New UT Study: The Affect of Foreclosures on Crime
According to a recent study from the University of Texas at Austin, while foreclosures may “destabilize and disorganize” communities, they don’t directly affect crime rates.
David Kirk, assistant professor in the department of sociology at UT and the lead researcher on this study said, “Foreclosures do not indepentently affect crime. Rather, both foreclosures and crime are the products of similar community-level factors, which include a community’s clout, (or lack thereof), poverty and segregation.”
Derek Hyra, associate professor of urban affairs and planning at Virginia Tech, was the co-author of the study. Crime and foreclosure data from Chicago during the period of 2000 to 2008 was calculated. During this time, foreclosures tripled. Research focused on the consequences of those rising foreclosure rates including effects on the community structure and crime statistics.
Kirk said. “We were able to statistically adjust for confounding influences such as segregation, the political hierarchy of communities and other unobserved factors predictive of both foreclosures and crime.”
To research foreclosures and to tour properties, contact me at 713-818-2404 or via my website, FuellingKaty.com.
Fifteen of Sixteen Cinco Ranch Schools Receive Exemplary Rating
Fifteen of the 16 Katy ISD schools serving the 7,600-acre Cinco Ranch master-planned community have earned the highest possible rating in the 2010 Accountability Ratings just released by the Texas Education Agency.
The 15 schools were all rated Exemplary, the highest of the four ratings assigned by the TEA.
An Exemplary rating means that a campus must have at least 90 percent of its students meet or exceed the Texas Assessment of Knowledge and Skills (TAKS) standard on each subject, including Reading, English/Language Arts, Math, Writing, Social Studies and Science. A campus must also have a dropout rate of 2 percent or less to earn an Exemplary rating.
Taylor High School, the only school serving Cinco Ranch that was not rated Exemplary for 2010, received the TEA’s second highest rating, Recognized.
Katy ISD schools attended by Cinco Ranch students include eight elementary campuses: Creech, Exley, Fielder, Griffin, Kilpatrick, Rylander, Stanley and Williams. Middle schools include Beck, Beckendorff, Cinco Ranch, McMeans and Woodcreek. Students also attend Cinco Ranch and Seven Lakes high schools.
“Outstanding schools are a major reason why Cinco Ranch is the number one community in the nation for new-home sales in 2009, and we applaud the students, parents, faculty and all community members for their hard work and achievements,” said Heather Gould, marketing director for Newland Communities, developer of Cinco Ranch.
The 2010 TEA ratings are the latest good news about Cinco Ranch schools. The 2010 “America’s Best High Schools” study by Newsweek ranked Cinco Ranch High School and Seven Lakes High School within the top 3 percent of the nation’s high schools. The study ranked schools based on the number of students taking Advanced Placement, International Baccalaureate or Cambridge tests, divided by the number of graduating seniors.
To tour Cinco Ranch Homes, contact me via FuellingKaty.com. I have sold Katy real estate for 21 years and would enjoy touring Cinco Ranch together.
What’s the Current State of Foreclosures in Katy?
Nationwide, foreclosure inventory fell for the third straight month in June. Realty Trac, a subscription service that tracks U.S. foreclosure rates, reports that nationwide foreclosure filings last month dropped 2.81 percent from May’s statistics. This year’s national figures are down 6.98 from June 2009.
Katy has never suffered from the foreclosure disaster at the level plaguing many other areas of the country. Still, there are opportunities to purchase a foreclosure in Katy with inventory on both sides of I-10.
Considering only houses in the Katy Independent School District, there are 24 houses in foreclosure on the southside of I-10 and 36 on the northside.
Most people are surprised to find out there are Read more
HEB at Katy’s Main Street Scheduled to Open
The date has been set, Saturday, August 14, for the opening of the new Katy HEB grocery. The store is located on the south-side of I-10 at the intersection of I-10 and Pin Oak.
The Katy Main Street project, of which HEB is the anchor store, is being developed by Woodcreek Development Company. Eventually, it will include retail shops, restaurants, banks, hotel and office space. A Walgreen’s drugstore was the first business to open. The HEB gas station has a tentative opening date of July 21.
There are three other HEB grocery stores in the Katy area; locations can be found at the Grand Parkway at Fry Blvd; Mason Road at Highland Knolls; and, Fry Road at I-10. The new store will be extremely convenient to residents of Woodcreek Reserve, Firethorne, Old Katy, Pin Oak and the Falcon neighborhoods.
It’s Hurricane Season and Flood Insurance Policies are in Congressional Limbo!
According to the Texas Association of Realtors, 1400 homes per day in the United States require flood insurance policies to close. The problem is that no new flood insurance has been written since May 31.
