales price was $231,100 in July, as home sales dropped 5 percent year over year.

Supply and demand isn't the only thing pushing prices higher, said Eldon Rude, director of the Austin office of residential market research firm Metrostudy.

Rising construction costs for both materials and labor also are a factor, Rude said.

According to some local contractors, structural steel materials have risen 20 percent in the past year, metal roofing rose 15 percent, and drywall prices jumped 40 percent during that time.

"Builders are paying more for their lots and to build the houses. They've been getting more and more expensive," Rude said.

Year-to-date, sales and prices are also up.

For the first eight months of the year, 18,597 homes sold, up 12 percent compared with the same period last year, the board reported.

Both central city and suburban neighborhoods saw prices and sales climb.

A pocket of East Austin bounded by Interstate 35, FM 969 and U.S. 183 posted a 59 percent increase in sales, while the median price climbed 12 percent to $126,000.

The Dripping Springs area posted a 51 percent increase in sales and a 25 percent increase in median price, to $369,000.

The West Lake Hills area posted a 19 percent drop in sales, but the median price rose 34 percent to $750,000.

And farther out, sales dropped in the Liberty Hill area, but the median rose 77 percent to $247,000.

So far this year, about one-third of the sales were for homes in the $110,000 to $160,000 range.

On the higher end, demand remains vigorous.

Home sales in the $900,000 to $1 million range were up 70 percent. And for homes priced at $1 million and higher, sales were up nearly 60 percent.

And Californians continue to come in substantial numbers, as they cash out the equity in their homes in that pricey market to get more house for their money here, Rude and many brokers say.

From: Austin-American Statesman - click here- for full article
By Claudia Grisales, Shonda Novak
AMERICAN-STATESMAN STAFF

Amazing Home in the Village At Western Oaks

Address: 9003 Wampton Way

List Price: $229,900
Bed: 3
Bath: 2
Sq/Ft: 1,772
Yr Built: 1999
Lot Size: 50 x 120

Features: Open inviting floorplan. Kitchen looking in living & dining. Beautifully Maintained. Inviting home with custom paint and upgraded lighting. Beautiful shaded deck with built-in bench and custom lighting. Quiet street and neighborhood.



Amazing deck with Built-in bench is shaded by trees during the day. Excellent for entertaining.





-
Call us at (512) 692-9477 or e-mail me at dan@teamprice.com if you or someone you know would is interested.

NEWS - The "McMansion Ordinance"

If you are getting ready to build or remodel your house in Austin, get ready for some big changes.

The city of Austin McMansion Ordinance goes into effect October 1 and means homes cannot be bigger than 2,300 square feet or take up more than 40 percent of the lot size, whichever is greater.

Your house will also have to fit in what is called the "buildable area" that is made up of a maximum height of 32 feet and varying setbacks. The interim McMansion ordinance has been in effect since March but did not include this rule.

The city of Austin held two information meetings on the permanent McMansion Ordinance Monday. The Residential Design and Compatibility Commission will review the ordinance in six months to see if any adjustments are necessary. Waivers will not be allowed after October 1, but applicants can go before the Commission to see if some modifications can be allowed.

For more detailed information about the new McMansion Ordinance, go to:

http://www.ci.austin.tx.us/news/2006/mcmansion_hearings.htm
http://www.ci.austin.tx.us/zoning/sf_regs.htm

Mortgages add a bonus for energy-efficiency

Home buyers can borrow more to
make improvements that would lower energy usage.

Homeowners who are tired of worrying about high utility bills, or who want to minimize their homes' effect on the environment, are turning to an often overlooked type of loan for relief.

There are a few flavors of Energy Efficient Mortgages. The one most widely available to mortgage applicants, industry executives said, is Fannie Mae's product, which is offered by many big lenders.

With Fannie Mae's Energy Efficient Mortgage, which is sometimes referred to as the "conventional EEM," homeowners can spend up to 15 percent of the appraised value of the home on improvements that would improve energy-efficiency, and thereby qualify for a loan that is 15 percent greater than they would have received under normal underwriting conditions.

The average Energy Efficient Mortgage loan recipient, he said, spends $10,000 on improvements and reduces his annual utility costs by 30 percent to 50 percent.

