How DO They Get that FICO Score?

If you are thinking about shopping for a new home, be sure to check out your credit score.  In the past a 720 could get you the best rates available, but not anymore.  The bar has now been raised to 750 or higher.  You can take steps to improve your score, but you need to know where you stand first. 

   Order a credit report from all three of the major credit bureaus at annualcreditreport.com.   By law you are entitled to one free credit report a year from each of the credit reporting agencies which are: Equifax, Trans Union and Experian.  Once you receive your credit reports check them carefully for errors. Look for accounts that may not belong to you.  Look for accounts that may show delinquencies that did not occur.  Credit bureaus are required to investigate disputed items, usually within 30 days.

   You can order all three reports at once or you can stagger them out over the year to monitor any corrections that have been made.  But, if you plan to refinance within the next few months, order all three credit reports now.  All lenders will review your credit reports thoroughly so it is important to make corrections before you apply for a new loan.  Be sure to buy your credit score when you order the credit reports because that is not included on the free reports. You can order your score from Fair Isaac's website www.myfio.com.  Prices range from $15.95 for a FICO score and one credit report to $47.85 for all three scores and reports.  Once you know where you are with your score you can take steps to improve it.

Pay your bills on time. Your payment history counts for 35% of your score. A late payment can stay on your report for up to seven years.  The older the late payments are, the less effect they will have on your score. The last 24 months is the most important. 

Reduce your debt. The amount of debt you have outstanding as a percentage of your available credit limits accounts for 30% of your score.  If you have a credit card with a $10,000 limit and a balance of $5000 your "credit utilization" is 50%.  Your credit score reflects the debt ratio for each of your cards as well as the ratio for your overall debt.  Reducing your credit utilization is one of the most effective ways to improve your score. Reduce your individual and total balances to 10% of your available credit.

Don't open new accounts. Opening new accounts to improve your credit utilization does not work. That strategy will hurt your score more than it would help.  If you apply for a new credit card or other type of loan, the lender will request your credit record and that inquiry will show on your report.  A few of these inquiries and it will hurt your score dramatically.  Requesting your own credit report does not impact your credit score. 

What Makes Up Your FICO Score:

Payment History 35%

Amount You Owe 30%

Length of History 15%

Types of Credit You're Using 10%

New Credit 10%

Williamson County, TX stats for the week of 1/20

Stats for Williamson County for last week:

So you want to buy an investment property....

I may be biased, but I think the Austin/Round Rock area is a great place to purchase an investment property.  We are still having steady appreciation - nothing crazy, but nice, slow and steady rises in home values.  The kind that doesn't explode in a real estate bubble. 

Well, Entrepreneur.com has caught on and named the Killeen/Round Rock/Austin area as one of the Top Places to Buy in 2008 - actually, we are NUMBER ONE!!

As I have said before, we are having healthy job growth and stable home prices - so if you want to purchase some investment properties, check us out!  If you want to check out the other cities that they recommend in the article, or see where they say to avoid, click here.

Austin is one of the best cities for jobs in 2008!

According to Moody's Economy.com, Austin ranks high in the lists of the best cities in the country for jobs in 2008.  Moody's uses five data points to create these rankings (they are weighted equally): the state's unemployment rate, job growth, income growth, median household income and cost of living for the full year of 2006.

It seems that Texas is generating more jobs than the national average leading to low unemployment.  Businesses continue to expand or relocate to Texas because of the favorable business climate here.  That is great news for those of us in real estate as there is definitely a correlation between an increase in jobs and an increase in home sales. 

Incidentally, several other Texas cities were on the list: Fort Worth, Houston, San Antonio and McAllen.  The number one city on the list: Salt Lake City because of their tech-job abundance. 

More Williamson County Stats

Williamson County, TX stats for December '07

Once again I got some great stats for Williamson County from Gracy Title today and thought I would share them.  These compare the average sales prices in December of 2007 to December of 2006.  Some interesting data here....

Leander:

Avg. Sales Price: $172,821 (2007) - $168,929 (2006) - up 2% over Dec. of '06!

Cedar Park:

Avg. Sales Price: $277,172 (2007) - $219,772 (206) - up 26% over Dec. '06!!!!

Georgetown (east of IH-35):

Avg. Sales Price: $231,235 (2007) - $147,070 (2006) - up 57% over Dec. '06!!!

Georgetown (west of IH-35):

Avg. Sales Price: $250,361 (2007) - $244,253 (2006) - up 3% over Dec. 06.

Round Rock (east of IH-35):

Avg. Sales Price: $201,786 (2007) - $175,773 (2006) - up 15% over Dec. '06

Round Rock (west of IH-35):

Avg. Sales Price: $178,872 (2007) - $189,027(2006) - down 6% from Dec. '06

Hutto:

Avg. Sales Price: $147,634(2007) - $151,411(2006) - down 3% from Dec. '06

Overall, it looks like most areas of Williamson County are seeing an increase in sales prices compared to homes sold in December of 2006.  Some areas like the eastern side of Georgetown and Cedar Park saw some pretty impressive appreciation - but it is only a snapshot of one month.  I'll be watching the trends here to see what continues to happen in '08.   If you have more questions about the market for your home, please contact me so I can do a market analysis for you!

