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2nd Quarter, 1999

June 8, 1999
  " Commission Votes Further Oversight of Internet
  " Texas Home Sales Rising
  " Chicago Plans World's Tallest Building
  " Texas Number Three

June 4, 1999
  " Real Estate Licensee Education: National Picture by Jennifer Evans, research associate
  " Emerging Retail Real Estate Issues by Mark Dotzour, chief economist
  " Texas Homeowner Files Suit Over Neuro-Toxin
  " Manufactured Home Owner's Guide Unveiled
  " Investor's Guide To Cmbs Introduced
  " Tornado Damage Not Expected To Affect Insurer Ratings

May 19, 1999
  " Soaring Texas Housing Market Built On Affordability
  " Texas No. 1 In Toxic Release
  " Turner Awarded $7.5 Million For Renovation

May 4, 1999
  " NRT Buys, Merges Wm. Rigg And Paula Stringer Realtors
  " Nar Supports Leasehold Improvement Cost Recovery Bills
  " Web Site Links Legal, Legislative Issues
  " First Global Commercial Real Estate Auction Set
  " Remodeling Disputes On The Rise
  " Building Permits Most Popular Area
  " Austin Community Wins Industry Award
  " Aureus Group Buys Assisted-Living Communities
  " CAI Membership Tops 17k


 

April 28, 1999
  " Existing Single-Family Home Sales Set Record
  " Three Texas Cities Make Worst Mouse List
  " HMDA Report Available
  " Texas Has Third Lowest Per Capita Taxes

April 21, 1999
  " Experts Bullish On Texas Real Estate
  " Housing Starts Fall For Second Straight Month
  " Wind Turbines Connected To Texas Grid
  " Latino Learning Center Given Grant
  " Homes.Com To Provide Sites For Better Homes And Gardens
  " Buying In Hot Markets

April 16, 1999
  " Texas Receives Third Most Domestic Federal Funds
  " NAR Economic Outlook Is Rosy
  " Major Overhaul Of Real Estate Licensure Under Consideration
  " Rules Repealed
  " Housing Market Index Declines Further
  " WRI Buys Sherman Plaza Business Park
  " Build-To-Suit Facility Going Up In Lewisville
  " Largest Hampton Inn Opens In Mesquite
  " Texas To Receive HUD Grants
  " Mortgage Loan Applications Down




June 8, 1999



Commission Votes Further Oversight of Internet

AUSTIN, Tex. -- In a major policy change, the Texas Real Estate Commission (TREC) voted yesterday to regulate real estate brokerage activities of those who directly contact Texas consumers from out of state by way of the Internet and e-mail.

The vote came on a proposed amendment to current rules defining the circumstances under which real estate broker or salesperson licenses are required.

Commissioners discussed the provisions at length as part of their ongoing comprehensive rule review process. The amendment is based on increasing use of the Internet and other means of communication from outside the state to solicit or transact business with Texas consumers.

Internet Web sites, for instance, can be produced somewhere outside Texas but can be misleading to consumers who believe they are dealing with persons or firms physically located in the state and licensed by TREC.

In response to new trends in business technology, the Commission adopted other rule amendments in February. Those amendments apply required standards governing real estate advertising to various forms of electronic communication, including the Internet and e-mail.

The latest rules provide that the Texas Real Estate License Act now applies "to persons acting as real estate brokers or salespersons with this state, regardless of the location of the real estate involved or the residence of the person's customers or clients. For the purposes of the Act, conducting brokerage business from another state by mail, telephone, the Internet, e-mail or other electronic medium is considered acting within this state."

Under these requirements, individuals from outside Texas who engage in brokerage activities with Texas consumers will be required to have a valid Texas real estate license.



Home Sales Rising
COLLEGE STATION, Tex. -- Texas home sales continued in April, according to the latest issue of TRENDS, the monthly statistical report of the Real Estate Center at Texas A&M University.

Homes sold by major Texas Multiple Listing Services (MLS) totaled 15,833 in April, 7 percent more than April 1998. Houston, up 9 percent, recorded the most sales -- 4,481. Dallas and Austin had 6 percent increases totaling 3,757 and 1,415 respectively. San Antonio was fourth with 1,196 sales, 9 percent better than April a year ago. The April-to-April estimated time to sell a Texas home fell 16 percent to 71 days. Homes were selling fastest in Garland where the estimated days to sale was 44. In contrast, Brownsville homes were on the market an estimated 172 days.

Plano recorded the state's highest April median priced home -- $157,200. Port Arthur had the lowest -- $59,200. The overall Texas MLS median for a home sold during April was $98,000, 4 percent more than a year ago.

For the latest statistics on Texas real estate, visit the Center's home page at http://recenter.tamu.edu.



