Cedar Park is one of the fastest growing cities in the nation.  It’s popularity as a place to live, work and raise families is due to it’s location which is only 20 miles north from the heart of downtown Austin.  Cedar Park offers all the amenities of a major metropolitian area but far enough away to offer the relaxed life style that is in keeping with a family oriented community.

Neighborhoods:  Buttercup Creek, Twin Creeks, Ranch at Deer Creek, Cypress Canyon, Red Oaks, Forest Oaks

Austin area home prices are expected to stop falling in the final quarter this year, according to Federal Housing Finance Agency and Moody’s Economy.com data.

The Fiserv Inc. (Nasdaq: FISV) report released today projects Central Texas residential price tags rising in the first quarter next year, reaching levels from before the recession by 2016.

The document estimates prices will have fallen about 4.8 percent by the time it reaches the trough at the end of the year. It said prices began the free fall in the final quarter 2008.

The city fared relatively well compared to 374 markets also included in the report. Markets that experienced the greatest price bubble — certain markets in California, Florida, Arizona and Nevada —won’t see home prices reach peak levels until 2025 or later. Austin prices are expected to hit the last peak on or before six years from now.

“The picture is not uniformly grim,” Fiserv Chief Economist David Stiff said. “In fact, our analysis projects that some markets are poised for a relatively fast recovery, including some areas that never experienced large declines in prices. Markets that could see prices come back within the next few years include Pittsburgh, Pennsylvania; Columbia, South Carolina and several metro areas in Texas, Washington and upstate New York.”

- Austin Business Journal

Short-Sale Incentives Start April 5th

Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.That’s the date the federal government will begin offering lenders financial incentives to hasten the process.  Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept.  If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.

Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.

Source: The Wall Street Journal, June Fletcher (03/19/2010)

Forbes: Austin best economic recovery in U.S.

Austin Business Journal

The Austin-Round Rock area tied for first on a list of large metros where the recession is easing.

Central Texas tied Washington D.C. in the Forbes.com ranking that compiles job growth and real estate industry improvement, among other indicators. Washington has one of the lowest unemployment rates in the nation, 6.2 percent, and the city produced more goods and services than another other in 2008.

Austin has also maintained relatively lower jobless rates, though the number increased to 7.6 percent last month from 7 percent, according to the Texas Workforce Commission. Statewide, the rate was unchanged at 8.2 percent from December to January, compared to 9.7 percent nationally.

Austin and Washington D.C. also benefit from their high government job generation, according to Forbes. The number of Central Texas jobs increased just shy of 1 percent between 2007 and 2009, more than any other city included in the research.

Dallas came in second on the ranking behind Austin. The number of jobs there are expected to increase more than 7 percent in the next three years. San Antonio and Houston also made the top 10 list.

Job growth projections were based on information from Moody’s. The listing also considered median home sale price changes and Metropolitan Gross Domestic Product.

By: Jenny Zhang, Quizzle.com

Buying a home may seem costlier than renting, but when you factor in benefits from Uncle Sam, the scales begin to tip in favor of homeownership. What many people forget in this comparison are all the tax deductions you can claim as a homeowner. Beyond the money you save from having a fixed mortgage that never adjusts with inflation compared to ever-rising rent payments – you also pay less in taxes.

If you’re a homeowner, you may qualify for tax deductions if you’ve bought energy-efficient appliances or remodeled your home. Property taxes are also deductible, and so is mortgage interest.

Here’s a list of the tax deductions you may qualify for as a homeowner:

1. Mortgage interest.
2. Real estate taxes, aka property taxes.
3. Points paid on purchase (learn more about discount points).
4. Seller concessions, or when the seller pays a portion of your closing costs or fees.
5. Points paid on refinance.
6. Mortgage insurance premiums. This one can be tricky, as some premiums don’t apply. To find out if you can deduct your premiums, check the IRS website.
7. Energy-efficient home improvements. Installing windows, windmills, solar panels and certain appliances may qualify for a tax credit or deduction.

So how much money are we talking about here? Let’s say you bought a house last year and paid $10,000 on your mortgage interest and $3,000 on property taxes. You also installed new energy-efficient windows to save on your heating bill, costing you $5,000. You will get back approximately $14,500 on your taxes (the windows return $1,500 or 30 percent of the cost):

$10,000 + $3,000 + $1,500 = $14,500

If we subtract the standard deduction of $5,700 for singles from the $14,500, we get an additional $8,800 that you now save because you’re a homeowner.

$14,500 - $5,700 = $8,800 <– Back in your pocket!

While renting may seem cheaper initially, homeownership is the real deal, as you can build equity in your home and save big bucks on your taxes.

Austin Market Update
It’s a great time to buy, sell or invest in Austin 

 Indicators are positive for a 2010 Austin-area residential real estate market as sales picked up in the last year, the federal government extended a tax credit program for buyers and the foreclosure market began to clean out its inventory.