Wells Fargo Home Mortgage protects people building new homes by allowing them to lock in an interest rate on an Energy Efficient Mortgage for up to two years while the home is being completed. Those buyers also can lower the rate to reflect declines within 60 days of settlement.

• Currently, fewer than 1 percent of all loans are Energy Efficient Mortgages, according to industry executives. But environmentalists, among others, are hoping that the recent interest in such loans will continue, even if fuel prices drop.

Click - here - for the article

By Bob Tedeschi
NEW YORK TIMES
From: Statesman.com

Circle C may get upscale neighbor

$200 million, 10-year plan calls for housing, hotel with golf course.

Plans are moving forward to transform a 1,020-acre swath of environmentally sensitive land that straddles the Hays-Travis county line into an upscale housing development.

Developers plan to begin work by year's end on Avaña, a nearly $200 million project that eventually could include about 800 homes, a 250-room resort hotel complex with 140 condominium units and 24 single-family villas, plus an 18-hole golf course.

Builders Toll Brothers Inc., Newmark Homes LP, Rossi Homes Inc. and Mercedes Homes Inc. plan to build the homes, with prices ranging from the upper $300,000s to millions.

Lowe Enterprises Inc., based in Los Angeles and owner of the Driskill Hotel, was to develop the hotel and golf course, which account for about 200 acres of the total.


Click - here - for more information.

By M.B. Taboada, Shonda Novak
AMERICAN-STATESMAN STAFF

JD Power 2006 New-Home Builder Customer Satisfaction Study

Congratulations Austin Builders!!!

JD Power and Associates rakes Austin #1 for Customer Satisfaction.

The 2006 New-Home Builder Customer Satisfaction Study measures customer satisfaction with new-home builders in 34 U.S. markets.

The study, now in its 10th year, is based on responses from 60,927 buyers of newly built single-family homes who provided feedback after living in their homes from four to 18 months, on average.

Ten factors drive overall satisfaction with home builders. They are (in order of importance): builder’s warranty/customer service; home readiness; builder’s sales staff; construction manager; quality of workmanship/materials; price/value; physical design elements; builder’s design center; recreational facilities; and location.

Austin is the top performing market the study. The average customer satisfaction index score in Austin is 124—12 points higher than the 34-market average of 112.

• David Weekley Homes ranks highest in home builder customer satisfaction in Austin.
• David Weekley improves 8 index points from 2005 and performs particularly well in the Austin market in four of the 10 factors: builder’s warranty/customer service; home readiness; builder’s sales staff and construction manager.

If you or someone you know is interested in a new home, please let us know. We always a phone call away 512.692.9477.

Mortgage rates fall for 9th time in 11 weeks

From: Bankrate.com
By Holden Lewis • Bankrate.com

"Mortgage rates are influenced by what the bond market thinks will happen to prices. If bond traders believe inflation will rise, mortgage rates rise, too. If bond traders believe inflation will level off or fall, the same thing often happens to mortgage rates. Yellen sits on the Fed's rate-setting Open Market Committee, which meets next week. Her opinion matters a lot, and bond yields fluttered downward in the hours after her speech. Long-term mortgage rates followed."

• One year ago, the mortgage index was 5.76 percent, and four weeks ago, it was 6.51 percent. The 30-year benchmark has fallen in nine of the past 11 weeks. It was 6.93 percent June 28 -- almost half a percentage point higher.

• The 15-year, fixed-rate mortgage fell 2 basis points to 6.12 percent. The 5/1 adjustable-rate mortgage fell 5 basis points to 6.19 percent.

Credit Score Stats

A credit score is important in the lending process. Unfortunately, credit scores in our state are nothing to brag about. Here are some stats to consider.

• 648 - Average credit score in Texas
• 50 - Rank among U.S. states of Texas’s average credit score
• 711 - Average credit score in South Dakota, the highest ranked state in the U.S.
• $231 - How much less a person with a top credit score might pay per month on a $216,000 mortgage than a person with a poor credit score

Sources: Experian; scores based on Experian’s Plus Score, which ranges from 330 – 830; and MyFico savings example using a 30-year mortgage with prevailing national rates in August 2006.

