Jessica's Blog

Austin Did it Again!

Jessica Bruehl (JKB Realty Group) — Fri, 15 May 2009 10:37:05 -0700

Once again, Austin has been named one of the best, most affordable cities to live and work in. Check out the article at http://finance.yahoo.com/real-estate/article/107080/Americas-Best-Bargain-Cities?mod=realestate-buy

Enjoy the Spring Weather!

Jessica Bruehl (JKB Realty Group) — Tue, 14 Apr 2009 14:46:37 -0700

Whether it be a leisurely stroll or a steady sprint, you're sure to find a race to match your pace or purpose. Austin hosts a variety of races throughout the year, several of which are for charity organizations.

Information about races can be found at www.runtex.com

Running Clubs

RunTex Free Groups / Austin

www.runtex.com/web/4-13.asp

Tri Zones Training / Austin

www.trizones.com

Rogue Programs / Austin

www.roguerunning.com

Gilbert's Gazelles / Austin

www.gilbertsgazelles.com

Strength Endurance Training 4 Runners / Austin

www.socoathleticclub.com

RunSmart Running Group / Austin

www.smartsport.info

Jeff Galloway / Austin

www.jeffgalloway.com/training_groups/austin.html

South Austin Steel Youth Track Club / Austin

www.southaustinsteel.com

The Waterloo Track and Field Club / Austin

www.waterlootrackandfield.org

Round Rock Stars Track Club / Round Rock

http://eteamz.active.com/RoundRockStarsTC/

San Marcos Runners Club / San Marcos

www.sanmarcosrunners.org

Texas Thunder / Cedar Park

www.neighborhoodsports.us/Sports/TrackandField/tabid/139/Default.aspx

For youth born between 1991 and 2001

CP Classic Running Club / Cedar Park

www.cpclassic.com

Competitive Youth Track and Cross Country

Georgetown Running Club / Georgetown

http://georgetownrunners.org

The Lake Travis Titans Track club / Lake Travis

www.laketravis.com/track.htm

All boys and girls ages 5 to 18 and adults

Austin's Triathlon Source / Austin

www.austintri.com/main.html

Austin Runners Club / Austin

www.austinrunners.org

Join a Running Meetup Group near Austin

http://running.meetup.com/cities/us/tx/austin/?from=loc_pick

Texas Iron / Multisport Training / Austin

www.texasiron.net

T3 / Austin

www.austint3.com/t3/index.htm

Life Time Fitness Indoor Triathlon / Austin

www.lifetimefitness.com/events/indoor-tri

Tough Cookies Don't Crumble!

www.tcdcfitness.com

Trails Directory

www.ci.austin.tx.us/parks/traildirectory.htm

Lady Bird lake Hike and Bike Trail

www.gracytitle.com/page/Relocation/Additional%20Links/ladybirdlake.pdf

www.runtex.com/web/4-2.asp

Plot your running routes

www.mapmyrun.com/

4/18/09 Dripping Springs

Fun Fun Sober Run

www.healthyhorns.utexas.edu/funrun/

4/18/09 Austin

Lake Georgetown Adventure Sprint

www.toocoolracing.com/

4/25/09 Georgetown

6th Annual Texas Round Up

www.texasroundup.org/10K_5K_Race.aspx

4/25/09 Austin

7th Annual Cedar Park Kids Triathlon

www.leaguelineup.com/welcome.asp?url=cptri

4/26/09 Cedar Park

PurpleStride 5K

pancan.kintera.org/faf/help/helpEventInfo.asp?ievent=298579

4/26/09 Leander

Texas State Sprint Triathlon

www.seidelproductions.com/

First Quarter 09

Jessica Bruehl (JKB Realty Group) — Wed, 08 Apr 2009 08:29:24 -0700

Here is a precursor to Residential Stratigies' review of the first quarter 09 numbers for Austin. It is actually pretty good... compared to the rest of the world. Austin added jobs, reduced inventory and is below or at equilibrium (6 month supply) even with lower demand due to the disasters in the economy. Pretty amazing really!

New home starts continued their decline in the Austin area for 1Q09 according to the latest

market census prepared by Residential Strategies, Inc. Builders started 1,215 homes for the

quarter, a decrease of 280 units from 4Q08, and down 47% (-1,082 units) from 1Q08. The annual

start rate has now fallen to 7,938 units. At the market peak in 3Q06, Austin produced 17,128

annual starts.

Closings also fell for the quarter to 2,145 units. In 4Q08 builders closed 2,305 houses, and in

1Q08 3,120 units were closed. The annual closing rate now stands at 9,984 units (2,046 units

higher than the annual start rate). "While many may see the lower start rate as a negative

situation in Austin, it should be pointed out that builders entered 2009 with more finished

inventory than they wanted" says Austin partner, Mark Sprague. "The consumer was pounded

with negative news in 4Q08-a declining stock market, credit crisis and revelation of the depth of

the current recession-and because of this, confidence was eroded. As a result, most builders had

higher cancellation rates on previous orders than was normal at the end of 2008. The good news

is that builders have cut back on starts and focused on selling this inventory in the First Quarter,

2009."

Total housing inventory declined by 930 units in 1Q09, dropping from 5,375 units to just 4,445

units (a decline of 17%). In aggregate, this inventory represents just a 5.3 month supply of

inventory, where a 6.0 month supply is considered equilibrium. "The number of finished vacant

homes has declined from a peak of 2,947 in 1Q08 to just 2,133 today. Builders and lenders are

reluctant to start speculative homes and are focused on managing their housing inventory" notes

Sprague.

Another noticeable trend is that builders have abandoned unprofitable locations. In 2Q08 there

were 605 model homes in the Austin area. At the end of 1Q09, there were 536 homes, a

reduction of 11%.

