DECEMBER 2010 TEXAS HOME SALES DOWN, PRICES UP

COLLEGE STATION (Real Estate Center) – Just over 15,740 existing homes were sold in Texas last month, according to newly released data from Texas Multiple Listing Services (MLS). That's a 3 percent drop from December 2009.
Meanwhile, the median price for an existing home increased by 4 percent last month to $150,500, and there was a 7.2-month inventory.
December 2010 MLS data for many Texas cities (current as of Jan. 27, 2011) are available on the Real Estate Center website. Here is a sampling:

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Cheaper to buy than to rent in 72% of largest U.S. cities

Cheaper to buy than to rent in 72% of largest U.S. cities

Trulia: Former homeowners flooding rental market

By Inman News, Monday, January 24, 2011.

Inman News™

Despite the rising number of renters across the country, it is cheaper to buy a home rather than rent one in 72 percent of the 50 largest cities in the U.S., according to an index released by real estate search and marketing site Trulia.

"Since the start of the 'Great Recession,' many former homeowners have flooded the rental market. Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets," said Pete Flint, CEO and co-founder of Trulia, in a statement.

"Though necessary for achieving true economic recovery, stricter bank lending practices have also further aggravated the struggling housing market in the short term. Even highly qualified homebuyers face intense scrutiny on their income, savings, existing debt and credit history before they can get a mortgage loan."

Trulia's rent vs. buy index compares the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of Jan. 10, 2011.

A price-to-rent ratio of 1 to 15 means that it's much cheaper to buy than to rent in a particular city. A ratio between 16 and 20 means that it's more expensive to rent than to buy, but, depending on the family's situation, buying could "make financial sense," the site said. Any ratio above 20 indicates that owning is much more costly than renting in a city.

In 36 out of 50 of the country's most populous cities, buying a two-bedroom home is less expensive than renting one. These cities include many areas that have been hit hard by foreclosures, such as Las Vegas, Phoenix and Fresno, Calif.

Top 10 cities to buy vs. rent:

Rank	City	State	Price to Rent Ratio
1.	Miami	Fla.	6
2.	Las Vegas	Nev.	6
3.	Arlington	Texas	7
4.	Mesa	Ariz.	8
5.	Phoenix	Ariz.	8
6.	Jacksonville	Fla.	8
7.	Sacramento	Calif.	10
8.	San Antonio	Texas	11
9.	Fresno	Calif.	11
10.	El Paso	Texas	11

Source: Trulia

In 10 cities, renting is cheaper, but buying might make more financial sense, according to Trulia. These cities include Los Angeles, Boston, and Fort Worth, Texas.

The index considers the total cost of homeownership compared to the total cost of renting. Calculations for the total cost of homeownership include mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase, homeowners association dues, and private mortgage insurance. The homeownership cost calculation also includes tax advantages from mortgage interest, property tax and closing-cost deductions.

Calculations for total rental cost include rent and renters insurance.

The total cost of homeownership was highest, compared to the cost to rent, in New York; Seattle; Kansas City, Mo.; and San Francisco.

Top 10 cities to rent vs. buy:

Rank	City	State	Price:Rent Ratio
1.	New York	N.Y.	31
2.	Seattle	Wash.	24
3.	Kansas City	Mo.	21
4.	San Francisco	Calif.	21
5.	Memphis	Tenn.	20
6.	Los Angeles	Calif.	20
7.	Fort Worth	Texas	19
8.	Oakland	Calif.	18
9.	Portland	Ore.	18
10.	Albuquerque	N.M.	18

Source: Trulia

"Although owning a home is relatively more affordable in most cities, market conditions have caused an interesting demographic swap between traditional renters and buyers," said Tara-Nicholle Nelson, consumer educator for Trulia, in a statement. Nelson is also an Inman news columnist.

"For example, lifelong renters are seizing the opportunity to become homeowners while affordability is high. At the same time, a growing number of longtime homeowners are finding themselves tenants -- some by choice and others by necessity."

Through newly acquired startup Movity, Trulia created interactive maps comparing each city's population, projected job growth, and unemployment and foreclosure rates.