Even though we are in hurricane season, the National Flood Insurance Program has been unable to issue new policies, increase coverage, approve renewal policies or pay claims since the end of May.
Why? The most recent temporary extension, approved by Congress, expired on May 31. The proposed extension of the National Flood Insurance Program is tied to a bill that would provide a temporary extension of unemployment benefits, COBRA health insurance subsidies, and highway and transit programs.
While the bill passed the House of Representatives prior to the June 1 deadline, the Senate defeated the bill in mid-June over concerns that the extension of benefits, those attached to the bill, would increase the federal deficit.
The National Flood Insurance Program was designed to be renewed every five years. However, since expiring in 2009, the program has received only temporary extensions of only 30 days to six months.
The Independent Insurance Agents and Brokers Association and the Property Casualty Insurers Association of America sent a letter to Congress that said, “The expirations have called into question the very stability of the program as a whole among consumers, agents and companies.”
Tax Credit: Will the Close Date be Extended?
For home purchasers, the first time home buyer’s and existing home owner’s tax credits were extremely popular. The $8,000 tax credit for first-time home buyers and the $6,500 tax credit for existing home owners applied to sales contracts signed no later than the end of April and closing no later than the end of June.
The program was so successful that pending home sales, (contracts signed but not yet closed), in April 2010 rose 22.4% (nationally) when compared to April 2009! However, with increased underwriting turn times, (the time it takes for a mortgage to be approved), many people that met the requirement by signing a contract before the end of April will not be able to close in time. Under the current law, they will lose their tax credit.
With the rush of contracts written, unfortunately, some home builders promised June delivery and they cannot meet that deadline. These buyers will also lose their tax credit. Additionally, there is growing concern that because of the time it takes for banks to complete transactions such as short sales, many of these home purchases would not be complete before the deadline through no fault of the home buyer.
Senate Majority Leader Harry Reid of Nevada, Senator Johnny Isakson of Georgia and Senator Chris Dodd of Connecticut have introduced an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 that would extend the closing time from June 30 to September 30, 2010. It remains to be seen if the proposal will pass; I will keep you posted.
Note: If you did not sign a purchase contract by April 30th, there is no extension for you. The proposed extension is only for those that signed a contract in time but just can’t close on time.
For more information, contact Julie Fuelling @ FuellingKaty.com.
Mortgage Interest Rates Experience Small Increase
Mortgage backed securities, see my article at FuellingKaty.com on Mortgage based securities (MBS), lost 69 basis points last week which caused 30-year fixed rates to increase for both government, (FHA and VA), and conventional loans.
According to Network Funding’s, a local mortgage lender with several locations, Weekly Mortgage Newsletter, “The prior week, mortgage rates were at their best levels of 2010. MBS pricing decreased, (which causes mortgage rates to go up), due primarily to a rebound in the stock markets which pulled some money way from bonds.”
Financial indicators appear to show shows sign of economic expansion. This growth takes a toll on long-term bonds such as MBS. However, it is very important to see the big picture: Mortgage rates remain at fantastic levels!
For specific rates, contact me at FuellingKaty.com. I will be happy to put you in touch with an experienced lender. I have sold Katy real estate for more than 20 years. Experience does count!
Outdoor Kitchens a Favorite Feature of Katy Homebuyers
Have you visited higher-end new construction lately, particularly homes over $400,000? At this price, stunning outdoor kitchens are more a standard than an exception in Katy area model homes.
Buyers are greatly attracted to this feature and many Katy home buyers will pay the substantial price of adding an outdoor kitchen to their new home. Prices vary. Some buyers select the minimum features: An oven, refrigerator, sink and traditional barbeque pit. Others opt for many more upgrades.
Every Katy outdoor kitchen I have seen features stainless steel appliances. A large covered porch is standard. Most homeowners also have or add a pool.
According to RISmedia, ” “Homeowners want a space where they can entertain for large parties, cook meals for the family and comfortably enjoy the outdoors without leaving home.”
RISmedia goes on to state that a deluxe package might feature “a summer kitchen, 96-inch projection screen, full wet bar, extended lanai, pool house, bathroom and outdoor family room.”
The RISmedia article discusses a family who remodeled their home to include all the above features plus outdoor furniture and decor. They spent in access of $90,000! I have never heard of Katy homeowners spending this much money. Every builder and remodeler has their own price list; it is best to contact them directly. I Googled “outdoor kitchens Houston” and got quite a few links.
Like a swimming pool, the entire cost of an outdoor kitchen can rarely be recouped when selling a house. However, Katy houses with this much desired feature usually sell quicker than those without.
