Well, we topped another top 10 list.  I don’t know if we need to be proud of this one or not. :)  Austin’s definitely a fun place, and according to Forbes, funner than anywhere else.

And again….the Austin real estate market is down from 2007’s record year, but still fairing well.  Active listings are up 20%, and # of homes sold are down 20%.  However, we’re still appreciating.  The median sales price is up to $196,120 from last year’s $184,050.  The average sales price is up 5%, $263k from $250k.  The good news is that the glut of inventory looks like it’s being absorbed.  Last month’s numbers indicated 5.03 months of inventory on the market, and this month’s indicate 4.91.

The market is still holding strong.  The median sales price is slightly up, and the average sales price is slightly down.  The # of homes sold is down roughly 14% from April 2007.  Again, we’re not setting records this year, but the market is doing fine.  In my opinion, the average sales price dip is due to the difficult jumbo market, and the glut of luxury homes (14 month+ inventory) currently on the market.  Definitely a good time to get a steal on a luxury property.

First, we have the wonderfully ridiculous Point of Sale Energy Efficiency Requirement proposal, and now we have new Mandatory Visitability proposal.  Perhaps the city of Austin would like a new nickname - “Daddy State?”

The city has always required that homes built using public funds adhere to these guidelines, but the city council passed a resolution to initiate code amendments to all new homes.  The proposed amendments include ground floor or ramp entry, doors at least 32 inches wide, hallways at least 36 inches wide, and first floor bathrooms w/ walls capable of supporting grab rails.

I have real issues w/ the city’s over the top attitude regarding building code & retroactive code.  Extending the visitability standards to all new homes is fixing a problem that doesn’t exist.  As it stands, it’s fairly easy to retroactively modify current homes for the disabled.  Requiring that all homes meet these requirements will become overly costly in comparison with the relatively few modifications to existing homes for the disabled.

Median sales price is up 5% and sales volume is down 21% for March 2007 & 2008. Average days on market is 73 days. Dollar volume sold is down 23%. All in all, not great, but not bad. 2007 was a record year (behind only 2006) so this is indicating a calming market.

A 36-story apartment community was recently announced.  Altavida will feature 255 total units with an average of 1500s.f. & $3300/month.  The condominium project plans to begin delivering to residents in May of 2009.  Downtown Austin’s rental market has remained extremely tight, and there is an increasing demand for downtown Austin living.

I’m typically a really big fan of how green Austin is.  Austin Energy offers some of the best incentives in the nation to its customers, the general public supports green projects, there’s a big awareness of green building, etc…

However, the city of Austin is discussing issuing an ordinance to mandate energy efficiency levels of all properties in Austin.  This includes single family homes built in 1920, to homes built yesteryear.  This is part of the Mayor’s Climate Protection Plan.

So…the Austin Board of Realtors has an advisor sitting on the committee, and he/she has reported back that it looks very strong that the committee will recommend enforcing this at point of sale.  Before someone can sell their home, they will be required to pass an energy efficiency inspection.  Basically, it’s similar to emission inspections - it’s an absolute requirement.

This has big implications to homeowners in Austin.  Without a certificate of compliance filed prior to closing, the property can’t legally be sold.  Expenses will vary from home to home, but typically, a home that doesn’t pass will require $1500 - $10k in retrofits in order to obtain it’s certificate.

The shear volume of home sales is a big problem with this plan.  There are roughly 25k properties sold in Austin annually.  So….expect 25k inspections.  If half of the homes fail, and a reinspection is required - increase that number to 37,500 inspections.  Is the city ready for this?  Who will take care of it - the city, or will local contractors have to be licensed to perform the inspections?

I’m not a fan of “big brother” government in the least.  Up to this point, the city of Austin has done a damn fine job rewarding those who want to go greener by offering incentives.  If this new ordinance comes through in this incarnation, and passes, I see big problems.  I see lawsuits.

Information originally obtained from RECON.

GEORGETOWN, FORT WORTH AMONG ‘BEST PLACES’

Georgetown (statesman.com) — Fortune Small Business magazine says this Texas community of more than 40,000 is the second best place to live in America.

