New Braunfels Real Estate News

Archive for September, 2008

The Financial Bailout - What a Difference Nine Years Makes

Tuesday, September 30th, 2008

Today’s (Sept. 30, 2008) front page of the New York Times describes where the nation stands regarding the massive financial bailout of our nation’s “economic ship”. As I read this article, I wonder why our elected officials are reluctant to consider what got us to this point and use that knowledge to craft a plan to right the ship before trying to bail it out! To read the Sept. 30, 2008 article, click Lawmakers Hope Small Changes Will Spur Bailout.

Exactly 9 years ago today, this article also appeared in the New York Times: Fannie Mae Eases Credit to Aid Mortgage Lending. My favorite quote in this article is: ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.” Peter Wallison of the American Enterprise Institute said that 9 YEARS AGO!

If lawmakers would try to remember whose money they are dealing with (hint: not theirs) then perhaps they would eliminate the junk they keep trying to force into this bill and simply right the wrong that they themselves encouraged.

Does this make your head explode? I’d like to read your comments on this…

Posted in Central Texas Real Estate | 1 Comment »

New Braunfels Home Sales

Wednesday, September 17th, 2008

Even though things have slowed down compared to the last couple of years the San Antonio housing market, New Braunfels home sales in particular, has held its own so far. New Braunfels is a subset of the San Antonio market. As such, we benefit from the same positive forces that have kept San Antonio safe from the turmoil experienced in other areas. What are those forces? Simply put, population growth and new jobs.

According to an article in the September 17, 2008 San Antonio Express News by Jennifer Hiller, “Job growth, population growth, affordable home prices and a little bit — about 4 percent — of annual home price appreciation are helping San Antonio and the rest of Texas weather the nation’s economic storm”. Based on data from our local MLS, New Braunfels home prices have appreciated about 5.3% year-to-date versus the same period last year. However, the number of transactions decreased 21%.

What does all this mean for the average home Buyer? There is more selection to choose from and with current low mortgage interest rates, more affordable home loans. The news is not bad for Sellers either. Even though the number of transactions is down right now, homes that are “in the market” are selling. By “in the market” I mean where the condition of the home is in the top 20% of comparable homes on the market and the price is reasonable and appropriate for location, condition, size and age.

I agree whole-heartedly with a quote in the Express News article attributed to Jack Inselmann, vice president of the central U.S. region of Metrostudy, a housing research firm. “What we had was a construction bubble, thank God,” Inselmann said. “We did not have a price bubble.” That is true for New Braunfels. It seems like this year, builders have been working overtime to build out subdivisions and move their inventory of homes; making it tougher on the resale market. I believe that things are starting to balance out now.

Kathy and I are seeing things starting to pick up. Buyers are stirring and the phone is ringing. There is an old adage in real estate that continues to make sense, “It is always a great time to buy a great piece of property”!

To read Hiller’s entire article click SAN ANTONIO EXPRESS NEWS.

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