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1st Quarter, 1999

March 4, 1999
  " January Median Home Sales Price Slightly Higher
  " Hospital Launches Largest Building Project In History
  " Developer, Kerrville Reach Agreement
  " Dallas Fed Launches New Web Site
  " State, Local Governments Spend $1.4 Trillion
  " Texas To Be Injected With Nonhazardous Waste
  " El Paso Electric To Contest Condemnation Lawsuit

March 1, 1999
  " Architectural Controls Concern Condo, Homeowner Associations
  " Mark Your Calendar
  " Existing Home Sales Set Record
  " FCC Urged To Restore Homeowner Rights On Tenant Antennas
  " Correction: 'Not' Should Be 'Now'
  " Web Site Sets Another Record

February 24, 1999
  " TREC Sets Internet Advertising Rules
  " Commission Seeks Authority To Establish Test Limits
  " Wolf Camera Opens 36th Houston Store
  " Virtual Tour Package Offered Real Estate Professionals
  " Paris Power
  " Panhandle Gas Well Producing 11.6 MCF Per Day

February 19, 1999
  " Texas Housing Affordability -- Best Ever
  " Rural Land Market Outlook Planned
  " New Weed Invading Houston
  " Homebuyers Need To Understand Credit Scoring
  " Texas And Two Other States Emply Most Government Workers
  " TREC To Observe Black History Month
  " Demographics And Housing

February 16, 1999
  " Texas Nears Population Record
  " Time For Termite Inspection
  " Texas Boating World Purchased
  " Market Profile: McAllen

February 11, 1999
  " Metro Home Prices Outpacing Inflation
  " Homes Sales Climb
  " New Plano Mall To Begin Construction
  " Fanniemae.com Enhanced For Multifamily Lenders
  " Market Profile: Austin

February 9, 1999
  " Justice Department Sues Over Disability Access
  " Texas Licensees Learn By Long Distance
  " Market Profile: Denton
  " EPA Seeks Large Penalty For Gasoline Leaks
  " Remodeling Facts

February 4, 1999
  " North Texas Tops Price List For 1998
  " $14.4 Million To Help North Texas Families Buy Homes
  " Pasadena Power Plant Expansion Funded
  " Home Entertainment Of Texas Sold
  " Valentine's Day And Real Estate
  " Did You Know?

February 02, 1999
  " Fannie Mae Enhances Multi-Family Bonds
  " Homebuyers' Purchasing Power Rises
  " What First-Time Homebuyers Want
  " Building Named For Borlaug
  " Re/Max Growth Best In History
  " Web Site Records Record Hits
  " Did You Know?

January 28, 1999
  " Designing Homes For Generation X
  " What Property Managers Can And Can't Ask Prospective Tenants
  " Marketing To Active Adults
  " Seedling Shortage May Delay Reforestation
  " Texas Oil And Gas Unemployment Quadruples
  " Largest Lease In Alliance History Executed
  " Group Selected To Manage And Lease 1010 Lamar In Houston

January 26, 1999
  " December Home Sales Hit Record
  " Buyers Seek Modern-Day Version Of "Home Sweet Home"
  " San Antonio Inn Launches $2.2 Million Renovation
  " Fewer Home Sales Predicted
  " U.S. Restaurant Buys 22 Spaghetti Warehouse Properties
  " Did You Know?

January 22, 1999
  " More Surprises in 1999?
  " San Antonio Benefits From State, National Trends
  " Small Dip Noted In Weekly Mortgage Rates
  " National Housing Starts Surge
  " Did You Know?

January 19, 1999
  " Keeping Up With The Jetsons: Home Building Trends
  " Three Named To Inspector Committee
  " MCE Reporting Streamlined
  " Playing Post Office

January 12, 1999
  " Texas Home Sales, Prices Up; Inventories, Days-To-Sell Down
  " 70,000 Builders Converging on Dallas
  " New Products For Homes Premiere At NAHB
  " Counties To Decide Water District

January 7, 1999
  " Higher FHA Home Mortgage Loan Limits Announced
  " Energy Revolution On Hold
  " MTBE Controversy Stirs In Texas
  " Groundbreaking Set For Texas Resort
  " Castle Dental Buys 16 Texas Dental Offices
  " Citizens Communication Breaks Ground On Dallas Office

January 5, 1999
  " Homebuyers Willing To Pay More For Energy Efficiency
  " Water Quality Answers Online
  " Retailing Update: Mall Sales Up 5.3 Percent
  " Nature Tourism Takes Hold In Texas
  " American Homestar Buys R-Anell Homes
  " TXI Reduces Steel Beam Price

 




March 4, 1999

Architectural Controls Concern Condo, Homeowner Associations

ALEXANDRIA, Va. -- Condominium, cooperative and homeowner associations may find themselves embroiled in misunderstandings, controversy or even lawsuits if architectural control is not handled properly, according to the Community Associations Institute (CAI).

CAI recommends every community association adopt a manual of design review guidelines, including written procedures, objectives and standards.

A new guide from CAI covers writing guidelines, review procedures, architectural harmony considerations, violations, appeals and complaint resolution. "Architectural Control: Design Review" is available by calling 703-548-8600 or at CAI's Web site, www.caionline.org.



Mark Your Calendar
Date? March 31 What? EMERGING MARKETS -- PROFIT FROM NEW OPPORTUNITIES Sponsors? Fannie Mae and six major real estate associations Where? Westin Oaks Hotel, Houston Cost? Free Contact? Fannie Mae Houston Partnership Office, 713-652-0410. MCE Credit? Yes

Date? April 23 What? NINTH ANNUAL OUTLOOK FOR TEXAS RURAL LAND MARKETS Sponsors? Real Estate Center at Texas A&M University, Texas Chapter of the American Society of Farm Managers and Rural Appraisers and the Texas Chapter of the Realtors Land Institute Where? George Bush Presidential Conference Center, Texas A&M University Cost? $85 Deadline? April 16 (registration), March 22 (hotel) Contact? Margaret Benedict, 409-845-9691 MCE Credit? Applied for.



Existing Home Sales Set Record
WASHINGTON, DC -- January sales of existing single-family homes were even better than December's record rate, according to the National Association of Realtors (NAR).

NAR reported last week that the annual sales rate for the first month of 1999 was 5.07 million units, 16 percent higher than the 4.37 million units posted a year ago. The January rate was 0.8 percent higher than December's 5.03 million units, a record high for the seasonally adjusted annual sales rate.

Freddie Mac reported the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.79 percent in January. This was slightly higher than the 6.74 percent recorded in December but less than the 6.99 percent of January 1998.

The national median for an existing, single-family home was $131,700 for January -- 4.4 percent higher than the $126,100 posted one year ago.



FCC Urged To Restore Homeowner Rights On Tenant Antennas
ALEXANDRIA, Va. -- The Community Associations Institute (CAI) is urging the Federal Communications Commission (FCC) to reconsider homeowners' rights to protect their property from damage resulting from tenant installation of antennas. At issue is an FCC ruling that prevents homeowners from requiring tenants to ask for permission before installing antennas covered under the Over-the-Air Reception Devices Rule.

"The FCC ruling effectively eviscerates homeowners' ability to prevent damage to the individually owned property and common property," says Richard S. Ekimoto, chairman of CAI's government and public affairs council and a member of its telecommunications advisory group. "Leases typically include prior-approval requirements for alterations, and mounting antennas should be treated no differently. This is an especially critical issue considering the increasing number of 'accidental landlords' who lease a community association home and would face a greatly increased risk of property damage through improper antenna installation."

On Sept. 25, 1998, the FCC said tenants in community associations could install antennas on exclusive-use property, such as balconies, as long as the tenants had permission of the homeowner. On Nov. 20, the FCC reversed its decision, equating homeowners with commercial landlords, although homeowners lack the professional and legal resources to initiate repairs and recover damages.

CAI was joined by the National Association of Housing Cooperatives in filing its latest comments on Feb. 15. The Satellite Broadcasting and Communications Association, the U.S. Satellite Broadcasting Company and Winstar Communications, Inc., formally oppose CAI's request.



Correction: 'Not' Should Be 'Now'
COLLEGE STATION, Tex. -- In the "TREC Sets Internet Advertising Rules" article (RECON, Feb. 24, 1999), there was a typo. The word "not" was used when it should have been "now." The correct sentence should have said, "Texas real estate advertising over the Internet, electronic bulletin boards or similar outlets must now display the same type of information required of print or broadcast ads."



Web Site Sets Another Record
COLLEGE STATION, Tex. -- Building permit data was by far the most popular spot on the Real Estate Center's Web site during February. Three times more hits were recorded on building permit data than the next most-visited area -- population data.

In all, more than 274,100 raw hits were recorded on the Center's site for the month -- a new record. Other popular areas on the Web site are: news releases and RECON, cybersites, employment data, quizzes, MLS housing data, the Center's catalog and publications, rural land data, the homebuyer's e-quide and general Center information.


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March 1, 1999

Architectural Controls Concern Condo, Homeowner Associations

ALEXANDRIA, Va. -- Condominium, cooperative and homeowner associations may find themselves embroiled in misunderstandings, controversy or even lawsuits if architectural control is not handled properly, according to the Community Associations Institute (CAI).

CAI recommends every community association adopt a manual of design review guidelines, including written procedures, objectives and standards.

A new guide from CAI covers writing guidelines, review procedures, architectural harmony considerations, violations, appeals and complaint resolution. "Architectural Control: Design Review" is available by calling 703-548-8600 or at CAI's Web site, www.caionline.org.



Mark Your Calendar
Date? March 31 What? EMERGING MARKETS -- PROFIT FROM NEW OPPORTUNITIES Sponsors? Fannie Mae and six major real estate associations Where? Westin Oaks Hotel, Houston Cost? Free Contact? Fannie Mae Houston Partnership Office, 713-652-0410. MCE Credit? Yes

Date? April 23 What? NINTH ANNUAL OUTLOOK FOR TEXAS RURAL LAND MARKETS Sponsors? Real Estate Center at Texas A&M University, Texas Chapter of the American Society of Farm Managers and Rural Appraisers and the Texas Chapter of the Realtors Land Institute Where? George Bush Presidential Conference Center, Texas A&M University Cost? $85 Deadline? April 16 (registration), March 22 (hotel) Contact? Margaret Benedict, 409-845-9691 MCE Credit? Applied for.



Existing Home Sales Set Record
WASHINGTON, DC -- January sales of existing single-family homes were even better than December's record rate, according to the National Association of Realtors (NAR).

NAR reported last week that the annual sales rate for the first month of 1999 was 5.07 million units, 16 percent higher than the 4.37 million units posted a year ago. The January rate was 0.8 percent higher than December's 5.03 million units, a record high for the seasonally adjusted annual sales rate.

Freddie Mac reported the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.79 percent in January. This was slightly higher than the 6.74 percent recorded in December but less than the 6.99 percent of January 1998.

The national median for an existing, single-family home was $131,700 for January -- 4.4 percent higher than the $126,100 posted one year ago.



FCC Urged To Restore Homeowner Rights On Tenant Antennas
ALEXANDRIA, Va. -- The Community Associations Institute (CAI) is urging the Federal Communications Commission (FCC) to reconsider homeowners' rights to protect their property from damage resulting from tenant installation of antennas. At issue is an FCC ruling that prevents homeowners from requiring tenants to ask for permission before installing antennas covered under the Over-the-Air Reception Devices Rule.

