ECONOMIC RECOVERY STRENGTHENS

(Real Estate Center) – Texas’ economic recovery is strengthening, according to the latest monthly economic review from the Real Estate Center at Texas A&M University.

After 16 months of job losses, the state had its third month of positive annual employment growth.

Texas’ employment growth rate from July 2009 to July 2010 was 1.3 percent compared with a rate close to zero percent for the nation.

The state’s private sector posted a positive annual employment growth rate of 1.2 percent compared with a zero percent rate for the United States.

The seasonally adjusted unemployment rate in Texas rose from 7.9 percent in July 2009 to 8.2 percent in July 2010, while the U.S. rate increased from 9.4 to 9.5 percent over the same period.

All Texas industries except the construction and information industries had more jobs in July 2010 than in July 2009.

Nineteen Texas metro areas had positive employment growth rates from July 2009 to July 2010, up from 16 for the period from June 2009 to June 2010. San Angelo ranked first in job creation, followed by College Station-Bryan, Austin-Round Rock-San Marcos and McAllen-Edinburg-Mission.

The state’s actual unemployment rate in July 2010 was 8.5 percent. Midland had the lowest unemployment rate followed by Amarillo, San Angelo, and College Station-Bryan.

The complete economic review is available on the Center’s website.

WEAK HOME SALES NUMBERS NOT WHOLE STORY

COLLEGE STATION (Real Estate Center) – Home sales statistics are likely to paint a picture of a weakening market through the end of 2010 and the first half of 2011. While it’s tempting to attribute the bleak numbers to a deteriorating housing market, an economist with the Real Estate Center at Texas A&M University said that doesn’t tell the whole story.

“The year-over-year decline in existing home sales will be the result of comparing months when there was no tax credit with those from a year earlier, when the tax credit was artificially increasing sales,” said Dr. Mark Dotzour, the Center’s chief economist.

The $8,000 tax credit for first-time home buyers went into effect in January 2009 and was planned to expire in November 2009. Home sales gradually started to increase after the tax credit was announced, after bottoming out in January at an annual rate just above 4.5 million sales.

Existing home sales gradually increased in 2009 as buyers and real estate agents became more familiar with the program. Sales topped an annual rate of five million in July 2009 for the first time since September 2008.

As the tax credit deadline approached, home sales spiked in September, October and November 2009. November 2009 was the peak at an annual rate of almost 6.5 million.

The tax credit was extended late in 2009 to include sales with contracts written until April 30, 2010, and closed by June 30 (extended to September 30). Initial home buyer response to this extension was tepid, but sales picked up substantially in March, April and May 2010, when sales were up 18 percent, 28 percent and 18 percent, respectively, over the same months in 2009.

Then the process reversed itself. Pending home sales fell dramatically in May 2010, the month after the tax credits expired. This was followed by a significant drop in home sales in June and July. In Texas, July 2010 sales were down approximately 25 percent from July 2009.

Dotzour said August figures may not be much better since many buyers purchased homes before the tax incentive expired.

“When you ‘bring forward’ sales through tax incentives, sales will be lower after the tax credit ends,” he said.

Unless Congress creates a new tax credit this fall, Dotzour said monthly sales for 2010 will likely exhibit significant variance from 2009, and a true reading of housing market conditions may not be possible until June or July 2011.

RISMEDIA, April 29, 2010—The expiration of the 2010 Home Buyer Tax Credits on April 30 is unlikely to put off Americans looking to purchase homes who believe now is a good time to buy and are confident that home prices will rise according to a survey released by Prudential Real Estate and Relocation Services, Inc., a Prudential Financial, Inc. company. The survey of 1,000 Americans between the ages of 25-64 with at least $35,000 household income was conducted during April 15-20, 2010.

More than 90% of consumers believe that the home buyer tax credits have helped both first-time home buyers and the U.S. housing market overall. Among consumers actually shopping for homes, 65% believe that the end of the tax credits will have little or no effect on their interest in purchasing a home.