The April issue ranks Georgetown behind Bellevue, Wash., and ahead of Buford, Ga.; Marina del Rey, Calif.; Bethesda, Md.; Portland, Ore.; Denver, Colo.; Charlotte, N.C.; Fort Worth; and Franklin, Mass.

Cities were scored on job and population growth, new business startups, health-care facilities and other lifestyle factors.

DELL TO LAY OFF THOUSANDS

AUSTIN (Dallas Morning News) – Dell Inc. announced Monday that it expects to save $3 billion a year by closing a computer factory in Austin and laying off thousands more workers around the globe.

The Round Rock computer maker reiterated its intention to cut at least 8,800 jobs – about 10 percent of its workforce worldwide. It has already cut about 3,200 positions in the past three quarters.

Dell will close its Topfer Manufacturing Center by Jan. 1, cutting about 900 of its 17,500 Austin-area positions in the process.

“In addition, the company will take further actions to reduce total product costs across all areas, including design, manufacturing and logistics, materials and operating expenses. Dell expects that the initial benefits from these actions will begin to be realized in the second half of this fiscal year,” company officials said.

The company will also decide by the end of the third fiscal quarter whether it should sell its Dell Financial Services unit.

TUSCANY CENTER TALLIES TWO MORE

AUSTIN (Austin American-Statesman) – McShane Corp. and TAG International will construct two more buildings for the Tuscany Center at Walnut Creek. The project will cover 52 acres overall.

Tuscany Technology Center 3 will be a five-acre build-to-suit capable of accommodating up to 65,184 sf of office-flex space.

Tuscany Technology Center 4, located at 9100 US 290 E., will have 54,865 sf of office-flex space.

Ground has broken on Center 4, and it is expected to be completed toward the end of the year.

ST. CROIX BUYS BRAKER TRIO

AUSTIN (Austin Business Journal, globest.com) – Dallas-based Westmont Realty Capital has sold Braker Centers 6, 7 and 11 to San Diego–based St. Croix Capital Corp.

Westmont’s 18-month hold before the sale included renovations, upgrades and significant increases in occupancy for the three buildings.

The 216,522-sf flex complex is 93 percent leased and located at Metric Blvd. and Braker Ln.

Holliday Fenoglio Fowler LP brokered the transaction. Bank of America Corp. provided senior debt and Alex Brown Investment Management LLC supplied the equity.

LENDING STANDARDS TIGHTEN FOR MANY

WASHINGTON (Associated Press) – Mortgage insurers have flagged nearly a quarter of the nation’s ZIP codes where they refuse to insure some home loans, making it harder for many homebuyers to borrow, even if they have good credit.

In recent weeks, mortgage insurers have flagged more than 9,600 ZIP codes in at least 34 states where they will not insure certain types of home loans — those for investment properties or second homes, those with riskier adjustable-rate or interest-only mortgages, or for buyers making down payments of less than 3 percent.

The entire states of California, Florida, Arizona, Michigan, Ohio and Nevada, which have seen the highest foreclosure rates and the worst price declines, are blackballed on some mortgage insurers’ lists.

For new homebuyers and those seeking to refinance, this can mean higher down payments and a higher bar for credit scores, among other requirements. The toughest restrictions are in markets where home prices are falling, though regions where property values are rising are not immune.

THREE TENANTS FOR TECH RIDGE

AUSTIN (Austin Business Joural) – Office Depot, Petco and Castle Dental are joining anchors H.E. Butt Grocery Co. and JCPenney at Tech Ridge Center in North Austin.

The 200-acre Tech Ridge tract at the southeast corner of I-35 and Parmer Lane is being built in phases. Developer Quentin Corp. is working on the second stage of retail that will bring total shop space to around 200,000 sf.

The three newest tenants are scheduled to open in November.

Future phases will include another 280,000 sf of retail and hotel space plus a 400,000-sf office complex to be called the Pavillion at Tech Ridge.

Durham & Bassett Realty of Austin represented Quentin Corp. on all three leases.