Plans World's Tallest Building
CHICAGO, Ill. /PRNewswire/ -- Plans to erect the world's tallest building have been filed with the City of Chicago Zoning Administrator by European American Realty Ltd. The building will be built at 7 South Dearborn Street. The proposal is backed by a non-binding term sheet from the Chicago Digital Broadcasters Committee, a consortium of local television stations, to use new digital antennas atop the structure.

The 112-story building will measure 1,537 feet. By comparison, the Sears Tower is 1,450 feet, and Petronia Towers in Kuala Lumpur, Malaysia is 1,483 feet tall. When topped by two 463-foot antennas, the new Chicago building will reach 2,000 feet.

The 1.95-million-square-foot, mixed-use building will contain commercial office, residential, retail and parking. It will include 350 residential units on 42 floors and parking for at least 950 cars. Some 80,000 square feet on the top 13 floors will be used by a variety of telecommunications users.



Texas Number Three
WASHINGTON, DC -- Texas has the nation's third fastest-growing gross state product (GSP), according to the U.S. Department of Commerce's Bureau of Economic Analysis.

In 1997, the five states with the fastest growing growth in real GSP were Oregon (7.6 percent), New Hampshire (7.5 percent), Texas (6.8 percent), Arizona (6.7 percent) and Colorado (6.5 percent.)

The manufacturing and service sectors are credited with having the biggest impact on Texas.


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June 4, 1999



Real Estate Licensee Education: National Picture by Jennifer Evans, research associate

COLLEGE STATION, Tex.-When it comes to real estate education, Minnesota, Oregon and Wyoming require the most continuing education- the equivalent of 15 hours per year. Vermont has the smallest requirement-four hours every two years. South Carolina requires eight hours biennially. Subject matter varies from state to state.

A recent Real Estate Survey on national licensing requirements drew responses from 37 states. Here's a sampling. * Alabama and Ohio offer computer courses relevant to real estate. * Florida offers a course on developing single-family residential subdivisions. * Indiana, Montana and Ohio offer courses on land development. * Arkansas has a course on real estate forms. * Kansas offers a course on home styles and design. * North Dakota has a class on sales strategies for residential specialists and a course on developing the art of negotiating. * Montana offers a course on land-use planning, subdividing, zoning and ordinances. * Vermont has a class on land-use and land-use controls. * Colorado and Tennessee offer courses on time-sharing. * South Carolina teaches how to be a buyer's agent in a dual agency. * In Ohio, it's possible to take a course on market measurement and evaluation. * North Dakota teaches commercial inventory real estate analysis and determining the value of rental property. * Kansas has classes on selling new homes in the late 1990s and another on showing homes. * Colorado has a course on water and waste management. * In Arkansas, there is a course on environmental and hazardous substance issues.

If you can't find the real estate course you want, it might be helpful to talk to providers in your area.

Texas real estate licensees want to see more continuing education on contracts. Legal issues are a close second. Commercial real estate is another often-sought topic. Other topics they ask for include ethics, farms and ranches, forms, the Internet, financing, leasing and property management. Some of the requested topics-computers, land development, historic homes, how to make money, municipal codes and vacations rentals -- are not available in Texas. They are, however, available in other states.



Emerging Retail Real Estate Issues by Mark Dotzour, chief economist
COLLEGE STATION, Tex.-Supermarket mergers and consolidations are expected to continue. WalMart is one of the key influences in this trend. Their pressure in the supermarket business, combined with massive purchasing power and distribution system, is creating intense competition for regional and local grocery stores.

WalMart, Kmart and Target superstores have proven to be lethal to local and regional chains. Before Kroger's acquisition of Fred Meyer last fall, WalMart was the largest food retailer in America in terms of market share. The emergence of freestanding drug stores that sell convenience food also has weakened demand at the neighborhood and community shopping centers. These industry changes have been especially hard on independent grocers. One bright spot: there remains a place for them in niche markets-such as gourmet and ethnic foods-not served by major firms.

Web's impact on retail. Internet retail sales growth exceeded nearly all expectations in 1998. While it is difficult to assess the actual level of retail sales on the Web, there are six major research companies who do so. A consensus of estimates indicates that nearly $10 billion in 1998 retail sales occurred online. The growth rate is phenomenal and is expected to continue.

Internet sales, however, still represent a very small slice of the retail market. Non-automotive retail sales were estimated to be $2 trillion in 1998. So, while the online growth is spectacular, it still is less than 1 percent of the entire retail market.

States and cities worry about lost tax revenues because of Internet. Governors and mayor express concern that lost sales tax revenues may force state and local governments to raise property and income taxes unless the federal government figures out how to collect sales taxes on Internet purchases.