While consumers remain unsure about the direction of the housing market, the survey reveals that they are optimistic about real estate values with 46% of consumers expecting real estate prices in their area to increase over the next year. Just 12% expect prices will decline. Over the next five years, 79% expect real estate prices to increase, with 20% expecting prices to increase substantially.

“The survey underscores the key role the federal home buyer tax credits played in stimulating residential real estate market activity and the U.S. economy,” said James Mallozzi, chairman and chief executive officer of Prudential Real Estate and Relocation Services, Inc. “It also shows that most consumers believe the market has hit bottom and are more optimistic about the future.”

Survey respondents identified concerns about rising mortgage interest rates and unemployment as the most important factors affecting their decision to purchase a home, along with more stringent lending criteria and fewer mortgage-backed securities purchased by the Federal Reserve. The expiration of the tax credits placed lowest on their list of concerns. Among those who have recently purchased a home, 61% cited low mortgage interest rates as “very important” to their decisions – an amount greater than either the tax credit or even cheaper prices. The 66% expecting interest rates to rise underscores potential headwinds for the market.

“The tax credits clearly helped stimulate the market when consumer confidence was low and housing inventory was high,” said Earl Lee, president, Prudential Real Estate and Relocation Services, Inc. “While the tax credit expiration is a concern for many, the bigger issues now are the availability and cost of financing as well as if they will have a job.”

Despite the significant downturn in the real estate market, the survey underscores that the dream of homeownership and the perception that owning a home is a good investment remain intact. Among current renters, 75% still believe owning their home is a better long-term choice for their needs than renting.

The majority of consumers also believe that homeownership is a better investment than individual stocks or bonds (75%), mutual funds (72%), or savings accounts (74%).

“The real estate market is precariously balanced. Consumers are clearly motivated to take advantage of the opportunities the current low interest rates and prices afford,” Lee notes. “While the market is picking up in terms of sales and confidence, and the majority still believe that owning a home is a good investment, the outlook for the market remains highly dependent upon the direction of the economy overall.”

RISMEDIA, April 15, 2010—A federal judge in Louisiana has ruled that a Chinese drywall manufacturer must compensate American homeowners who used its product and are now forced to tear it out because it emits noxious fumes and corrodes household wiring and plumbing. In the first critical U.S. trial decision over faulty Chinese drywall, U.S. District Court Judge Eldon Fallon, of the Eastern District of Louisiana ordered Taishan Gypsum Company, Ltd., to pay seven Virginia families a total of $2,609,129.99 in remediation damages. Taishan is headquartered in Tai’an, China, about 250 miles south of Beijing. The case is captioned Germano, et al. v. Taishan Gypsum Co. Ltd., et al., case no. 09-6687.

The Virginia homeowners are represented by Christopher Seeger and Jeffrey Grand of leading New York plaintiffs’ law firm Seeger Weiss LLP, along with Richard Serpe, Gerald Meunier and Daniel Bryson of New Orleans firm Herman, Herman, Katz & Collar LLP.

“The message Judge Fallon’s ruling sends to thousands of other homeowners who have been victimized is that help is finally coming–they will be made whole after the ravages of inferior Chinese drywall and will not have to bear the substantial costs of repairing their homes to get rid of it,” said Seeger.

Seeger noted that representatives from the U.S. Consumer Product Safety Commission (CPSC) observed the Germano trial, which took place in February. “The CPSC has already adopted and publicly endorsed the position we argued at trial, which is that for their safety, homeowners should remove the Chinese drywall and replace any system it has damaged, such as wiring or plumbing or sprinklers,” Seeger said. “The Germano case is just the opening salvo in what we hope will be a national effort to make families whole again for having to live with this shoddy, corrosive and toxic gypsum material in their homes.”

Seeger Weiss is also representing a Louisiana plaintiff who rebuilt his home with Taishan products after Hurricane Katrina and is now forced to renovate again, what Seeger called “a double whammy that has hit many Gulf Coast residents trying to rebuild after a barrage of destructive storms.” The firm represents a number of other Gulf region homeowners in a trial beginning in June.

