The Bains

in both Tyler & Smith County. January 2010 saw a 7.5% increase in closings & a soaring 17.4% jump in mean prices. Smith County alone had an increase from78 closed in January 2009 to 91 closed
January 2010. Median prices jumped from $117,000 to $138,000 in the past year in Tyler. The $8,000 tax credit helped fuel this as the $6,500 credit + mortgage rates are still at a low of about
5.13% for a 30 year fixed loan. The Tyler market was among the nation’s highest when it came to an
INCREASE in HOME SEARCHES on REALTOR.COM. Tyler had a 74.2% increase in searches from
September 2008, with Austin at 91.4% & New Orleans & Las Vegas at 84.9%. Tyler has an 11 month
supply of homes on the market. Ideal is about 6.5 months.

12% of borrowers who signed up for the government’s mortgage relief plan have been helped by
reducing payments. The Treasury Department said about 116,000 homeowners had completed the
application process as of January 2010, compared with over one million homeowners who began the
process. Over 61,000 homeowners have dropped out of the program either because they failed to make payments OR did not return the necessary paperwork. Nearly 1 of 3 homeowners with a
mortgage owes more to the bank than their property is worth, according to Moody’s Economy.com.
There are calls for a major overhaul of the program, particularly for the govt. to further encourage
banks to cut borrowers’ principle balances on their primary loans.

Texas is looking at up to a $16 billion deficit next year, but a new poll shows Texans have strong
feelings about where budget cuts need to be made – and they start with highways. A Dallas Morning
News phone poll of 1,500 registered votes showed 41% of Texans would make up some of the deficit
by slicing highway spending. “It’s not so much an indicator that people are willing to tolerate the traffic as much as it is recognition about the cost of fixing it. You can throw billions at the problem and not make a dent,” said Dale Craymer, president of the Texas Taxpayer and Research Association,
a nonpartisan research group. FIVE options on where to get money for roads, 21% put toll roads at
the top of the list and coming in second was an increase in the state gas tax, which garnered support
from 16% of those polled. Other suggestions also came in.

More travelers wintering in TX this year than last & staying longer. Half of the “Winter Texans” surveyed plan to spend as much time wintering here as they did last year & 35% plan to stay longer.
According to the survey by TexasCampgrounds.com 39% winter in the Hill Country & 38% camp along
the Gulf Coast. 24% spent the winter in the Rio Grande Valley. 26% stay at the same park the entire
winter & 53% of the Winter Texans also spend time in other states during the season. 40% plan to
winter for 1-2 months, 15% stay 3-4 weeks, 13% stay 3-4 months & 25% planned to stay 6 months or longer.

A perfect example of this Galveston after Hurricane Ike. Galveston had a 160% increase. Its difficult to imagine that there were any sales immediately after the hurricane, but properties do
change hands even in the worst of circumstances. October sales in Galveston from 2004 through 2009 were 93, 68, 88, 85, 25 and 65. The 65 sales in 2009 is not too bad considering the recession
and the rebuilding. Research economist Dr. Jim Gaines at the Real Estate Center at Texas A&M
summed it up with one word: Ike.

Folks 55 & older wanted these in a new home: (1) washer/dryer in the home or apartment,
(2) much storage space, (3) Windows that open easily, (4) garage door opener, (5) easy-to-use thermostat, (6) master bedroom on first floor, (7) private patio, (8) porch, (9) attached
garage, (10) bigger bathrooms. These findings according to the National Association of Home
Builders AND by Dave and Carolyn Bain of Bain Real Estate as we talk to over 55ers about what
they want in a home. A question: would you be satisfied if the master bath had ONLY a shower &
no tub? Let us know.