I recently came across an interesting article published not by an US newspaper but World BBC news and its all about Texas titled, “10 reasons why so many people are moving to Texas”. Here are top 5 reasons which I tailored to give a quick snapshot from the article , a feel good moment for every Texan.
Half of the 10 fastest-growing cities in the US are in Texas, according to new figures. Why?
Five of the 10 fastest-growing cities in the country between 2011 and 2012 were in Texas, according to new figures from the US Census Bureau. New York is way out in front in terms of added population, but Houston is second with San Antonio and Austin fourth and fifth.
In terms of percentage growth, it’s even more Texas, Texas, Texas. Among the five cities that grew most, as a proportion of their size, between 2011 and 2012, three are Texan. San Marcos is out in front with the highest rate of growth among all US cities and towns – 4.9%.
Some of this Texan population boom is due to a natural increase – more births than deaths – but the numbers moving into the state from elsewhere in the US and from abroad far outstrip every other American state. Why?
1. Jobs
“I don’t think people go for the weather or topography,” says Joel Kotkin, professor of urban development at Chapman University in Orange, California. “The main reason people go is for employment. It’s pretty simple. “The unconventional oil and gas boom has helped turn Texas into an economic juggernaut, particularly world energy capital Houston, but growth has also been strong in tech, manufacturing and business services.”
Critics have questioned whether the “Texas miracle” is a myth, based on cheap labor and poor regulation.But Kotkin says Texas has plenty of high-wage, blue-collar jobs and jobs for university graduates, although people looking for very high-wage jobs would probably head to Seattle, San Francisco and New York. Four of the top 10 metropolitan areas for job growth in 2013 are in Texas, according to Kotkin’s website, New Geography.
2. Inexpensive
Once employed, it’s hugely important that your pay cheque goes as far as possible, says Kotkin.”New York, LA and the [San Francisco] Bay Area are too expensive for most people to live, but Houston has the highest ‘effective’ pay cheque in the country.”
Kotkin came to this conclusion after looking at the average incomes in the country’s 51 largest metro areas, and adjusting them for the cost of living. His results put three Texan areas in the top 10.Houston is top because of the region’s relatively low cost of living, including consumer prices, utilities and transport costs and, most importantly, housing prices, he says. “The ratio of the median home price to median annual household income in Houston is only 2.9. In San Francisco, it’s 6.7.
3.Homes
Land is cheaper than elsewhere and the process of land acquisition very efficient, says Dr Ali Anari, research economist at the Real Estate Center at Texas A&M University. “From the time of getting a building permit right through to the construction of homes, Texas is much quicker than other states.
“There is an abundant supply of land and fewer regulations and more friendly government, generally a much better business attitude here than other states.” This flexibility, plus strict lending rules, helped to shield the state from the recent housing market crash.
4.Low Tax
Texas is one of only seven states where residents pay no personal state income tax, says Kay Bell, contributing tax editor at Bankrate and Texan native. The state has a disproportionate take from property taxes, which has become a big complaint among homeowners, she adds. But overall, only five states had a lower individual tax burden than Texas, according to Tax Foundation research.
5.Family-friendly
Because of its good-value housing, Texas has been particularly popular with families, and some of its cities now have an above-average number of children. San Antonio is home to the largest community of gay parents. In Texas, you can have a reasonable mortgage and pretty good schools, says Grieder. And restaurants are invariably family-friendly.
“You hear about the high drop-out rate but Texas education scores pretty well at national tests for 4th and 8th graders in math, reading and science. The aggregate is about average.
Read the full article at bbc.co.uk
Now, if you are Texan and also a Houstonian, don’t you feel real good about your state and where you are right now. You should be because you are part of it. If you are a owner or working in any industry like food service(restaurant), housing, IT, oil and gas or any industry, you are in good hands because Texas is doing well due to population growth and job market. It is surely not a bubble but hope it won’t become one by blowing too much air into it.That’s the only fear runs in many Texan’s mind now.