"The FCC ruling effectively eviscerates homeowners' ability to prevent damage to the individually owned property and common property," says Richard S. Ekimoto, chairman of CAI's government and public affairs council and a member of its telecommunications advisory group. "Leases typically include prior-approval requirements for alterations, and mounting antennas should be treated no differently. This is an especially critical issue considering the increasing number of 'accidental landlords' who lease a community association home and would face a greatly increased risk of property damage through improper antenna installation."

On Sept. 25, 1998, the FCC said tenants in community associations could install antennas on exclusive-use property, such as balconies, as long as the tenants had permission of the homeowner. On Nov. 20, the FCC reversed its decision, equating homeowners with commercial landlords, although homeowners lack the professional and legal resources to initiate repairs and recover damages.

CAI was joined by the National Association of Housing Cooperatives in filing its latest comments on Feb. 15. The Satellite Broadcasting and Communications Association, the U.S. Satellite Broadcasting Company and Winstar Communications, Inc., formally oppose CAI's request.



Correction: 'Not' Should Be 'Now'
COLLEGE STATION, Tex. -- In the "TREC Sets Internet Advertising Rules" article (RECON, Feb. 24, 1999), there was a typo. The word "not" was used when it should have been "now." The correct sentence should have said, "Texas real estate advertising over the Internet, electronic bulletin boards or similar outlets must now display the same type of information required of print or broadcast ads."



Web Site Sets Another Record
COLLEGE STATION, Tex. -- Building permit data was by far the most popular spot on the Real Estate Center's Web site during February. Three times more hits were recorded on building permit data than the next most-visited area -- population data.

In all, more than 274,100 raw hits were recorded on the Center's site for the month -- a new record. Other popular areas on the Web site are: news releases and RECON, cybersites, employment data, quizzes, MLS housing data, the Center's catalog and publications, rural land data, the homebuyer's e-quide and general Center information.


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February 24, 1999

TREC Sets Internet Advertising Rules

AUSTIN, Tex. -- Rules governing Internet, e-mail and other electronic real estate ads in Texas were approved Monday by the Texas Real Estate Commission (TREC).

Basically, commissioners agreed that new technology and electronic-based formats should be governed by the same TREC rules in effect for other media.

Current TREC advertising rules require license status disclosure and identification of advertisers as real estate brokers or salespersons. Listing only a salesperson's name, without the sponsoring broker's name in an ad, is prohibited. Any advertising that implies a salesperson is a broker or is responsible for the operation of a real estate brokerage firm also is not permissible.

Texas real estate advertising over the Internet, electronic bulletin boards or similar outlets must not display the same type of information required of print or broadcast ads. Each electronic page of a Web site that contains a real estate ad must disclose the advertiser's license status as a broker or agent.

Informal e-mail with established clients or customers, which is not considered advertising, is not subject to the rules.



Commission Seeks Authority To Establish Test Limits
AUSTIN, Tex. -- Texas real estate commissioners decided Monday to ask the legislature for the option of establishing test limits for those who fail the licensing exam after repeated attempts.

The proposal could allow a person to file another application to retake a licensing exam without a required waiting period if additional courses are completed by the applicant.

A similar exam limitation already exists for the licensing of real estate inspectors. The new proposal would make inspector licensing exams consistent with brokers and salespersons by allowing test limits to be set at the discretion of the Commission.



Wolf Camera Opens 36th Houston Store
ATLANTA, Ga. /PRNewswire/ -- Wolf Camera continues its rapid growth in Houston with the opening of a new store at Spencer Highway and Blueberry in Pasadena. Wolf opened five Houston stores in 1997. They opened seven in 1998, the same year they acquired 24 stores from Fox Photo. The company has more than 150 stores in Texas.



Virtual Tour Package Offered Real Estate Professionals
SAN JOSE, Calif. (BUSINESS WIRE) -- Interactive Pictures has announced the availability of new IPIX virtual tour packages specifically targeted at real estate agents who wish to implement 360-degree by 360-degree online home listings.

For $49.95, real estate agents who own IPIX digital camera kits can create their own four-room IPIX "virtual tour." Additionally, Interactive Pictures has announced a digital photographers' network called the IPIX Virtual Tour Network. For $99.95, a real estate photographer will take four IPIX images of a property. Agents can then post images to multiple Internet sites without extra cost.

For more information, contact Patti Fortuna at 408-918-0947 or fortunap@ipix.com.



Paris Power
JUNO BEACH, Fla. /PRNewswire/ -- FPL Energy, Inc., announced Friday it will build, own and operate a 1,000-megawatt natural gas-fired power plant in Paris, Texas. The plant will be one of the largest independent generation projects in the state.

Electricity generated at the site will be sold primarily in the Texas wholesale market. Three firms, Texas Utilities Electric Co., Texas-New Mexico Power Co. and Constellation Power Source, Inc., have contracts to buy 700 megawatts of the plant's output for various periods.

Construction of the advanced combined-cycle plant will begin immediately. Commercial operation is scheduled for mid-2000.

FPL Energy purchased the right to build the plant from Dallas-based Panda Energy International, Inc., which has obtained permitting and completed all development work to date. Panda will retain an ownership interest in the project.

"The Paris power plant is the latest example of FPL Energy's strategy of expanding its portfolio of clean-energy generation," said FPL Energy President Michael Yackira. "FPL Energy now has approximately 1,900 megawatts in operation and almost 1,400 megawatts announced as under construction or development."

Yackira said Texas is an attractive area for investment because demand for electricity is growing and state regulators are encouraging development of a robust wholesale marketplace.

FPL Energy is building the state's largest wind generation facility. The 75-megawatt plant, about 80 miles south of Midland-Odessa, is among several FPL Energy wind projects entering commercial operation by mid-1999 in Texas and elsewhere.



Panhandle Gas Well Producing 11.6 MCF Per Day
TULSA, Okla. /PRNewswire/ -- Spring Resources, Inc., of Tulsa has completed a high-volume gas well in Hemphill County in the Texas Panhandle.

Drilled and operated by Spring, its 50 percent Jones #4-4 well gauged an absolute open flow rate of 11.6 million cubic feet of natural gas per day. Production is from perforations between 11,822 and 11,846 feet deep.


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February 19, 1999

Texas Housing Affordability -- Best Ever

COLLEGE STATION, Tex. -- Falling interest rates at the end of 1998 boosted Texans' ability to buy homes to the highest level ever measured.

According to Jack C. Harris, research economist with the Real Estate Center at Texas A&M University, the Texas Housing Affordability Index (THAI) rose to 1.53 in the last quarter -- up from 1.46 in the previous three months.

"From the time the THAI was first estimated in 1989," says Harris, "the index has never been higher."

Harris said some 2 percent more Texas households were able to afford the median-priced home. About 67 percent of households could afford the median-priced home at current interest rates, assuming they could make a 20 percent down payment.

In the last quarter of 1997, the THAI was 1.47 with 64 percent of households able to afford the median-priced Texas home.

Harris says the improvement in affordability came despite an increase of nearly 3 percent in median home prices. Median income increased only 2 percent.

"Mortgage interest rates fell by more than one-half percentage point," said Harris, "making the average monthly payment of a median-priced home actually lower in the most recent quarter. The average interest rate on mortgages closed in Texas during the last three months of 1998 was 6.78 percent."

"Almost 169,000 homes were sold through the state's Multiple Listing Service last year," said Harris. "This was the highest total recorded since the Center began keeping housing data in 1979."

Conditions improved as well for first-time homebuyers. The First-Time Homebuyer's Affordability Index (FTHAI) rose to 1.26 from 1.21 last year. The index reveals that the median income of a renting Texas household is 26 percent high than that needed to buy the median-priced starter home. The estimate is based on financing requiring a 5 percent down payment.

Metropolitan areas reporting the highest THAIs for the fourth quarter were:

-- Garland, 2.57 -- Fort Bend, 2.23 -- Paris, 2.13 -- Wichita Falls, 2.00

The overall U.S. affordability index was 1.12.



Rural Land Market Outlook Planned
COLLEGE STATION, Tex. -- Anyone with an interest in rural Texas properties should circle April 23 on the calendar. That is when the Ninth Annual Outlook for Texas Rural Land Markets will be held at the George Bush Presidential Conference Center on the campus of Texas A&M University.

Presentations will cover the state of the economy, agricultural developments and policies, rural land buyers and sellers, legal issues and the overall rural land market outlook. Speakers include a variety of experts from the Real Estate Center, other university departments, the Realtors' Land Institute and the American Society of Farm Managers and Rural Appraisers.

Advance registration is required. The cost is $85 per person. This includes parking and lunch.

To register for the seminar, obtain a brochure or other information, call Margaret Benedict at 409-845-9691.



New Weed Invading Houston
COLLEGE STATION, Tex. -- A ground-covering plant has appeared in several Houston lawns, and scientists at Texas A&M University warn that -- while attractive -- the exotic species will make itself at home and resist all efforts to kill it.

Efforts to control the trailing weed, a South American plant called Lysianthes asarifolia, have failed thus far. Despite multiple sprayings of maximum amounts of several herbicides, the weed remained in the trial yard in the Hunter Creek Village area.

"The scary thing for Houston is that there is no control for it, and the conditions seem right for it to flourish," says Dr. Mary Ketchersid, Texas Agricultural Extension Service pesticide safety education program specialist.

Pictures of the weed can be found on the Web at http://www.csdl.tamu.edu/FLORA/imaxxsol.htm.

Some botanists in Louisiana, where the plant once grew in a city park, have an affinity for it and do not consider it noxious if grown in contained spaces. Ketchersid believes that might be because Louisiana botanists claim the plant does not fruit and flower in that state, thus it is not as aggressive as it is in the different growing environment of coastal Texas.

"The Texas strain is more ready to take over whereas, in Louisiana, it has stayed in place. It's a beautiful little plant, but given half a chance, it could take over much of Houston," says Monique Reed, Texas A&M botanist. "People should not give this plant to friends or swap it in gardening clubs. That will hasten its spread."

To provide information about possible locations of this plant in Texas or to find out how to identify a sample, call 409-845-6531.



Homebuyers Need To Understand Credit Scoring

WASHINGTON, DC -- The National Association of Realtors (NAR) and Freddie Mac have joined forces to educate homebuyers and real estate practitioners about the use of credit scoring and automated underwriting in the home mortgage origination process.

This information is included in pamphlets entitled "The Doorway to Good Credit" and are being offered to both real estate professionals and their customers and clients. The pamphlets are free and explain the credit scoring process while offering tips to consumers on developing and maintaining an acceptable credit record.

Lee L. Verstandig, senior vice president of government affairs for NAR, says people thinking about buying a home should look at their credit record to understand how it might affect their ability to buy a home.

"Your credit record demonstrates how you've handled credit in the past and how you currently pay your bills," he said. "Mortgage lenders use this information to determine whether you'll qualify for a loan. It even can affect the interest rate applied to the financing."

Many lenders are now using automated underwriting and credit scoring to electronically accelerate the loan approval process. Dwight Robinson, vice president of industry relations for Freddie Mac, says lenders often get a credit score as part of the credit report.