PARTNERSHIP’S COTTAGE TAKEOVER

AUSTIN (Mosaic Residential) – An affiliate of Harbor Group International LLC, in partnership with Mosaic Residential Inc., has purchased the 167-unit Camden Ridgeview apartment complex from Camden Property Trust.

Harbor Group and Mosaic Residential will invest $1.2 million for interior and exterior upgrades on the property, which has been renamed The Cottages at Wells Branch.

The 93 percent leased complex was built in 1984 on more than seven acres and consists of 167 garden-style apartments. The units average 859 sf.

CapMark arranged the Freddie Mac financing. Mosaic will oversee the renovation and manage the property.

AUSTIN OFFERS MOVIE MAKERS NEW INCENTIVE

AUSTIN (Austin Business Journal) – City officials hope shouts will ring out around town thanks to a new ordinance approved this week. Specifically, they want to hear “lights, camera, action” a lot more.

Austin City Council voted to waive facility use and rental fees for qualifying film, television and video productions in the area.

According to the ordinance, the city will provide as many as two peace officers for 15 days for filmmakers spending at least $1 million on local goods and services. Commercial, music video or video game crews must spend at least $100,000.

Films and television productions benefitting from the ordinance must credit the City of Austin in each episode.

City officials say film and video media production already contributes more than $35 million annually to the local economy. MovieMaker Magazine has ranked Austin the number one place to make movies.

5,500 HOMES FOR LEANDER, LIBERTY HILL

AUSTIN (Austin Business Journal) – Work has begun on the first two sections of a residential development that could bring as many as 5,500 new homes to Leander and Liberty Hill. Gunn & Whittington Development is the developer of the three subdivisions.

Rancho Sienna on Parmer Lane in east Leander is 610 acres. Middlebrook, along Hwy. 29 in Liberty Hill, is 400 acres. Santa Rita, also in Liberty Hill, is 1,200 acres.

Construction on the first 167 lots of Rancho Sienna and the first phase of Middlebrook has begun. Buildout is expected to take five years. Plans for Santa Rita call for buildout completion in nine or ten years.

Middlebrook homes will range from the $140,000s to $220,000s. In the other two subdivisions, prices will be from the $200,000s to $400,000s.

The US Census Bureau just released its list of the top 10 fastest growing metro areas in the nation.  Austin came in respectably in 5th place, w/ 65,880 new residents in 2007.  The Austin/RR MSA grew 4.3 percent in 2007.

Texas in general saw a big jump in population, most of which was in 4 metro areas: Austin/RR, DFW, Houston, & San Antonio.

Popular Science just published a study naming the Top 50 Greenest Cities in the United States .

Congratulations Austin Texas; that is an accomplishment to be very proud of. I think Texans should all be very proud because of the top 50 Greenest Cities, Texas has four, including Austin at #10, Fort Worth at #15, Amarillo at #34 and Laredo at #39.

Studies like this that put Texas in such a positive light will help keep the real estate market strong through 2008 and beyond. In talking with people every day I hear more and more from people the importance of Green Living in their lives.

The criteria Popular Science used for this study came from the U.S. Census Bureau and the Green Guide put out by the National Geographic Society which collects government statistics for all American Cities with a population of over 100,000 people in over 30 categories.

I did a quick search from the website infoplease.com and I was able to find that in 2005 there was an estimated 253 U.S. Cities with a population of over 100,000.

For this study Popular Science took the raw data and statistics they had and came up with four categories. Two of the categories, Electricity and Transportation were scored on a scale of 1 to 10 with 10 being the best. The other two categories Green Living and Recycling were scored on a scale of 1 to 5 with 5 being the best. So the best score possible with the four combined categories is 30.

Dennis Pease is a guest Blogger on Eric’s Austin , TX real estate Blog. Dennis specializes in Eugene Oregon real estate and Florence Oregon real estate . We have a lot in common with our Texas friends. Oregon only has three cities with a population over 100,000. Portland Oregon ranked #1 in this study with the highest score of 23.1 out of a possible 30, and my home area of Eugene Oregon ranked #5. Green Living is very important to most Oregonians as you can see from this study. See the 50 Greenest Cities study here for complete details and scores.