The vacant lot supply was reduced by 307 lots for the quarter to 30,984. However, with the

decline in the start rate, this lot inventory now represents a 46.8 month supply, where a 24 month

supply is considered equilibrium. "The over-supply of lots is deceiving" says Sprague. "There

are parts of the Austin market, especially in closer-in areas, that will face a shortage of lots in the

not too distant future. Conversely, some of the outer-ring areas, and areas that catered to the

subprime markets may take longer to recover."

Despite the continued challenging housing market, mortgage rates have recently dropped to a 52-

year low. According to Bankrate.com, the 30-year fixed rate mortgage at 5.19% is the lowest rate

since 1956.

Press Release

16660 Dallas Parkway, Suite 1200 Dallas, Texas 75248 tel 972.381.1400 fax 972.381.1410 www.residentialstrategies.com

Austin Dallas El Paso Fort Worth San Antonio

Job growth has weakened for the Austin area, but unlike most of the rest of the nation, it remains

in positive territory. According to the TWC CES estimate for the 12 months ended Feb., 2009,

Austin produced 1,300 net new jobs.

Finally, according to the Austin MLS and The Texas A&M Real Estate Center, Austin produced

21,371 resales for the 12-month period ended Feb., 2009. The 10,929 listings at the end of

February, 2009 represent a 6.1 month supply of inventory (A 6 month supply is considered

equilibrium).

"The balance in our new and existing home supply has prevented the downward pressure on

housing prices that is evident in other parts of the nation" says Sprague. The median price for a

new home start in Austin dipped from $220,111 at YE 2008 to $216,448 in 1Q09, but is up

versus a year ago ($212,897 in 1Q08).

Great Rates + Declining Values = No Refi for You. Maybe Not.

Jessica Bruehl (JKB Realty Group) — Tue, 10 Mar 2009 11:38:05 -0700

This great info was shared with us by Tera Gilbert of Wells Fargo Mortgage.

Great Rates + Declining Values = No Refi for You. Maybe Not.
While interest rates have been at levels not seen in generations, not everyone has been able to benefit. As home values have come down across the country millions of homeowners have been unable to refinance.

When applying for a home loan, one key component in underwriting is the amount of equity or down payment in the transaction. As home values have declined, even in some cases where someone put a sizable down payment into the purchase of their home, refinancing to achieve a lower payment has been unfeasible.

In details of the Housing Affordability and Stability Plan released this week, four to five million responsible homeowners have been targeted to obtain assistance in lowering their payments. People who now have less than 20% equity in their home have experienced difficulty in achieving lower payments by refinancing. Homeowners with loans that are owned by Fannie Mae and Freddie Mac may now be able to refinance into a lower interest fixed rate. This will also apply to homeowners with an adjustable rate (ARM).

One caveat will be that the new loan amount will be capped at 105% of the value of the home. As many will seek to include their closing costs in the loan amount, this will need to be factored in when considering this as an option.

To pre-qualify for the Making Home Affordable refinance, you must be able to answer "yes" to each of the following four questions.

1. Is your home your primary residence?

2. Do you have a Fannie Mae or Freddie Mac loan?

3. Are you current on your mortgage payments? Current, in this case, means not having been more than 30 days late in the last 12 months.

4. Do you believe the amount you owe on your first mortgage is the same or less than the current value of your home?

To determine who owns your loan, call your servicing company and ask. If you have difficulty reaching them, you can also contact Fannie Mae at 800-7FANNIE or Freddie Mac at 800-FREDDIE between the hours of 8am and 8pm EST. You can also click the following links and request the information online.

www.fanniemae.com/homeaffordable
www.freddiemac.com/avoidforeclosure/

Other issues may exist for you in getting this loan. If you currently have a second mortgage or Home Equity Line of Credit (HELOC), the lender will need to re-subordinate their loan to the new first mortgage. Not all second lien holders have been willing to do this.

One other question will involve Private Mortgage Insurance (PMI). Will PMI be required on these new loans as it is required on all other agency loans when the loan-to-value exceeds 80% of the appraised value?

While a new appraisal will not be required, the parameters for determining the value used in the transaction are being delivered to loan servicing companies and additional information can be supplied by your servicer.

What if I Still Can't Refinance?
The final part of the HASP legislation involves assisting homeowners that will not be able to refinance but are still experiencing financial difficulty. For these borrowers, a loan modification may be warranted and it is expected that 3 to 4 million people may be able to get assistance.

Making Home Affordable modifications are intended for people that can no longer afford their monthly loan payments but still desire to remain in their home. In order to qualify, the affordability of your payment must have been impacted by a hardship.

A hardship that may qualify for modification could include, but not be limited to, a change in your interest rate, decreased income, or increased expenses related to issues like medical expenses, increased property taxes and/or hazard insurance.

To qualify for a modification under the terms of the plan, you must be able to answer yes to the following questions:

1. Is your home your primary residence?

2. Is the amount you owe on your first mortgage equal or less than $729,750?

3. Are you having trouble paying your mortgage? Reference above for examples.

4. Did you obtain your mortgage before January 1, 2009?

One item to note is that the program is not available for jumbo loans. In many areas of the country, a jumbo loan is any loan amount between $417,000 and $729,750. Areas of the country where the loan amounts exceed $417,000 and are still considered eligible include high cost areas like parts of California, Florida, Washington DC, and the Northeast. Your servicing company can provide greater eligibility details.

Loan modifications included in the program are designed to assist the homeowner reach a new mortgage payment, inclusive of principal, interest, property taxes, insurance and homeowner's association fees of not more than 31% of gross monthly income. In order to arrive at this number, participation from both the lender and the government may be involved.

What's Needed to Qualify for Either Program?
In order to qualify for either option, the homeowner needs to know that full qualification will be needed to ensure the borrower can meet the new payment. This will include supplying full income documentation and disclosure of assets. They will also be required to provide documentation proving the property is a primary residence. This can include verification through a credit report or other documentation such as utility bills.

To qualify for the modification program, evidence of additional housing expense items will be required including any other loans like cars, credit cards and student loans and their minimum payments, regular household expenses and a hardship letter detailing your situation and inability to make your payment.

