The Bains

Texas had an increase in real median household income between 2007 & 2008 and a decline in median
selected monthly housing costs. The average for mortgages in the U. S. was a 0.3% between 2007 &
2008. Texas & 7 more states experienced increases. On the negative side 24.1% of Texans lacked
health insurance in 2008, the highest rate in the nation.
Remember this is fall & football & Fairs are in full swing, so usually there is not as much interest in buying homes, but that usually changes as we move into the later fall.

The conditions & questionable financial practices that fueled the red-hot markets of 2003-05 are
gone & now back to normal – which is good! Home prices will stabilize, sales pick up & housing
regains its standing as a smart, positive purchase. That is already taking place, but will take until
after Labor Day & into 2010. The confluence of low interest rates, attractive prices, high
affordability, motivated sellers & effective government incentives, such as the $8,000 tax credit
are putting housing on the track toward recovery. Credit is tighter, but that is OK. Lenders are
watching what they are lending more prudentially.

TX Real Estate Center Research Analyst Gerald Klassen has been toiling away on a proposal that would restructure the secondary mortgage market. He left September 14 to present his proposal
in Washinton D.C. to leaders from the National Association of Realtors (NAR). NAR has formed an
internal Presidential Advisory Group to examine alternative market structures to ensure there is
sufficient capital to support lending in all types of markets for qualified borrowers. In June, NAR
as housing & finance experts for their imput & Klassen’s proposal is from the A&M Real Estate Center.

Dallas, Houston & Austin are amont the top four U. S. cities in which to earn a living, according
to Forbes Magazine. Dallas was the most desirable city in the nation to live & work, with Houston
2nd and Austin 4th. Among the best reasons is the number to top-ranked companies headquartered in each city – 38 in Houston & 15 in Dallas. The rankings were determined by median income, cost of living, job growth & the quality of the business environment. The same
FILTERS OUT TO THE SMALLER CITIES. Also Dallas-Fort Worth International Airport, the world’s
3rd business is going to update the aging terminals and develop 6,600 acres on the edge of the
airport home. Adds up to more development parks, hospitality businesses, corporate jets & more
airlines.

What we write in these blogs is factual information from several sources. The primary one is the
Texas A&M Real Estate Center, as there are economists on staff who study various phases of the
real estate business, such as home, land, ranch availability & prices. Then our local Greater Tyler
Association of Realtors gives us statistics, such as solds & comparing with a year ago. This information is a link on this website under SOLDS & changed periodically. Also national sources,
such as Brookings,edu , Forbes.com/Lists & Moody’s at Economy.com are available. All this information keeps us informed to make the best decisions possible when buying & selling real estate. As Scott Burns, long time Dallas Morning News columnist, said years ago, we often have
to buy or sell when times are not the best, but we do it because WE NEED TO.

According to U. S. News & World Report, 2 Texas college towns are underpriced in the county.
Houston is #1 with Rice University & the U. of Houston & medium home price is $120,000 during the
1st quarter 2009. Statistics were compiled by IHS Global Insignt, which they considered 37%
undervalued. Third on the list of 15 in the country is College Station, which is north of Houston
about 100 or so miles. Its median home price is $107,000. Bryan-College Station area homes are
21% undervalued.

The slowdown in the housing market nationally & within Texas has led to significantly increased
housing affordability everywhere & Texas continues to maintain its place as the most affordable
high-growth state in the county,” said Dr. Jim Gaines, research economist with the Real Estate Center at Texas A&M University. Texas lost fewer nonfarm jobs in July than in June. 4 sections
had job increases – education & health services, leisure & hospitality, other services industry & govt. sector. Texas unemployment rate in July 2009 was 8.2% with Amarillo, Lubbock, Midland,
Abilene & College Station the next lowest.