Riverstone
A Fort Bend area master-planned community where luxurious homes, water features and resort-style amenities define the landscape, Riverstone is one of Fort Bend County’s most desirable addresses. Riverstone residents enjoy an enviable lifestyle with a superb selection of new homes with Sugar Land and Missouri City addresses. Plus, with varied highway access and an array […]
Sienna
Sienna is a comprehensive 7,000-acre master-planned community. Sienna is more than houses inside one of the top Fort Bend County subdivisions. Neatly tucked between the acclaimed cities of Missouri City and the City of Sugar Land, it is a community in the truest sense of the word. Every effort is made to maintain a sense […]
Bridgeland
Imagine a place with vast open spaces and spectacular sunsets. An 11,400 acre master-planned community in northwest Houston where flocks of waterfowl glide across natural lakes. A refuge from the chaos of your workday. A place where you can find true balance. The new home community of Bridgeland is such a place. Bridgeland attracts and […]
Towne Lake – Master Planned Community, Cypress
Towne Lake reflects its Texas-sized appeal in a 300-acre lake, with beautiful views. Lake coves allow neighbors easy access to the water and to the many amenities and destinations throughout, bonding the community together. Towne Lake Charm is all these things and more, reflected in a community steeped in Texas pride. Caldwell Companies has perfected […]
Cypress Creek Lakes
Cypress Creek Lakes is a beautiful master-planned new home community nestled in the charming Northwest Houston suburb of Cypress, Texas. Mischer Development has carefully designed the 1,600-acre community to respect the natural beauty of the land while developing approximately 2,000 new home sites. Its convenient location on Fry Rd. just off of Highway 290 also […]
Do you want to know why everyone is moving to Texas?
Buyers changing mindset in the Sellers market…
Today’s housing market is totally different than few years ago even a year ago. It is now sellers market in many metro’s. Due the demand, sellers are either setting their asking price higher than appraised value or don’t want to sell now below their asking price. They don’t even want to come to the table for negotiation any more. That’s how the market has become in many cities.
The same situation prevails in and around Houston areas, it is mainly due to less inventory, pricing war and way too much price increase by new home builders turning buyers to preowned homes. While sellers know that there are more buyers in the market and less homes to sell, they are trying to price high to take advantage of it. If the location is hot, buyers are willing to pay for it and close the deal. Especially Memorial Heights, Sugar land areas resale homes don’t even stay in the market for a week or so. Many buyers are willing to pay more to take advantage of the lower interest rate. That’s the top answer from a survey conducted by RedFin.com.
For the latest Redfin Real-Time Home-Buyer report, they surveyed 1,353 active homebuyers who have recently toured homes with Redfin, in order to get their pulse on the market. Respondents came from across 22 metropolitan markets in the US like Atlanta, Austin, Houston etc.,
Key findings of this quarter’s report include:
Low interest rates was still the top factor in why buyers want to buy now, selected by 58% of respondents, but rising prices shot up seven percentage points from 33% in the fourth quarter to 40% in the first quarter–the same share that “low home prices” was at when we launched this survey a year ago.
Moving toward consensus that this is a seller’s market: Just 31% of buyers believe now is a good time to buy in their neighborhood, down from 40% last quarter. More than twice as many–67%–see now as a good time to sell, up from 48% last quarter.
Increasingly willing to pay more: Forty-one percent of buyers indicated that low inventory has caused them to consider paying more for a home, up from 34% in the first quarter and just 26% in the fourth quarter.
Homebuyers anticipating further price increases remained unchanged: The percentage of homebuyers who anticipate further price increases in their neighborhood remained virtually unchanged from last quarter. Both quarters, 79% indicated a belief that prices will increase in the next 12 months. This quarter, 23% think prices will rise “a lot,” up just slightly from 22% last quarter.
Rising prices are an increasingly common concern: Forty-eight percent of buyers listed rising prices as a major concern, up from 40% last quarter.Sixty-five percent cited low inventory as a major concern in the first quarter, down slightly from 66% last quarter.
The most common themes we heard from buyers this quarter were frustration with low inventory, intense competition, and speed at which homes are selling. This is no surprise, with a third of new listings being sold within two weeks or less in April.
Check out the full report at blog.redfin.com
In conclusion, I like to add that market is driven by supply and demand. More supply, less demand few years prices ago so prices are way too low. A sudden surge in home buying activity due to economy creating a void in inventory bringing down the supply and demand continued to grow making this pressure in the housing industry for price bubble in many areas. We can only hope its a realistic bubble and not a man made one to sustain and settle down for longer term steady growth in the housing industry for the betterment of the consumers.
Mortgage Rates – Present and Past – Infographics
I recently came across an interesting infographics by loan.org about mortgage rate comparison past and present. I was shocked to see how high the rates were in the past. Many people only know that rates are low now but don’t know unless you compare with the past rates in order to appreciate the luxury we are experiencing. My friends parents still pay a historically high rates if they never refinanced their home compared to my new home loan rate.
BTW, I wouldn’t be able to afford this big house if its for the low mortgage rates and that’s the case with many home buyers today. They were able to afford more home for the same monthly amount due low rates. By looking at the infographics you will surely appreciate it. Check it out below:
Click here for the loan.org article.