"Because a credit score and the larger report are so important in the mortgage process, we are pleased to work with the National Association of Realtors to educate future homebuyers about the importance of good credit management," says Robinson.

More than ever, good credit is critical to consumers, says Robinson. For this reason, he says Freddie Mac is "absolutely committed to working with Realtors and others in the housing industry to provide good, clear information about the prudent use of credit and how it is a currency for future success -- whether in homeownership or other aspects of everyday life."

Potential buyers are urged to check their credit records and make sure they are accurate. Credit reports are made by three private companies: Equifax (800-685-1111), Experian (800-682-7654) and Trans Union (800-888-4231). Because credit records can vary from one company to another, homebuyers may wish to contact all three to resolve potential problems in advance. There are fees for each report, but if credit is denied, a a free copy can be obtained.



Texas And Two Other States Emply Most Government Workers
WASHINGTON, DC -- Texas, California and New York -- the nations three most populous states -- led the country in state and local government employment in 1997, according to tabulations released today by the Commerce Department's Census Bureau.

California, with 1.8 million on the public payroll, topped the list, followed by Texas and New York, each with 1.2 million. State and local governments nationwide had 16.7 million full- and part-time employees, an increase of less than 1 percent from 1995.

Most workers were employed in education (nine million), hospitals (one million) and police (856,000).



TREC To Observe Black History Month
AUSTIN, Tex. -- The Texas Real Estate Commission will hold its second observance of National Black History Month on Monday, Feb. 22. Ceremonies will be from 2-3:30 pm in room 235 of TREC headquarters, 1101 Camino La Costa. The public is invited.

The year's speaker is Michael L. Williams of the Texas Railroad Commission.



Demographics And Housing
Average household size has declined from 3.67 people in 1940 to 2.63 today and will continue shrinking. Family size also is declining steadily as couples have fewer children.

Household formations grew at a rate of slightly more than one million a year in the 1960s then jumped to 1.7 million a year in the 1970s. New household growth has slowed since then and in the 1990s will be in the range of 1.1 to 1.2 million annually.

The composition of the U.S. population has changed dramatically over the last three decades. The share of young people is declining. In 1970, 58 percent of the population was less than 35 years old; in 2000, 49 percent will be less than 35. At the same time, the population is aging. At the turn of the century, 13 percent of the population will be more than 65 years old compared with 10 percent in 1970.

Traditional married-couple households are declining in the United States and are being replaced with non-family households. In 1970, 71 percent of all households were married couples, and 19 percent were groups of unrelated people living together. By 1995, married-couple households had shrunk to 56 percent and unrelated households had grown to 30 percent of the population.

Source: National Association of Home Builders, 1998 Housing Facts, Figures and Trends


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February 16, 1999

Texas Nears Population Record

COLLEGE STATION, Tex. -- Texas is on the verge of a record-setting population explosion, according to State Demographer Steve H. Murdock.

"More new Texans took up residence in the state during the year ending July 1, 1998, than any other year this decade," says Murdock, head of the Rural Sociology Department and a research associate with the Real Estate Center. "That sets the stage for what could send the 1990s into the record books as the decade with the largest numerical increase in history."

In July 1998, Texas had nearly 19.8 million residents -- nearly 374,000 more than one year earlier. Only California added more people (484,000). Texas gained substantially more than did third-place Florida (239,000).

Previously, the 1996-97 year had recorded the biggest growth of the decade. Roughly 353,000 joined the Texas population that year.

"As important as the growth level," says Murdock, "is the balance in the sources of such growth."

Domestic migration -- people moving to Texas from outside the state -- was responsible for 21.1 percent or some 79,000, of the total 1997-98 population growth. International immigration accounted for 26.8 percent and natural increase (births minus deaths) for 52.1 percent.

Since the last census on April 1, 1990, Texas has added nearly 2.8 million, again second only to California with nearly 2.9 million. During the 1990s, Texas has had a 16.3 percent growth rate, eighth fastest in the nation. Nevada has grown the most with a 45.4 percent increase.

"Put another way, the nearly 2.8 million new Texans is roughly equivalent to adding another Houston and another Dallas (1990 populations) to the state's total," says Murdock. "The latest numbers suggest that under virtually any reasonable scenario, the state will have 20 million residents by 2000.

The 1970s currently hold the record for the most people added during a single decade -- more than three million. Texas only needs to add another 259,000 to break that record.

Texas population growth has been relatively balanced. Since April 1, 1990, 56.7 percent came from natural increase. Another 23.6 percent was the result of immigration from other countries. Other states contributed 19.7 percent.

While Texas has been adding new residents by natural increase, international and domestic immigration, other populous states have been hurt by the departure of large numbers. For example, so far this decade, although growing as a result of natural increase and immigration, more than two million domestic migrants have left California. New York has lost 1.8 million.

"Recent estimates suggest Texas will enter the 21st Century as a rapidly growing state with balanced sources of population growth," says Murdock. "Although the characteristics of persons being added must be considered carefully when determining real estate implications, Texas has the ingredients to continue expanding its real estate market for years to come."



Time For Termite Inspection
COLLEGE STATION, Tex. -- Because of a mild winter, Texans are being warned to watch for an exceptionally active termite season. Although termites cause Texans an estimated $300 million annually, Texas Agricultural Extension Service entomologists say there is something you can do to protect your home.

Termites begin their annual swarm from early February to early March. That is the time the king and queen termites leave the colony to establish new colonies. Extension entomologist Dr. Roger Gold says prime conditions include 70-degree temperatures and spring rains.

Homeowners should watch for mud tubes on and around structures. The tubes are slightly smaller than a regular number two pencil. Termites use the tubes as tunnels to move about. Gold says tubes going up a foundation, in a weep well or dropping down from a ceiling are a sure sign that termites are present. and that a thorough inspection is warranted.

"Many people discover these tubes when doing spring cleaning duties or during maintenance," he says. "When the wood is destroyed and it crumbles when you touch it, you may need an inspection."

Places where plumbing penetrates the home are particularly susceptible to termites. Gold recommends homeowners have the area underneath the bathtub and shower stalls inspected at a minimum. If termites are found, Gold says an integrated pest management approach is best to remedy the problem. A combination of termite baits and termiticide sprays help suppress the immediate damage and provide future protection.

Homeowners can take steps to reduce the attraction for termites. Make sure all firewood is stored away from the home, use treated wood when building a fence and inspect the home regularly. Gold says it has been said that by the time a Texas house is 40 years old, it has a 95 percent chance of being infested with one of several species of termites.



Texas Boating World Purchased
CLEARWATER, Fla. -- MarineMax, the nation's largest recreational boat retailer, has announced the acquisition of Boating World, a Texas-based boat retailer. MarineMax made the purchase through the issuance of warrants providing the holder the right to buy 40,000 shares of MarineMax stock at $15 per share plus the assumption of inventory floor plan obligations and certain facility leases.

Boating World is a state-of-the-art sales and service firm in Arlington with a large service facility at a nearby marina. MarineMax plans to relocate its Fort Worth sales facility to the Arlington location.

Headquartered in Clearwater, Florida, MarineMax primarily sells premium quality recreational boats through 41 retail locations in Arizona, California, Florida, Georgia, Minnesota, Nevada, North Carolina, Ohio and Texas.



Market Profile: McAllen

McALLEN, Tex. -- Encompassing all of Hidalgo County, the McAllen metropolitan area includes the major cities of McAllen, Edinburg and Mission. McAllen is on the Texas-Mexico border, the heart of an area now referred to as the "Borderplex." At the center of international economic activity between the Americas, including three international bridges, the area is poised for explosive economic growth.

McAllen, as well as Hidalgo County, benefit from growth diversity in manufacturing facilities both in the McAllen MSA and nearby Reynosa, Mexico. Total jobs in the MSA increased from 128,000 in 1990 to more than 160,000 in late 1998. The largest increases were in service and trade. Unemployment rates traditionally are high in border cities, and in McAllen, a 16.3 percent rate was recorded in October.

According to Solunet's Complete Twin Plant Guide, nearly 70 manufacturing facilities are located in Reynosa, employing some 50,000. The area is a major center for manufacturing automobile parts, electronic components and television sets.

In 1997, McAllen's population reached 507,000. Since 1990, annual growth has averaged more than 4.5 percent. In addition, McAllen is home to many "winter Texans." It is estimated that 130,000 people move to the area for the winter.

South Texas Community College has grown more than 2,000 percent in the past three years to 6,000 students. The University of Texas-Pan American has grown to 13,000 students.

Local home sales in 1998 were strong but slowed from 1997 when 965 homes were sold through the local MLS. Through November, 617 homes had sold with an average selling price of $92,400. In 1997, more than 4,150 new single-family home permits were issued compared with 4,445 through November 1998.

In 1997, 1,121 multifamily building permits were issued. Through November, 796 apartment units were permitted. The current occupancy rate is 91 percent, according to Apartment Market Data Research Services.

For more on McAllen, read the April issue of Tierra Grande, journal of the Real Estate Center at Texas A&M University.


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February 11, 1999

Metro Home Prices Outpacing Inflation

WASHINGTON, DC -- The median price of existing homes is rising faster than the overall rate of inflation in most areas of the country, according to the National Association of Realtors (NAR).

The association's fourth-quarter metro area home price report covering 132 metropolitan areas shows 15 with double-digit annual increases in median existing-home prices. Only 15 areas posted declines. The majority of metro areas showed median resale price increases more than the overall rate of inflation, which was 2.1 percent in the fourth quarter.

"The good news is home prices are staying at sensible levels in most areas of the country," says NAR President Sharon A. Millett. "Preserving good housing affordability conditions is key to maintaining a healthy and balanced housing market, especially for first-time homebuyers. A strong entry-level market is the key to a solid trade-up market, such as we see today."

The national median existing home price was $131,000 during the fourth quarter, up 4.9 percent from the fourth quarter of 1997 when the median was $124,800. For all of 1998, the median price was $130,600, up 5.2 percent from $124,100 in 1997.



Homes Sales Climb
WASHINGTON, DC -- Low interest rates and healthy affordability conditions continued to draw homebuyers to the marketplace during the fourth quarter of 1998, driving home resales up in 39 states and the District of Columbia from a year ago, NAR reported yesterday.

NAR's latest sales report of previously owned homes found that total existing home sales rose by double digits in a total of 29 states and the District of Columbia during the fourth quarter when compared to last year.

The NAR survey showed that nationwide the seasonally adjusted annual resale rate for existing single-family homes, townhouses, apartment condominiums and cooperatives totaled 5.49 million units in the fourth quarter. This was 11.6 percent more than the 4.92 million units sold in the fourth quarter of 1997.

The strongest year-to-year increase was in the District of Columbia, where the fourth quarter resale pace rose 33.3 percent to 22,000 units. Arkansas was second with 77,300 units, 31.7 percent more than the same quarter the previous year.

Regionally, the South had the highest increase, a rate of 2.11 million units, up 16 percent.



New Plano Mall To Begin Construction
PLANO, Tex. /PRNewswire/ -- Groundbreaking ceremonies were held here yesterday on the site of The Shops at Willow Bend, a 1.5-million-square-foot shopping center being developed by Taubman Centers, Inc. The mall will feature Neiman Marcus, Saks Fifth Avenue, Lord & Taylor, Foley's and Dillard's, plus as many as 200 specialty shops, restaurants and services.