Finally, all lender and loan servicers' participation is voluntary in either situation. Just because the programs are now available does not guarantee you will be able to find relief. Not all people in distressed situations will be helped. In these cases, there is a website detailing additional options that can be found at FinancialStability.gov.

Final Recommendation
The details of the legislation released this week may not assist everyone in need of relief. However, if the bill does what is expected, it could assist in lowering the mortgage payments or save people from foreclosure at the rate of 7 to 9 million homeowners. While the final impact on the economy may not be known for years, the first step is to find out if it will work for you.

Texas is the Most Popular State to Move To

Jessica Bruehl (JKB Realty Group) — Thu, 29 Jan 2009 09:24:13 -0800

Texas still most popular "moving-to" state

For the fourth straight year, Texas is the top state Americans are moving to, according to Allied Van Lines, which annually tracks US migration patterns. Texas had the highest net relocation gain (inbound moves minus outbound moves performed by Allied Van Lines) of 1,903 in 2008.

"With the continued job growth we're seeing in major cities like Dallas and Houston, and very affordable home prices statewide, Texas is still the place to be," says Brooke Hunt, 2009 chairman of the Texas Association of Realtors (TAR).

Texas' 9,879 total Allied shipments (inbound and outbound moves) in 2008 ranked second behind California, which had 11,400. But more people moved out of California last year, enabling Texas to retain its status as the number one "moving-to" state in the country. In fact, according to new data from the US Census Bureau, Texas gained more residents between July 2007 and July 2008 than any other state. Texas gained 484,000 residents during the 12-month period, followed by California (379,000), North Carolina (181,000), and Georgia (162,000).

Sources: Allied Van Lines, US Census Bureau, Texas Association of Realtors

It's Not Just About the Money

Jessica Bruehl (JKB Realty Group) — Wed, 07 Jan 2009 12:41:48 -0800

Now is the time to buy! There are more homes on the market in the Austin area than ever before and interest rates are at a near 45 year low. I just got quoted 4.75% from my lender!

Austin has avoided the spiraling downward of real estate values due to our projected job growth and low unemployment rates and all signs say it will stay that way. All the financial guru's say that you make your money when you buy your new home, not when you sell. That means, buying in a buyer's market ... today! As a buyer, you can't perfectly time the market - no one can. But, the smart buyers purchase during what the industry calls the "safe zone", meaning a strong buyer's market which we are currently in.

When thinking about a move, you also need to take into account the affect it will have on your quality of life, not just your bank account. Will your children be able to enroll in better schools? Will you save on gas and cut your commute by being closer to work? Will you have less stress because you will have a smaller home to clean and maintain or will your family no longer be living on top of each other because you will have more room to spread out?

Each of these factors has an emotional cost and benefit every bit as important as the financial benefits of owning the home that is right for you!

Movin' on Up

Jessica Bruehl (JKB Realty Group) — Tue, 30 Dec 2008 07:22:05 -0800

Census bureau shows Texas economy attracting droves

More people are moving to Texas from other states than from other countries as the state's relatively strong employment base attracts families struggling with foreclosures and layoffs elsewhere, the Census Bureau reported in late December.

Between July 2007 and July 1, 2008, nearly 141,000 people moved to Texas from other states, compared with about 92,000 international migrants, the bureau said.

The data provide a fresh indicator of how longstanding immigration patterns into Texas are changing.

In the early years of this decade, international migration into Texas was two to three times as great as domestic, but the trend reversed starting in 2006.

Much of Texas' international migration historically hails from Mexico and Central America, where immigrants fled poor conditions. But the surging domestic migration into the Lone Star State is now likely to come from economically depressed states such as Michigan, which lost about 46,000 residents between July 2007 and July 1, 2008.

Texas gained 484,000 residents last year, more than any other state. In percentage growth, Texas' 2 percent tied for third with North Carolina and Colorado behind Utah, 2.5 percent, and Arizona, 2.3 percent.

Karl Eschbach, the state demographer, said Texas has continued to produce jobs while employment declined in many other states. He said this was the key factor driving the increased domestic migration.

"For the past several years, job growth in the United States means Texas," Eschbach said. "The Texas economy has so much outperformed the rest of the country."

Source: Houston Chronicle

The Reality of a 4.5% Interest Rate

Jessica Bruehl (JKB Realty Group) — Wed, 17 Dec 2008 14:49:33 -0800

Courtesy of Cameron Breed, SWBC Mortgage

While the mortgage market continues to generate a lot of chatter in both
the media and in Washington, interest rates are currently near or at
all-time lows. If you or anyone you know are looking to take advantage of
these low rates, let me explain why now is the time to act.

Lately there has been talk about the 4.5% 30-year fixed rate mortgage. Will
it become a reality though? Right now, no one really knows. Homeowners who
could benefit from a lower interest rate need to know that even if 4.5%
becomes a reality from Washington's actions, it would only be available to
home buyers, not homeowners seeking to better their rate. If you need to
refinance, you will be left out.

You also may have heard about Hope for Homeowners, which is a program
approved by legislators to help distressed homeowners. However, regardless
of its best intentions, the program has not been embraced by investors, and
it is not available to many it could help.

The bottom line is, the Fed announced recently that they are going to buy
up to $600 billion in mortgage-backed securities. This has already driven
rates to historical lows. In January, the SEC is meeting and information
may be released that could have a significant bearing on rates, potentially
for the worse.

Waiting to obtain the best rate is only possible for those with loan
applications already in process. Interest rates are incredibly volatile and
fluctuations that used to take months are now occurring in just days or
even hours. If you don't have an application in process, you could lose
out.

We are already seeing lender backlog due to low interest rates. In 2003,
with rates at these same low levels, we saw some lenders taking up to 90
days to close a loan.

Home loan rates are currently in the mid- to low-5% range. Home values are
currently at 2003-2004 levels, coming down significantly from their high
point. If you or friends and family members are contemplating
seeking financing, now is the time to act.