Congress has placed a three-year moratorium on new Internet sales taxes. The issue of who would get the tax revenue is difficult to resolve. The purchaser of a book may be in Texas, the vendor in Illinois and the Website in New York. Who collects the sales tax in such a transaction? Consensus estimates put online retail sales at about $10 billion in 1998. Nationwide, the average sales tax is around 7 percent. This means state and local governments did not collect $700 million in sales tax revenue. Experts estimate Internet retail sales could increase to $100 billion by 2003. If this happens, lost tax revenue could approach $7 billion.

Entertainment is still the focus of mall revitalization. Cinemas and restaurants are the key components to making a regional mall an exciting shopping experience that competes with the Internet and gives people a reason to drive to the mall. Food is the centerpiece of the mall. The goal is to give people more reasons to go to the mall. Recent attempts in this area, however, have not fared well.

Theme restaurants, such as Planet Hollywood and Rainforest Cafe, have not performed as well as hoped, except in tourist areas. To their credit, these restaurants are revising their menus and pricing more aggressively to attract repeat customers.

Inner-city and downtown retailing. Most retail development occurs on the suburban perimeter. These areas often are referred to as "edge cities. " Many of these markets are now saturated with shopping centers and retail opportunities. Consequently, retail developers are looking overseas for new development opportunities.

Some in the industry, however, are looking closer to home-the inner-city markets of major American cities. Many of these neighborhoods are underserved by retailers, forcing residents to drive long distances to purchase food and convenience goods. As a result, many city government and economic development officials have begun to promote the opportunities for retail development in their inner city. Among the callings to downtown retail development: * finding land large enough to support new development; * parking; * modernizing older buildings; * downtown properties whose owners lack funds to modernize properties; * funding; and * potential reaction from the neighborhood if the project is not wanted.

The key to urban development is having someone with a driving vision of what is possible. Many projects require substantial public financing and investment, often including tax increment financing. As a result, politics plays a big part in urban development.

Mixed-use development often is the most successful formula. The combination of a convention center, hotel, retail and residential creates potential success.

There is no "formula" solution that can be applied to all cities. But getting neighborhood residents involved in the construction and operation of the facility has many benefits.



Texas Homeowner Files Suit Over Neuro-Toxin
Dripping Springs, Tex. /PRNewswire/ -- Melinda Ballard has filed a criminal complaint against two Farmers Insurance Group employees. She cites the insurance company's personnel's negligence in settling a claim, which she says resulted in an infestation of her home by a deadly neuro-toxin called "Stachybotrys" which caused her entire family to become sick. Ballard says she was told early on by the insurance claims adjuster that delaying the repairs could result in the growth of dangerous mold. Scientists say Stachybotrys grows easily in wet building materials, such as plywood, particle board, sheetrock and gypsum board. It attacks the lungs, liver and kidneys.

"We had to evacuate our home last month after tests by microbiologists from Texas Tech University confirmed high levels of this toxin that were airborne and aggressive," says Ballard.



Manufactured Home Owner's Guide Unveiled
College Station, Tex.-Manufactured homes are more popular than ever. "Unlike site-built housing, manufactured homes often require two major decisions," says Jack C. Harris, research economist and author of a new "Manufactured Home Buyer's Guide." "Buyers must not only find the right home, they must decide where to put it."

This extra decision puts a bigger burden on manufactured home buyers. The new 18-page report explains the economics of manufactured housing, siting options and financing. Also covered are total costs of a manufactured home and a manufactured housing purchase worksheet.

Copies of the guide are $3. To order by credit card, call 1-800-244-2144. Otherwise, send a check payable to the Real Estate Center to Mail Stop 2115, Texas A&M University, College Station, Texas 77843-2115. Ask for publication number 1300.



Trec To Reassess Broker Education Requirements
Austin, Tex.-Rules related to licensing brokers and salespersons will be reviewed at Monday's meeting of the Texas Real Estate Commission. This is part of an ongoing review process.

Significant changes in rules may be proposed. Consolidations and reorganization of sections to make the rules easier to use are possible. Among the issues likely to be discussed: acceptable courses offered by qualified providers; standards for school accreditation; instructor approval; daily class length; and course examination requirements. Since the Commission announced its intent to review educational criteria, public comments and suggestions have been received.

Also on Monday, commissioners are likely to take final action to update and adopt two revised standard promulgated contract forms. The Commission also will consider adopting a series of rule amendments relating to the Real Estate License Act. If adopted, the changes will reduce the number of rules from 25 to 21 and cut the number of pages in this section from 25 to 21. The Commission meeting begins at 9 am on Monday, June 7, in room 235 of the Texas Real Estate Commission headquarters, 1101 Camino La Costa, Austin.



Investor's Guide To Cmbs Introduced
New York, Ny (Business Wire) -- Bear, Stearns & Co. Inc. has announced that its Financial Analytics and Structured Transaction Group has introduced a 36-page Investor's Guide to Commercial Mortgage Backed Securities (CMBS). The guide is designed to give both the newcomer to the market as well as the seasoned professional a framework for valuing and comparing various CMBSs. It explains how CMBS trade, indicators of credit quality to look for, as well as four major rating agencies approaches to rating CMBS, useful CMBS Web sites and a glossary.

