Real Estate Investing

California is getting closer to having one state-wide MLS system, according to the San Francisco Chronicle.  Expected to be available in 2009, 66 local REALTOR® associations and three regional MLS groups — representing 60 percent of the market in California — have signed nonbinding letters of intent to participate in CALMLS so far.  Read more from Realtor.org.  In my own MLS area, we’ve faced challenges simply to get the various associations to embrace on preferred lock box … this will be very interesting to see how one MLS works itself out.

Donald Trump is lending a helping hand to Ed McMahon who has been facing foreclosure of his personal home following health issues.  He is buying the home so he can lease back to McMahon.  Says Trump, “When I was at the Wharton School of Business I’d watch him every night,” the mega-developer said. “How could this happen?”

Austin, Texas is set to recover from the real estate slump faster than the rest of the U.S., according to the Austin Business Journal. 

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

Finally, ghost towns are popping up all over the country due to halts in new construction developments.  According to MSNBC,

The Colonial-style brick home had four bedrooms, three-and-a-half bathrooms, and designer touches and offered everything they expected in a town known for great public schools and homes fit for Ford execs. 

Everything, that is, except neighbors.

When the MacDonalds arrived, there were fewer than 15 homes in Kirkway Estates, where 179 were planned. Their home was the only one built thus far on a cul-de-sac with six lots.

I’ve seen many developments that look like this.  There’s a monster-sized subdivision near where I live and I’ve seen that construction has come to a skidding stop.  I have to wonder what all those workers are now doing to earn a living.

Fort Worth-based D.R. Horton Inc., one of America’s largest homebuilders, has had a hard year. Revenues dropped from $2.8 billion to $1.71 billion, home closings fell 36% and cancellation rates stayed at 44%. And they are not alone. Builders across America are running into similar hard times.

According to the Commerce Department, housing starts in January were at their lowest level in 17 years. Just over 1 million new homes were started in January, up 0.8% from one month prior, but down 28% from one year prior. Builders have offered all sorts of incentives to pique buyers’ interest, including discounts deep enough to anger surrounding homeowners who paid full price only to see their home value drop like a rock.

D.R. Horton is no different, except maybe in marketing tactics. The company’s recent “unauction” offered “auction-level pricing without all the hassle.” The tactic, also commonly referred to as a “firesale,” offered discounts of up to 50%, more than $300,000 in many cases. These are in about two dozen developments in southern California, a notoriously pricey real estate market. Well, obviously, response was overwhelming, with a line of buyers camped out in sleeping bags in the cold. According to the Outstanding Investment blog, this is the first of many such sales as builders look to cut their losses and boost their capital. What a boon for first-time homebuyers!

Recycling. Reclaiming. Recovering. Dumpster Diving. Whatever you call it, there is tons of perfectly good waste discarded every day and the most resourceful among us are putting it to good use. These are the ultimate eco-friendly warriors. Some call them crazy, some call them genius. The above video is a good example. Filmed by Texas Country Reporter, the video offers a tour of Dan Phillips’ home in Huntsville, Texas. Phillips is a resourceful person and a skilled woodworker who decided to use 85% of would-be waste to create his sizeable, impressive-looking home.

From discarded picture frame corners to old wine bottle corks, Phillips was standing right by the dumpster with his hand out to bring them back to home sweet home. While Phillips may represent the ultimate in recycling, he is by no means alone. There are countless stories of junk retrieved from dumpsters — some of which is not so junky. Think about all the people who are too lazy or busy to donate their junk or hold a yardsale after spring cleaning and/or relocating to a new house. There’s a lot of great stuff to be had, especially after a little elbow grease, creativity and bleach disinfectant!

For the more squeamish among us, like myself, you can put a company to work for you. There are plenty of companies offering reclaimed and recovered lumber, for instance. Whether it’s recovered from the bottom of a river or reclaimed from trash piles, there’s plenty of recycled lumber to be found. Why cut down a perfectly good tree? For starters, and to get a grip on the possibilities, check out the 2008 Green Log Awards nominees in the category of “Reclaimed Wood — Flooring.” And happy dumpster diving — er, recycling!