With a first time home buyer tax credit of up to $7,500 and low or no money
down programs available for many people today, now is a great time to buy a
home.

Thinking About Remodeling? These Projects Generate the Highest Returns!

Jessica Bruehl (JKB Realty Group) — Mon, 08 Dec 2008 09:51:56 -0800

Remodeling Projects With the Highest Returns

For the second year in a row, REALTORS® report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report.

On a national level, wood deck additions and all types of siding replacements-upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl-returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent.

The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year.

Projects With Highest, Lowest Returns

In addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs on a national basis.

All types of window replacements-upscale and midrange wood and upscale and midscale vinyl-returned more than 76 percent of costs. A major midrange kitchen remodel returned 76 percent of project costs, while a minor midrange kitchen remodel returned 79.5 percent of costs.

On a national level, bathroom remodels, while still a relatively good investment, do not return as high a percentage as in previous years. A midrange bathroom remodel was estimated to return 74.4 percent on resale, comparable to a midrange attic-to-bedroom conversion, at 73.6 percent of costs recouped, and a midrange basement remodel, at 72.7 percent of costs recouped.

As in last year's report, the least profitable remodeling projects in terms of resale value were home office remodels, sunroom additions, and back-up power generators, returning only 54.4 percent, 56.6 percent, and 57.1 percent, respectively, of project costs.

National Association of Realtors® President Charles McMillan says the resale value of any given remodeling project depends on a variety of factors.

"A home's overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project," he says.

Source: NAR

Check out our website at www.jkbrealty.com to search for your next home in the Austin area or set up a custmized search, emailed to you every time a new property hits the market that meets your criteria!!

Looking for a condo?? We have tons of valuable information and free reports...all you have to do is click this link!

Top Real Estate Expert Says Now is the Time to Buy in Austin

Jessica Bruehl (JKB Realty Group) — Thu, 13 Nov 2008 14:17:29 -0800

1,700 realtors from around the state recently gathered in Austin for the annual "Realty Round Up" tradeshow and almost everyone had positive things to say about the current housing market. Hosted by the Austin Board of Realtors, an estimated 800 attendees filling the ballroom of the Austin Convention Center.

The event included a speech by the renowned real estate expert, Dr. Mark Dotzour, who responded to real estate predictions that housing prices will depreciate in the upcoming year. Experts forecast the median home price would decline between 5 and 10 percent, but the chief economist for the Texas A&M Real Estate Center not only rebuked the prediction, he boldly stated that now is, in fact, a great time to buy. Dotzour argued that the recession is already halfway through, and he expects it to end by summer 2009. He contends that the high proportion of individual debt compared to disposable income caused the crisis. In recent months, 14% of disposable income for individuals has been used on debt, compared to the average rate of 10%. Dotzour's outlook for 2009 shows that percentage going down. By the end of Q1, he shows a decrease in the unemployment rate and an increase in people moving into the area-projecting that 13 million people will to move into Central Texas by 2030.

Dotzour not only gave a positive outlook to the future, but he also addressed the current housing market. He disagrees with predictions of the Central Texas housing bubble, arguing that prices will not go down. He states that with the current low rates and the added benefits provided by home builders and sellers in Austin, now is a best time to buy in the area.

Austin has been insulated from the drastic downturn in the home market, thanks to all the new jobs available. Forbes has ranked Austin third among the best cities for jobs in 2008, ranked number one for income growth, and number two for employment growth. Home values won't be depreciating in this area, Dotzour argues. In fact the market is currently experiencing a three-and-a-half percent rate of appreciation. Additionally, the Austin real estate market currently holds about six-and-a-half months worth of housing inventory, and many builders are sacrificing their margins and providing extra incentives to drive sales.

Here's the link to his presentation: http://www.buffingtonsignaturehomes.com/pdfs/10-22-08-Austin-Realty-Roundup.pdf

More Great News for the Austin Market!

Jessica Bruehl (JKB Realty Group) — Tue, 28 Oct 2008 10:57:58 -0700

More great news for Austin owners! PMI's quarterly analysis of the nation's top 50 largest MSAs, ranks which markets have the highest likelihood that home prices will be lower in two years. While a number of large real estate markets have a 90% or greater chance of price declines, Austin was ranked the 9^th best in the US with less than a 1% risk of a price decline. Austin was also highly ranked for its affordability compared to other markets.

PMI Fall 2008 Risk Index Indicates Rising Foreclosures and Unemployment Intensifying Risk of Future Home Price Declines

Housing Affordability Continues to Improve

WALNUT CREEK, Calif., Oct. 1 /PRNewswire/ -- PMI Mortgage Insurance Co., the primary U.S. subsidiary of The PMI Group, Inc. (NYSE: PMI), today released its Fall 2008 U.S. Market Risk Index(SM), which shows increases in foreclosures and unemployment have significantly heightened the risk of future home price declines. PMI's U.S. Market Risk Index(SM) ranks the nation's 50 largest metropolitan statistical areas (MSAs) according to the likelihood that home prices will be lower in two years.

Risk scores translate directly into an estimated percentage risk that home prices will be lower in two years. The Fall 2008 Risk Index is based on second-quarter Office of Federal Housing Enterprise Oversight (OFHEO) data. A complete copy of the Fall 2008 PMI Economic and Real Estate TrendsSM (ERET) report and an appendix that provides data for all 381 U.S. MSAs is available at: http://www.pmi-us.com/eret.

The risk of future price declines rose by more than 10 percent in 16 of the nation's top 50 MSAs, primarily in areas of the country that experienced major increases in house prices during the housing boom. Only two MSAs -- Cambridge-Newton-Framingham, MA and Boston-Quincy, MA -- saw their risk decrease by more than one percent. Among the top 50 MSAs, 17 ranked in the highest risk category and 16 of those were in California, Florida, Nevada, and Arizona.