From: TexasRealtors.com : - click here -

Trip to Hawaii

Gail and I went to Oahu, Hawaii from September 02nd to the 10th and we had a great time. It was great getting back to Hawaii. I lived there from January 1998 to March 2000 and Gail and I got married there February 1999. We stayed at the Marriott Ko Olina Resort on the west side of Oahu... the same place we got married...

We went to Honolulu on the 5th and after walking 11.5 miles from Waikiki to the top of Diamond Head we were absolutely exhausted. We ended up staying at the resort for the rest of the time... enjoying the beach, sunsets, etc...

Enjoy the pictures: http://www.teamprice.com/dan-gail/hawaii.htm

Dripping Springs Development

"A residential community encompassing three former ranches west of Dripping Springs has been proposed by a developer seeking to build about 900 houses on 676 acres.

Proposed by local developer James Kerby, Scenic Greens is the first project seeking approval under the city's conservation ordinance. Adopted last year, the ordinance seeks to maintain the area's rural character and small-town charm by requiring, among other things, that developers set aside at least 40 percent of the land for open space and preserve in perpetuity some unique land features such as hilltops and view corridors that would frequently be seen as the most desirable parts to develop.

"It's basically a reverse way of developing a property," Kerby said.

Kerby plans to preserve nearly 70 percent of the land, or 470 acres, for open space.
Slated for the northwest corner of U.S. 290 and McGregor Lane, Scenic Greens would be one of the larger developments built in the sparsely populated hills surrounding the City of Dripping Springs, but it would not be the largest.

The planned 1,500-acre Headwaters at Barton Creek, about two miles east of the intersection of RM 12 and U.S. 290, is slated to have 1,000 houses. The 1,600-acre Belterra on U.S. 290 could have 1,600 houses when fully built, and 1,012 houses are planned in the 740-acre Highpointe of Dripping Springs community off of Sawyer Ranch Road.

Houses in Scenic Greens will start in the low $300,000s and be clustered throughout the property, with many backing up to wooded areas owned by the homeowners association.

More than 470 acres, including hilltops and dense woodlands, will be set aside for open space; as required by the ordinance, all of the land is contiguous. "

Click Here for the complete story...


From: AMERICAN-STATESMAN STAFF
By Kate Miller Morton

Post office downtow could become high-rise!!!

On Friday, August 04, 2006 the Statesman had an article saying that the "The U.S. Postal Service is seeking development proposals for its downtown site, opening up new possibilities for more residential development. " - click here - for full article.

It was very encouraging to see that there are "potential" plans for the downtown post office location. It is prime location and the current post office is in my opinion, a "wasteful use of space". I agree with Mayor Wynn when he says "No block in downtown Austin has been more underutilized than the one occupied by our current post office." and "In addition to poor design and a horrific pedestrian environment, the staggering underutilization of the land is sinful,"

Post Office Location Stats:

1. It (current Post Office) occupies 20,307 square feet on a downtown block of 77,488 square feet and sits on a block that is not in a so-called capital view corridor, meaning it has the potential to be developed to a much higher density and height than it is now.
2. The post office is housed in a two-story building located at 510 Guadalupe St., a block that is not under the Capitol View Corridor height restriction code, said Julie Fitch, the Economic Development Program director for the Downtown Austin Alliance.
3. The two-story post office building, completed in 1996 at a cost of $6.2 million,currently occupies the site. Only about a fourth of the block is occupied by the post office; the rest is used for parking.

A follow up Statesman article dated Saturday, August 26, 2006 and titled Post office receives 6 offers for space states "The U.S. Postal Service has received a half-dozen proposals for the prime block that houses its downtown Austin branch at Fifth and Guadalupe streets. " - click here - for full article.

Sam Bolen, spokesman for the USPS said that "Officials in various postal departments will evaluate the proposals." According to Mr. Bolen, a decision is expected by the end of September.

I look forward to seeing the decision and I praise Mayor Wynn's goal of revitalizing the downtown area. Mayor Wynn has a goal of "having 25,000 people living downtown by 2015".

Send me an e-mail to dan@teamprice.com if you want a map of all the planned and existing downtown projects.