All of the cases are being heard in the Eastern District of Louisiana. Seeger was appointed by Judge Fallon to the Plaintiffs’ Steering Committee and also chairs the Trial Committee, which directs the trial teams handling all Chinese drywall cases.

The victory for Virginia homeowners is the fourth consecutive high-profile win for Seeger Weiss in 2010. In February, the firm obtained a $25 million damages verdict on behalf of a Florida man who suffered permanent intestinal damage attributed to powerful acne medication Accutane, made by Hoffman-LaRoche. In March, a jury in Missouri awarded a group of Seeger Weiss clients $11 million in damages stemming from noxious odors emanating from a nearby factory hog farm owned by Smithfield Foods–both cases represented the largest financial verdicts to date in Accutane and hog farm odor cases.

Also in March, Seeger Weiss won a $2.25 million wrongful death verdict on behalf of survivors of a fatal bus crash involving members of a girl’s hockey team from Windsor, Ontario. The trial win in upstate New York was against both a bus and trucking company at fault in the crash.

In the drywall case decided on April 8, Judge Fallon heard plaintiffs describe a range of calamities caused by the Taishan drywall, including its unpleasant acrid smell, corrosion of electric wires and appliances, and physical symptoms such as difficulty breathing, headaches, rashes and nosebleeds caused by the gases released.

In addition, several homeowners paid for multiple tests in their homes, and later for temporary places to live when the drywall fumes made their homes uninhabitable. Some families lived with the persistent fear of fire breaking out, due to the corrosion of metal surfaces by sulfur gases from the leeching gypsum. As an added insult, any attempt to remove the offending drywall produced further damage or destroyed household fixtures and furnishings, including kitchen cabinets, countertops, carpet, wall trim, even doorknobs.

Chinese-made drywall, Judge Fallon wrote in his decision, has significantly higher levels of hydrogen sulfide, carbonyl sulfide, and carbon disulfide–all known irritants to humans–than “typical, benign drywall.” Sulfur gases also release strong odors and are known to corrode various metals.

Judge Fallon concluded, “The Court finds that scientific, economic, and practicality concerns dictate that the proper remediation is to remove all drywall in their homes, all items which have suffered corrosion as a result of the Chinese drywall, and all items which will be materially damaged in the process of removal.”

For more information, visit www.seegerweiss.com.

RISMEDIA, April 1, 2010—When it comes time to remodel, many homeowners think “do-it-yourself” or DIY is the smartest and most cost effective way to get the job done. And while popular TV shows on HGTV and publications at the home improvement store boast the ease of such projects, Jeff Brecko, vice president of Aurora Custom Remodeling, advises homeowners to take an in-depth look at their project and consider all options before tackling such a large undertaking.

“DIY projects can be great if you are taking on a small project, but when remodeling major portions of a home, such as a kitchen or bathroom, there are many structural and design elements that need to be considered,” said Brecko, who also serves as the 2010 chair of the Northeast Florida Builders Association’s Remodeler’s Council. “Essentially, there are five aspects that must be considered when deciding whether to hire a professional remodeler versus doing the project yourself. Those aspects include design, quality, time, money and warranty.”

Brecko said the design aspect of a remodeling project is paramount to its success. A professional remodeler can take a homeowner’s idea and transform it into reality with an addition or renovation. The years of experience a homeowner gets when they hire a professional remodeler will make the project better and this expertise is invaluable in designing a project to fit within an existing structure and budget.

Quality is the next facet a homeowner must look at when remodeling. The quality of a professional remodeling job will be far superior to that which a homeowner will receive if this is their first time remodeling, Brecko said. Professionals are able to guarantee better subcontractors at better prices with better leverage. Though a homeowner may find excellent subcontractors by contacting friends who have remodeled, checking references and calling past clients, they are unlikely to secure the pricing and warranty a professional remodeler will command.

