I received the below article today in a Real Estate Newsletter and while I think the headline “Credit Woes to Threaten Housing Recovery?” is a little alarmist, the article did ‘hit a nerve’ with me. The report is that banks are not lending money to home builders for housing production. The bankers say the regulators will not let them, however, the federal banking regulators maintain that they are not instructing the banks to stop making loans or to indiscriminately liquidate outstanding loans. This – the bankers inability to help their customers at the expense of the regulatory environment - has been an irritant of bankers for years.
To give you some history, prior to my career as an Austin real estate agent, I spent 15 years in community banking as a CFO/COO managing the bank’s operations and finances. I worked directly with Bank Regulators and loved it! Really, I enjoyed the regulatory exam process and liked working with the bank examiners. As a result, I have a unique perspective and ability to understand both sides--that of the community banker and that of the regulator.
Community bankers want to help you. They want your business. They want to lend you money. They want to find creative ways to make and build a relationship with you as their customer. In fact, the Community Reinvestment Act of 1977 ensures that banks meet the ‘convenience and needs of communities including the need for credit services as well as deposit services.’
The FDIC wants to protect your money deposited in the banks. They want the banks to invest in the communities they serve by making loans, but they recognize that the banks are leveraging your money and want to make sure it is protected which is where the regulator guidance comes in. In order for banks to do business, they must follow the banking laws and regulations and respect the guidance set forth by the FDIC and other supervisory entities.
What is going on currently is with bank failures of the past year, the regulators are scrutinizing banks closer than ever. In an effort to protect the consumer’s money, the government has added additional banking oversight related to managing liquidity and concentrations in commercial real estate (i.e. land development and construction loans).
Banks that have been active in making construction loans are now finding that the regulators feel that for the amount of risk in today’s economic environment, the banks need more capital and liquidity relative to the amount of construction loans on their books and in turn, the regulators are giving banks weak ratings and criticism. Effectively, the message to the bankers is that you can no longer continue to do business the way you have been. You need to reallocate your assets and liabilities to fit into a parameter that the FDIC has deemed reasonable. In order to avoid supervisory action, the banks address the issues and invest excess cash into assets other than loans. So while the federal regulators do not ever specifically tell a bank to stop making loans, their oversight is specific enough that the end result is that the bank cannot make the loans unless they receive additional capital from investors which is hard to come by these days and doesn’t always make financial sense.
So, go easy on your banker. He wants to help you.
Credit Woes to Threaten Housing Recovery?
RISMEDIA, September 30, 2009—Nearly two-thirds of single-family home builders are reporting a severe lack of credit for housing production, threatening the fragile housing recovery before it has time to take hold, according to a new builder survey of acquisition, development and construction (AD&C) financing conducted by the National Association of Home Builders (NAHB).
“Across the country, home builders and developers are reporting a deterioration in credit availability and intensifying pressure on borrowers with outstanding loans,” said NAHB Chairman Joe Robson, a home builder from Tulsa, OK. “Lenders are cutting off loans for viable new housing projects and producing unnecessary foreclosures and losses on AD&C loans. With the pending expiration of the $8,000 first-time home buyer tax credit, these challenges threaten to halt any positive developments we have seen in the housing market in recent months.”
In the latest NAHB survey of AD&C financing conditions, 63% of builders stated that the availability of credit for single-family construction loans worsened in the second quarter of 2009.
Builders reporting deteriorating credit conditions cited the following reasons: 80% said that lenders are lowering the allowable loan-to-value ratio, 76% reported that lenders are not making new loans, 75% stated that lenders are reducing the amount they are willing to lend and 62% said that lenders are requiring personal guarantees or collateral not related to the project. Two-thirds of respondents reported putting single-family construction projects on hold until the financing climate gets better.
While federal banking regulators continue to maintain that they are not instructing institutions to stop making loans or to indiscriminately liquidate outstanding loans, builders responding to the survey cited the top reason that lenders have given them for restricting the availability of new loans or for tightening the terms of outstanding loans is that “regulators are forcing lenders to do it.”
NAHB believes that regulators and lenders should provide leeway to residential construction borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps forbearance on loans to give builders time to complete and sell their inventory.
“There can be no meaningful economic recovery until the flow of credit is restored to housing,” said Robson.
For more information, visit www.nahb.org.
Lori Wakefield is a REALTOR with Keller Williams - Lake Travis specializing in West Austin Real Estate - Lake Travis, Lakeway, Westlake, Waterfront and Luxury Homes
Wednesday, September 30, 2009
Friday, September 25, 2009
Bee Cave Central Park Opening Soon??