Requests for copies of the guide should be directed to Mary Flounders Green at 212-272-4356.



Tornado Damage Not Expected To Affect Insurer Ratings
New York, Ny /PRNewswire/ -- Estimates of insured losses resulting from tornadoes in Oklahoma, Kansas and Texas last month represent less than 1 percent of surveyed insurer's capital base, Standard & Poor's said this week. As a result of the relatively minor impact on the capital position of these insurers, Standard & Poor's anticipates no rating actions at this time.

Standard & Poor's has compiled loss estimates from insurers representing three-quarters of Oklahoma's property insurance market. Although these insurers estimate their total losses from the storms at nearly $800 million, their net retained losses after reinsurance amount to only about $590 million.

There could be more than 3,000 totally destroyed homes. Between 75 and 80 percent of the claims are in Oklahoma.


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May 19, 1999

Soaring Texas Housing Market Built On Affordability

COLLEGE STATION, Tex.-Rising home prices in the last year held affordability in check, according to the latest Texas Housing Affordability Index (THAI) released today by the Real Estate Center at Texas A&M University. "The THAI fell slightly in the first quarter of this year," said Jack C. Harris, research economist who monitors the index. "The first quarter index of 1.50 is down from 1.52 from the previous quarter. However, the last quarter of 1998 was the highest THAI recorded since the index began in 1989."

Harris estimates 66 percent of Texas households can afford the median priced Texas home, 1 percent fewer than in the last quarter. Texas homes sold through Multiple Listing Services (MLS) in the first quarter had a median price of almost $98,000, more than 5 percent higher than one year ago.

"Estimated median household income grew by about 1 percent during that time," said Harris. "However, interest rates fell from more than 7 percent to 6.8 percent, allowing affordability to remain roughly unchanged." Total reported home sales statewide during the first quarter were 4 percent higher than the first quarter of 1998.

The First-Time Homebuyer's Affordability Index (FTHAI) slipped to 1.23 compared to 1.25 one year ago. The FTHAI indicates that the median income of a renting Texas household is 23 percent higher than that needed to buy the median-priced starter home, based on financing with a loan covering 95 percent of value.



Texas No. 1 In Toxic Release

DALLAS, Tex.-Despite a 14 percent reduction, Texas facilities continue to lead the nation in toxic releases, according to the U.S. Environmental Protection Agency's (EPA) latest report. According to the EPA, Texas released 260 million pounds in 1997. Louisiana was second with 186 million pounds released.

Texas also was tops in on-site air emissions (nearly 109 million pounds) and underground injections (nearly 90 million pounds). In Louisiana, toxic releases increased 5 percent since 1995. While air emissions have been reduced, surface water discharges have increased. Louisiana led the nation with 46.9 million pounds of toxic chemicals discharged to surface water in 1997.

Among other states in the region, Arkansas had a 58 percent increase in releases, vaulting it from 24th place to 16th. Although New Mexico's total releases have dropped 24 percent since 1995, it moved up seven places to 25th.

In Oklahoma, a decrease in air emissions is largely responsible for the state's more than 17 percent reduction in toxic releases. However, the state still ranks 30th nationally overall.

The EPA report is based on annual reports required for submission from individual manufacturing, processing and federal facilities nationwide. For details of the Toxic Release Inventory (TRI), visit http://www.epa.gov/opptintr/tri/. The TRI's hotline is 1-800-424-9346.



Turner Awarded $7.5 Million For Renovation

DALLAS, Tex. /PRNewswire/ -- The Dallas office of Turner Construction Company has been awarded a $7.5 million contract to renovate Carrier Center, a 300,000-square-foot, seven-story building in downtown Dallas. Construction is scheduled for completion in July. The building being renovated was built in 1921 and was once the headquarters of the Federal Reserve Bank.


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May 4, 1999

NRT Buys, Merges Wm. Rigg And Paula Stringer Realtors

FORT WORTH, Tex. /PRNewswire/ -- Two of the largest Metroplex real estate firms -- Fort Worth-based Wm. Rigg, Realtors and Dallas-based Coldwell Banker Paula Stringer, Realtors, have been acquired and merged by the largest residential real estate brokerage firm in the nation, NRT, Inc.

Charles Rogers, president of Wm. Rigg, Realtors and Susan Dunn Arnold, president/CEO of Coldwell Banker Paula Stringer, Realtors made the announcement. The new entity will be known as Coldwell Banker Residential Brokerage.

Plans include continuing current management, associates and office locations. The new brokerage will have more than 1,100 sales associates in 33 locations. Rogers will serve as president of the Fort Worth area offices with the Rigg management team in existing positions. Arnold will head the Dallas area offices.