Everyone knows time is money, and that is especially true when it comes to remodeling. A professional remodeler will ensure the project stays on time and within budget by perfecting the plans before the job begins, creating a thorough scope of work, hiring the qualified subcontractors and vendors ahead of time and properly supervising the quality of work. If it is necessary for a client to move out of their home during the renovation, a professional remodeler can save them extended rental costs by maintaining a deliberate pace of construction according to a pre-planned construction schedule.

“Many remodeling projects become the victim of the best intentions,” Brecko said. “A professional remodeler will employ systems to ensure that the project stays on schedule to protect not only their bottom line, but more importantly, their reputation.”

The last aspect Brecko recommends considering on a remodeling project is the warranty that comes with a professional company. When homeowners hire a professional, they are buying a service more than a product. A professionally managed job will have quality built in and will require less maintenance and fewer warranty calls on products.

“When you hire a professional remodeling team, you can expect motivated individuals who desire your complete satisfaction,” Brecko said. “Homeowners deserve to have someone working on their home who has experience, knowledge and the wherewithal to back up their work and reputation.”

For more information, visit www.aurorabuilders.com.

RISMEDIA, March 27, 2010—(MCT)—The word “as-is” can indeed be one scary phrase. Especially when buying a home in today’s market where foreclosures and short sales that need fix-up work are plentiful.

Before Renovation

But a little-known Federal Housing Administration (FHA) loan program that’s been around since 1978 can help take the sting out of “as-is.” Only 219 borrowers took advantage of the FHA’s 203k program in 2009. Not that many lending and real estate professionals are aware of the program, say observers.

Last year, Tom Meyer found a classic Oakland, Calif., home built in 1925 near Mills College he liked a lot. As a short sale it was priced right and about half the original asking price. Trouble was, the place needed some fix-up work—foundation improvements, dry rot work, a new roof over the garage and other improvements.

With the help of the FHA’s 203k renovation financing loan program, Meyer folded about $100,000 worth of repairs and improvements into his $422,000 mortgage. He had bought the home for $320,000. “I would not be able to pay a contractor $100,000 and buy a house at the same time,” said Meyer, who works in corporate media at Shaklee’s Pleasanton headquarters. “It had been essentially allowed to start falling apart over the last 20 years.”

He had rented in San Francisco for 25 years before moving into his new digs last September with his girlfriend, Cathy Keating. “We like old houses, and a great benefit of this program is that it helped us keep a beautiful but deteriorating house from deteriorating further. With the work we did, we expect it to still be standing and beautiful 80 years from now,” he said.

Renovation financing through the 203k program allows the costs of needed repairs and improvements to be included in the FHA federally-insured loan amount instead of having the buyer come up with cash or a separate loan to do the work.

After Renovation

“This is a perfect loan for an as-is situation,” said Kristine Marr, a loan officer with Prospect Mortgage in Lafayette, Calif. “It’s not a new loan program, although I think it’s going to have a lot more use today because we have so many foreclosures and bank-owned properties. You go into lots of homes and see people have yanked out stoves and ovens and fixtures and sinks.”

The work has to be done within six months after escrow closes. Borrowers have the option of putting up to six months of mortgage payments on the end of the loan if they don’t want to live in the house while the work is being done.

“Renovation financing is a program that allows you to not only finance the purchase of a home but finance any repairs and/or improvements. It provides buyers with a responsible way to purchase a fixer-upper property,” said Luis C. Munoz, who helped Meyer with the loan and is a renovation loan specialist with the Oakland branch of Mason-McDuffie Mortgage Corp. Munoz also gives presentations about the program at monthly home ownership workshops sponsored by the Unity Council, an Oakland-based nonprofit.

At a time when equity loans are hard to get, the program can also be used as a refinancing vehicle for borrowers who want to do repairs and improvements, provided the value of the home is greater than the value of the loan. “At the same time as you refinance, you pop in the extra dollars you need for whatever you want to do,” Marr said.

FHA home loans require certain health and safety standards be met and that needed repairs identified during the inspection process be completed before escrow closes. However, minor repairs and improvements costing between $5,000 and $15,000 can be done after escrow closes for borrowers who opt for a streamlined repair program.