"The risk of future home price declines increased in 94 percent of all 381 MSAs in the country this quarter," said David Berson, PMI's Chief Economist and Strategist. "The majority of these increases aren't statistically significant, in many cases risk increased by less than ten percent, but risk did increase by a significant amount -- as much as 30 percent or more -- in some states and MSAs where foreclosures and unemployment increased significantly."

The highest risk of future price declines remains in Fort Lauderdale-Pompano Beach-Deerfield Beach, FL (99.5 percent), Riverside-San Bernardino-Ontario, CA (99.5 percent), Orlando-Kissimmee, FL (99.4 percent), Miami-Miami Beach-Kendall, FL (99.3 percent), Tampa-St. Petersberg-Clearwater, FL (99 percent). The areas with the lowest risk of price declines -- less than one percent -- are in Fort Worth-Arlington, TX, Dallas-Plano-Irving, TX, Houston-Sugar Land-Baytown, TX and Pittsburgh, PA.

Housing affordability also failed to improve this quarter, according to PMI's proprietary Affordability Index(SM), which measures how affordable homes are today in a given MSA relative to a baseline of 1995. An Affordability Index score exceeding 100 indicates that homes have become more affordable while a score below 100 means they are less affordable.

Across the nation, 40 percent of the nation's 381 MSAs showed increased affordability; while 60 percent of all MSAs experienced declines in affordability. Affordability remains challenged in 14 of the 17 MSAs with risk scores in the highest risk ranks. Home prices in these areas will need to fall further in order to move back in line with incomes before there will be meaningful reductions in risk scores.

In addition to the PMI U.S. Market Risk Index showing the risk of price declines, PMI's Fall 2008 ERET examines major changes in the mortgage origination trends as well as the impact foreclosures and unemployment are having on home prices in the second quarter of 2008.

PMI Fall 2008 PMI U.S. Market Risk Index

    Rank   MSA                                                                         Score

    1      Fort Lauderdale-Pompano Beach-Deerfield Beach; FL A          99.5

    1      Riverside-San Bernardino-Ontario; CA                         99.5

    1      Orlando-Kissimmee; FL                                        99.4

    1      Miami-Miami Beach-Kendall; FL                                99.3

    1      Tampa-St. Petersburg-Clearwater; FL                          99.0

    1      Las Vegas-Paradise; NV                                       98.5

    1      Los Angeles-Long Beach-Glendale; CA                          98.5

    1      Santa Ana-Anaheim-Irvine; CA                                 97.7

    1      Jacksonville; FL                                             97.5

    1      Phoenix-Mesa-Scottsdale; AZ                                  96.3

    1      Sacramento-Arden-Arcade-Roseville; CA                        96.3

    1      San Diego-Carlsbad-San Marcos; CA                            95.9

    1      Oakland-Fremont-Hayward; CA                                  94.4

    1      San Jose-Sunnyvale-Santa Clara; CA                           87.1

    1      Providence-New Bedford-Fall River; RI-MA                     72.4

    1      San Francisco-San Mateo-Redwood City; CA                     71.6

    3      Edison-New Brunswick; NJ                                     35.1

    3      Nassau-Suffolk; NY                                           29.4

    3      Washington-Arlington-Alexandria; DC-VA-MD-WV                 26.0

    3      Virginia Beach-Norfolk-Newport News; VA-NC                   25.4

    4      Detroit-Livonia-Dearborn; MI                                 17.8

    4      Minneapolis-St. Paul-Bloomington; MN-WI                      14.8

    4      Newark-Union; NJ-PA                                          14.4

    4      Baltimore-Towson; MD                                         10.1

    5      New York-White Plains-Wayne; NY-NJ                            9.8

    5      Boston-Quincy; MA                                             7.7

    5      Warren-Troy-Farmington Hills; MI                              7.3

    5      Portland-Vancouver-Beaverton; OR-WA                           6.4

    5      Chicago-Naperville-Joliet; IL                                 6.3

    5      Atlanta-Sandy Springs-Marietta; GA                            3.5

    5      Seattle-Bellevue-Everett; WA                                  2.3

    5      Philadelphia; PA                                              2.1

    5      Cambridge-Newton-Framingham; MA                               1.6

    5      Nashville-Davidson-Murfreesboro-Franklin; TN                  1.6

    5      Cleveland-Elyria-Mentor; OH                                   1.1

    5      St. Louis, MO-IL                                               <1

    5      Milwaukee-Waukesha-West Allis; WI                              <1

    5      Charlotte-Gastonia-Concord; NC-SC                              <1

    5      Cincinnati-Middletown; OH-KY-IN                                <1

    5      Denver-Aurora; CO                                              <1

    5      Columbus; OH                                                   <1

      5          Austin-Round Rock; TX                                                             <1

    5      Kansas City; MO-KS                                             <1

    5      Indianapolis-Carmel; IN                                        <1

    5      Memphis, TN-MS-AR                                              <1

    5      San Antonio; TX                                                <1

           Pittsburgh; PA                                                 <1

    5      Houston-Sugar Land-Baytown; TX                                 <1

    5      Dallas-Plano-Irving; TX                                        <1

    5      Fort Worth-Arlington; TX                                       <1

About PMI's Economic & Real Estate Trends(SM) (ERET) and U.S. Market Risk Index(SM)

The PMI Economic and Real Estate Trends (ERET) containing the U.S. Market Risk Index is published quarterly by PMI Mortgage Insurance Co., a subsidiary of The PMI Group, Inc. (NYSE: PMI). The Risk Index is a proprietary statistical model that measures geographic house price risk by predicting the probability that home prices in the nation's 381 largest metropolitan statistical areas (MSAs) and metropolitan statistical area divisions (MSADs) (as measured by the House Price Index from the Office of Federal Housing Enterprise Oversight (OFHEO)) will be lower in two years. The PMI U.S. Market Risk Index is based on data including the OFHEO House Price Index, labor market statistics from the Bureau of Labor Statistics, and the PMI Affordability Index, which uses local per capita household income, home price appreciation, and a blended mortgage rate to calculate the local share of mortgage payment to income relative to its baseline year of 1995. The PMI U.S. Market Risk Index scale ranges from one to 100 and translates to a percentage. For example, a score of 50 indicates a 50 percent chance that home prices will be lower in two years.