32ND STREET CONDO CONVERSION

AUSTIN (Austin Business Journal) – Local developer Marshall Durrett, president of Grandview Street Partners Ltd., plans to turn an aging multifamily development in Central Austin into a 16-unit, $10 million condominium building at the intersection of 32nd and Grandview Streets between Seton Medical Center, downtown, the University of Texas and the Tarrytown neighborhood.

Grandview Street Condominiums will be a single building with ten, two-story condos on the ground level topped by six penthouse units. The condos will be finished-out to luxury specifications with prices ranging from the mid-$500,000s to mid-$800,000s for floor plans between 2,000 square feet and 3,000 square feet.

The 1930s duplexes and fourplexes currently on the nearly one-acre site will be demolished. Construction is slated to begin in January.

One unique feature of the condos is a configuration that allows for an elevator to each of the two-story units from the underground garage. Owners can choose to have an elevator installed for added convenience.

From: http://recenter.tamu.edu/news/recon.html

Wind power in Texas...

TEXAS ENTERS WIN-WIND COMPETITION

AUSTIN (Texas General Land Office) – Texas staked a claim on the future of wind power last Thursday by announcing plans to submit a proposal to the U.S. Department of Energy.

“The race for wind energy is like a modern day space race,” Jerry Patterson, land office commissioner, said. “In Texas, our program is ‘go’ for launch. We’re charging ahead to bring a large-scale turbine testing facility to the Texas coast.”

A coalition of Texas academicians, industry leaders and public servants will put together a bid to be submitted by the University of Houston. Austin-based Good Company Associations is coordinating the coalition’s efforts.

“This test facility will be a magnet for research and manufacturing,” Patterson said. “It will establish Texas as a worldwide leader in wind power for the next 100 years. It is a vital race. It is a race Texas will win.”

A competitive site-selection process is ongoing along the Texas coast. The facility could be built as early as 2008. The international market for designing and building turbines is estimated to be $80 billion annually.

From: http://recenter.tamu.edu/news/recon.html

Commercial vs. Residential

Now that the residential market is cooling off nationwide, many people are looking at commercial real estate as an investment option. Here is an interesting article:

- click here -

Gas prices affecting Realtors

Here is an interesting article about how gas prices affecting Realtors.

- click here -

FREE shuttle from Austin to San Antonio

Texas State offers free shuttle from Austin to San Antonio.

"The Austin and San Antonio service is free of charge Wednesday through Friday of this week. The shuttle even offers free wireless Internet access.

The regular cost of the shuttle is $8 from Austin to San Antonio. The shuttle makes three stops in Austin, then in Kyle, San Marcos, New Braunfels and San Antonio.

Texas State University is one of 33 state agencies that agreed to implement commute solutions to improve air quality across the state."

To read the entire article, click here.

From: http://www.news8austin.com
8/23/2006 3:38 PM
By: News 8 Austin Staff

Austin Home Sales Blazing Trails

AUSTIN (Austin Board of Realtors) - For the fourth consecutive year, Austin-area home sales set a record in July. Posting an 11 percent increase over the same time last year, about 2,721 single-family homes sold in Central Texas. Meanwhile, the number of active listings decreased by 6 percent to 8,368.

According to the Austin Board of Realtors, home sales generated a total of $668 million for the local economy, an increase of 21 percent. The median home price increased 5 percent to $178,190.

From: http://recenter.tamu.edu/news/recon.html

Robert Mueller Municipal Airport - Redevelopment

AUSTIN (statesman.com) - Phase one construction is underway on the new mixed-use urban village at the former Robert Mueller Municipal Airport site, two miles from the University of Texas and three miles from the Capitol. Store openings are scheduled for April 2007 for the first three big-box anchor retail tenants - Best Buy, Bed Bath & Beyond and Marshalls - located along the I-35 frontage road between 51st Street and Airport Blvd.

The first two phases will have 370,000 square feet of national, regional and local retailers and restaurants on 36 acres. Included in the master plan for Mueller will be additional retail in a town center setting, with restaurants and smaller boutique retailers. The development's final buildout is expected to take almost ten years and will include 650,000 square feet of retail space.