A 203k loan can help buyers finance both minor and major repairs and improvements. It can also help buyers compete with investors when bidding for short sales and foreclosures, said Sheri Powers, director of the Homeownership Center at Unity Council.

The loans can also be used to pay for improvements such as new appliances, second-story additions, remodeled kitchens and bathrooms, and skylights, just to name a few examples. “Property repairs cost money and they want to make sure people using their loan program are going to be in the home in long run and not just the short run,” Powers said.

The loans have become more popular since home prices started falling and FHA lending limits were raised a couple years ago but are still a tiny sliver of overall FHA loan volume. Last year, 203k loans accounted for 219 mortgages in the Bay Area, compared to 35 in 2008, one in 2007 and none in 2005 and 2006, according to Department of Housing and Urban Development statistics. “It’s making a comeback,” said Powers.

Marr said that 203k financing is not for everyone. A buyer will have to work with contractors and may have to wait several months before moving in, she said. And there is no guarantee they won’t be outbid by an investor for the property. “A lot of listing agents are preferring the investors, because the investors tend to be all cash or 50% cash. That’s always hard to compete with,” she said.

RISMEDIA, March 20, 2010—(MCT)—As the spring real estate season kicks in and the tax credit deadline for sale agreements approaches, the government is ending a program that has kept interest rates low and housing-affordability levels high for months.

On March 31, the Federal Reserve will stop buying mortgage-backed securities from Fannie Mae and Freddie Mac, returning control of interest rates to private investors.

For months, industry observers have predicted that once government supports are removed, interest rates will rise quickly, pushing many of the first-time buyers critical to housing’s recovery out of the market.

In late summer and fall 2009, lured by fixed 30-year mortgage rates under 5% and the first $8,000 tax credit, which expired Nov. 30, first-timers pushed sales of previously owned homes to the highest levels in at least three years, reducing record inventories and braking price declines.

That tax credit was renewed Nov. 5 and expanded to buyers who had not purchased a property in five years, although the credit for repeat buyers is $6,500. The second credit expires April 30, is unlikely to be renewed, and remains the engine moving buyers.

“Not a single one has expressed concern about interest rates,” said Cheryl Miller of Long & Foster Real Estate in Blue Bell, Pa., acknowledging that “there is, I suppose, a false sense of security regarding rates remaining low.”

As the date for the Fed pullout approaches, analysts now generally agree that an immediate rate spike is no longer the likely result. “We think there will be a significant increase in private demand for mortgage-backed securities to take the place of the Fed,” said David Berson, chief economist at PMI Group in Walnut Creek, Calif. Not enough to offset the Fed’s departure, he said, with rates possibly increasing a quarter of a percentage point, “but a significant one.”

Bankrate.com columnist Holden Lewis said rates are so low now—averaging 4.87% for a 30-year fixed this week—that an increase “is inevitable. But maybe they’ll rise gradually instead of jumping” April 1.

The Fed says it will stop buying “by” March 31 instead of “at” the end of the month, meaning that it likely has reduced its purchases and rates haven’t risen, Lewis said.

Moody’s Economy.com chief economist Mark Zandi said rates will “drift” higher in summer and fall, with the half a percentage point the Fed’s action cut working its way back in—mainly because investors believe the government would return if they got too high. For that reason, Philadelphia mortgage broker Fred Glick said, rates won’t change. “If the old buyers don’t come back, the Fed will intercede again to ensure rates during a continued slowly recovering economy will not go so high as to stymie a positive direction,” Glick said. Buyers of these securities “now see that the lenders have instituted rigorous standards to ensure that the Fannie Mae and Freddie Mac paper they are buying are very good loans,” he said.

On the other hand, said Holland, Pa.-based economist Joel L. Naroff, low rates are not sustainable, and “the only way to get the market to stand on its own is to get people to become realistic again about prices and rates.” Rates will likely rise, but “the level will still be historically low,” Naroff said.