Last year the two companies posted a combined $2.6 billion in closed sales volume representing more than 18,000 units sold.

NRT, Inc., based in New Jersey, is the largest affiliate of Coldwell Banker Real Estate Corporation, which includes more than 3,000 offices and 70,000 associates throughout North America.



Nar Supports Leasehold Improvement Cost Recovery Bills

WASHINGTON, DC -- The National Association of Realtors (NAR) strongly supports companion bills introduced in both the House and Senate that would enable commercial property owners to amortize more quickly the costs of leasehold improvements made on behalf of tenants.

The bills would reduce the amortization period for leasehold improvements in non-residential buildings from 39 to ten years. The current 39-year period requires that leasehold improvements be amortized over the life of the building rather than over the length of the lease.



Web Site Links Legal, Legislative Issues

HOUSTON, Tex. -- The first real estate-related Web site to feature direct links to the court systems and law-making bodies in all 50 states and the federal government is now on line.

Developed by real estate information specialists at Stewart Title, REprofile.com was created to provide timely news and information for all segments of the real estate industry, including attorneys, financial institutions, title agents, real estate brokers, sales agents and consumers.

REprofile.com directly links to court sites and the federal judiciary and features real estate-related legislation. The site offers daily news from two major sources and significant court decisions pertaining to commercial and residential real estate finance, property casualty and title insurance.

REprofile.com also serves as a portal to Stewart's Virtual Underwriter on-line software and Stewart.com. It links to LoopNet Commercial Database, residential listings and associated residential and commercial real estate sites, including the National Association of Home Builders, National Association of Realtors and other information sites. The Stewart site has an up-to-date calendar of events for real estate and legal professionals.



First Global Commercial Real Estate Auction Set

CHICAGO, Il. -- The world's first global commercial real estate auction is among two major events this fall sponsored by the National Association of Realtors (NAR). Chicago-based Sheldon Good & Company International will conduct the auction.

The auction will be part of "TRANSACT '99," the nation's first global real estate conference developed jointly by NAR and the Urban Land Institute (ULI). Approximately 1,000 delegates are expected to attend the event which culminates with the Sept. 24 auction.



First Global Commercial Real Estate Auction Set

CHICAGO, Il. -- The world's first global commercial real estate auction is among two major events this fall sponsored by the National Association of Realtors (NAR). Chicago-based Sheldon Good & Company International will conduct the auction.

The auction will be part of "TRANSACT '99," the nation's first global real estate conference developed jointly by NAR and the Urban Land Institute (ULI). Approximately 1,000 delegates are expected to attend the event which culminates with the Sept. 24 auction.



Remodeling Disputes On The Rise

ARLINGTON, Va. -- Remodeling is more popular than ever. Spending on remodeling homes exceeds expenditures to build new ones. Along with this increase, however, has come an increase in remodeling complaints. Complaints about remodelers consistently lead the American Homeowners Foundation (AHF) complaint list.

According to the AHF, most homeowner-contractor disputes arise not over specific terms of a formal contract but rather over issues not addressed either verbally or in writing.

"It's amazing the number of major remodeling agreements based only on a one-page bid sheet or a handshake," says AHF Vice President Chris Christensen. "No one-page document can cover all elements of a good agreement or even most of the potential problems."

To help reduce disputes, the AHF has developed a 1999 remodeling contract. Homeowners, remodeling contractors, architects and attorneys provided input into development of the comprehensive six-page agreement.

The contract has sections on payment schedule by task, a description of the work to be done, a timetable for completion and special instructions and provisions.



Building Permits Most Popular Area

COLLEGE STATION, Tex. -- Building permit statistics were the most popular area on the Real Estate Center's home page during March. More than 17,100 hits were recorded in that area. Population data was the second most popular section with nearly 8,000 hits.



Austin Community Wins Industry Award

ATLANTA, Ga. /PRNewswire/ -- Gables Residential Trust was saluted recently by the National Home Builders Association and Multi-Housing News with the prestigious "Pillars of the Industry" award for Gables Central Park, a 273-home community in Austin.



Aureus Group Buys Assisted-Living Communities

FAIRFAX, Va. /PRNewswire/ -- Aureus Group, LLC, a privately held, Dallas-based real estate company has entered an agreement to purchase two assisted-living communities from Sunrise Assisted Living, Inc. for $27.9 million in cash.

Sunrise will continue operating the communities in Columbia, Md., and Norwood, Mass., under long-term agreements with Aureus. The properties have a combined resident capacity of 182.



CAI Membership Tops 17k

ALEXANDRIA, Va. -- Growth in the number of condominium, cooperative and homeowner associations nationwide has spurred membership in the Community Associations Institute (CAI). CAI now has more than 17,000 members.


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April 28, 1999

Existing Single-Family Home Sales Set Record

Sales of existing single-family homes set a new record in March as consumers took advantage of extraordinary economic conditions and continued to flock to the housing market.

