Mischer News

Back to school shopping can be a stressful time for parents and kids alike. And, trying to keep up with the latest trends and ever changing school supply requirements can be a little overwhelming. Just follow these simple, essential tips when you head out the door this August, and you will find yourself well equipped for the task at hand. With a little bit of planning and a sharp eye for bargains, anyone can save big bucks!

• Be patient and wait for the sales and discounts. Some of the biggest markdowns on clothing, shoes, and electronics, happen in mid to late August. Your patience will pay off with average savings of 40 to 50 percent in retail stores and 20 to 25 percent online.
• Plan to take advantage of the Texas Tax-Free weekend on August 20 – 22, 2010. During this one weekend in August, back-to-school items, like clothing, backpacks and footwear, are tax-free. (http://www.window.state.tx.us/taxinfo/taxpubs/tx98_490/tx98_490.html ) 
• Make sure to buy a backpack that comes with a warranty. Kids can be very hard on their book bags, so your child’s backpack should be come from a reputable company, such as L.L. Bean or the North Face, which guarantees its products will hold up. If a zipper breaks or the handle/straps come apart the company should have a no charge replacement policy. 
• For high school and college students in need of software, make sure and request the “student discount” or “student rate” on software. Most Microsoft products can be purchased at a significant (as much as 80% off) discount simply by showing a valid student ID at retail stores or by send a copy via e-mail or fax to online stores. 

Most importantly, avoid buying anything you don’t really need. Start with the essentials and as needs arise, you can pick them up. And, although sales begin in late August, by late September, you may find items deeply discounted by as much as 75% off. In short, plan ahead and make a list. Then watch the local ads and don’t let your kids pressure you into overspending! 

Late last Wednesday, Congress approved an extension for the home buyer tax credit. The extension will give approximately 180,000 potential new home buyers, who signed a purchase agreement prior to the original April 30 deadline, a little more time to close and fund on the property and still receive the $8000 credit. 

The Senate approved the measure to extend the deadline until September 30, unanimously on Wednesday, one day after the bill easily passed through the House of Representatives. The President is expected to sign off on the measure soon.

The Senate repeatedly failed to pass the extension over the last few weeks because it was included in a multi-faceted package that was attempting to extended jobless benefits, among other measures. On Wednesday, when their efforts to reinstate unemployment insurance failed, and the Senate made a last minute call to pass the tax credit provision on a standalone bill.

All good news for lenders and real-estate companies, who were previously warned of potential closing delays, especially for those in short sale and new construction situations that are often at the mercy of others to close in a timely manner!

In a recent study from the Real Estate Center at Texas A&M University new explanations are being offered as to why the Texas housing markets are proving to be much better than other states amidst the current real estate free-fall. And, it further suggests the reasoning behind their belief that the Texas economy will continue to fare better than the rest of the country in the upcoming months.

“Texas’ lower-than-national-average housing cost is one reason for the state’s higher-than-national-average growth rate,” says Ali Anari, Ph.D., one of the study’s authors and a Center research economist.  “When Texans are able to spend more on non-housing goods and services, the state’s economy is strengthened and more people attracted.”

Since 1987, the average, per consumer, annual income consumers delegate to their shelter has increased in every major American metropolitan market. But, according to Anari’s research, “Houston and Dallas consumers spent the smallest shares of their incomes on shelter in 2008 (18.6%).”

“These results illustrate one of the key reasons the Texas economy outperforms the United States in terms of job growth almost every year,” says Center Chief Economist Mark Dotzour, Ph.D. “The fact that Texans pay less of their income for housing means they have more to spend on other things that add to the overall quality of life.” Dotzour further explains, “This allows Texas employers to be able to attract workers at a reasonable wage rate that allows them to compete successfully in the global economy.”

Texas data for the study was compiled from the Dallas-Fort Worth and Houston-Galveston-Brazoria metro areas due to the fact that they are among the major metropolitan areas for which consumer expenditure data is available. These two metros accounted for 60.3% of Texas’ labor force last year and 64% of Texas’ gross domestic product (GDP) the previous year.

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According to the latest monthly data compiled by the Houston Association of Realtors (HAR), sales of all property types in Houston for May totaled 6,659, up 20.3 percent compared to May 2009. Total dollar volume for properties sold during the month was $1.3 billion versus $1.1 billion one year earlier, representing an 18.9 percent increase.

In May, sales of single-family homes in Houston totaled 5,693, up 19.1 percent from May 2009, marking the third consecutive month of increased sales activity. Separated out by individual segments:

• May sales of homes priced from $80,000 and below increased 7.3 percent.
• Those between $80,000 and $150,000 rose by the largest amount of all pricing segments—28.0 percent.
• Those in the $150,000 to $250,000 range climbed 19.2 percent.
• Those priced between $250,000 and $500,000 ae up 13.6 percent.
• Sales of luxury homes—those priced from $500,000 to the millions—edged up 5.1 percent, a dramatic drop compared to a 53.4 percent increase one month earlier.

Local Realtors Credit Ongoing Effects of Federal Homebuyer Tax Credit to the three month increase. HAR goes on to state that “the average price of single-family homes in May was $209,920, down 0.9 percent compared to one year earlier. That followed seven straight months of appreciated average pricing.” The national single-family median price reported by NAR is $173,100, illustrating the continued higher value and lower cost of living that consumers enjoy in the Houston market. 

These statistics all point to good news for Houston area builders and developers. Only time will tell if the trend will hold, but for now Houstonians can breath a little easier!