Construction will begin in early spring. Foley's and Lord & Taylor will open in Fall 2000. Neiman Marcus, Dillard's and the specialty stores will debut in the fall of 2001. Saks Fifth Avenue is scheduled to open in 2004.

Almost 750,000 people with annual household incomes averaging $82,000 live within ten miles of the center, and that number is expected to grow by more than 13 percent in the next five years, said Taubman Centers Executive Vice President William S. Taubman.

The new mall is a 100-acre site located on the northwest corner of the North Dallas Tollway and Park Boulevard.



Fanniemae.com Enhanced For Multifamily Lenders
WASHINGTON, DC -- Fannie Mae, the nation's largest source of financing for home mortgages, announced yesterday that it has enhanced its Web site (
http://www.fanniemae.com) to help meet the needs of its multifamily lenders and business partners. The site now includes a list of Fannie Mae-owned multifamily properties -- with photos -- and a password-protected environment where multifamily lenders can access the forms and other tools needed to transact business with Fannie Mae.

The site offers multifamily lenders access to loan documents, underwriting and servicing forms and many other business tools that can be downloaded directly to the lenders' systems.



Market Profile: Austin
AUSTIN, Tex. -- Downtown Austin is busy undergoing residential redevelopment. Originally constructed in 1938, the Brown building, once office to Texas' most prominent leaders, including John Connally and Lyndon Johnson, is the first downtown residential project in more than a decade.

W. Ball Development is responsible for a new parking garage and renovation of the historic Brown building. The building has been turned into upscale loft apartments. Rents range from $875 to $1,795 per month. The units are renting at $1.10 to $1.50 per square foot, depending on the floorplan.

The building contains numerous recycled materials. Terrazzo floors were preserved, and many of the marble pieces have been incorporated into kitchen countertops and backsplashes. The lobby has been restored to its 1938 grandeur including pink, green and yellow terrazzo floors with pink marble walls. The three elevators have figures above them depicting Brown's business principles and are lit in neon.

Bill Ball of Ball Development says that it has been just recently that the market has made it possible to do residential lofts downtown. He notes that the federal tax credit for the rehabilitation of the historic structures along with a tax abatement from the city helped make the project financially feasible.

The Sutton Company has 39 lofts at Brazos and Fifth Streets. Plans are underway for the Reddy Ice Building at Tenth and Red River. The building will include retail and residential uses. Another project is in the design phase for a 352-unit center between Caesar Chavez and Third Streets just west of Congress Avenue.


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February 9, 1999

Justice Department Sues Over Disability Access

WASHINGTON, DC -- The U.S. Justice Department yesterday sued a Las Vegas builder, an Arizona architect and a Texas corporation for not providing accessible housing for persons with disabilities.

The lawsuit, filed in U.S. District Court in Las Vegas, alleges that Camden Property Trust, a Texas real estate investment trust; Camden Subsidiary II, Inc., an operating arm of Camden; George Tibsherany, a Scottsdale, Arizona, architect; Robert V. Jones, Inc., a Las Vegas builder; and Becker Built, a Las Vegas development partnership, violated the federal Fair Housing Act by engaging in a "pattern or practice" of discrimination based on disability.

The lawsuit alleges that the defendants violated the Fair Housing Act by failing to design and construct dwellings so they are accessible to individuals with disabilities. Under the law, multifamily dwellings must meet certain accessibility requirements if they were designed for occupancy after March 13, 1991, and are within a building served by an elevator or on the ground floor of a non-elevator building. Only dwellings with four or more units are covered.



Texas Licensees Learn By Long Distance

COLLEGE STATION, Tex. -- Small groups of Texas licensees in Midland-Odessa, Abilene and San Angelo received two hours of Mandatory Continuing Education (MCE) credit last week. What made the class unusual was the fact that all three groups were hundreds of miles apart but enrolled in a class being taught in College Station.

Forty licensees participated in the first-ever distance-learning MCE class offered in Texas. While instructors spoke live to an MCE class in the Lowry Mays College & Graduate School of Business, their presentation was sent simultaneously to the other three sites.

Licensees at all four locations could hear, see and question the instructors. While the MCE class was open to all licensees, local boards of Realtors handled registration and attendance.

"Bringing quality MCE to the less-populated regions of Texas is our goal," said Malcolm Richards, director of the Real Estate Center at Texas A&M University. "We are fortunate that The Texas A&M University System has the technology in place to allow such instant, wide-spread presentation of classes."

"The Center appreciates the cooperation of The University of Texas -- Permian Basin, Abilene Christian University and the Texas Agricultural Experiment Station in providing classrooms at the remote sites," he said.

Sending an MCE class long-distance was made possible by the Trans-Texas Videoconference Network (TTVN). This group not only provides videoconferencing services, it also serves as a wide-area network infrastructure providing Internet and intranet service to more than 100 Texas locations.



Market Profile: Denton
DENTON, Tex. -- This city of 73,000 residents finds itself in the midst of a real estate boom. Few homes for less than $100,000 can be found, apartment occupancy averages 98 percent and new businesses are opening here to take advantage of the city's proximity to Dallas and Fort Worth.

"With an ideal location at the intersection of Interstate 35 East and West, Denton is targeted for growth, and the outlook is positive," says Jennifer S. Evans, a Real Estate Center research associate. "Access to a trained work force, Alliance and DFW airports and railroads add to the success of Denton."

Like airplanes from nearby airports, the residential market is taking off.

"Cities along I-35 East, such as Corinth and Lake Dallas, are seeing rapid residential growth," says Evans. "In Denton, during the last five years, an average of 270 single-family permits were issued."

According to Barbara Russell of Barbara Russell Realtors, the tightest market right now in Denton is for homes priced less than $100,000. Apartments cannot be constructed fast enough to meet the growing demand.

"Despite the steady increase of rental rates over the past several years, occupancy rates are averaging 98 percent. Even the addition of several new apartment complexes has not brought occupancy rates down," she says.

The downtown square has seen the addition of new apartments on top of retailers. The average rent for these units is more than $1 per square foot. There are currently 16 units on the downtown square with plans to add more. According to June McNeill with Denton Economic Development, a 2,500-acre retirement community is under consideration.

"The city also is a target for biotechnology, electronics, instruments, aircraft and metal-working industries," says Evans. "Denton Economic Development has attracted United Copper, which is opening a 420,000-square-foot facility and will employ 260 people in its first year. In addition, International Isotopes has recently purchased a 92,000-square-foot facility and will employ 100.

The University of North Texas (UNT) and Texas Woman's University have a major impact on the Denton area. UNT has more than 25,000 students and is the city's biggest employer with more than 5,500 employees.

Employment here has remained low for several years. The average unemployment rate for the first half of 1998 was 2.2 percent for Denton County and 3.2 percent for the city.

"Two reasons for the low unemployment rate are the high education level of the labor force and close access to jobs throughout the Metroplex," says the Center researcher. "The biggest challenges facing the city are a lack of manufacturing space and infrastructure. Leaders are working on attracting speculative builders to the area. The city is actively working with the planning department on a comprehensive plan to address infrastructure issues."



EPA Seeks Large Penalty For Gasoline Leaks
DALLAS, Tex. -- The U.S. Environmental Protection Agency (EPA) has filed a complaint against Ultramar Diamond Shamrock Corp., previously operating as Total Petroleum, for repeated violations of underground storage tank regulations at 11 locations. The EPA is proposing a fine of $671,748, the largest penalty issued in the five states of Region 6 that includes Texas.

"This complaint underscores the seriousness of the danger we all face from underground storage tanks that do not meet federal standards for leak detection and prevention. Within the last four months in the Dallas area alone, two neighborhoods have been evacuated after gasoline leaked from underground storage tanks into sewer lines. In one instance, 55 families were displaced for nearly a week as emergency crews worked to stop the leak and to prevent explosions," EPA Regional Administrator Gregg Cooke said.



Remodeling Facts
Source: National Association of Home Builders

-- About 43 million U.S. homes are more than 40 years old. The entire stock's median age is 28 years.

-- Of the more than 13 million homes that were vacant in 1996, most were second homes used occasionally or seasonally or were on the market for sale or rent. Others were already sold or rented and awaiting occupancy, undergoing renovations, part of a real estate settlement or vacant but not on the market for other reasons.

-- Besides enhancing the current owner's enjoyment of a home, an updated kitchen can resell for more than 100 percent of its cost within the first year, according to Remodeling magazine. A bathroom addition can bring a 92 percent return on investment at resale.

-- Many owners of houses built in the 1950s, '60s and '70s are adding features now available in new houses. So, the remodeling industry can expect about a 5 percent annual growth rate through 2005.


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February 04, 1999

North Texas Tops Price List For 1998

COLLEGE STATION, Tex. -- Five of the six highest median existing home prices in 1998 were in North Texas cities. Plano was tops with $156,400. Denton was second with $127,800, followed by Northeast Tarrant County at $123,600. Rounding out the top six were Irving ($121,800), Austin ($117,800) and Dallas ($117,600).

Port Arthur ended the year with the state's lowest median priced home -- $57,900. The overall median for existing homes sold by Multiple Listing Services (MLS) in the state's largest metropolitan areas was $96,400 -- 6 percent more than in 1997.

According to TRENDS, the monthly statistical report published by the Real Estate Center, there were 168,674 homes sold by major Texas MLSs in 1998. Houston led the state with 48,709 homes sold, 20 percent more than last year. Dallas followed with 38,960 -- a 17 percent increase. Austin and San Antonio MLSs sold 15,331 and 13,102, respectively.

Higher homes sales reduced the state-wide inventory of homes by 24 percent to 5.2 months. Garland and Irving ended 1998 with the smallest inventories -- 3.1 months each. The estimated days-to-sell the typical Texas home dropped 24 percent from the previous year to 79 days.

For more 1998 statistics, visit the Center's Web site at http://recenter.tamu.edu.



$14.4 Million To Help North Texas Families Buy Homes
DALLAS, Tex. -- More than 200 low- and moderate-income families living in Tarrant County now will have access to down payment and closing cost assistance through a $14.4 million bond purchase agreement between the Tarrant County Housing Finance Corporation (HFC) and Fannie Mae.

Fannie Mae purchased the entire $14.4 million, single-family, tax-exempt bonds issued by the Tarrant County HFC. Bond proceeds will be made available to fund first mortgages for qualifying homebuyers and will include down payment and closing cost assistance equal to 3.5 percent of their mortgage loan amount. The interest that homebuyers pay, 6.65 percent, is less than the standard market rate for mortgage loans with no down payment assistance. Homes must be located within Tarrant County, Arlington or Grand Prairie to be eligible for the program.



Pasadena Power Plant Expansion Funded
SAN JOSE, Calif. (BUSINESS WIRE) -- Calpine Corporation announced today it has raised $265 million to complete construction of a 510-megawatt expansion of its Pasadena, Texas, power plant.

Calpine, the largest independent power producer in Texas, broke ground on the Pasadena plant expansion in November. The company expects electricity production to begin in June 2000 in time for peak summer power demands. The Pasadena Power Plant currently generates as much as 240 megawatts of capacity. With the expansion, it will generate enough electricity to power 750,000 households.