The National Association of Realtors (NAR) recorded a seasonally adjusted annual sales rate of 5.05 million units in March. That surpasses the previous record high of 5.04 million units set in January. The March sales pace was 0.6 percent higher than February's and 3.7 percent higher than one year ago.

Freddie Mac reported the March national average commitment rate for 30-year, conventional, fixed-rate mortgages was 7.08 percent. This was up from 6.81 percent in February and down from 7.13 percent in March 1998. The national median price for existing, single-family homes was $132,700 -- up 4.4 percent from a year ago.



Three Texas Cities Make Worst Mouse List

San Antonio, Dallas and Houston made the country's "Top Ten Worst Mouse Cities" list released yesterday by Reckitt & Colman, maker of d-CON rodenticides. The information is based on sales of rodenticide products in grocery stores nationwide.

The good news is that San Antonio fell to third in the latest survey (1998) after leading the nation in 1997. Houston dropped to seventh after being second a year earlier. Dallas was fifth in 1998 after not being on the 1997 list.

"Musophobia (fear of mice) is the third most common fear among Americans," says Richard Poche, wildlife and rodent control expert with d-CON. "For a nation inherently afraid of rodents, the cities on the Top Ten List need to be doing a much better job of preventing rodent infestation."



HMDA Report Available

Copies of a new study to identify the level of lending in minority and low-income areas of selected Texas communities is available from the Real Estate Center at Texas A&M University.

"Home Mortgage Disclosure Act: Then and Now" compares and contrasts annual data to determine if lending has increased in minority and lower-income areas as a result of enforcement of HMDA reporting requirements on race, sex and income.



Texas Has Third Lowest Per Capita Taxes

Although state government tax revenues increased by 7 percent from 1997 to 1998, latest data from the Commerce Department's Census Bureau shows Texas with the third lowest per capita state taxes.

New Hampshire has the lowest per capita state taxes -- $851. South Dakota is second with $1,129. Texas' taxes total $1,246. Others in the five lowest tax states are Tennessee ($1,288) and Alabama ($1,318).

State governments collected $475 billion in tax revenues in 1998. Alaska was the only state to show a tax revenue decrease -- 27 percent. Maine had the largest increase at 17 percent.

Nationally, per capita tax collections total $1,762 for every man, woman and child. Per capita taxes are highest in Connecticut ($2,869), Delaware ($2,665), Hawaii ($2,662), Minnesota ($2,434) and Massachusetts ($2,357).


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April 21, 1999

Experts Bullish On Texas Real Estate

COLLEGE STATION, Tex. -- Texas Realtors and mortgage bankers are not only positive about their local real estate, but they believe even better times are ahead.

"Mortgage bankers are more guarded than Realtors in their evaluation of the first quarter and their optimism for second quarter performance," says Dr. James H. Leigh, leader of a new project measuring the confidence of Texas real estate professionals. "But mortgage bankers also see no indication of major problems lurking in the shadows."

The Texas Real Estate Confidence Index is a new research project created by the Real Estate Center at Texas A&M University. Leigh is an associate research scientist and an associate professor of marketing with the Lowry Mays College and Graduate School of Business.

Experts from the Lone Star Chapter of Certified Residential Specialists and the Texas Mortgage Bankers Association provided viewpoints for the first confidence index for Austin, Dallas-Fort Worth, Houston, San Antonio and other areas. The index will be conducted quarterly.

The 248-member Realtor panel had an overall confidence index of .78. The 36 mortgage bankers had an overall index of .64. Numbers higher than .50 are considered positive.

"Only the groups of mortgage bankers from Austin and those outside the four other metropolitan areas think the second quarter will be less robust than the first," says Leigh. "All other experts are more positive about second-quarter prospects in their local markets."

Members of the expert Realtor panels in Austin and Dallas-Fort Worth apparently were more pleased with real estate activity in the first quarter and are looking forward to even better results this quarter. Realtors in Houston, San Antonio and other metropolitan areas were more modest in their evaluation of the first quarter but enthusiastic about the second quarter.

"Mortgage bankers view their business activity partly on the basis of the number of new loans underwritten," says Leigh. "At the same time, however, they constantly have their eyes on new trends in construction, housing prices, population and interest rates."

The number of mortgage bankers on the expert panel is small, and Leigh says the results should not be viewed as definitive. Leigh says additional sponsoring organizations are being recruited, and other expert panels will be added to the existing two. Eventually the entire Texas real estate industry can be tracked.