About PMI Mortgage Insurance Co.

PMI Mortgage Insurance Co. (PMI US), a subsidiary of The PMI Group, Inc. (NYSE: PMI), provides residential mortgage insurance to mortgage lenders, capital market participants, and investors throughout the United States. PMI US is incorporated in Arizona, headquartered in Walnut Creek, CA, and licensed in all 50 states, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. By mitigating default risk, residential mortgage insurance expands home ownership opportunities and assists financial institutions in reducing the capital they are required to hold against low down payment mortgages. PMI US is rated A+ by Standard and Poor's, Aa2 by Moody's, and A+ by Fitch. For more information: http://www.pmi-us.com.

Cautionary Statement: Statements in this press release that are not historical facts or that relate to future plans, events or performance are 'forward-looking' statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, PMI's U.S. Market Risk Index, Affordability Index, and any related discussion, and statements relating to future economic and housing market conditions. Forward-looking statements are subject to a number of risks and uncertainties including, but not limited to, the following factors: changes in economic conditions, economic recession or slowdowns, adverse changes in consumer confidence, declining housing values, higher unemployment, deteriorating borrower credit, changes in interest rates, or a combination of these factors. Readers are cautioned that any statements with respect to future economic and housing market conditions are based upon current economic conditions and, therefore, are inherently uncertain and highly subject to the changes in the factors enumerated above. Other risk and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission, including our reports on Form 10-K for the year ended December 31, 2007 and Form 10-Q's for the quarters ended March 31, 2008 and June 30, 2008.

SOURCE PMI Mortgage Insurance Co.

The Best Bang for Your Buck!

Jessica Bruehl (JKB Realty Group) — Thu, 23 Oct 2008 09:39:37 -0700

Once again, Austin and our close neighbor to the south, San Antonio, are leading lists for the best cities to live in and buy real estate. Named by Forbes.com as the leading cities to get the "most bang for your buck," you can read the entire article here: http://realestate.yahoo.com/promo/best-and-worst-bang-for-the-buck-cities.html

Kids Eat Free - Austin Dining Guide

Jessica Bruehl (JKB Realty Group) — Mon, 13 Oct 2008 14:44:05 -0700

Let's face it...everyone is looking to save a little money these days and we have something to help! Below is a link to the Kids Eat Free Guide for restaurants in and around Austin. Be sure to give the restaurant a call before you go!

http://www.gracytitle.com/e-flyer/8x8/Kids%20Eat%20Free/Kids%20Eat%20Free%20inside.pdf

Mortgage Update!

Jessica Bruehl (JKB Realty Group) — Tue, 16 Sep 2008 12:33:15 -0700

With the government taking over Fannie Mae and Freddie Mac, rates are finally nicely under 6% for many homeowners and it's been some time since we've seen that. No one can fully predict how long it will last either and many companies offer a free float-down option so there's no excuse for homeowners not to lock in now and protect what's happening in the industry to their benefit.

Also, most homeowners who haven't owned a home in 3 years will qualify for a tax credit of $7,500 so remember even if a seller won't go down to as low of an offer as you had hoped, you may still qualify for a nice bonus soon to make up for it at tax time!

Get Busy in Austin This Weekend!

Jessica Bruehl (JKB Realty Group) — Thu, 04 Sep 2008 09:49:18 -0700

Below is some info on a great opportunity to learn more about Ballet Austin and get out and about in town, plus, it's free!

Ballet Austin's Come Dance! 2008

A Day of FREE Dance Classes.

Ballet Austin once again invites everyone to the Butler Dance Education Center and Community School for a day of FREE dance/movement classes and demonstrations from the upcoming season. The event is open to the public and welcomes all ages to celebrate the first birthday of the 34,000 sq ft downtown facility. Participants will be issued a passport upon entry that will lead them throughout a broad selection of FREE classes (ballet, modern, jazz, hip hop, hula, and more), music performance by childrens artist Joe Scruggs and lighting demonstrations from the upcoming production, Not Afraid of the Dark - The Show That Glows. Have a complimentary smoothie from our friends at Froots ^TM and a special Nutcracker room with sets and costumes from the production will also be on display for early holiday photo opportunities.

View a demonstration, take a class or dance all day at this family friendly event.

Read what people are saying about Come Dance! 2008

Details:

Who: Ballet Austin

What: Come Dance! 2008

When: Sept. 7, 2008 2pm - 6pm

Where: 501 West 3^rd Street

Butler Dance Education Center

Why: A Day of FREE Dance Classes

Ages: 3 and up

Admission: FREE (no registration required)

FREE Classes include:

Creative Movement for Children, Youth Ballet, Intermediate Ballet, Teen/Adult Ballet, Ballet Fit, Flamenco, Hula, Hatha Yoga, Jazz, Broadway Fit, Theatre Dance, Modern, Feldenkrais, Hip Hop, Pilates Mat, Tap

Faster Recovery!

Jessica Bruehl (JKB Realty Group) — Tue, 19 Aug 2008 13:52:27 -0700

Economist: Austin will recover faster than the rest of the U.S.

Austin Business Journal - by Jean Kwon ABJ Staff

In the coming year Austin will outperform the rest of the country in job growth and in the health of its housing market, according to Mark Dotzour, chief economist at Texas A&M University's Real Estate Center.

Austin will add 8,500 new jobs between now and August 2009, despite a negative job growth across the country, he says. The local housing market will turn around faster than the rest of the country by next summer, Dotzour predicts.