The $4.5 million Bee Cave Central Park may open in October thanks to the recent rain .
The City of Bee Cave held a dedication and recognition ceremony at the Central Park on Saturday, July 18, 2009. The Mayor and City Council, along with members of the Economic Development Board and Planning & Zoning Commission, thanked everyone involved for their efforts.
However, The City of Bee Cave had this statement to explain why the park was still not open despite looking complete,
"The City of Bee understands how important this impressive amenity is and how anxious everyone is to see it open. Unfortunately, and due primarily to the drought conditions affecting Central Texas, the Bee Cave Central Park must remain closed to the public for the time being to allow native and seeded grasses to take root before the Park opens officially. The contractors are working diligently to fulfill their contract by completing the remaining punch list items. We estimate the Central Park will be open to the public in the Fall of 2009."
Word on the street is that the recent rains are helping speed the process along. Great news for Lake Travis residents who are anxiously awating to enjoy this beautiful park!
Lori Wakefield is a REALTOR with Keller Williams - Lake Travis specializing in West Austin Real Estate - Lake Travis, Lakeway, Westlake, Waterfront and Luxury Homes
The City of Bee Cave held a dedication and recognition ceremony at the Central Park on Saturday, July 18, 2009. The Mayor and City Council, along with members of the Economic Development Board and Planning & Zoning Commission, thanked everyone involved for their efforts.
However, The City of Bee Cave had this statement to explain why the park was still not open despite looking complete,
"The City of Bee understands how important this impressive amenity is and how anxious everyone is to see it open. Unfortunately, and due primarily to the drought conditions affecting Central Texas, the Bee Cave Central Park must remain closed to the public for the time being to allow native and seeded grasses to take root before the Park opens officially. The contractors are working diligently to fulfill their contract by completing the remaining punch list items. We estimate the Central Park will be open to the public in the Fall of 2009."
Word on the street is that the recent rains are helping speed the process along. Great news for Lake Travis residents who are anxiously awating to enjoy this beautiful park!
Lori Wakefield is a REALTOR with Keller Williams - Lake Travis specializing in West Austin Real Estate - Lake Travis, Lakeway, Westlake, Waterfront and Luxury Homes
Wednesday, September 23, 2009
Tuesday, September 22, 2009
Lake Travis Area Sees Growth with New Hospital and Subdivisions
Big things are happening in the Lakeway / Lake Travis area with construction underway on several projects including new subdivisions as well as a large hospital and medical facilities. It's exciting to see construction of the new hospital and shows that city planners see a future need based on the past and projected growth of the community.
Here is a list of the current projects going on it the area:
Serene Hills Drive to be extended to HWY 71 by Summer 2009 … opening delayed pending improvements along HWY 71
Creekside at Flintrock – 33 acre subdivision with 26 single family lots
Palomba Addition – 15 single family lots
Flintrock Falls Phase 5 – 24.5 acres consisting of 44 single family lots
Flintrock Falls Phase 6 – 10.5 acres consisting of 20 single family lots
Lakeway Highlands – Total of 1,540 acres consisting of approximately 1,400 single family lots, 330 condominium units, 35 acres of commercial, 10 acres of hotel, 8 acres of yacht club, 300+ acres of parks and green space, 130 acres of irrigation land, Highlands Blvd to be open in 2009
Rough Hollow – Sections 1 & 2 consist of approximately 100 single family lots, Section 5 has approximately 40 single family lots, and Section 7 with 40 single family lots
Lakeway Church – a new 13,600 sqft Youth and Children’s building at 2203 Lakeway Blvd
Lakeway Dental – 8,000 sqft medical office building at 2220 Lakeway Blvd
Pierce Plaza – 11,700 sqft office building on 1.26 acres at Lohmans Crossing and Rolling Green, plans approved, construction delayed indefinitely
Weed-Corely-Fish Funeral Home – 10,000 sqft funeral home at 411 RR 620 South. Driving by there yesterday, construction looks complete or very close to complete.
Lakeway MUD Water Tank – Two million gallon water storage tank. Tank operational, site work and tank façade to be completed by September 2009
Tuscan Village – 61 acres total; 42 acres on South side of Lohmans Crossing consisting of 104 sign family cottages, 66 townhouses, 100 condominium units, 30,000-60,000 sqft of office/retail, 10,000-15,000 sqft public library, neighborhood commercial, cublhouse, 19 acres on North side of Lohmans Crossing consisting of 210 multifamily units, 50,000 sqft office/retail, neighborhood commercial, clubhouse. Site work underway.