To tour houses, both new construction and resale, that feature outdoor kitchens contact me at 713-818-2404 or via email. I have sold Katy real estate for over 20 years. Experience does count!
Katy Texas Buyers: Find Affordable Housing Programs
The federal tax credit may have expired, but there are still many programs in Texas available for Katy home buyers. That’s why the Texas Association of Realtors® created TxHomePrograms.org, a searchable online database of homebuyer-assistance programs.
You can find programs, such as down payment assistance and below-market interest rates, available only in Texas. Many, though not all, of the programs depend on household income and whether the consumer has owned a home in the last three years.
TxHomePrograms.org also has a glossary of real estate terms, outlines the home buying process, and provides information on issues that affect many first-time buyers, such as predatory lending and credit repair. There is a section with advice on how to avoid foreclosure.
Call me at any time, 713-818-2404, for more information. I am always happy to answer your inquiries. I have sold Katy real estate for more than 20 years.
Katy Real Estate: Is the Feeding Frenzy Over?
I’ve had the busiest spring of my 21-year real estate career! As the April 30th deadline to qualify for the tax credits, $8,000 for first-time home buyers and $6,500 for existing home owners, loomed, home sales got really crazy.
It was not unusual for brand new listings to have multiple offers. Bidding wars ensued. Here in Katy, particularly on the southside of I-10, it was impossible to believe that a real estate recession exists.
Nationwide, the tax credit bills created a strong upswing in home sales. According to the National Association of Realtors, pending home sales increased again in March 2010, affirming that a surge of home sales is unfolding for the spring home buying season.
Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”
Yun continued, “Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages. As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”
Visiting with co-workers this first week post-tax credit, business does not seem to have slowed down. Not a bit!
Katy Neighborhood Profile: Westheimer Lakes North
What’s the difference between Westheimer Lakes North and Westheimer Lakes South? In a sentence: Students residing in Westheimer Lakes North attend the Katy Independent School District while children living in Westheimer Lakes South are zoned to the Lamar Consolidated Independent School District. Fair or not, KISD is usually favored over LCISD by Katy residents.
Westheimer Lakes North is located in thriving west Houston in close proximity to I-10, Hwy 99 and the West Park Tollway. It is easily accessible to major retail, dining and employment centers.
Technology is a major amenity of Westheimer Lakes North including high-speed broadband internet access, digital telephone service and home computer networking with wireless routers. Each home has a security system pre-wired for a surveillance camera and free alarm monitoring for the first year of residence.
Westheimer Lakes North home owners have access to a 5,000 sq- foot splash pad complete with covered pavilions and picnic areas. There is a beach entry splash pool with slide and spray features. A junior Olympic-sized pool and community center are being constructed in Westheimer Lakes North. This recreation complex will feature a poolside cabana, exercise room and full service kitchen.
Sports enthusiasts have a wide range of outdoor activities including tennis courts, a covered basketball pavilion and a sand volleyball court. Resident children enjoy a playground which includes climbing equipment, slides and tunnels. There are also play fields and a shaded sand box for castle building.
To tour Westheimer Lakes North, give me a call at 713-818-2404 or send an email to juliefuelling@sbcglobal.net. I have sold Katy real estate for more than 20 years; experience does count!
Mortgage Insurance Premiums Increase April 5th
The Federal Housing Administration, FHA, has kept mortgage rates and Mortgage Insurance Premiums, MIP, lower than the market dictated for some time to encourage home buyers to shore up the economy.
MIP premiums are about to increase; the date is April 5th. On case numbers dated after April 4th, MIP premiums go from 1.75% of the total loan value to 2.25%. It’s not as dreadful as it sounds. On a $200,000 mortgage, the increase, based on today’s interest rates, is approximately $6 per month–stay out of Starbucks for two lattes and you will have more than made up the difference!
Interest rates are another story; an April increase is anticipated by economic predictors across all persuasions. If you are on the fence about buying a new home, this is the month to do it!
Not only are interest rates and MIP rising but the date to qualify for the first-time homebuyers and current homeowners tax credit expires on April 30th. You must be under contract by April 30th and close by the end of June. The tax credits are $8,000 and $6,500 respectfully.
Call me at any time, 713-818-2404, for more information. I am always happy to answer your inquiries. I have sold Katy real estate for more than 20 years.
Katy Home Sellers: How to Prepare for an Appraisal, Part Two
In May 2009, a new law, The Home Valuation Code of Conduct, or HVCC, became law. One of the main rules prohibits mortgage brokers from ordering appraisals directly from, or having any contact with, a licensed real estate appraiser.