Austin - it's a great place for business!

If you're moving to Austin for business, you're in the right place!

If you're moving to Austin for business, you're in the right place - and that's not just our Austin pride talking. The city is ranked third in Forbes' annual survey of Best Places for Business and Careers - for the third year in a row.

We're also known for our vibrant high-tech industry environment. In fact, of the 50 fastest-growing technology companies in Texas, 19 make their home in Austin, according to a report released by Deloitte & Touche in August 2006.

And, Austin's milder-than-most-cities' traffic, temperate weather and still affordable housing options were factors in another survey by the Silicon Valley Leadership Group of the "best tech towns" in the country, beating out such known tech stalwarts as San Jose, San Diego, Chicago, New York and Boston.

Austin also has a high percentage of college graduates that are fueling the city's thriving business economy - not surprising considering the top colleges and universities that are based in the area, including Southwestern University in Georgetown, Texas State University in San Marcos, and St. Edwards University, Huston Tillotson University and the University of Texas - all located in Austin proper.

Consider that the University of Texas McCombs School of Business is ranked 18th in the Wall Street Journal's annual overall listing of the best business schools in the U.S., the survey also recognized UT's accounting program, which was ranked third.

UT was also ranked number one of more than 400 major research universities worldwide in a study from the Milken Institute that looked at the ability of universities to produce patents from their biotechnology research. Those are huge honors for Austin, which has been steadily becoming known as a hub for biotech research and companies.

Austin's also home to a lot of creative, talented people. Among the top 20 cities for business across the country, "creative-class" employees made up at least 25 percent of each city's workforce. That comes as no surprise in a town where creativity and entrepreneurship are encouraged.

In August 2006, the Wall Street Journal, in its "Most Inventive Towns in America" survey, ranked Austin in the top ten for innovation - we had the third-highest number of patents in 2005 (1,705 total), according to a survey conducted by ipIQ, a company that specializes in technology analysis. And, for the second straight year, Austin ranked second in the country by MovieMaker magazine as one of the top American cities to be a filmmaker.

We're smart, too. According to a survey conducted by Bizjournals.com, part of the American City Business Journals national business newspaper chain, in June 2006, Austin ranked third as one of the top communities with the "highest concentration of brainpower." Major factors for consideration included the number of college graduates in a city, and its residents' ability to "innovate, create, compete, and make money."

Normal;When you move here, don't forget your laptop. Newsweek ranked Austin among its "Top 10 Hottest Wireless Cities." There's more free wireless hotspots per capita here than anywhere else in the country - about 11 for every 100,000 residents. Austin's high ranking is credited to a strong grassroots wireless movement, especially the Austin City Wireless Project (www.austincitywireless.org).

Labor & Unemployment

Austin's a great place to work and play, and no matter what your business, there's likely an industry here that supports it. The rise, fall and rise again of Austin's technology industry is a sure sign that the city continues to be resilient when it comes to starting, growing and nurturing a successful business.

Employment rates continue to rise, too. In fact, Texas employers have added jobs for 24 consecutive months - and for 37 of the last 38 months. And, the state's seasonally adjusted unemployment rate in September 2006 was 4.8 percent - compared with 4.6 percent for the United States.

According to the Texas Workforce Commission, as of September 2006, Texas employers added 226,200 jobs in all major industry sectors (including construction, educational and health services, natural resources and mining, financial activities, professional and business services, leisure and hospitality, and state and local government).

And, while the nation as a whole has seen job growth of 1.3 percent, the Austin area has attained an impressive growth rate of 2.3 percent - a considerable increase from last year's 1.5 percent growth rate. 

So come join us here in one of the best cities in the country - you won't regret it!

November Stats for Williamson County

I got some great stats for Williamson County for the month of November from Gracy Title today and thought I should share them. 

Leander:

Avg. Sales Price: $180,917 (2007) - $162,624 (2006) - that's up 11% over Nov. of last year!

Cedar Park:

Avg. Sales Price: $220,054 (2007) - $226,070 (206)

Georgetown (east of IH-35):

Avg. Sales Price: $169,953 (2007) - $155,386 (2006) - up 9% over Nov. of last year

Georgetown (west of IH-35):

Avg. Sales Price: $241,965 (2007) - $248,939 (2006)

Round Rock (east of IH-35):

Avg. Sales Price: $201,786 (2007) - $175,773 (2006) - up 15% over Nov. of last year

Round Rock (west of IH-35):

Avg. Sales Price: $226,585 (2007) - $224,448 (2006) - up 1% over Nov. of last year

Hutto:

Avg. Sales Price: $145,968 (2007) - $147,470 (2006)

Overall, it looks like most areas of Williamson County are seeing an increase in sales prices compared to homes sold in November of last year.  If you have more questions about the market for your home, please contact me so I can do a market analysis for you!

Prop 6 Passes!

Vote YES for Prop. 6 in Texas!