Lake LBJ Area Real Estate Blogger

2011 Market Outlook for the Highland Lakes Area of the Texas Hill County

Elsie Higdon — Mon, 26 Sep 2011 13:32:00 GMT

Highland Lakes Area MLS Market Outlook 2011

As you hear in the press, many economists feel that the economy is improving. It appears that the Highland Lakes area real estate market is trending in a positive direction. For the first time since 2007 we have seen an increase in the total dollar volume of single family site built homes sold (chart 1), and a leveling off of the non-lakefront number of units sold (chart2). Providing the economy remains stable, I am anticipating that this means that we have reached the bottom of the market.

Chart 1

Chart 2

It is important to keep in mind that the Highland Lakes Area is a small and unique market, and a few large lakefront sales can skew the numbers substantially. I track the total market, non-lakefront, and lakefront markets; however, I feel that the non-waterfront market more clearly represents the trends in our area.

We have been fortunate to enjoy a fairly stable local economy in the Highland Lakes area, and even though the end of 2010 showed a housing supply of 20.70 months, sellers had enough confidence in our market and the financial ability to avoid substantially discounting their homes. Since 2005, the Highland Lakes Area has seen the total unit sales for single family site built homes (chart 2) decline by 48.31%, lakefront unit sales declined by 62.8%, and non-lakefront declined by 41.76%. During this same period the dollar volume of sales was only down by 25.16%. So, while unit sales are down, prices have held relatively firm. The seller’s confidence has helped to keep the average price per square foot (chart 3) on non-lakefront property at $97.05, a relatively low average depreciation rate of 2.68% per annum since 2007.

Long term, the following factors should provide for a stable and growing market in the Highland Lakes Area:

· Lake of the Hills Regional Medical Center – Construction of the clinic to commence in July 2011, anticipated completion by August 2012. Hospital construction to begin after that.

· Baby Boomers….2011 marks the year the first boomers start to turn 65.

· 13% projected area population growth over the next 10 years.

All figures are deemed to be reliable but not guaranteed.

Chart 3

Chart 4

Chart 5

Chart 6

It is my opion that the average and median sales price of single family site built homes increases in 2010 is due to the historically low interest rates, allowing buyers to purchase larger homes.

All figures are deemed to be reliable but not guaranteed.

Market Update - August 2010

Elsie Higdon — Tue, 07 Sep 2010 19:20:00 GMT

Real Estate Market Report FHA Monthly Insurance Premiums Increasing 10/4/2010 After that, the monthly insurance premiums on FHA loans will increase by over 63 percent. A homebuyer purchasing a $200,000 home using a $193,000 FHA mortgage before Oct. 4 would pay an insurance premium of $88.46 per month. If the same homebuyer waits until after, the insurance premium increase, the insurance premium would jump to $148.01. US Market Even though the first half of 2010 showed an improvement in the housing...(read more)

100% financing is not dead in the Texas Hill Country – (or other rural areas)

Elsie Higdon — Sun, 04 Jan 2009 21:26:00 GMT

Guaranteed Rural Housing loans may be the best financing option for low and moderate-income families. A USDA guaranteed loan out shines FHA loan, and may be the perfect fit for you. 100% financing is allowed 2% one time guarantee fee (no monthly mortgage insurance payments required!). Fixed rate No limit on seller contributions. Income limitations are based on family size, and area – go to http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do Reasonable underwriting and...(read more)

Marble Falls Walkway of Lights

Elsie Higdon — Tue, 16 Dec 2008 14:28:00 GMT

This is just one example of the Christmas Spirit you can enjoy in the Texas Hill Country - http://www.keyeproductions.com/WOL2008/ Visit www.highlandlakeshappenings.com for a schedule of events in the Highland Lakes Area of the Texas Hill Country....(read more)

Buying Real Estate and the internet...

Elsie Higdon — Sun, 16 Nov 2008 22:23:00 GMT

Most buyers start their search for a home on the internet – “remax” the number 2 search term form consumers looking for real estate!! While the word "remax" has long ranked as the No. 2 search term for consumers seeking real estate information online, another phrase - "remax.com homes for sale" gave the network a second spot in the Top 10 for September. According to the September rankings by Internet traffic analysts Hitwise, "remax" trailed only "realtor.com"...(read more)

Bowling Anyone

Elsie Higdon — Fri, 25 Jul 2008 16:23:00 GMT

L A K E C O U N T R Y L A N E S in Marble Falls is now forming Fall Leagues – Smoke Free!! Call – 830-693-4311, or stop by 112 Northridge Drive, Marble Falls....(read more)

Christmas in the Texas Hill Country 2008

Elsie Higdon — Sun, 28 Oct 2007 18:33:00 GMT

Celebrating Christmas in the Texas Hill Country is truly an enchanting experience. From the Marble Fall's Walkway of Lights, to Burnet's Main Street Bethlehem, there is always an event, display, or performance to enjoy. Christmas Light-up Parade November 21 : Marble Falls, Texas Main Street A parade that is sure to get the entire family in the Christmas Spirit! Parade is held in conjunction with the initial illumination of Walkway of Lights. Marble Falls Walkway of Lights November 21, 2008...(read more)

Don't just look at property tax rates when deciding where to retire or relocate.

Elsie Higdon — Sat, 23 Jun 2007 18:32:00 GMT

When deciding where to retire or relocate it is important to look at other tax and living costs.

Property taxes are not the only local tax burden, there are income taxes (Texas does not have one), sales taxes, tax exemptions, and various other taxes. The Tax Foundation’s (a non-partisan research tax group located in Washington D. C., and founded in 1937). Their latest figures on local and state tax burden ranked Texas as the 43^rd lowest with a local and state tax burden of 9.3%.

This is a great link for information on the real tax burden.

http://taxfoundation.org/taxdata/show/336.html

I live in Texas.

Here are some Texas Tax facts.

· Texas is in the midst of a two stage process to lower the school portion of the property taxes. The first phase lowered the rates for 2006, and when the rates are published in the fall there will be an additional reduction.

· Current property owners over 65 did not reap the benefits of last years adjustment to the school tax rates, so legislation has been passed that will give them some tax relief.

· If you are 65 or older in the state of Texas there is a tax ceiling put on the school tax rates, by the way this is the lions share of our property taxes ($14.70 per $1000.00 of my $18.70 2006 tax rate,)

· Let’s say you are 70, and decide you want to downsize to a smaller home…and the tax ceiling on your existing home leaves you paying 70% of the current school taxes, you can transfer that ceiling to your new home. Even if you move to a different school district, you will only pay the percentage of the school tax rate you were paying before.

· The Texas property tax code allows for a partial exemption for a homestead, if you are disabled and an additional exemption for disabled veterans.

Country Cuzzins Square Dance Club

Elsie Higdon — Wed, 21 Mar 2007 02:32:00 GMT

Kingsland Community Center -Every Monday evening the Country Cuzzins Square Dance club meets for square dancing from 7:00 PM to 9:00 PM in the Center’s large hall. For more information, contact their Presidents, Jim or Mary Alice Acklen at 325-379-3242 or Gary and Beverly Shipley at 325-379-1448. If interested in round dancing, contact Gary Shipley

http://countrycuzzins.weebly.com/

The Lakes Photography Club

Elsie Higdon — Sat, 24 Feb 2007 20:14:00 GMT

The Club meets the 1st Thursday of every month at the Marble Falls Library at 7:00 p.m. The library is located at 101 Main St., Marble Falls TX. For more information - http://www.tlpc.us/...(read more)