Home Entertainment Of Texas Sold
CANTON, Mass. (BUSINESS WIRE) -- Tweeter Home Entertainment Group, Inc., announced yesterday that it has purchased Home Entertainment of Texas, Inc., a company that has been in business 42 years. Home Entertainment has four stores in Houston, three in Dallas and a retail revenue of some $25 million for the year ending June 30, 1998.

Tweeter Home Entertainment Group, Inc., was founded in 1972. The company is a specialty retailer of mid- to high-end audio and video consumer electronics. The company's 1998 revenues were $232.3 million.



Valentine's Day And Real Estate
Among the contenders for the city with the most romatic-sounding name: Valentine, Texas, population 234.

According to the U.S. Census Bureau, Loveland, Colorado, with a population of 44,923, is the most populous of places in the nation with the word "love" as a syllable in their name. Lovelady, Texas, is among the others.

Pennsylvania and New York could, at least in one respect, be called the nation's sweetest states. Pennsylvania has more candy-making and other confectionery product establishments (76) than any other state. New York leads the nation with the most number of chocolate anD cocoa product manufacturers. On the other hand, the Keystone State has the most persons employed in establishments manufacturing chocolate and cocoa products -- 4,684 -- nearly four times the second-place state, California.

Niagara Falls has long been considered one of the nation's more romantic places. However, Nevada is the marriage capital with 88.1 marriages per 1,000 people. (Nevada also ranks number one in divorce with 8.1 per 1,000).



Did You Know?
-- With a 15-year loan, a greater portion of the monthly payment is applied toward the principal of the loan, and total interest payments are half of what they are with a 30-year loan. Therefore, the loan is paid off in half the time.

-- As mortgage interest rates decline, fewer people use adjustable-rate mortgages. In January 1997, when fixed-rate mortgages were at 7.82 percent, 26 percent of all loans closed were adjustable. By December 1997, fixed-rate mortgages were at 7.1 percent, and ARMs had a 16 percent market share.

-- Under tax code changes enacted in 1997, mortgage interest rates and property taxes remain deductible, and profits of as much as $500,000 on the sale of a principal residence are excluded from tax on capital gains. In contrast, stock dividends are subject to income tax, and profits on the sale of stocks, bonds and other investments are subject to a 20 percent federal tax rate for most investors.

Source: 1998 Housing Facts, Figures and Trends published by the National Association of Home Builders.


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February 02, 1999

Fannie Mae Enhances Multi-Family Bonds

WASHINGTON DC -- Fannie Mae, the nation's largest source of financing for home mortgages and multi-family housing, today announced that in 1998 it was the largest provider of credit enhancement in the United States for multi-family, tax-exempt bonds.

According to statistics compiled by Securities Data Company, Fannie Mae provided nearly $680 million in credit enhancement for 67 multi-family, tax-exempt bond issues. In the past four years, the company has credit enhanced nearly $3 billion in multi-family, tax-exempt bonds.



Homebuyers' Purchasing Power Rises
WASHINGTON DC -- Low mortgage rates and higher median family income boosted the home purchasing power of the typical American family in the fourth quarter, according to the National Association of Realtors (NAR).

NAR's composite housing affordability index for the fourth quarter 1998 was 138.3, an increase of 5.7 percentage points from 132.6 reported in the third quarter. The index is 6.8 percentage points higher than the same quarter a year ago when it was 131.5

The fourth quarter index shows that half of the nation's households had at least 138.3 percent of the income needed to purchase a home at the fourth quarter median price for a single-family home, which was $131,000. This means that a family earning the median income of $45,735 could afford a home costing $181,200.



What First-Time Homebuyers Want
DALLAS, Tex. -- So what do first-time buyers want? According to the "Keeping up with the Jetsons" report on housing industry trends and influences, first-time buyers, many of whom are Generation Xers, are more comfortable with technology, and they desire the latest in home entertainment and computers.

"First-time buyers are a little bit more technically savvy. They want the latest and greatest to play around, including media rooms and computer networking," says Cynthia Pawlowski, senior product manager for Lucent Technologies.

"They're the group that knows nothing else but this technology, and they're going to want to be able to use it. They don't know what it's like to be without a computer or MTV. They're really keyed into this as they've been using the technology a lot longer than the baby boomers," she said.

Experts say first-time buyers also are more interested in environmental and energy-conservation issues.

"If you look at the first-time buyer -- in their mid-twenties, probably married -- they're going to be looking for products that are going to save them money when they heat and cool the home and that have some kind of environmental appeal," says Alswinn Kieboom, product manager for insulation, Tenneco Building Products. "This generation is going to be more in tune with that kind of thing than the baby boomers."

And, like their older counterparts, first-time buyers are looking for maintenance-free products.

"I don't think it would occur to them to paint their house because they see their baby boomer parents moving away from all that," says Barbara Dennis, director of marketing-siding for CertainTeed Corporation. "They're going to be the ones who want to be out with their friends and down on the shore on weekends partying."

Here are observations in the report prepared by Dragonette, Inc., for the National Association of Real Estate Editors, and released at the recent NAHB International Home Builders Show in Dallas.



Building Named For Borlaug
COLLEGE STATION, Tex. -- Texas A&M University Board of Regents has announced that the Center for Southern Crop Improvement will be named in honor of Nobel Laureate Norman Borlaug.

The decision makes a rare exception to the policy of naming a university facility after a current employee. Borlaug, who won the Nobel Peace Prize in 1970, is a distinguished professor of international agriculture at Texas A&M and spends fall semesters teaching and lecturing on his research and foreign experiences.

Borlaug currently is in Mexico but will be present when the building is dedicated. The scientist is credited with developing a high-yielding, short-strawed, disease-resistant wheat.

The Norman E. Borlaug Center for Crop Improvement is a $16 million complex funded by state and federal entities including laboratories for more than 70 scientists, staff and students. It houses DNA technology service laboratories, a plant science teaching lab, state-of-the-art plant growth chambers and 35,000 square feet of greenhouse space.



Re/Max Growth Best In History
GREENWOOD VILLAGE, Colo. -- For global franchisor RE/MAX International, 1998 was the best year ever in franchise sales and sales associate growth. The company closed the year with 531 franchise sales and 51,624 members in 3,186 franchised offices. The numbers were 39 percent better than 1997 franchise sales and 9.6 percent more sales associates.

RE/MAX was founded 26 years ago. It has offices in 27 countries. In 1998, Spain added 46 new franchises, the Kentucky-Tennesse region 29 and Italy 28.



Web Site Records Record Hits
COLLEGE STATION, Tex. -- A record number of persons -- 16,516 -- visited the Real Estate Center's Web site during January. In the process, they recorded 255,488 raw hits on the site, also a record.

The previous record of 15,136 users and 227,087 hits was recorded in October 1998.

Building permits were the most popular Web site area visited -- nearly 12,500 hits. Cybersites (the Center's listing of 5,000 real estate related links) was second with nearly 6,500 hits. News releases and the lastest issue of RECON was a close third with 6,190 hits.

Other popular areas visited on the Center's Web site were: population and employment data and the Center's publications catalog.

In all, the Center's Web site has some 12,000 pages of free news, information and statistics. Visit it at http://recenter.tamu.edu.



Did You Know?
-- Typically a home is the largest share of a household's net worth. In 1993, home equity accounted for 44 percent of the nation's total net worth, nearly four times as much as the second and third largest shares -- interest earning assets (11.4 percent) and other real estate (11.3 percent).

-- In 1997, slightly more than one-third of all households could afford to buy a median-priced new home. Despite high household incomes, the cost of building a new home has grown faster than incomes have increased.

-- Mortgage interest rates are one of the most important factors affecting housing affordability. A $100,000 mortgage at a 7 percent interest rate has a monthly principal and interest payment of $665; if interest rates increase to 9 percent, the same home loan costs the homeowner $805 a month, a difference of $140.


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January 28, 1999

Designing Homes For Generation X

DALLAS, Tex. -- Home builders attending the International Home Builder's Show held here earlier this month were given pointers about designing homes for first-time buyers, especially the so-called Generation-Xers.

In short, they:

-- have median incomes of about $40,000 per person; -- are living at home a lot longer than earlier generations; -- have high expectations, want what their parents have; and -- prefer quality over quantity.

Builders were told the focus of the house should be on the media room. Kitchens, breakfast rooms and great rooms all focus on television. Built-in cabinets are a great feature because first-time buyers often do not have much furniture. A "media wall" for a big screen TV is a plus.

The house should have lots of electrical outlets and cable jacks for television and telecommunications. Gen-Xer couples are often both working, so there should be less emphasis on cooking and more on carryout.

Wide open kitchens are desired because they are viewed as part of the home's entertainment space. The master suite needs two work zones because both people are getting ready for work in the morning. The exterior design should be traditional because Gen-Xers want the same quality as their parents have.



What Property Managers Can And Can't Ask Prospective Tenants
DALLAS, Tex. -- The Fair Housing Act establishes protected classes of people who are protected from housing discrimination. Protected classes must be able to choose where they live. The federal government enforces the Fair Housing Act by sending out "testers" to see how property managers treat potential tenants.

A white tester posing as a possible tenant will ask about renting an apartment and record the treatment given by the property manager. The tester of a different ethnic background will ask about renting in the same apartment complex.

It is important that property managers treat each person the same way. Experts at the International Home Builder's Show in Dallas recently suggested that each manager have a checklist of all the amenities of their apartments and discuss these with each client. In so doing, the manager is protected from discrimination claims.

A new wrinkle in the interpretation of the Fair Housing Act is that the "handicapped" class of protected persons is now interpreted to include mentally as well as physically handicapped. Consequently, if a person claims to need their pet to live with them in their apartment for mental well-being, it could be constructed that the pet is a "service animal" (such as a seeing eye dog). The Fair Housing Act requires owners to allow the pet, even if they have a no-pet policy.



Marketing To Active Adults
DALLAS, Tex. -- Those attending the International Home Builders Show here this month heard active adults defined as people age 55 or older with money to spend and a reluctance to move to another home.

Experts estimate that 10 to 12 percent of these people are inclined to move from their current housing into an active adult community," says Dr. Mark Dotzour, chief economist for the Real Estate Center. "Of these, 60 percent want to stay in their current geographic location. Forty percent would consider moving to a new location in other regions or states."

People like to retire near where they grew up because they want to be near family and friends. Many of these clients are cash buyers. They want single-family detached houses often 1,300 to 2,700 square feet. Most buy one-story designs.

Active adults are looking for comfort, familiarity, security and manageability. Convenience to leisure activities and medical facilities are benefits they like. Some new communities are built around golf courses, and some have large, elaborate community centers.

Some universities -- such as Princeton, Cornell and the University of North Carolina -- are starting to develop "active adult" housing near their campuses because seniors enjoy continuing education.



Seedling Shortage May Delay Reforestation
OVERTON, Tex. -- Landowners thinking about pine tree reforestation this spring may have to think twice if they did not order seedlings last year.

Because of recent droughts, Texas pine tree nursery operators are predicting a four-year shortage, according to Dr. Eric Taylor, forestry specialist with the Texas Agricultural Extension Service. However, because nearly all nurseries are stepping up production and increasing plantings, Taylor says the shortage may last only two years.

"But only if there is not another drought," he said. "There's a great deal of evidence suggesting we may have drought summer conditions for the next decade or so."