Realtor Panel Confidence Index:

Austin -- .83 Dallas-Fort Worth -- .81 Houston -- . 73 San Antonio -- .78 Other metros -- .76 Overall -- .78

Mortgage Banker Panel Confidence Index

Austin -- .67 Dallas-Fort Worth -- .62 Houston -- .60 San Antonio -- .71 Other metros -- .69 Overall -- .64



Housing Starts Fall For Second Straight Month

WASHINGTON, DC -- Construction of new homes fell 1.3 percent in March to an annual rate of 1.77 million units. This was the second straight month housing starts have declined. Even so, March was still .19 million units higher than March of last year.

The biggest decline was in the Northeast which plunged 28.9 percent.

Declining building permits is causing concern because they are an indicator of future housing activity. In all, building permits fell 6 percent, the biggest decline in four years.



Wind Turbines Connected To Texas Grid

AUSTIN, Tex. /PRNewswire/ -- FPL Energy, Inc., and Central and South West Corporation have announced that the first 19 of 107 wind turbines are being interconnected with the Texas electrical grid. When fully energized, the project will become the state's largest wind energy generating facility.

FPL Energy's Southwest Mesa Wind Project is located on top of a 600-foot mesa spanning Upton and Crockett counties near McCamey, Texas, some 60 miles south of Midland-Odessa. In June, the facility will begin supplying 75 megawatts of renewable energy to CSW's West Texas Utilities Company subsidiaries. CSW recently signed a 20-year power purchase agreement to buy renewable energy from FPL's wind-powered facility.

The $82 million project employs almost 200 people during construction. Landowners will receive annual royalties for the use of their property.



Latino Learning Center Given Grant

HOUSTON, Tex. -- U.S. Representative Gene Green (D-Tex.) and representatives from Fannie Mae presented $5,000 Tuesday to the Latino Learning Center to assist with its "Home to Own" program.

"Owning your own home is part of the American Dream, and quality, affordable housing is an important part of making this dream a reality," said Green.

The Latino Housing and Economic Development Corporation was formed specifically to identify and pursue community projects within target areas of the inner city. The "Home to Own" program includes housing development and construction of new single-family and multifamily affordable housing. The program also encourages economic growth and revitalization while providing goods, services, job creation, skills training, pre-purchase counseling and first-time homebuyer education.

The Latino Housing EDC plans to expand into Houston's inner city neighborhoods on the near north side and and near east side. Home prices will be as low as $58,000.



Homes.Com To Provide Sites For Better Homes And Gardens

MENLO PARK, Calif. (BUSINESS WIRE) -- Homes.com (www.homes.com), one of the nation's leading providers of online real estate services for Realtors and consumers, has announced a partnership with GMAC Home Services, parent company of Better Homes and Gardens Real Estate Service. Homes.com will develop and host branded Web sites for each of the more than 800 Better Homes and Gardens member firms.

The agreement also extends an offer to the 24,000 individual BH&G sales professionals to participate in the company's new Internet strategy to tap the growing consumer population on the Web.



Buying In Hot Markets

WASHINGTON, DC -- A new direct response marketing report designed to help real estate professionals generate qualified buyers ready to bid on today's best properties is now available.

"Smart Buying: Eight Inside Tips Every Buyer Must Know in Today's Market" is produced by the Gooder Group, a Fairfax, Virginia, publisher of lead-generating marketing materials.

"If buyer's don't know how to compete for the best properties in today's active market, they could lose out," said Dan Gooder Richard, president of the Gooder Group. "The Smart Buying brochure is designed to attract motivated buyers with money to real estate professionals who are happy to share their professional market savvy. . . "

The booklet includes advice on getting loan pre-approval, research, making an offer and more.

To obtain a free copy, send your business card and a self-addressed, postage-paid envelope to: Estate sales, Gooder Group Dept. 678, or send e-mail to leas@gooder.com.


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April 16, 1999

Texas Receives Third Most Domestic Federal Funds

Federal spending for domestic benefits, subsidies, grants, goods and services, and salaries and wages in fiscal year 1998 hit $1.5 trillion. That's 3.4 percent more than the previous year. Texas received a big share of the total.

The increased spending has been blamed on payments for disability and retirement, grants and procurement contracts. Federal direct payments for disability and retirement totaled $507 billion, up 3.7 percent from 1997. Social Security spending totaled $403 billion, up 3.9 percent.

Texas received $92 billion in federal funds. Only California ($100 billion) and New York ($43.1 billion) received more.

Harris County in Texas received $14.4 billion -- fifth among U.S. counties. New York City ($43.1 billion) and Los Angeles County ($41.9 billion) received more federal funds than 42 states.

Texas ranked third among states in Defense Department spending -- $16 billion. Bexar County, Texas was fifth among counties or county equivalents. Bexar County received $3.3 billion.



NAR Economic Outlook Is Rosy

WASHINGTON, DC -- The U.S. housing market continues its strong performance, supported by a case of economic factors including low unemployment rates, low mortgage rates and higher consumer income, according to the latest "Real Estate Outlook" publication from the National Association of Realtors.