Also, a lender cannot approach a an appraiser with relevant information, such as comparable sales. Lenders are forced to use third-party appraisal management companies who oversee all aspects of the appraisal process.
Valuation may come in low due to an out-of-area appraiser who is totally uneducated with respect to neighborhood nuances and values. Due to the decline in the housing market, based a great deal on inflated appraisals, appraisers now go back only three months, instead of the traditional six months, when considering comparable sales. Foreclosures are also factored in although they often skew the true value.
This being said, there are things that a seller can do to increase chances of their house appraising for the sales price.
- Once your appraiser has arrived, you do not need to accompany him or her along the entire site inspection. Rather, be available to answer any questions about your property and point out any home improvements.
- Make sure that all areas of your home are accessible, especially the attic.
- Appraisers see hundreds of home a year and they will look past most clutter. However, a good impression can translate into a higher home value.
- Repair minor things like leaky faucets, missing door handles and trim. It is only human nature to assume that there is quite a bit of “differed maintenance” if the small things have not been fixed.
- If your borrower is applying for an FHA/VA loan be sure to address specific items such as install smoke detectors on all levels, especially near bedrooms. You must install handrails on all stairways. You should remove peeling paint and repaint the affected area. Ask a lender or your Realtor for more suggestions.
Katy Home Sellers: Facing an Appraisal? Be Prepared! Part One
Inflated appraisals, valuing homes far above their true market value, contributed greatly to the residential real estate collapse. In backlash, the pendulum has now swung in the opposite direction and it can be hard to get a home to appraise for the sales contract price.
Standards are now so strict that the lender and appraiser are not supposed to communicate directly. Historically, appraisers used comparable sales that occurred in the last six months; the time period has now been tightened to only three months. The days when Realtors were encouraged to meet the appraiser with a fist full of comparables, justifying the sales price, are long past.
Still, there are things that a home seller can do to facilitate the process and give their home a competitive edge in the appraisal process. It’s beneficial to have these documents ready for the appraiser:
- A survey of the property.
- List of personal property to be sold with the house.
- Most recent real estate tax statement and legal description of the house.
- Brag sheet that lists major home improvements and upgrades including the date of their installation and cost.
- A copy of the current MLS data sheet and purchase agreement if the property is “pending”.
- Neighborhood information.
Katy Homebuyers: Hurry Before Mortgage Rates Rise!
Katy neighbors: Shopping for a home? About to start house hunting? Now is better than later! Mortgage rates are destined to rise in the near future. Predictions are that rates may go up to 6% by April. While this sounds high, please remember it is still very low considering historical data. When I started selling Katy real estate in 1989, interest rates were barely below 20%!
Normally, I don’t write articles explaining why rates are fluctuating. If you are like me, you just want to know what the rate is today. However, a recent change will raise rates and we will also probably see them continue to increase in the future.
The Fed has raised the “discount rate” from .5% to .75%. The discount rate is the the rate at which banks borrow money; so, this move will cause mortgage rates to increase.
This government is no longer focusing on keeping mortgage rates down. This move, on top of their decision to cut back the amount of mortgages they buy, proves this.
Furthermore, the Fed is planning on ending their Mortgage Back Securities purchase program in April. Through this plan, the Federal government has been stimulating interest rates to remain low.
Here is a great article to read on the topic.
Don’t forget the $8000 First Time Homebuyers Tax Credit and the $6500 Current Homeowner’s Tax Credit. To take advantage of these programs, you must be under contract by the end of April and close by the end of June.
Call me at 713-818-2404 for more information. Let’s get out there and find your dream home now!
Katy Realtor Earns Short Sales and Foreclosure Certification
A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner.
Recently, I earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.
REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.
“As leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan.
“Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR® who has earned the SFR certification for these kinds of purchases.”
The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS® stay current on national and state-specific information as the market for these distressed properties evolves.
For assistance with a short sale, foreclosure or any other residential real estate issues, feel free to contact me at 713-818-2404 or through FuellingKaty.com.
$6,500 Repeat Homebuyer Tax Credit
The home purchasing tax credit is not just for first-time homebuyers any more. There’s a new program for the current homeowner or someone who has owned a home five years out of the last eight. Following are the highlights of the program:
To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight.
The tax credit does not have to be repaid.
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.
The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010.
In cases where a binding sales contract is signed by May 1, 2010, the home purchase qualifies provided it closes prior to July 1, 2010. This allows a buyer to purchase new construction.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
For more information and to be directed to a lender who is knowledgeable about the $6,500 tax credit program, contact me at 713-818-2404 or via FuellingKaty.com.