Texas Oil And Gas Unemployment Quadruples
AUSTIN, Tex. /PRNewswire/ -- Sustained low oil prices are taking their toll on the Texas economy, according to the Texas Independent Producers & Royalty Owners Association (TIPRO).

Since January 1998, the beginning of the present price collapse, state unemployment insurance claims for the mining industry have increased 304 percent -- up from 1,171 to 4,730. In Texas, oil and gas extraction accounts for more than 90 percent of the mining industry.

In response to the lay-offs, TIPRO launched a no-cost Internet job bank this week to place unemployed oil and gas workers with employers who have high-paying field and office jobs. The job bank is located at http://www.energyconnect.com.



Largest Lease In Alliance History Executed
FORT WORTH, Tex. /PRNewswire/ -- Hillwood Development Corporation has signed a 20-year lease with Randalls Food Markets -- parent company of Randalls, Tom Thumb and Simon David Stores -- for 976,471 square feet of space in Gateway 50 in the Alliance development. In terms of square footage, the lease is the largest ever executed by Hillwood, the largest in North Texas since 1997 and one of the largest in the United States.

Hillwood recently purchased the 1,264-million-square-foot Gateway 50 building from Food Lion. Firms to lease the remaining square footage are being sought.

Randalls Food Markets, Inc., is a privately owned, Texas-based supermarket chain with net sales of some $2.5 billion. It operates 50 Randalls stores in Houston, 12 in Austin and 56 Tom Thumb stores in the Dallas-Fort Worth area.



Group Selected To Manage And Lease 1010 Lamar In Houston
HOUSTON, Tex. /PRNewswire/ -- PM Realty Group announced this week it has been awarded the exclusive management and leasing contract for 1010 Lamar, a downtown Houston office building, by owner Koll Bren Fund, a private investment group.

The property is a 255,115-square-foot office building located in Houston's Central Business District. Currently 70 percent occupied, the 19-story atrium-style building's major tenants include Vanguard Geophysical, Williamson Oil & Gas and Houston Energy.


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January 26, 1999

December Home Sales Hit Record

WASHINGTON DC, /PRNewswire/ -- Driven by steady economic growth, low unemployment and extremely favorable housing affordability conditions, the 1998 housing market posted an all-time high number of sales, boosted in part by a record number of sales recorded for December, the National Association of Realtors reported yesterday.

Preliminary figures from the association show that sales of existing single-family homes in 1998 reached an actual total of 4.78 million units, marking the highest sales total on record. The previous record was posted in 1997 when sales reached 4.21 million units.

NAR President Sharon A. Millett said the record sales were the result of a continuing flood of first-time and move-up buyers cashing in on the benefits of stable, low mortgage interest rates. In addition, Millett noted that the inventory of homes on the market also hit a record low in December. There were 1.58 million homes available for sale in December, a 3.8-month supply at last month's sales rate.



Buyers Seek Modern-Day Version Of "Home Sweet Home"
DALLAS, Tex. -- As people spend more time in their homes, some fundamental emotions -- safety, comfort and health -- emerge to drive their needs. To appeal to these needs, manufacturers have developed new lines of products including clean air systems, security systems and stronger construction materials.

These updated ideas of "Home Sweet Home" were included in a new study, "Keeping up with the Jetsons," from the National Association of Real Estate Editors and Dragonette, Inc. The report was unveiled at the 1999 International Builder's Show in Dallas recently.

When it comes to the home, the study says:

-- The average new homebuyer expects to stay in their castle more than 15 years. -- More than 46 million Americans work full or part-time at home-based businesses and as much as 20 percent of the work force is now telecommuting at least two days a week. -- On average, Americans spend approximately 90 percent of their time indoors. -- The Healthy House Institute credits the "tight construction" movement and the use of synthetic building materials for the creation of indoor air atmospheres that are five to ten times worse than outdoor air. -- Some medical groups report as many as half of all illnesses are caused by indoor air pollution, and more than 50 percent of consumers report a willingness to pay premiums for systems and materials that promote a healthy home environment. Some are willing to add as much as $3,000 to the price of their homes. -- Security also is high on consumers' list of core values. Builders are responding with more than 79 percent pre-wiring homes or installing home security systems.

According to the new report, the home-building industry faces many challenges, many of them related to technology and new products. Already hit hard by a shortage of skilled labor, many homebuilders are reluctant to introduce new products that cannot be easily installed.



San Antonio Inn Launches $2.2 Million Renovation
SAN ANTONIO, Tex. (BUSINESS WIRE) -- The Holiday Inn Select-San Antonio International Airport is launching a $2.2 million renovation of the hotel's guest rooms and some public areas. This is the second and final phase of a comprehensive $4.2 million makeover.

In the latest phase, each of the hotel's 397 guest rooms will receive new carpet, drapery and bedspreads. About one-third of the guest rooms will be completely refurbished with new lighting, wall coverings and furniture. The hotel's ballroom -- the 5,600-square-foot Hill Country ballroom -- is receiving a complete renovation with new floor and wall coverings, lighting and furniture. Construction is slated for completion in June.



Fewer Home Sales Predicted
BATON ROUGE, La. (BUSINESS WIRE) -- Total U.S. home sales and housing starts will each decline slightly in 1999 from the spectacular levels set in 1998. But according to a leading national economist, sales will remain strong by almost any measure.

Dr. David Lereah, chief economist for the Mortgage Bankers Association in Washington, DC, forecast that both home sales and housing starts will slip by only 4 percent in 1999. Speaking at the Hibernia National Bank Mortgage Rally in Baton Rouge, La., Lereah forecast that both home sales and housing starts will slip by 4 percent in 1999.

Lereah also delivered good news for potential homebuyers and consumers in Louisiana, Texas and Mississippi. He forecast personal incomes and jobs will grow in all three states this year and mortgage rates nationally will average 6.5 percent. Fixed-rate, 30-year mortgage rates will fall to an average of 6.36 percent in 1999 compared to 6.94 percent in 1998, he said.



U.S. Restaurant Buys 22 Spaghetti Warehouse Properties
DALLAS, Tex. /PRNewswire/ -- U.S. Restaurant Properties, Inc., announced today it has completed the acquisition of 22 restaurants from Spaghetti Warehouse for $27.75 million.

The purchase includes 19 restaurants in the United States and three parking lots associated with three of them. U.S. Restaurant Properties acquired the properties in conjunction with Consolidated Restaurant Companies (CRC) $62 million acquisition of Spaghetti Warehouse. CRC will retain and maintain all restaurant operations.

CRC owns and operates 113 franchise or joint venture full-service or casual dining restaurants. They are a privately held company located in Dallas.

U.S. Restaurant Properties, Inc., is a real estate investment trust that owns or manages 865 properties on which Burger King, Arby's, Chili's and other fast food and casual dining restaurants and service stations are located.



Did You Know?
-- Today's typical new single-family home has more than 2,100 square feet of living space or 475 more square feet than the typical home built in 1975. -- A well built home can last for centuries, but many of its parts must be replaced or refurbished on a regular basis. Most appliances have a life span of between ten and 20 years. Ceramic tile countertops, on the other hand, can last a lifetime. -- The collective might of the housing industry is huge -- accounting for about four cents of every dollar spent in America each year. -- For every $5,000 increase in price of homes in the $100,000 to $150,000 range, about two million households are priced out of the market. Of those, approximately 80,000 to 98,000 were likely to buy a home. -- Annual average mortgage interest rates in 1981 and 1982 were more than 16 percent -- the highest interest rates ever. Rates fell below 10 percent in 1991 and have remained low throughout the decade.


Top of Page

January 22, 1999

More Surprises in 1999?
DALLAS, Tex. -- Can the stunning surprises of 1998 be repeated in 1999, or will the above-trend performances of housing and the economy give way to weaker performances this year? The answer was provided during the recent National Association of Home Builders (NAHB) International Home Show by David F. Seiders, NAHB senior vice president and chief economist.

"It's clear that both housing and the economy closed out 1998 with good forward momentum," said Seiders in a report to the NAHB executive committee. "But it's also clear that the U.S. economy faces mounting challenges that most probably will slow down the ship as 1999 progresses."

Seiders listed these key challenges for 1999:

-- The global economic slowdown has not yet bottomed out, and the U.S. trade balance will continue to deteriorate in 1999 despite some weakening of the dollar from last year's highs.

-- Foreign sector contraction will continue to squeeze U.S. corporate profits for the second year in a row.

-- Although a bona fide credit crunch has been averted, a credit squeeze is likely to persist in 1999, limiting borrowing and spending by marginal firms and households.

-- The stock market appeared to be overvalued at the end of 1998. The anticipated squeezes on profits and credit will put downward pressure on share prices in 1999. Interest rates are not likely to fall enough to offset these downward pressures.

-- Strong capital investment and slowing factory output during 1998 have generated some excess capacity in the industrial sector. Slack corporate profits, combined with higher costs of capital, will limit growth of business fixed investment in 1999.

-- The household sector spent profusely in 1998, driving the personal saving rate to record lows; at the same time, accumulation of wealth in the stock market lifted household net worth (per capita) to record highs. Any reversals in the stock market could have pronounced negative effects on consumer confidence and consumer spending in 1999.

-- Above-trend levels of housing market activity were supported by stock market gains, falling interest rates and favorable lending standards throughout most of 1998. These supports are likely to weaken in 1999.

-- Strong job growth in 1998 reflected declines in the unemployment rate to 30-year lows as growth of the civilian labor force stabilized at a sustainable 1 percent annual rate. The unemployment rate is likely to rise in 1999, and employment growth should slow substantially.

-- The Federal Reserve will guard against recession in 1999, but the Fed probably would like economic growth to fall to less than trend (around 2.5 percent) for some period to ease pressures on labor markets. The Fed shifted back to a neutral inter-meeting policy at the November 17 meeting of the Federal Open Market Committee. Some committee members stressed that extremely tight labor market conditions have been putting pressure on labor costs. Others noted that recent acceleration of money and credit aggregates could have inflationary consequences down the line.



San Antonio Benefits From State, National Trends
SAN ANTONIO, Tex. -- Community leaders here heard what they wanted to hear. Experts at the 14th Annual Housing Forecast see another good year ahead. Here's a summary.

"Current consumer confidence levels remain high as we enter 1999, indicating a strong demand for housing purchases in the next six months. The number of people indicating they intend to buy a house in the next six months is still increasing, and national surveys indicate nearly 70 percent of homebuilders say current sales are good in their areas," said Dr. Mark Dotzour, chief economist for the Real Estate Center.

Dotzour noted that the combination of low interest rates, positive job growth and relentless population growth are the fuel for the red-hot Texas real estate market.

Dr. Steve H. Murdock, Department of Rural Sociology, Texas A&M University, said, "Texas will very likely enter the next century with more than 20 million persons. In just the first seven years of this decade, Texas added nearly 2.5 million -- equivalent to another Houston and another San Antonio. If current growth rates, continue, Texas will increase in population by nearly 100 percent between 1990 and 2030.

"No factor is more important to Texas than the growth of its minority population. Forty percent of Texans were minority in 1990. By 2008, Texas will be less than half Anglo, and by 2030, the state will be 46 percent Hispanic."