Catellus Development Corp. is the company responsible for transforming the 711-acre site into an urban village of shops, homes, services, schools and offices. The company is in the process of selecting home builders for the first phase of the planned 4,600 residential units.

Links:

• http://www.muelleraustin.com/
• http://www.rmma.net/
• http://www.ci.austin.tx.us/mueller/
• http://www.emporis.com/en/wm/bu/?id=123132

From: http://recenter.tamu.edu/news/recon.html

Austin Real Estate Remains Strong

Home sales elsewhere in the country are cooling, but the Central Texas housing market remains hot. Sales of single-family homes in July were up 11 percent year-over-year, according to the Austin Board of Realtors.

• The median price rose 5 percent to $178,190. Area real estate agents say out-of-state investors are fueling a significant portion of the demand in Central Texas.
• The median sales price from January through July increased 8 percent to $173,750 from the same period last year. Nationally, the median sales price is $229,000.
• The number of active listings — homes for sale — in July fell by 6 percent, compared with a year earlier, while the average time houses spent on the market fell 5 percent to 59 days.
• The area that includes Travis Heights, south of downtown, experienced a 27 percent jump in median sales price to $319,000. The median sales price for homes just east of Interstate 35 increased 21 percent to $224,720.
• Sales of houses priced between $900,000 and $999,999 jumped 71 percent year-over-year in July, and sales of those priced at $1 million or more increased 48 percent.
• The number of transactions involving homes priced in the $600,000 to $699,999 range was up 68 percent.

From: AMERICAN-STATESMAN STAFF : http://www.statesman.com/business/content/business/stories/realestate/08/18homes.html

foreclosure... foreclosure... foreclosure... Texas 2x national average!!!

Foreclosure Data...

• 92,845 properties nationwide entered a stage of foreclosure in July 2006 according to the U.S. Foreclosure Market Report .
• 1 new foreclosure filing for every 1,245 U.S. households.
• Texas reported 13,103 properties entering some stage of foreclosure, the most of any state for the eighth month in a row, and a 15 percent increase from the previous month.
• The six states with the most new foreclosure filings -- Texas, Florida, California, Michigan, Ohio and Illinois -- accounted for 54 percent of the nation's foreclosure activity in July, according to the RealtyTrac report.

Austin Foreclosure/REO (Real Estate Owned) Availability

Active Properties: 305
Avg. List Price: $124,969
Avg. Sq/Ft: 1,816
Avg. $ Sq/Ft: $68.02
Avg. Days on Market: 67

From: http://www.topproducer.com/news/55635.html

Technorati Profile

Check out our new profile:

Technorati Profile

Market Data - Nation Sales Soften while Texas experienced the third strongest gain, up 11.3 percent

National Market Update

• "Existing-home sales, including single-family and condo, were down in the second quarter in contrast with a record set in the same period in 2005. Despite the overall decline, 20 states showed increases in sales activity from a year ago, according to the National Association of Realtors®. "

Texas Market Update

• "The biggest increase was in Alaska, where existing-home sales rose 48.6 percent from the second quarter of 2005. In Arkansas the second-quarter resale pace rose 17.9 percent from a year earlier, while Texas experienced the third strongest gain, up 11.3 percent. Twenty-eight states and the District of Columbia experienced declines."

Austin Market Update

National and State Data from: http://www.realtor.org/PublicAffairsWeb.nsf/Pages/2ndQtrStateResales06?OpenDocument

Important News re: Insurance !!!

According to a recent article in the Houston Chronicle, The Texas Department of Insurance plans to liquidate the state's sixth-largest insurer, Texas Select Lloyds. The TDI plans to cancel all existing T.S. policies by August 23. If policyholders have not already received notification, they should shortly.

The Texas Property and Casualty Insurance Guarantee Association (TPCIGA) will pay valid claims and refund unearned premiums up to $25,000, according to the article. Consumers can find more info at http://www.tdi.state.tx.us/ or call 800-252-3439.

How does this affect you? Call Eric at Farmers ASAP if you have any questions or if you need any additional information. Eric has helped many of our clients and I am sure he will be able to help you!!!