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According to the Associated Press and Freddie Mac, mortgage rates on a 30-year fixed loan have fallen dangerously close this week to the all-time low.

Mortgage finance company Freddie Mac states that “the average rate sank to 4.72%, down from 4.79% last week. It was just above the record of 4.71 set last December.” They go on to state that “the average rate on a 15-year fixed-rate mortgage hit 4.17%, down from 4.2% last week and the lowest on records dating back to August 1991.”

Falling rates are thought to be the result of last years Federal Reserve campaign designed to “reduce borrowing costs for consumers [and to] push rates down to extraordinarily low levels.” Although rates were speculated to rise after the campaign, which ended this spring, rates have unexpectedly fallen over the past two months instead.

Guarded investors, still shell shocked from the European debt crisis and turbulent stock market, have shifted their money into the more stable U.S. Treasury bonds, which in turn have pushed down interest rates, or the yield, on U.S. Treasury debt. Fixed mortgage rates have a tendency to follow that yield. Other factors that affect the bond yield include, but are not limited to, the national employment report.

Only time will tell if these historically low interest rates are enough to revive the housing market, but it is definitely good news for customers intending to purchase a new home this summer! 

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Some good news, and a possible clearing of the dark clouds looming over the new home construction industry, was revealed in a statistical report issued today. According to Realtor Magazine, construction spending rose 2.7 percent in April among residential, government buildings, and industrial segments. 

Ian Shepherdson, chief U.S. economist at High Frequency Economics, expressed his opinion on the rise, stating that “the government tax credits drove residential increases and nonresidential activity is unreliable. We expect a downward revision next month.”

Despite the down-played pessimism of Shepherdson, Houston’s new home builders are forecasting a positive shift. Luxury home builder and Former CEO of Toll Brothers Robert Toll said, “It appears our business has finally emerged from the tunnel and into a bit of daylight.”

Only time will tell, but all eyes will me on construction statistics over the next few months as builders anticipate the summer housing rush to be the “new beginning” they have been waiting for since the housing crisis began. 

Do cities have a future? Pessimists point to industrial-era holdovers like Detroit and Cleveland. Urban boosters point to dense, expensive cities like New York, Boston and San Francisco. Yet if you want to see successful 21st-century urbanism, hop on down to Houston and the Lone Star State.

You won't be alone: Last year Houston added 141,000 residents, more than any region in the U.S. save the city's similarly sprawling rival, Dallas-Fort Worth. Over the past decade Houston's population has grown by 24%--five times the rate of San Francisco, Boston and New York. In that time it has attracted 244,000 new residents from other parts of the U.S., while older cities experienced high rates of out-migration. It is even catching up on foreign immigration, enjoying a rate comparable with New York's and roughly 50% higher than that of Boston or Chicago.

So what does Houston have that these other cities lack? Opportunity. Between 2000 and 2009 Houston's employment grew by 260,000. Greater New York City--with nearly three times the population of Houston--has added only 96,000 jobs. The Chicago area has lost 258,000 jobs, San Francisco 217,000, Los Angeles 168,000 and Boston 100,004.

Politicians in big cities talk about jobs, but by keeping taxes, fees and regulatory barriers high they discourage the creation of jobs, at least in the private sector. A business in San Francisco or Los Angeles never knows what bizarre new cost will be imposed by city hall. In New York or Boston you can thrive as a nonprofit executive, high-end consultant or financier, but if you are the owner of a business that wants to grow you're out of luck.

Houston, however, has kept the cost of government low while investing in ports, airports, roads, transit and schools. A person or business moving there gets an immediate raise through lower taxes and cheaper real estate. Houston just works better at nurturing jobs.

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Did you know that your new 2010 property tax bill is not set in stone...at least not yet? Before you issue a check, consider this useful advice.

• Make sure all of the deductions you're entitled to were, in fact, included.
• If something just doesn’t add up, check the tax assessor's math as well as the description of your property. Sometimes the problem is simple human error, like miscalculated square footage or an incorrect number of rooms.
• Visit your counties web site and check the assessments of at least five of your neighbors. Your neighbors may have already disputed their taxes and done half the work for you!
• Remember, no tow houses are exactly the same, so make adjustments for the differences between your property and those you are using for comparison purposes.
• If your assessment is incorrect or unfairly assessed, contact your appraisal district and make an informal appeal to their assessor first. If you are unsuccessful in coming to an agreement on the value, then file a formal appeal.

If you have to file a formal appeal, "the first thing you need to do is call and ask about the review process" of your local assessor's office, says Geoffrey White, a tax attorney in Cincinnati. "Find out what the important timing points are. Since you might only have 60 days (from the time you receive the assessment in the mail) to do this, you don't want to sit on it."

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A variety of employers from across the Northwest Houston area to hire someone like you.

Open to all community members and students.

Please dress professionally and employers will require resumes.

April 14, 2010 - 10:00a.m. - 2:00p.m.
Lone Star College- University Park Conference Center 20515 SH 249- Houston,TX 77070

LoneStar.edu/job-fairs

Forbes Urbanist, Joel Kotkin, recently addressed the 21st Century American City and how Texas is setting the pace, no pun intended. But, would you expect anything less from the self proclaimed “picante sauce” capital?

Kotkin suggests, “If one state is a poster child for economic recovery, its Texas, home to four of the 10 cities on our list. There's more to why Austin, Dallas, San Antonio and Houston are faring well than just the state's energy industry. The tech, government and education industries supplement the oil state's riches. As for housing, cities in Texas didn't see the same run-up in home prices and rampant speculation that led to the spectacular bubble burst elsewhere in the country.”

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