At least one expert sees a cooling of the hot market, however. Jack Inselmann, market research analyst, predicted 1999 single-family housing starts in San Antonio would drop some after six straight years of increase. Still, he predicted more than 7,000 single-family starts.

Norman Dugas Jr., president of Dugas Diversified Developments, expressed concern that new regulatory programs are raising housing costs in San Antonio. "You know you are dealing with someone who knows nothing about the industry if they use the term 'uncontrolled development.'" He said development is the most highly regulated industry in San Antonio, and new regulations are affecting residential development in a direct, substantial manner.

"About 30 percent of mortgage loan applications will be originated over the Internet by the year 2005 compared to 10 percent this year," said Ruben Pena, 1999 president of the San Antonio Board of Realtors in a discussion of how technology is changing real estate. "By the year 2,000, 78 percent of all Americans will have an Internet e-mail address," he said. "In addition to providing relocation information, new, free Web sites are designed to introduce moving families to top service providers in real estate, mortgages, moving and other related industries."



Small Dip Noted In Weekly Mortgage Rates
McLEAN, Va. -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year, fixed-rate mortgage (FRM) averaged 6.78 percent, with an average 0.9 point, for the week ending Jan. 22, 1999. This was down from last week's average of 6.83 percent. A year ago the 30-year FRM averaged 6.99 percent.

The rate for one-year treasury-indexed adjustable-rate mortgages averaged 5.57 percent this week, with an average 1.1 point.

The average for 15-year FRMs this week was 6.42 percent, with an average 0.9 point.

"Mortgage rates are down a little this week, mostly on news of Brazil's financial problems," said Robert Van Order, chief economist for Freddie Mac. "We expect, though, that rates will remain at or near this level well into 1999, fluctuating only slightly over time.



National Housing Starts Surge
WASHINGTON DC (BUSINESS WIRE) -- The Commerce Department announced this week that new housing starts grew by 3.5 percent in December, reaching an annualized rate of 1.72 million units. That is the highest since March 1987 when the rate of new housing starts was 1.726 million units.



Did You Know?
-- Babyboomers first entered the housing market in the 1970s, pushing total housing starts for the decade to a record 17.7 million units. More than one-third of the new units were multi-family homes, reflecting the strong demand for apartments created by the first wave of boomers.

-- New home sales are expected to total 6.79 million for the decade of the 1990s. Low interest rates, generally healthy economic conditions and steady growth in the number of U.S. households have all contributed to a strong housing market in the 1990s.

-- The median price of a typical new home has almost tripled in the past 20 years, increasing from $48,800 in 1997 to $144,500 in 1997, or close to 6 percent per year. The big spurt in home appreciation occurred during the 1980s when the median price increased from $69,300 in 1982 at the end of the recession to $120,000 in 1989, shortly before the next recession began. Since then, year-to-year price increases have moderated.

Source: National Association of Home Builders


Top of Page

January 19, 1999

Keeping Up With The Jetsons: Home Building Trends

DALLAS, Tex. -- Tomorrow's American home will be one increasingly designed for modern lifestyles where homeowners stay in their nests for both work and play and use the latest technology for entertainment and the home office. Homes will feature more customized and comfortable living spaces, easy-to-use technology and materials built for durability and low maintenance.

Architects will use computer design software to quickly customize floor plans for buyers. Manufacturers will develop more environmentally friendly and zero-maintenance products. Builders will continue to replace wood with steel and concrete and install upgraded wiring to satisfy the demands of a "connected society."

These are among the findings in a study released this weekend at the International Home Builders Show in Dallas. The study was conducted by Dragonette, Inc. and the National Association of Real Estate Editors. Twenty-four industry leaders provided their perspectives on the future of the American home and critical issues driving decision-makers who determine how home products will change in the next decade.

Here are the findings at a glance:

-- The home automation industry is expected to explode from $2 billion to $20 billion by 2005. -- It took 77 years for land lines to reach 50 million homes. Now, more than 45 million Americans will own two or more personal computers by 2002. -- More than 65 percent of homes with personal computers will have Internet access, while on-line traffic continues to double every 100 days. -- More than 59 percent of consumers building new homes say they will pay as much as $5,000 for advance wiring.

Development of the so-called "smart home" has received much attention in recent years. At first, home automation seemed directed at the seemingly frivolous -- such as automatically starting the coffee pot while you are still in the shower. Today, however, the real applications of home automation are those that have measurable impact on consumers' lives.

Experts say people are spending more time in their homes, setting up offices for telecommuting and entertainment centers for recreation. Homeowners want energy-efficient appliances that operate during periods when electricity rates are lowest. They want heating and air conditioning units that automatically regulate temperatures. And, homeowners want simple, reliable security and lighting systems.

Here's what the experts say the "smart home" will contain:

-- STRUCTURED WIRE AND HEAVY-DUTY CABLING that enables homeowners to receive large amounts of electronic data for their personal computers, televisions and telephones. The demand for structured wiring is driven by a variety of consumers who want Internet access to do research and hold video conferences. With structured wiring, homeowners can distribute signals from one VCR to multiple televisions within the home and be connected to the Internet, cable, local and long-distance telephone calls and satellite.

-- ADVANCED CONTROL SYSTEMS employ computer technology to control appliances. Some appliance makers have introduced dishwashers that automatically operate when electricity rates are lower. Heating and air-conditioning companies are introducing systems programmed to operate at different temperatures and varying times of the day. Automated homes will know homeowners don't need hot water in the middle of the night and adjust the water heater accordingly.

-- REMOTE CONTROL SYSTEMS also are being developed in which security systems, appliances and lighting can be programmed from remote locations. If you are on vacation, you can call ahead and set the heater or air conditioner.

Voice recognition is coming to home building. Some day, it's going to be like Star Trek where you enter a room and only have to say, "lights on." It's more than gadget, too. Just think about the benefits to people in wheelchairs and the elderly who may have trouble finding a light switch.

The question is, how much are people willing to pay for a "smart house?" Experts say there will be a gradual willingness to pay more. Today, modest home control systems cost $5,000 to $15,000. As home control matures, homes will be equipped with a "good night" button. When you go to bed, you touch the one button, and it arms the security system, turns on the back outside lights, checks the door locks and turns the thermostat down.



Three Named To Inspector Committee
AUSTIN, Tex. -- Three members of the Texas Real Estate Inspector Committee have been named by the Texas Real Estate Commission.

The new members are Jim Havens of Houston and Fred Buck from San Antonio. Current committee chairman Larry Foster of Austin was reappointed. Each member serves a six-year term beginning February 1.



MCE Reporting Streamlined
AUSTIN, Tex. -- Reporting requirements for Texas mandatory continuing education (MCE) have been streamlined.

At a recent meeting, Texas Real Estate Commissioners eliminated individual computer-scanned course completion cards in favor of a single roster signed by MCE attendees.

Use of the new forms is required beginning March 1.



Playing Post Office
The United States Post Office (USPS) has been in the news recently with the increase in first-class postage to 33 cents. While one-cent stamps were in short supply in some locales, post office real estate has always been abundant.

If a town only has one building, it is likely to be a post office. In fact, USPS owns 6,947 buildings with 168 million square feet. The post office leases 28,823 additional buildings totaling 98 million square feet.

The postal service's $3.7 billion transportation network includes contract space on approximately 15,000 commercial flights daily.

Source: Qtips, Quebecor Destination Services, Fall 1998.


Top of Page

January 12, 1999

Texas Home Sales, Prices Up; Inventories, Days-To-Sell Down

COLLEGE STATION, Tex. -- Through November, the number of existing Texas homes sold by major Multiple Listing Services (MLS) totaled 154,535 -- 15 percent more than the first 11 months of 1997.

At the same time, the median price of a home sold by the MLS rose 7 percent to $96,500.

The number of months inventory of unsold existing Texas homes was down 25 percent through November. The time required to sell the typical Texas home fell to an average 79 days -- 25 percent fewer than last year.

Texas single-family building permits for the first 11 months ran 22 percent ahead of the same time in 1997. A total of 79,782 had been recorded through November. The average value of a Texas home-building permit was $113,400 or 4 percent more than last year.

Permits for multifamily units were up 37 percent to 48,632. The average value of a Texas multifamily permit was $42,600 or 6 percent higher.

For more Texas statistics, see our Web site at http://recenter.tamu.edu.



70,000 Builders Converging on Dallas
WASHINGTON DC -- Dallas will host more than 70,000 housing industry professionals as the National Association of Home Builder's (NAHB) 55th annual convention kicks off this week.

More than 1,000 exhibitors will showcase their products on more than 500,000 square feet of space. Conventioneers will stroll along six miles of carpet to view displays. Nearly 2,500 carpenters, electricians and plumbers are working 24 hours a day this week to build the exhibits that cover 23 acres.



New Products For Homes Premiere At NAHB
WASHINGTON DC -- Some one million feet of exhibit space will be used at the NAHB convention to showcase new products for the home building industry. Here are some of them.

Doors and Windows

-- AFG Industries Inc. showcases its low-emissivity residential glass system incorporating ultahard titanium as a coating material. -- Builders Accessories introduces impact resistant acrylic block windows designed to be 35 percent more energy efficient than typical glass block windows. -- Pella Corporation introduces 130 new standard-size, double-hung windows and complementary fixed and curved top units. -- Protecto Wrap demonstrates its self-adhering air and moisture barrier to stop window and door leak problems. -- Weather Shield Windows and Doors presents a line of vinyl exterior doors that allow homeowners to choose either in-swing or out-swing capabilities.

Construction Materials

-- American Structural Composites Inc. displays a 100 percent fiberglass modular home assembled from unitized wall panels. -- Anchor Residential Wall systems introduces retaining wall blocks that are easy to install, long lasting and perfect for residential and commercial landscapes. -- Bomanite Corporation introduces a cost-effective cement-like colored topping system that allows unlimited color and design options for a variety of surfaces, including concrete, wood, metal, plastic or asphalt. -- Centex Corporation showcases a model concrete home using Insulating Concrete Forms as part of a demonstration project to determine how the new building method compares to conventional construction. -- Consolidated Building Components showcases wooden floor trusses using the structural power of the triangle and assembled with finger joinery and waterproof glue. -- Designed Stair Systems Inc. displays its custom-built stair systems that arrive at the construction site pre-assembled. -- Essentials Protective Coatings exhibits an environmentally friendly, latex-based, non-toxic coating that is sprayed on plumbing fixtures to make them nearly impossible to scratch or stain during normal use. -- F&S Manufacturing Inc. displays a new casting product for concrete construction tube footings made from post-consumer recycled high-density plastic that replaces wood formwork. -- Hearth Technologies Inc. showcases gas fireplaces that not only release fireplace heat outside the home but have an option to transfer heat to other areas of the home. -- Increte Systems Inc. presents a permanent indoor-outdoor stain that adds colors to existing concrete. -- Koshii Maxelum America Inc. showcases real wood decking that is weather resistant and does not crack, warp or splinter. -- Mastic/Alcoa Building Products introduces vinyl siding that forms an exterior panel that is 200 percent more rigid than standard vinyl siding. -- TREX CO., LLC displays a decking material made primarily from recycled grocery bags, reclaimed pallet wrap and waste wood. -- UStec Digital Networking Solutions presents its home electronics network that creates a local area network throughout the house, bringing telephone jacks, cable hookups and standard outlets to each and every room.