Call Eric Stimmel, Farmers Insurance, at 512-925-6647 for a no hassle quote and consultation.

Farmers: Gets you back where you belong.
Eric Stimmel
8310 N. Capital of Tx Hwy. #497
Austin, TX 78731
512-617-3001 Office
512-925-6647 Cell
512-617-3005 Fax
estimmel@farmersagent.com

Now offering financial services as well as a full line of insurance products!

More Info: http://www.wtvm.com/Global/story.asp?S=5169957&nav=8fap

Austin to Consider Zero-Energy Requirements

Austin to Consider Zero-Energy RequirementsWhen it comes to energy conservation and a commitment to green technologies, Austin has been a leader.

The Texas city is on its way to setting a new precedent with a proposed series of changes to the building code that would require that all new single-family homes be “zero-energy capable” by 2015.

Zero-energy capable homes would be approximately 60 percent more efficient than homes built according to the current code and would generate their own power.

“The homes would employ solar technologies that could feed energy back into the city’s power grid during the day to compensate for energy the home would use during the non-daylight hours,” says Robert Morgan, director of Austin Energy’s Green Building program.

“This bold step will be another example of Austin’s continuing leadership role in national energy policy,” says Mayor Will Wynn, who also serves as the chairman of the Energy Committee of the U. S. Conference of mayors.

The first step for Austin is a task force to be appointed by the mayor and the city council on August 10 to study the possibility of Austin adopting the proposed changes. Austin builder Ray Tonjes who chairs the National Association of Homebuilders Green Committee says that the zero-energy goal is certainly “doable.”

Unlike most U. S. metros, Austin has a city-owned electric utility, says Morgan. Austin Energy is also one of 23 electric and gas utilities participating in an action plan developed by a leadership group of the National Association of Regulatory Commissioners that recognizes energy efficiency as a high-priority energy resource and promotes policies to align utility incentives with the delivery of cost-effective energy efficiency.

-- By Camilla McLaughlin for REALTOR® Magazine Online
-- From: http://www.realtor.org/RMODaily.nsf/pages/News2006081405?OpenDocument

Mortgage Rates at Lowest Point Since April

Thirty-year, fixed-interest home loans averaged 6.55 percent for the week ending Thursday, Aug. 10, putting mortgage rates at their lowest level since the week of April 20, when they averaged 6.53 percent, according to Freddie Mac.

The decline from last week's 6.63 percent represents the third consecutive week that borrowing costs for home buyers have fallen. "The weaker than expected job reports, combined with the Fed's decision to pass on raising rates at its last meeting, led directly to lower rates this week," explained Freddie Mac chief economist Frank Nothaft.

Prospective home buyers are jumping at the opportunity to secure financing at a lower rate, with the Mortgage Bankers Association reporting that its index on mortgage applications rose 4.9 percent last week, as the refinance and purchase gauges increased 7.1 percent and 3.4 percent, respectively.

Source: Baltimore Sun (08/11/06)

Closing cost comparison: Texas 2nd most expensive in Nation!!!

Texas was 15 in 2005 and this year, we are number 2!!!

The average cost in Texas: $3,578 compared to a national average of $3,024.

"There was more variation in title and closing charges. Fees averaged $1,353, with 40 of the 52 cities falling within $198 on either side of that figure, but title insurance and settlement fees pushed New York and Texas to the top of the heap as the most expensive states. In most states, title insurance averages less than $600, according to Bankrate's survey. In New York and Texas, title insurance premiums are well above $1,000 on a $200,000 loan.

In Texas, title insurance premiums are set by the state, and the premium for a $200,000 loan is $1,423. That pays for the insurance policy, as well as the title search. Texas title agencies are allowed to tack on other fees for services such as setting up escrow accounts and delivering documents. The closing usually is conducted at the title agency."

Other fees also affect the total closing cost and you should always get a Good Faith Estimate from a lender showing all fees to include loan origination fees, discount points, etc... We at Team Price have worked with many excellent lenders so if you have any questions regarding closing costs, settlement fees, etc... give us a call.