When rates do rise, likely by year’s end, it won’t be because of the Fed’s action, but “natural macroeconomic forces” like a recovering economy and the high budget deficit, said Lawrence Yun, National Association of Realtors chief economist.

The possibility of renewed Fed intervention will likely prevent rate increases resulting from private investors demanding large risk spreads, said economist Brian Bethune of IHS Global Insight in Lexington, Mass. As a result, Bethune and IHS economist Patrick Newport believe, the rate will be at only 5.25% by the fourth quarter.

Many Fed officials have emphasized that “high unemployment and tame inflation warrant a continued promise to hold rates very low for a long time,” said Peter Buchsbaum, of Arlington Capital Mortgage in Horsham, Pa.

Some analysts expect the expansion to ease, “and I am sure the Fed does not want to extinguish the fragile recovery,” Buchsbaum said.

Treasury bond yields “did not move much after the Fed completed its $300 billion in purchases in November,” said Jerome Scarpello, of Leo Mortgage in Spring House, Pa., “meaning they were able to exit and not disrupt that market.” Rates will rise, he said, but not as high as the one percentage point others predict. “With unemployment high and foreclosures an issue, a significant rate increase can push home prices down,” Scarpello said, “and hamper the slight recovery we now have.”

(c) 2010, The Philadelphia Inquirer.

Distributed by McClatchy-Tribune Information Services.

RISMEDIA, March 19, 2010—(MCT)—Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.

“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.

But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”

Rinomato offered the following tips for staging a home:

1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.

2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.

3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.

4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.

5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.

6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.

7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.

8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.

9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.

10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.

(c) 2010, The Orlando Sentinel (Fla.).

Distributed by McClatchy-Tribune Information Services.

For Sale in the family friendly neighborhood of Evangeline Oaks, Village of Alden Bridge, The Woodlands. One of the most convenient neighborhoods in The Woodlands, Evangeline Oaks is just minutes to 45 down either College Park / 242 or FM 1488.  The Woodlands Town Center, Market Street, College Park High, St. Lukes Medical Center, Lone Star College and Village shopping centers are also close by.  Its a short walk to the tot park, jogging loop and Alden Bridge pool and sports fields.

78 E Evangeline Oaks Cir

This two story Ryland home has been owned and occupied by the sellers since it was built in 2002. Exceptionally maintained, the home is move in ready.  Stepping into the home you are greeted by the large foyer.  Spacious formal dining and living areas are located to either side. The open kitchen and family room design along with the large back yard patio and deck are ideal for entertaining guests.

A bakers kitchen awaits!  Equipped with full-sized in-wall double ovens, island prep area, solid surface Avanza counter tops, 42″ Maple cabinetry, family work station and large pantry, the kitchen is family ready.

The master suite is privately tucked away on the lower level.  Enjoy views of the rear garden from the attached sitting area.  Counter and storage space is abundant in the master bath and closet.  His and her vanities, large garden tub and walk-in shower.

Low maintenance tile and wood flooring through out the first floor. The first floor guest bath is a full bath bringing the total baths to 4 full Baths!  The garage is 3 car wide with extra room for storage.  The single garage bay is large enough for the owner to store their boat in.  Check out the heated and cooled craft or workshop room with built in workbench.

The second floor was designed with privacy in mind.  Spacious bedrooms are separated by two full baths and the two story foyer area.  The game room has a wall of custom built bookshelves.  You’ll find ceiling fans in all the bedrooms.

Much more! Come see today!

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Home designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don’t have lasting value.

“It’s all about family togetherness – casual living, entertaining and flexible spaces,” says Carol Lavender, president of the Lavender Design Group in San Antonio.

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

1. Large kitchens with islands
2. Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
3. Home offices
4. Main-floor master suite
5. Outdoor living space
6. Ceiling fans
7. Soaking tub in the master suite and/or an oversize shower with a seating area
8. Stone and brick exteriors rather than stucco or vinyl
9. Community walking paths and playgrounds
10. Two-car garages, but three-car garages are even more desirable

Source: MarketWatch, Steve Kerch (01/30/2010