April Housing Scorecard Released – Market making progress…
The housing market is making gradual improvements—home prices are inching up and foreclosures are falling—but the recovery still remains “fragile,” according to the Obama administration’s April Housing Scorecard. The monthly report highlights progress in the main indicators of the housing market.
“The Obama Administration’s efforts to speed the housing recovery are showing continued progress as the April scorecard indicators highlight ongoing improvements throughout the housing market,” said the U.S. Department of Housing and Urban Development Deputy Assistant Secretary for Economic Affairs Kurt Usowski. “The annual increase in home prices is the highest in nearly seven years and sales of existing and new homes are both up over 10 percent from one year ago. But with so many households still struggling to make ends meet, we have important work ahead.”
Home prices continued to inch up — although very slightly — with the S&P Case-Shiller home price index rising from 146.1 in February to 146.6. However, compared to year-over-year numbers, March’s index is significantly higher than the 134.1 index score a year earlier.
Existing-home sales dropped from 412,500 in February to 410,000 in March, according to data gathered from the National Association of Realtors, U.S. Census Bureau and HUD. This drop is likely due to a stark drop in inventory nationwide.
Despite low inventory, the housing supply did continue to slowly increase, with existing homes rising from a 4.6-month supply to a 4.7-month supply. The supply of new homes for sale remained unchanged at a 4.4-month supply, according to data from NAR.
Click here to read the full report.
It might be old news for many of you but as we all know government considers all data from all over the nation to get their report out. We know the market has turned around and making progress few months ago but government data reassures that with more factual figures boosting confidence among homeowners. For prospective home buyers, it is another report which assures that market is heading in the right path and encouraging them on their decision. Let’s sell more homes…
Must Know: Basics of Home Insurance
It is about I post some basic information about Home/Hazard Insurance which every home owner should have to protect their valuable asset. Whether you’re a current homeowner or yet to be one, it is better to get some understanding about the home insurance. Like we get Auto insurance to protect our depreciating auto’s, it is important to have adequate insurance coverage to protect your residence and its contents. It’s equally important to protect yourself in case an accident on your property causes an injury and results in a personal liability suit. My clients always email me with questions like how much insurance should I get, how much is too much. Let’s look
1. What does a basic Home Insurance policy cover?
A basic Home Insurance policy covers damage caused by disasters such as fire, lightning and hurricanes. Under most basic policies your home is protected from:
- Fire and smoke damage
- Lightning damage
- Damage caused by windstorm or hail
- Damage due to vandalism, malicious mischief, or theft
- Damage from vehicles and aircraft
- Explosions
- Damage caused by a riot or civil commotion
- Glass breakage
- Volcanic eruption
- Personal liability (limits depend on the policy)
2. What’s basic Home Insurance policy doesn’t cover?
While a basic policy covers the cost of repairing the damage caused by a disaster such as a fire or storm, it does not include coverage for earthquakes or flooding. Earthquake coverage is sometimes available in the form of an endorsement to a basic policy – make sure to ask your agent. The federal government’s National Flood Insurance Program (NFIP) provides flood protection. Always purchase enough flood insurance for both your home and its contents.
You can visit floodsmart.gov and check whether you are in high/low risk flood area and make the decision accordingly. You can also go to “Homeowners and Renters” at the FEMA website and get more information. There is a 30-day waiting period for an NFIP policy to go into effect.
3. How do I determine how much coverage I need for a basic policy?
It’s important to have enough coverage to replace your home and its contents in the event of an insured loss. Since we can’t predict the future, it is difficult to know exactly what this cost will be. Correctly estimating this amount is critical.
Calculating the cost of replacing your home:
Start your estimate by multiplying the square footage of your home by the standard construction cost of $100 – $125 per square foot. The cost of rebuilding a custom home will be higher.
Covering the cost of replacing the contents of your home: Taking an inventory of the contents of your home is the best way to determine its replacement cost. You never know when you’ll need to file a claim under your policy, but you’ll be prepared if you complete a home inventory checklist. Take pictures of the property inventoried to accompany your list. Cell phone pictures work fine, and it’s important to keep your checklist up-to-date. Whenever you purchase something that’s kept in you home, add it to your list.
Know your stuff is a free software provided by the Insurance Information Institute for completing a home inventory. The software makes it easy to create your home inventory and includes free, secure online storage that gives you access to your inventory anywhere, at any time, making it easy to keep it up-to-date. They also have an app for it which you can download and upload documents via smart phones which would much easier. Some credit unions and banks also provide a online file storage where you can store important files and pictures like vault. Check out your bank website and you will surprised.
Hope this information helps you to shed some light about insurance which protects your great asset from nature disasters and man-made ones.