In the meantime there will be a marked drop in new construction next year as a result of tightened debt and equity markets, Dotzour says. Still, the credit crunch is starting to thaw, and the pressure on national banks is beginning to move to regional banks including those in Texas. Those banks are tightening the terms on outstanding loans and demanding additional collateral or partial paydowns based on reappraisals. Loans for single family developments will bottom out between now and next summer and some builders will leave the market involuntarily, says Dotzour. By next fall he predicts a turnaround in the market and a renewed uptick in homebuilding.

The local demand for apartments is at an all-time low, says Dotzour. There will be demand for about 2,500 units next year, a fraction of the 9,000 to 11,000 units that will come online. He anticipates occupancy will be 90.4 percent and rents will fall to an average of 94 cents-a-foot.

The office market will see very little new construction in 2009 and 2010 as a result of the recent credit crunch. But that means when the economy picks up in mid-2009 the region will see the next wave of rent growth, says Dotzour.

About 350,000 square feet of office space is likely to be absorbed next year, and 700,000 square feet will come online. Occupancy will be 84.7 percent.

Industrial development is seeing the biggest wave of construction in the history of Austin despite a 25 percent increase in construction costs last year, says Dotzour. He predicts ownership will begin to change hands as rents stagnate.

Dotzour predicts 250,000 square feet of flex/R&D space will be absorbed and that 400,000 square feet will be completed next year. The warehouse and distribution market will see 2 million square feet come online, and 376,000 square feet of that will be absorbed. Occupancy rate will be 82.4 percent and rents will be down 7 percent.

Local downtown retailers like REI, Whole Foods and Anthropologie have fared well but retailers will likely struggle in the coming year. Investor demand in retail is low and institutional investors have broken off deals as a result of being over-allocated in real estate, says Dotzour. The International Council of Shopping Centers predicts store closings in 2008 could reach 5,770 nationwide, the highest number since 2004. Unless gasoline prices return to under $3 a gallon, discretionary consumer spending will languish, Dotzour says.

If demand slows for local commercial real estate there could be a decline in construction material costs in the coming months, he adds.

"If this hypothesis doesn't hold water, and oil is still 125 bucks a gallon and steel costs what it does now, then we're in an entirely new era for living in the U.S. where things cost a whole lot more than they used to," says Dotzour.

Round Rock Voted Tops By CNN Money

Jessica Bruehl (JKB Realty Group) — Wed, 06 Aug 2008 13:41:39 -0700

CNN Money's review of Round Rock as well--Top 10 Places to Live in 2008 7. Round Rock, TX

Source: CNNmoney.com

Frontier Days in Round Rock WINNER Top 100 rank: 7
Population: 92,300 Once merely a bedroom community of Austin, Round Rock today is very much its own city thanks largely to three things: affordable housing, excellent schools and computer maker Dell, which has established its headquarters here.

The city boasts three medical centers and a campus of Texas State University. There's a lot of shopping, from an IKEA to a premium outlet mall, and a minor league baseball team, the Round Rock Express.

Residents enjoy more than 800 acres of open space, two golf courses and 64-mile-long Lake Travis, just west of the city.

Financial	City stats	Best places avg.
Median family income (per year)	$85,059	$93,075
Family purchasing power (annual, cost-of-living adjusted)	$71,365	$107,483
Sales tax	8.25%	6.57%
State income tax rate (highest bracket)	N.A.	5.17%
State income tax rate (lowest bracket)	N.A.	2.43%
Auto insurance premiums (Average for the state)	$1,710	$1,791
Job growth % (2000-2007)	45.15%	18.72%
Housing	City stats	Best places avg.
Median home price	$193,931	$291,949
Average property taxes (2007)	$3,854	$3,886
See Round Rock homes for sale
See million-dollar homes
Education	City stats	Best places avg.
Colleges, universities and professional schools (within 30 miles)	10	49
Junior colleges and technical institutes (within 30 miles)	6	25
Test scores reading (% above/below state average)	5.6%	17.3%
Test scores math (% above/below average)	14.1%	16.4%
% students attending public/private schools (located within town limits)	97.5/2.5	89.0/11.0
Quality of life	City stats	Best places avg.
Air quality index* (% of days AQI ranked as good)	N.A.	75.9%
Personal crime incidents (per 1,000)	1	2
Property crime incidents (per 1,000)	21	25
Median commute time (in minutes)	24.0	23.0
% population with commute 45 mins. or longer	16.2%	15.7%
% population walk or bike to work	1.2%	3.0%
Leisure and culture	City stats	Best places avg.
Movie theaters (within 15 miles)	23	51
Restaurants (within 15 miles)	1,819	4,094
Bars (within 15 miles)	185	408
Public golf courses (within 30 miles)	124	316
Libraries (within 15 miles)	46	89
Museums (accredited by AAM; within 30 miles)	1	13
Ski resorts (within 100 miles)	N.A.	33
Arts funding (Dollars per person of state funds spent on arts)	0.2	1.5
Weather	City stats	Best places avg.
Annual rainfall (inches)	35.58	36.17
% clear days in the area	32	30
High temp in July Â° F	95.5Â°	87.8Â°
Low temp in Jan Â° F	35.9Â°	22.9Â°
Health*	City stats	Best places avg.
Has health plan (% of residents)	88.0%	88.3%
Body mass index (avg. for residents)	28	27
Diabetes rates (% of residents diagnosed)	11.8%	9.6%
Hypertension rates (% of residents diagnosed)	21.9%	27.2%
Meet the neighbors	City stats	Best places avg.
Median age	30.5	35.9
Completed at least some college (% of residents)	70.2%	73.7%
Married	62.2%	57.5%
Divorced	8.5%	8.3%
Racial diversity index (100 is national average; higher numbers indicate greater diversity)	105.3	104.2
Amount spent on vacations (domestic and foreign, household avg. per year)	$7,874	$8,007

From the August 2008 issue

Austin Ranked #2 by Forbes!