Lake travis Transitional Medical Center – Located on RR 620 and Birrell Street. Total of 15 acres – Phase 1 includes a long term acute care hospital (currently under construction – expected completion by Spring/Summer 2010), Phase 2 includes approximately 60,000 sqft of medical offices.
The Vistas at Lakeway – 50 acres at RR620 and Glen Heather Drive. Total of 175 condo units in three phases, Phase 1 and 2 (roughly 110 units) currently under construction.
Real del Lago – 2609 RR 620 S, 22,500 sqft building on 4 acres for Restaurant, Retail and Office Use. Site plan in development
Discovery Point – 3001 RR 620, Two phases, 13.5 acres total. Phase 1 – 11,000 sqft building to include office and restaurant space (complete); Phase 2 22,000 sqft medical office building (site work underway).
Lakeway Regional Medical Center – 3000 RR620, 54 acres consisting of a hospital (104 beds in first phase), hotel, day care, medical office, retail and restaurants. Site work underway.
North Lakeway Village – Total of 160 acres to include 130 single family units, 88 condo units, 33 acres greenbelt, and 51 acres of commercial. Residential units under construction; no plans for commercial property at this time.
Holiday Inn Express – hotel (and possibly commercial) on 4 acres tract at Oak Grove Blvd and RR 620 North. Site plan under development.
For a map of the current Lakeway projects, visit the City of Lakeway website or click on the link below:
http://cityoflakeway.com/DocumentView.aspx?DID=1016
Here is a list of the current projects going on it the area:
Serene Hills Drive to be extended to HWY 71 by Summer 2009 … opening delayed pending improvements along HWY 71
Creekside at Flintrock – 33 acre subdivision with 26 single family lots
Palomba Addition – 15 single family lots
Flintrock Falls Phase 5 – 24.5 acres consisting of 44 single family lots
Flintrock Falls Phase 6 – 10.5 acres consisting of 20 single family lots
Lakeway Highlands – Total of 1,540 acres consisting of approximately 1,400 single family lots, 330 condominium units, 35 acres of commercial, 10 acres of hotel, 8 acres of yacht club, 300+ acres of parks and green space, 130 acres of irrigation land, Highlands Blvd to be open in 2009
Rough Hollow – Sections 1 & 2 consist of approximately 100 single family lots, Section 5 has approximately 40 single family lots, and Section 7 with 40 single family lots
Lakeway Church – a new 13,600 sqft Youth and Children’s building at 2203 Lakeway Blvd
Lakeway Dental – 8,000 sqft medical office building at 2220 Lakeway Blvd
Pierce Plaza – 11,700 sqft office building on 1.26 acres at Lohmans Crossing and Rolling Green, plans approved, construction delayed indefinitely
Weed-Corely-Fish Funeral Home – 10,000 sqft funeral home at 411 RR 620 South. Driving by there yesterday, construction looks complete or very close to complete.
Lakeway MUD Water Tank – Two million gallon water storage tank. Tank operational, site work and tank façade to be completed by September 2009
Tuscan Village – 61 acres total; 42 acres on South side of Lohmans Crossing consisting of 104 sign family cottages, 66 townhouses, 100 condominium units, 30,000-60,000 sqft of office/retail, 10,000-15,000 sqft public library, neighborhood commercial, cublhouse, 19 acres on North side of Lohmans Crossing consisting of 210 multifamily units, 50,000 sqft office/retail, neighborhood commercial, clubhouse. Site work underway.
Lake travis Transitional Medical Center – Located on RR 620 and Birrell Street. Total of 15 acres – Phase 1 includes a long term acute care hospital (currently under construction – expected completion by Spring/Summer 2010), Phase 2 includes approximately 60,000 sqft of medical offices.
The Vistas at Lakeway – 50 acres at RR620 and Glen Heather Drive. Total of 175 condo units in three phases, Phase 1 and 2 (roughly 110 units) currently under construction.
Real del Lago – 2609 RR 620 S, 22,500 sqft building on 4 acres for Restaurant, Retail and Office Use. Site plan in development
Discovery Point – 3001 RR 620, Two phases, 13.5 acres total. Phase 1 – 11,000 sqft building to include office and restaurant space (complete); Phase 2 22,000 sqft medical office building (site work underway).
Lakeway Regional Medical Center – 3000 RR620, 54 acres consisting of a hospital (104 beds in first phase), hotel, day care, medical office, retail and restaurants. Site work underway.