Heating, Insulation and Plumbing

-- American Aldes Ventilation Corporation introduces a multi-port bathroom exhaust system offering quiet, effective ventilation from as many as three exhaust points using one fan. -- CertainTeed Corporation's new fiberglass insulation is designed for new construction closed-cavity applications and can be installed 30 percent faster while producing less dust and fiber fly. -- FloLogic Partners, LLC introduces an automatic water shut-off device programmed to recognize normal water-use patterns in the home and prevent costly home damage associated with water-loss incidents. -- NIBCO Inc. showcases its new low-cost hot-water circulating unit, which is not a pump, uses no electricity and works with a small valve to deliver hot water to every tap within seconds.

Lighting, Security Systems and Fire Protection

-- Burley Appliances Limited introduces an electrical fireplace alternative that is 100 percent energy efficient and works without a chimney. -- Fort Knox Security Products unveils a large-sized, fire-protected, reinforced steel door easily installed in a custom, walk-in security room behind a pre-formed concrete or cement block opening. -- Square D Company displays a circuit interrupter, which combines traditional thermal-magnetic overcurrent protection with the ability to detect and interrupt electrical arcs.

Roofing Materials

-- Absolute Gutter Protection exhibits a self-cleaning rain gutter system that does not clog or overflow. -- Canplas Industries Ltd. introduces a translucent roof vent that allows natural light in and hot, stale air out. -- Celotex Corporation displays shake shingles that resemble traditional wood shake shingles but are as durable and strong as modern asphalt shingles. -- Savetime Corporation exhibits a working demonstration of its rain dispersal system which breaks sheets of water from the roof into raindrop sizes and deflects them away from the house. -- The Sun Tunnel Skylights showcases an attic fan that cools a hot attic for free. It installs in less than an hour and uses solar power to provide years of worry-free, no-cost cooling and air circulation.

Miscellaneous

-- CMI Worldwide showcases a kitchen resource center that combines television and audio/video technologies with network computing. -- Generac Power Systems displays an automatic home stand-by power system that provides an answer to emergency power needs. -- Seating Innovations displays bar stools that will not tip over, have stops on swing arms and swivels that prevent chairs from colliding with the countertop.

For names of specific products and contact names and telephone numbers, send e-mail to info@recenter.tamu.edu.



Counties To Decide Water District
COLLEGE STATION, Tex. -- Voters in Haskell and Knox counties will decide in a special election Jan. 26 whether to approve a local groundwater conservation district. If approved, the district will allow an appointed board of local citizens to regulate groundwater resources.

The two counties are located above the Seymour aquifer, one of the nine major aquifers in Texas. Groundwater from the aquifer is used primarily for agricultural production.


Top of Page

January 7, 1999

Higher FHA Home Mortgage Loan Limits Announced

WASHINGTON, DC /PRNewswire/ -- In a move that will help thousands more families become homeowners each year, Housing and Urban Development Secretary Andrew Cuomo announced Wednesday that HUD has begun insuring larger home mortgages to keep pace with rising home prices.

Cuomo said that HUD began insuring home mortgage loans on January 1 of as much as $115,200 in communities where housing costs are relatively low and loans ranging up to $208,800 in communities where housing costs are higher.

This is the second increase in the loan limits since October. The mortgage insurance is provided by the Federal Housing Administration (FHA), a division of HUD.

Before the October increases took effect, the loan limits for FHA mortgage insurance ranged from $86,317 to $170,362 -- less than the cost of most homes in many communities.

A list of new loan limits for counties in every state can be found on HUD's Web site at: http://www.hud.gov/news.html



Energy Revolution On Hold
WASHINGTON, DC /PRNewswire/ -- The retail energy revolution -- previously scheduled to have occurred by now -- is on hold. Few customers are taking advantage of the opportunity to choose electricity and gas suppliers.

Instead, there is a stunning acceleration in the consolidation of the industry into fewer players, mostly big multinational corporations. Even the biggest U.S. companies are being dwarfed by the large foreign companies acquiring prime assets.

These are the key messages in the Washington International Energy Group's 1999 Energy Industry Outlook released yesterday.

Among the other key findings:

-- Only 25 percent of companies are expected to survive the transition to competition. -- Generation is widely believed to be the most profitable business, although more than half the industry prefers to stay in the distribution business because it will remain a monopoly. -- Confidence in natural gas is high and, for the first time in many years, the industry is more confident that nuclear power plants can operate competitively. -- Three-quarters of the industry expect the new mass-market initiatives to fail.



MTBE Controversy Stirs In Texas
AUSTIN, Tex. /PRNewswire/ -- Texas state officials are calling for public comments this month on how clean fuel regulations should be extended to 100 counties, mostly in Central and East Texas.

But consumer groups and mayors of three East Texas cities are seeking to ban one gasoline additive, MTBE, after learning that some oil companies might use the controversial chemical in the proposed new clean-air area.

In a letter to members of the Texas Natural Resource Conservation Commission, mayors of Longview, Tyler and Marshall called for an outright ban on MTBE "in any new requirement for cleaner-burning gasoline in the region," according to the Houston Chronicle.

The three mayors said they have "grave concerns" about allowing MTBE to be used in clean-air gasoline in their cities and that they fear "disastrous consequences for drinking water supplies."

MTBE, methyl tertiary butyl ether, is mainly manufactured in Texas, although much is imported. It is used widely as a gasoline additive and is the second most-produced chemical in the United States.



Groundbreaking Set For Texas Resort
DALLAS, Tex. (BUSINESS WIRE) -- Groundbreaking ceremonies for a new destination resort on the Texas Gulf Coast in historic Galveston will be held Jan. 26.

Silverleaf Seaside Resort is the newest destination resort property of Silverleaf Resorts, Inc. It will be sold to Silverleaf's 75,000 members as an upgrade to their existing vacation ownership. In addition to two-bedroom, two-bath units, the property will include upscale units overlooking the Gulf of Mexico.

Based in Dallas, Silverleaf Resorts, Inc. currently owns and/or operates 20 resorts in various stages of development.



Castle Dental Buys 16 Texas Dental Offices
HOUSTON, Tex. (BUSINESS WIRE) -- Castle Dental Centers, one of the nation's largest dental practice management companies, announced this week it has purchased Dental Centers of America (DCA).

DCA is a San Antonio-based dental practice management company with annualized patient revenues of $15 million.



Citizens Communication Breaks Ground On Dallas Office
DALLAS, Tex. (BUSINESS WIRE) -- Connecticut-based Citizens Communications, one of the largest non-Bell telephone service providers in the United States, broke ground yesterday on a 250,000-square-foot corporate building in Legacy Business Park in Plano.

More than 700 employees will relocate to the new offices by the first quarter of 2000. Construction is expected to be completed by the end of this year. The new building will be on a 27-acre site on land purchased from Electronic Data Systems.

Currently, Citizens Communications is located in a 193,000-square-foot building at Three NorthPark Center, space that eventually will be subleased.


Top of Page

January 5, 1999

Homebuyers Willing To Pay More For Energy Efficiency

FAIRFAX, Va. /PRNewswire/ -- A study by ICF Kaiser Consulting Group shows that homebuyers are willing to pay substantially more for energy-efficient homes.

According to the study, which was done for the U.S. Environmental Protection Agency (EPA) Energy Star Homes Program, every $1 saved in annual utility bills can add $20 to a home's market value.

Energy Star Homes use at least 30 percent less energy than a Model Energy Code home while maintaining or improving indoor air quality and increasing comfort. EPA estimates the cost to upgrade a new home to Energy Star levels can range from $2,000 to $4,000. EPA estimates a typical Energy Star home reduces utility bills by $420 per year.

Based on the study, upgrading a home to Energy Star levels is a worthwhile investment. The $420 in annual energy savings from the upgrade can add about $8,400 - two to four times the upgrade costs -- to the home's market value.

For a summary and the full text of the study, visit ICF Kaiser's Web site at: http://www.icfkaiser.com/consulting/docs/econcomm/homeener.pdf



Water Quality Answers Online

OMAHA, Neb. /PRNewswire/ -- Consumers wanting facts about drinking water quality research and answers now have an online source.

Interesting facts are available at http://www.innowave.com. The site is maintained by innowave incorporated, a Mutual of Omaha Company dedicated to providing consumers with quality drinking water.

At the site, consumers can surf environmental feature stories, download an industry-standard white paper, link to other informative water sites or be referred to experts.



Retailing Update: Mall Sales Up 5.3 Percent

Last-minute shopping helped push sales in U.S. regional malls up 5.3 percent for the holiday season, Nov. 27 through Dec. 24, compared with the Thanksgiving-to-Christmas period last year, according to the International Council of Shopping Centers.

Exceptionally strong sales from Monday, Dec. 21, through Thursday, Dec. 24, helped pick up what had been a lackluster early selling season, the result, in part, to unusually warm weather around the country.

Home furnishings led all categories -- up 11 percent for the season. Jewelry followed with a 9.9 percent increase. Sales of cards, gifts and books were up 7.6 percent, while home entertainment sales rose 6.4 percent. Apparel sales climbed 2.8 percent.

The ICSC holiday report includes sales from more than 2,500 specialty stores in 48 regional malls across the United States. The sample does not include sales from department stores and other mall anchors.



Nature Tourism Takes Hold In Texas

COLLEGE STATION, Tex. -- Traditional Texas farms and ranches can't always rely on crops and cattle for the income they need, so the Texas Agricultural Extension Service is looking for ways to help them bring nature tourists into the mix.

It's all part of an effort to help landowners identify new revenue opportunities on their lands and diversify their operations, says Dr. Carson Watt, extension specialist in recreation, park and tourism sciences.

Watt says nature tourism is not for everyone, but there is enough potential for added revenue to make it worth exploring.

In January, partners in the new effort will meet here to begin planning for a state-wide nature tourism workshop in the spring of 2000, continue planning for a Web site focused on producer and consumer information regarding nature tourism, and begin compiling information landowners have identified as necessary for making nature tourism decisions.



American Homestar Buys R-Anell Homes

HOUSTON, Tex. (BUSINESS WIRE) -- American Homestar Corporation announced today it has completed the purchase of R-Anell Custom Homes, Inc. and its related manufacturing operations -- Gold Medal Homes, Inc. and Gold Medal Homes of North Carolina, Inc. Terms of the transaction were not disclosed.

R-Anell is based in Denver, North Carolina, and produces distinctive lines of high-quality, upscale HUD-code manufactured homes as well as modular homes. It has a network of more than 100 independent retail outlets. R-Anell's 1998 revenues were about $78 million, and the company currently operates at an annual rate of more than $90 million in revenues.

American Homestar is one of the leading vertically integrated manufactured housing companies. It operates 14 manufacturing plants, 110 company-owned retail sales centers and serves 65 retail franchisees and more than 300 independent retail locations in 28 states. The company also provides retail financing through its finance affiliate, 21st Century Mortgage, and provides insurance and transportation services to its customers.



TXI Reduces Steel Beam Price

DALLAS, Tex. (BUSINESS WIRE) -- TXI announced today it is reducing prices on wide-flange beams, the company's primary structural steel product, by an average of some $40 per ton or 12 percent.

TXI is a leading supplier of building materials, primarily cement and structural steel. Cement operations serve Texas and California. Structural steel products are distributed throughout North America.



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