Jessica Bruehl (JKB Realty Group) — Tue, 29 Jul 2008 09:49:55 -0700

Austin has been ranked as the #2 best city to buy a home by Forbes! Rounding out the top 10 are Atlanta, Jacksonville, San Francisco, Charlotte, Dallas, San Antonio, Philidelphia, St. Louis and Houston. Way to go Texas!

To view the complete article click here:http://www.forbes.com/2008/07/14/housing-buyers-list-forbeslife-cx_md_0714bestbuy_slide.html?partner=email

Austin Population Growth

Jessica Bruehl (JKB Realty Group) — Tue, 01 Jul 2008 12:15:37 -0700

Below is an interesting map showing the areas of Austin that are supposed to have the most growth over the next decade. As you can see, most of the areas are more suburban and do have quite a bit of new home construction in progress.

The Top 10 Best Swimming Spots in Austin, Tx

Jessica Bruehl (JKB Realty Group) — Tue, 17 Jun 2008 15:08:25 -0700

With the record setting temperatures outside these 10 fabulous swimming spots around Austin are a must this summer! Invite your friends and family and stay cool this summer, but don't forget the sunscreen!!

Click the link below for the top 10 swimming holes in Austin, and as always, have a safe, fun and relaxing summer!

http://austin.citysearch.com/feature/2460/

Looking for a condo?? We have tons of valuable information and free reports...all you have to do is click this link!

Hot Dinner Spots in Austin

Jessica Bruehl (JKB Realty Group) — Wed, 04 Jun 2008 15:30:07 -0700

Ever wonder where to find the hot new dinner spot in Austin?? Check out this great message board, so you're not left out of the know and bored with the same old spots.

Click here to see where you should make your dinner plans tonight!!

Looking for a condo?? We have tons of valuable information and free reports...all you have to do is click this link!

What Really Matters........

Jessica Bruehl (JKB Realty Group) — Thu, 22 May 2008 11:33:38 -0700

Our office is saddened today as one of our team members has suffered the loss of her pet. Laura's chocolate lab, Maggie, was less than a year old.

We are reminded at times like this of what really matters. Family (absolutely includes our pets), friends, love, nature.............these beautiful things are what truly exist at the core of life. The rest is just stuff.

Below is a quote that seems to sum it all up.........

I talk to him when I'm lonesome like; and I'm sure he understands. When he looks at me so attentively, and gently licks my hands; then he rubs his nose on my tailored clothes, but I never say naught thereat. For the good Lord knows I can buy more clothes, but never a friend like that. ~W. Dayton Wedgefarth

Your Home, Your Sanctuary

Jessica Bruehl (JKB Realty Group) — Mon, 19 May 2008 16:36:32 -0700

Creating a Sanctuary

Regardless the size of your home, your home should be your sanctuary. Thanks to Dr. Andrew Weil for the below suggestions. You will see that most of these cost little, if anything, to implement. A little time and thought is all you need to gradually make your space, your space.

Bring the outdoors in. Cut flowers and blooming bulbs, or pieces of wood, rocks and other natural elements can create a feeling of nature indoors.
Bring green plants into your home, especially varieties that filter indoor pollutants. According to the Foliage for Clean Air Council, these include Gerbera daisies, Boston ferns, English ivy, chrysanthemums, Areca palms, spider plants and golden pothos. The Council recommends having two plants for every 100 square feet.
Paint a room to correlate with how you want to feel while in that room. For instance, blue and green promote a relaxed feeling and may be good for the bedroom.
Surround your senses with beauty. Artwork, fragrance, smooth textures and calming sounds all provide a pleasant environment in which to relax.
Set aside a room or area for peace and calm. A place for spiritual reflection and meditation can provide shelter from noise and distraction.
Clean out the clutter. A low-maintenance home is refreshing after a day of hectic meetings, errands and chores. Fewer items can mean less frustration.
Create an atmosphere of love. Display handmade or meaningful gifts from loved ones and photos of family and friends.
Allow natural light to flow into your home. To take advantage of the sun's cycle without heating up your home, hang linen curtains (organic cotton, if possible) on windows that face north or south. If you have a nice garden or view from a window or two, keep those windows uncovered as much as possible when you are home. Read a book instead of watching television, or listen to music. If you desire or enjoy background noise, consider installing a small fountain to provide a soothing hum.

Free Yoga at Barton Springs

Jessica Bruehl (JKB Realty Group) — Mon, 19 May 2008 14:39:45 -0700

FREE YOGA at BARTON SPRINGS!

See Yoga Yoga's details below about this wonderful opportunity to nurture your mind, body & spirit in the beautiful presence of Mother Earth!

Save Our Springs Alliance and Yoga Yoga have teamed up to bring Austin free, outdoor yoga classes at Barton Springs Saturdays in May from 10-11am. All ages and abilities are welcome. Please wear comfortable clothing and bring your yoga mat and sun screen. All classes will be led by registered yoga teachers from Yoga Yoga.

Mark your calendars: May 3, 10, 17, 24 and 31!

The classes will be held just outside the south entrance to Barton Springs on Robert E Lee, under the pecan trees.

Gospel Brunch at Stubb's BBQ!

Jessica Bruehl (JKB Realty Group) — Tue, 15 Apr 2008 09:49:25 -0700

Can't make it to church this Sunday? That's ok! Head downtown to Stubb's BBQ on Red River for their spirit-lifting LIVE gospel brunch. If you really want to feel the beat, grab a table downstairs where the volume is turned to 11 on a scale of 1 to 10. For those in a more relaxed and conversational mood, consider a table upstairs where the gospel tunes are still loud enough to lean into your neighbor's buffet plate to ask, "What's that?" while stealing a piece of their crispy bacon. Good food, good LIVE music, good reason to worship downtown one Sunday.

Call or email me today and I'll tell you what properties and areas are on my "Deal of the Week" list that are perfect for a "Modified Flip".

Also, check out our website, www.jkbrealty.com, so you can personally search the MLS or sign up for our daily automatic property searches.

Jessica Bruehl 512-532-5005 or info@jkbrealty.com