Central Texas Real Estate Jeannette Morrison

The amount of homes selling the past few weeks has increased. The median sales price has been affected by the number of homes over 200+ selling in recent weeks.

SOURCE: ABOR -MLS and Williamson County Association of Realtors. Information deemed reliable and accurate but not gauranteed.

As negotiations continue over the proposed $700 billion bailout of the nation's financial system, Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University, offers his perspective:

"It's a sad day in America when the federal government (the American taxpayer) has to bail out homeowners who purchased homes they couldn't possibly afford. It's sad because of the vast majority of Americans who live within their means and pay their mortgages on time are now being asked to pay for other people's mistakes.

"It's a sad day in America when we have to spend billions to bail out financial institutions that made loans to those people, then sold those loans to pension funds and endowment associations that had no idea of the risk they were taking when they bought the ‘complex and sophisticated' bonds. ‘Complex and sophisticated' is just a euphemism for ‘I have no earthly idea what I'm buying.'

"Now for the pragmatism. If we don't bail out the banks, the American economy grinds to a halt. Many U.S. businesses are financed with short-term notes that mature in 90 to 180 days. This is called commercial paper. What happens when your 90-day note matures, and nobody will refinance it? Just ask Fannie and Freddie, who had $225 billion in short-term notes mature and nobody would refinance them. Hasta la vista. The commercial paper market is virtually frozen, and many businesses are in the same boat as Frannie was.

"The smartest people working in the global financial system say that this $700 billion is a good first step, that it might help to thaw the frozen credit markets but that the devil is in the details. Some say it might take another $500 billion later.

"The fact is that there is a market for these bad loans. It's about 22 cents on the dollar. The problem is that nobody wants to sell for that price as long as the taxpayers will pay a higher price. So the federal government will buy these assets for a higher price, and it's possible that they can sell them later and make a profit. It's possible that the net cost to the taxpayer will be very little. The bottom line is that we are in uncharted waters, and this $700 billion plan is the best plan that seems to have some hope of temporarily solving the problem.

"The long-term problem is still on the table, and that is the simple fact that the U.S. government can't keep spending more money than it has. Even governments can go bankrupt. The long-term solution for the U.S. government and every American household is to live within their means.

"Who is going to want to invest in mortgage bonds in the future if the federal government can freeze the interest rates below what was promised? Who is going to want to invest in mortgage bonds if the government can cram down the principal on the bonds you bought? Until the federal government can restore some confidence in the global investment community that if you buy a mortgage bond you have a reasonable certainty of getting your principal and the promised interest, the problems will linger.

"The bailout is inevitable and has to happen. Expect more to come. These are just bandages on a gaping wound. Hopefully lessons will be learned, and we will begin to address the illness and not just put on more bandages."

SOURCE: RECON (Real Estate Center On line News -Texas A&M)

During a Called Meeting on August 7, 2008, the Round Rock ISD Board of Trustees called for a bond election to be held on Nov. 4, 2008, to ask voters to approve funding for capital improvement projects totaling $293.9 million. Two propositions that will appear on the ballot include:

Proposition 1 addresses district growth.

• three new elementary schools in the Stone Oak, Paloma Lake and Parmer corridor areas
• new buses
• five additional land sites for a future high school, a school of choice high school, a middle school and two elementary school sites
• technology to refresh, replace, upgrade and support existing computers
• network infrastructure upgrades and replacement of existing central computer systems
• a transportation facility on the west side of the district.
• The total estimated cost for the proposition is $156,565,000.

Proposition 2 addresses additions, renovations, and safety and security improvements to existing facilities.

• funding for phase 2 of the master plan additions and renovations at Round Rock High School and Westwood High School
• safety and security improvements to entrances at secondary and selected elementary schools
• science room additions at Chisholm Trail Middle School
• fine arts addition at Deerpark Middle School
• removal of remaining carpeted elementary school gym floors and gym additions at Ridgeview and Cedar Valley middle schools
• weight room additions at Stony Point High School, McNeil High School and Cedar Valley Middle School
• district-wide infrastructure projects including plumbing, electrical, air conditioning/heating, roofing, flooring and fire alarm systems
• new buses
• digital projectors for all classrooms that do not yet have them
• The total estimated cost for the proposition is $137,375,000.

A total of 99 people signed up to serve on the Citizens Bond Committee to study the district's projected needs for the next two to three years. The Board of Trustees directed the 2008 Citizens Bond Committee to concentrate on only the most critical needs in the areas of district growth, safety and health, curriculum and technology and infrastructure. Of the 99 volunteers, a total of 55 served through the end of the process. The group presented its recommendation to the board on June 5.

In order to reduce the tax impact, the Board also approved the usage of a portion of its debt service fund balance to buy down the tax rate to $.34 through 2011. The average value home in RRISD is valued at approximately $200,000. The debt tax rate for the 2008-09 tax year is projected to be $.31. Based on a $.34 tax rate, the total monthly increase on the average homeowner in the district is estimated to be $3.83 per month. If approved, the bonds will be sold incrementally to fund projects as needed.

The most recent bond election voters approved for the district was held in November of 2006. Voters approved four propositions totaling more than $267 million. Projects funded by the 2006 bond include the opening of three new elementary schools and one new middle school this fall. The district's fifth high school, Cedar Ridge High School, will open for the 2010-11 school year.

SOURCE: RRISD

The latest word on the mortgage changes and their effective dates are the following:

• The new down payment of 3.5% will be effective January 1, 2009.
• As of September 19, 2008 (last Friday) HUD has updated their guidelines regarding the purchase of a new home and renting out their current home. HUD now requires a 75% equity position (i.e. at least 25% in equity and 75% or less in loan) in a buyers current home to be able to use rental income for qualification.

Like the Fannie/Freddie changes that occurred a few months ago, the HUD requirements have come out of a time where there needed to be mortgage change. The HUD changes are intended to eliminate the "buy and bail" strategy sellers were using to purchase a new home (with a new loan using the rental income from their current home) and then "bail" on their current home which they were upside down on or unable to sell.

The unfortunate thing is that for many honest and hard working individuals whose credit is the first priority -will not be able to benifit from this form of financing a new home. -For relocation, moving up to create net worth or any other purposes.

Halloween Children's Concert

Date, Time & Location
Sunday, October 5, 2008
2:00 pm
Michael & Susan Dell Hall

Directions to Venue

CHILLS & TRILLS!
It's creepy, crawly and sooooo much fun, it's spooky! The Halloween Children's Concert features "boo-tiful" music and storybook favorites such as "Peter and the Wolf," "Little Red Riding Hood," Wizard of Oz," and many more! The Austin Symphony's Halloween Children's Concert is stimulating for young eyes and ears (ages 2-10) and great family fun that is sure to delight all. Wear your costume!

My kids LOVED this concert. In the past it was held at an Austin landmark -The Paramount theater -which added so much atmosphere to this concert. But last year the venue was booked and the symphony was unable to find a venue. With the great fall weather we've been having -I am happy to see they have found a new home and the concert is back!

Come out and support the arts -introduce the kids to the wonderful instruments! Fun for the whole family -you won't be dissapointed!! And don't forget to WEAR YOUR COSTUMES!!! ......BOO!

Source: www.AustinSymphony.org