Economists, industry insiders predict local housing shortage

From Impact News, March 20, 2009...

While the Central Texas housing market of 2009 is not necessarily booming, it is certainly better off than many comparable regions around the country. New home starts fell sharply in 2008, but compared to Las Vegas, Miami and many parts of California, the Austin market is faring pretty well.

Some economists, analysts and real estate insiders have even predicted a housing shortage in the region in three to five years. For those looking to buy a house at that time, a shortage could mean higher prices or waiting for new homes to come online.

A shortage would likely arise because of a decline in new home starts combined with a steady influx of new residents who are attracted to the region’s relative economic stability.

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Today's Statistic: Over 1/4 of All Mortgages Are Underwater

From Bloomberg, March 4, 2009...

More than 8.3 million U.S. mortgage holders owed more on their loans in the fourth quarter than their property was worth as the recession cut home values by $2.4 trillion last year, First American CoreLogic said.

An additional 2.2 million borrowers will be underwater if home prices decline another 5 percent, First American, a Santa Ana, California-based seller of mortgage and economic data, said in a report today. Households with negative equity or near it account for a quarter of all mortgage holders.

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The City's 119 Best Bargains

From KXAN, February 7, 2009...

Each month Austin Monthly informs, entertains and intrigues readers in the capital area in an effort to provide relevant information, enrich lives and foster enthusiasm for our unique city. The February issue has a unique section devoted to great deals around Austin. The suffering economy has prevented many from living a comfortable lifestyle that they have grown accustomed to. Austin Monthly urges those who are forced to cut back, that there are some ways to still indulge.

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LISD could get $5.4 million from stimulus package

From Hill Country News, January 29, 2009...

The $835 billion stimulus package making its way through Congress could turn out to be a major windfall for Leander ISD. The district could receive more than $5 million over a two-year period, according to an Austin-based research firm.

Strategic Partnerships, Inc., estimates that LISD will get $5,428,700 if the stimulus bill goes through as expected. School districts throughout Williamson County could receive a total of $27,292,500 in funding.

Though the funds aren't guaranteed at this point, “the formula is not likely to change significantly since the bill is on such a fast track,” said Strategic Partnerships President and CEO Mary Scott Nabers.

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Are You Confused About the State of the Economy?

You may or may not agree with me that we are witnessing a major once-in-a-lifetime seachange in the economy which will have (already has had) a profound effect on our lives. I have developed a thesis about what's coming, but I won't elaborate on that here. I simply wanted to pass along a couple of links that may help you to get your head around what has been happening in the global markets, the economy, and the finicial crisis. They provide a good rearview mirror view of the events that got us into the current crisis, and define a lot of the terms which have popped up in the general media lately - Credit Default Swaps (CDS), Collateralized debt Obligations (CDO), Mortgage Backed Securities (MBS), Glass-Steagal Act, Troubled Asset Relief Program (TARP), etc. See:

http://www.caseyresearch.com/library/articles/2374/hell,-meet-handbasket-11-7-08/

Another instructive article written by Nouriel Roubini published by Bloomberg on October 23 is very interesting:

http://www.rgemonitor.com/roubini-monitor/254130/bloomberg_october_23_2008_roubini_says_panic_may_force_market_shutdown_friday_morning_update_markets_are_becoming_dysfunctional_and_sp_and_djia_futures_trading_already_suspended_today
You will need to register to read the entire rticle, but, in my opinion, Roubini is one of the most astute individuals at deciphering the big picture and explaining it in understandable terms.