North Lakeway Village – Total of 160 acres to include 130 single family units, 88 condo units, 33 acres greenbelt, and 51 acres of commercial. Residential units under construction; no plans for commercial property at this time.
Holiday Inn Express – hotel (and possibly commercial) on 4 acres tract at Oak Grove Blvd and RR 620 North. Site plan under development.
For a map of the current Lakeway projects, visit the City of Lakeway website or click on the link below:
http://cityoflakeway.com/DocumentView.aspx?DID=1016
Thursday, September 17, 2009
Austin among the Best Performing Cities
Good news for the Austin Real Estate Market - according to a new national forecast from IHS Global Insight, Austin and San Antonio will be the first two US cities to recover from the recession.
In fact, Austin is predicted to return to our pre-recession job levels sometime in 2010 while other US cities are expected to take until 2011 to reach their pre-recession job levels.
Austin is also named on of the 20 Best Performing Metropolitan areas in the second quarter of 2009, according to a study by the Brokkings Institution.
Austin is the a leader among several of the nine metrics tracked by MetroMonitor report, including percent change in gross metropolitan product to percent change in housing prices.
Austin's employment rate fell just .5% from its pre-recession peak - the second narrowest gap in the nation! And, Austin is one of only three US cities that surpassed its pre-recession peak output by the second quarter of 2009. Overall, Austin, McAllen, Texas and Washington DC have been the least affected by the downturn.
Austin, Texas is a great place to live and work!
In fact, Austin is predicted to return to our pre-recession job levels sometime in 2010 while other US cities are expected to take until 2011 to reach their pre-recession job levels.
Austin is also named on of the 20 Best Performing Metropolitan areas in the second quarter of 2009, according to a study by the Brokkings Institution.
Austin is the a leader among several of the nine metrics tracked by MetroMonitor report, including percent change in gross metropolitan product to percent change in housing prices.
Austin's employment rate fell just .5% from its pre-recession peak - the second narrowest gap in the nation! And, Austin is one of only three US cities that surpassed its pre-recession peak output by the second quarter of 2009. Overall, Austin, McAllen, Texas and Washington DC have been the least affected by the downturn.
Austin, Texas is a great place to live and work!
Saturday, September 12, 2009
Austin Texas Real Estate | Travis Country West | 5800 Sunset Ridge
MLS #: 6753756
Price: $397,000
Street 5800 Sunset Ridge City Austin State Texas Zip 78735
Bedrooms: 4 Bathrooms: 3 Half Baths: 1 Subdivision: Travsi Country West Stories: 2 Square Ft: 3,256
Year Built: 2006 Prop. Type: Residential Status: Active
Description:
Fabulous family home has tons of upgrades & sits on a large lot with distant hill country views*Gourmet kitchen features beautiful granite counters, built in oven/microwave, custom tile backsplash & opens to the spacious family room that has tons of natural light, * Wood floors and tile throughout the entire downstairs *The elegant master suite has coffered ceiling, double vanity & huge walk in closet * Large backyard deck perfect for entertaining
Lake Travis Real Estate | The Preserve at Barton Creek | 11208 Native Texan
MLS #: 8276876
Price: $860,000
Street 11208 Native Texan City Austin State Texas Zip 78735
Bedrooms: 4 Bathrooms: 3 Half Baths: 1 Subdivision: The Preserve at Barton Creek Stories: 2 Square Ft: 4,358 Lot Size: 1.15 acres
Year Built: 2003 Prop. Type: Residential Status: Active
Description:
This Home Has it All !!! Acreage Estate Lot, Exclusive Gated Community, Hill Country Views, Beautiful Finish Out, Large Private Backyard with Pool, Hot Tub, Cabana and Fire Pit, Close to area Shopping and Beautiful Lake Travis * Acclaimed LTISD Schools
Lake Travis Golf Course Community
MLS #: 2030817
Price: $399,999
Street 110 Desert Forest Ct City Austin State Texas Zip 78738
Bedrooms: 3 Bathrooms: 2 Subdivision: Flintrock at Hurst Creek Stories: 1 Square Ft: 2,093 Lot Size: .39 acres
Year Built: 2007 Prop. Type: Residential Status: Active
Description:
Amazingly Beautiful Home loaded with Upgrades in a Premier Gated Golf Course Community * Mediterranean Architecture * Nice Courtyard with Fireplace * Open Floorplan with Fabulous Kitchen * Covered Patio with Built-in Grill * Backyard Perfectly Oriented to Enjoy the Afternoon Shade * Room for Pool
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