SIGNS OF OFFICE, INDUSTRIAL RECOVERY ALONG I-35

AUSTIN/SAN ANTONIO (NAI REOC) – Momentum that has slowly carried the San Antonio office leasing market along a path towards recovery over the past 12 months continued in the fourth quarter with more than 400,000 sf of gross leasing activity, according to the research department of local commercial real estate firm NAI REOC San Antonio.
“In all, more than 1.5 million sf of leases were signed in 2010, which surpassed the 2009 performance of 1.2 million sf, indicating the general upswing of office market activity,” said Kim Gatley, senior vice president and director of research for NAI REOC San Antonio.
Meanwhile, Austin’s industrial leasing market, totaling more than 37.3 million sf, also showed signs of recovery in the second half of the year with a steady stream of leasing activity that tightened the citywide vacancy rate to 20 percent compared with the record high of 24 percent recorded at mid-year and 22 percent recorded a year ago, according to the year-end survey conducted by NAI REOC Austin.
“The lack of new construction coupled with an increase in leasing velocity worked together to lower vacancy rates,” says Mark Milstead, senior broker, industrial services & investments, NAI REOC Austin. All sectors of the Austin MSA had vacancy rates decline except for the east submarket.

$400M JOINT VENTURE POWERS GABLES DEVELOPMENT

SAN ANTONIO (GlobeSt) – USAA has inked a $400 million joint venture (JV) deal with Gables Residential so that the Atlanta-based REIT can fund advancements in its development pipeline.
“We have a partner in USAA that has similar investment goals and the financial strength and experience to allow us to continue our development program of delivering high quality communities in our core markets,” said David Fitch, Gables president and CEO.
The JV will develop Class-A multifamily properties at select urban infill sites. So far, the JV has successfully closed on three stabilized properties, two of which are in Texas. Development has begun on Gables Fairmount, a 333-unit Class-A apartment project in Dallas, and Gables Bering, a mixed-use development in Houston offering 306 apartments and 11,200-sf of retail.
“This venture represents a unique opportunity to strategically add premier multifamily assets to our portfolio of investments,” said USAA Real Estate Company chairman and CEO Pat Duncan. “We look forward to building a strong relationship with the Gables team and engaging in future opportunities.”

Keller Williams Realty to Launch eEdge, the Real Estate Industry’s First Comprehensive Agent Business Platform

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New Listing in Monticello Park - Woodlawn Lake Area

2215 W. Summit Ave. San Antonio TX

For Sale

279,900

2215 W. Summit Ave.

San Antonio, TX 78201

3 Beds | 2 Baths

View Details

TexSan Heart Hospital Becomes Part of the Methodist Healthcare System

HEART HOSPITAL BEATS FOR NEW OWNER

SAN ANTONIO (San Antonio Business Journal) – Methodist Healthcare System ended the year by acquiring TexSan Heart Hospital from MedCath Corp. and its physician owners.
The property was purchased for $78.5 million with MedCath expecting to receive $58 million after fees and acquisitions costs related to the minority interest owned by heart doctors.
The Alamo City heart hospital opened in 2004 and in 2009 received an Excellence Award from Healthgrades, an independent health care rating organization.
Methodist Healthcare is San Antonio’s largest health system.

2011 San Antonio Housing Forecast

I attended the 2011 San Antonio Housing Forecast sponsored by SABOR (The San Antonio Board of Realtors) this morning. 

Guest Speakers Included:

Honorable Julian Castro – Mayor of the City of San Antonio  – Topic: City of San Antonio Update

Charles McMillan – 2009 President of the National Association of REALTORS^® – Topic: State of the National Market

Jim Gaines – Research Economist at Texas A&M Real Estate Research Center – Topic: State of the Texas Market

Michael Mengden – Broker/Owner of Terra Residential Services – Topic: Property Management Update

Bob Gardner – CEO of Legacy Mutual Mortgage – Topic: State of the Local Market, including San Antonio subdivision information

Here are links to the Local, State, and National presentations:
Local (San Antonio)
State (Texas)
National