Links:
Closing costs average comparison for Texas
Mortgage closing costs: State rankings


Article from: Bankrate.com : http://bankrate.com/brm/news/mortgages/ccmain2006a1.asp?caret=1

Dubai - The biggest building site on earth

Begun in 2001, the Palm Islands are a 12-square-mile group off the shores of Dubai. With 14,000 labourers toiling day and night, the first of three unfeasibly large, palm shaped artificial islands, Palm Jumeirah, is nearing completion, and about to receive its first residents.

The islands almost defy description. They are huge artificial peninsulas, made from some 90 million cubic metres of sand dredged from the bottom of the Gulf. The outer edge of this first Palm is a gigantic, 7mile-long breakwater built of 7 million cubic metres of rock brought from 17 different quarries in the United Arab Emirates. It will be able to withstand 12ft-high waves.

Once finished, the Palm Jumeirah, which extends four miles into the Gulf, will accommodate some 60,000 residents in 2,500 exclusive beachside villas, 2,500 apartments in 20 high-rise blocks and 50 luxury hotels. The Palm Jumeirah will be followed by two more palm tree-shaped islands that will require a further 1.3 billion cubic metres of sand and stone.

The developers are also building The World Archipelago, a cluster of 264 islands that form a world map. Rod Stewart is rumoured to have bought the island shaped like Britain. The total cost of constructing the islands is some $14 billion. At least 50,000 workers will staff the hotels, two marinas, water theme parks, restaurants, shopping malls, sports centres, health spas and cinemas.

From: http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=399673&in_page_id=1770

UT Campus Housing Going Up

AUSTIN – College Houses Inc., a 501c3 organization with six co-op residential properties surrounding the University of Texas campus, plans to spend $10.9 million to demolish one of its properties in West Campus and replace it with a seven-story residential building that will triple its student housing capacity. The reconstruction of the property at 1905 and 1907 Nueces St. will include ground-level space for the firm’s offices and expand bed count from 45 to 160.

Alan Robinson, general administrator with College Houses Inc., said that the group was able to increase its unit offerings without buying additional land when the Austin City Council passed the University Neighborhood Overlay provision in September 2003. This provision allowed for denser residential development in the areas surrounding the UT Campus.

The Staubach Co. will be managing project development. Plans are to break ground in May 2007, with construction expected to be complete in fall 2008.

(statesman.com - 8 August 2006)

Fed Leaves Key Interest Rate Unchanged

The Federal Reserve on Tuesday left a key interest rate unchanged, marking at least a temporary pause in what had been the longest unbroken stretch of Fed rate increases in recent history.

The Fed's rate-setting committee voted 9 to 1 to leave the federal funds rate, the interest banks charge on overnight loans, at 5.25 percent. It was the first time the Fed had met and not raised rates in more than two years.

In 17 consecutive meetings stretching from June 2004 through June the Fed boosted the funds rate from a 46-year low of 1 percent to the current 5.25 percent, all in an effort to slow the economy enough to keep inflation under control.

Many economists believe the Fed will follow the August pause with one and possibly two more quarter-point rate hikes in the fall. The Fed's next meeting is Sept. 20.

At 5.25 percent, the funds rate, which is the overnight rate that banks charge to loan other banks, is at its highest point in more than five years. The funds rate is the Fed's main tool for influencing economic activity. Higher interest rates slow borrowing for homes, cars and other items and in this way depress economic growth.

From http://www.breitbart.com/news/2006/08/08/D8JCDFRO2.html

Frost Bank Tower Under Contract

AUSTIN (Business Wire, statesman.com) – Cousins Properties Inc. has agreed to sell Frost Bank Tower, a 33-story, downtown office building to Chicago-based Equity Office for $188 million or approximately $354 per square foot, a record price. The building is the tallest and perhaps most distinctive on the Austin skyline.

Property Info:
Property area - 1.7 acres
Building area - 525,000 sq. ft.
# Floors - 33
Elevators - 11 passenger elevators, 1 service elevator
Floor sizes - 16,826 to 25,856 sq. ft. and floor load of 80 lbs. per sq. ft.
Year Built - 2003

The Frost building purchase will give Equity ownership of five buildings in downtown Austin, along with four suburban properties in the Austin area. The building is 87 percent leased. http://www.msnbc.msn.com/id/14168470/