National Association of Realtors' new Chief Economist James F. Smith, wrote that in January the nation's current period of continued growth had surpassed the previous longest ever peacetime economic expansion, which occurred between November 1982 and July 1990.

"And the ride isn't over yet," said Smith. "On January 16, 2000, the current economic growth will become the longest one in the history of the United States, topping the 106 months from February 15, 1961, to December 15, 1969.

NAR forecasts growth in the real gross domestic product (GDP) will slow to 3.5 percent for 1999 from 3.9 percent last year, while consumer price inflation is expected to rise 1.8 percent this year, up from 1.5 percent last year.

Disposable income is expected to rise 3.4 percent this year, while unemployment is expected to dip to 4.2 percent in 1999 from 4.5 percent in 1998.



Major Overhaul Of Real Estate Licensure Under Consideration

Qualifications for a Texas real estate license are going to be reviewed. A notice of intent to review the provisions was approved this week by the Texas Real Estate Commission. Suggestions for substantive changes are to be considered during coming weeks.

TREC Administrator Wayne Thorburn, said the assessment is particularly important because it "goes to the heart of all professional real estate education requirements. I urge all interested persons and groups to carefully consider these rules and advise the Commission on what changes they feel may be needed."



Rules Repealed

Four rules relating to conditions for payment of certain commissions are being considered for repeal by the Texas Real Estate Commission (TREC). The rules relate to payment of certain commissions, definitions of real estate, offering property from another state and auctioning the property.

If adopted, the proposal would reduce 25 rules in 11 pages to 21 requiring only seven pages. The four provisions are viewed as unnecessary because their requirements are already in the Real Estate Act.



Housing Market Index Declines Further

After reaching record highs at the end of 1998, the National Association of Home Builders' Housing Market Index (HMI) declined for the third consecutive month in March.

The March reading of 69 is still relatively high but is down four points from February and down nine points from the HMI's all-time high of 78 in November and December of last year.

"The average interest rate on 30-year, fixed-rate mortgages rose to more than 7 percent in early March, and that increase likely played a role in builders' reduced expectations," said Charlie Ruma, NAHB president. He said that while the index suggests slightly reduced demand, builders continue to express concerns regarding labor shortages and the availability of finished lots.

The HMI is derived from a monthly survey of builders. NAHB has been conducting the survey for nearly 20 years.



WRI Buys Sherman Plaza Business Park

HOUSTON, Tex. /PRNewswire/ -- Weingarten Realty Investors announced yesterday the company has acquired the Sherman Plaza Business Park in Richardson. The property was bought from the Fidelity Mutual Insurance Company. A sale price was not disclosed.

Sherman Plaza contains 99,500 square feet and is located on 7.2 acres. It was developed in 1978, and currently is 87.5 percent leased.



Build-To-Suit Facility Going Up In Lewisville

FORT WORTH, Tex. /PRNewswire/ -- Panattoni-Hillwood will construct a 415,000-square-foot build-to-suit facility in the Waters Ridge II Business Park in Lewisville. The facility is for Four Seasons, a major supplier of automotive air conditioning and heater replacement parts.



Largest Hampton Inn Opens In Mesquite

MESQUITE, Tex. /PRNewswire/ -- The largest Hampton Inn and Suites in the United States has opened here. The hotel and adjacent rodeo arena offer 84,000 square feet of meeting space.

The hotel has the third largest ballroom in the Dallas-Fort Worth Metroplex -- 17,500 square feet -- and the most meeting space per room in Texas.

The hotel has 160 guest rooms, including 54 deluxe and fireplace suites, each with a fully equipped kitchen. The hotel is located at the intersection of Interstate 635 and Texas Highway 152.



Texas To Receive HUD Grants

WASHINGTON, DC -- Housing and Urban Development Secretary Andrew Cuomo this week awarded public housing authorities $46.8 million in Family Unification Grants to help members of about 7,000 low-income families stay together despite housing crises.

Housing authorities in 31 states, including Texas, Puerto Rico and Guam, will receive the grants which fund rental assistance subsidies that enable parents to pay just 30 percent of their income to rent privately owned apartments.



Mortgage Loan Applications Down

WASHINGTON, DC -- The Mortgage Bankers Association of America (MBA) released its weekly Mortgage Application Survey on Wednesday, reporting that mortgage loan applications for the week ending April 9 decreased 1.8 percent from the previous week. Compared to the same week last year, loan applications were down 13.1 percent.

According to the survey, the average contract interest rate for 30-year, fixed-rate mortgages was 6.87, down from the 6.96 the previous week. Points decreased from 1.42 to 1.34 (including origination fee) for 80 percent loan-to-value ratio loans.

The average contract interest rate for one-year ARMs was 5.99 percent, up slightly from 6.96 the previous week. Points decreased from 1.23 to 1.11 for 80 percent LTV loans.


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